Smart Power Storage Systems Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Smart Power Storage Systems Market is Segmented By Technology (Lithium-ion Batteries, Advanced Lead-Acid Batteries, Flow Batteries, Others), By Connection (On-grid, Off-grid), By Application (Residential, Commercial, Industrial, Utility), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Smart Power Storage Systems Market Size

Global Smart Power Storage Systems Market reached USD 11.1 billion in 2022 and is expected to reach USD 23.5 billion by 2030 growing with a CAGR of 9.8% during the forecast period 2023-2030. The market's expansion is impacted by a growing focus on reducing electricity costs and the widespread adoption of renewable technology. As per the IEA (International Energy Agency), global energy storage capacity will increase by 56%, reaching 270 GW by 2026. 

Residential applications are estimated to account for almost 1/3rd of the global smart power storage market during the forecast period. The Institute for Power Electronics and Electrical Drives (ISEA) and RWTH Aachen University discovered in March 2022 that household storage systems (HSS) accounted for 93% of the 1,357 MWh of new energy capacity added in 2021, while the remaining 7% included industrial and large-scale storage segments.

Smart Power Storage Systems Market Scope

To Know More Insights - Download Sample

Smart Power Storage Systems Market Dynamics

Decline in Costs of Lithium-ion Batteries

As lithium-ion battery costs have decreased, smart power storage systems are now more cost-competitive with traditional energy storage methods. As the cost of battery manufacturing decreases, so does the total expense of implementing smart power storage systems, making them more affordable and desirable to a wider range of clients in the commercial, residential, and industrial areas.

There are various technical benefits of using lithium-ion batteries. Rechargeable Li-ion batteries often last over 5,000 cycles, compared to 400-500 cycles of lead-acid batteries. Li-ion batteries are gaining popularity due to their technological and economic benefits as the most powerful rechargeable batteries available. Battery manufacturers are lowering the cost of Li-ion technology, which is driving the market growth.

Rising Government Initiatives

Many countries across the world have established renewable energy targets and programs to increase the proportion of renewables in their energy mix. Governments are encouraging the deployment of smart power storage systems to help with the incorporation of intermittent renewable energy sources. Feed-in tariffs, tax credits and subsidies all encourage the use of energy storage technology, enabling a more stable and efficient way to integrate renewable energy into the grid.

The government has planned multiple projects for integrating energy storage technologies into renewable power plants. The Energy Storage Task Force was established in October 2022 by U.S. Department of Energy (DOE) and India's Ministry of Power (MoP) to promote a continuous significant interaction between government officials, business representatives and other stakeholders from both countries in order to scale up and boost deployment of energy storage technologies.

High Initial Costs and Lack of Awareness 

The initial investment in smart power storage systems is significant. Batteries, power conversion systems, energy management systems and installation costs are all considered. Potential adopters may be put off by the costly initial expenditure, particularly residential users and small businesses with a limited budget.

A fundamental barrier is a lack of awareness and understanding of smart power storage systems. Many consumers, businesses and politicians may be overlooking the benefits and possible applications of energy storage technologies. The lack of awareness may hinder market growth by preventing potential customers from considering or prioritizing the adoption of smart power storage systems.

Smart Power Storage Systems Market Segment Analysis

The global smart power storage systems market is segmented based on technology, connection, application and region.

Lithium-ion Batteries Provides Cost-effective Integration in Power Projects

During the forecast period lithium-ion batteries technology is expected to more than 1/3rd of the global smart power storage systems market. In renewable energy projects, lithium-ion batteries are in high demand. Many specialists in the renewables sector believe that the expansion of renewables is incomplete without energy storage technologies and lithium batteries provide the most cost-effective integration.

To provide a constant power supply to the grid, many participants have built solar plus energy storage projects. For example, in June 2023, Tata Group subsidiary Agratas Energy Storage Solutions Private Limited agreed to establish India's first gigafactory for Lithium-Ion batteries in Gujarat. The company would first invest USD 1,574.56 million to build a 20 gigatonne (GW) unit.

Global Smart Power Storage Systems Market Geographical Share

Rising Government Initiatives in Asia-Pacific

Asia-Pacific is estimated to account for more than 1/3rd of the global smart power storage systems market in 2022. Renewable energy deployment, such as solar and wind power, is rapidly increasing throughout the region. Smart energy storage systems play an important role in supporting the implementation of intermittent renewable energy sources by storing excess energy and providing it when needed, boosting grid stability and reliability.

India seeks to have 275 GW of total wind and solar capacity, as well as 72 GW of hydro and 15 GW of nuclear power, by 2027. Renewable energy is expected to account for 43% of installed capacity by 2027. The demand for energy storage devices to overcome the issues associated with intermittent renewable power generation is likely to rise as the renewable sector grows.

Furthermore, according to the South Korean government's 8th Basic Plan for Electricity Supply and Demand, which was announced in 2017, electricity demand was predicted to grow by only 1% per year through 2030. The government seeks to reduce greenhouse gas emissions and fine dust pollution by deploying energy storage systems and other energy-saving measures, as well as cleaner electricity from renewable sources.

Smart Power Storage Systems Market Companies

The major global players include BYD Company Ltd., LG Energy Solutions Co. Ltd., Panasonic Corporation, Samsung SDI Co. Ltd., Tesla Inc., ABB Ltd., AEG Power Solutions, Delta Electronics Inc., General Electric and Hitachi.

COVID-19 Impact on Smart Power Storage Systems Market

The global supply chain for smart power storage systems has been considerably impacted as a result of various nations' lockdown measures and travel restrictions. Slowdowns in the production and delivery of components and equipment hampered overall market growth. Many governments imposed lockdown measures, resulting in setbacks or postponements of smart power storage system installation projects. 

Construction restrictions on entry into residential and commercial buildings hampered the deployment of the systems. According to the European Association for Energy Storage (EASE), COVID-19 shutdown limits mostly impacted the commercial and industrial sectors, as well as the behind-the-meter sector.

AI Impact

AI in the smart power storage systems provides advantages such as smart energy utilization as well as cost and resource savings. The solutions are environmentally friendly and can be used in a variety of settings, including households, buildings and industrial applications. AI can be used to perform super-detailed modeling of energy use across buildings, such as predicting passive solar capacity, wind speed and building energy load. 

When AI was combined with battery systems, the number of systems utilizing the technology skyrocketed. Energy storage installations in U.S. increased by 196% to 2.6GW in 2021, while in Australia, installations surpassed 1GWh for the first time, including 756MWh from non-residential, largely large-scale projects.

Russia-Ukraine War Impact

The dispute lead countries to reconsider their energy policy and lessen their reliance on Russian energy imports. It could result in a greater emphasis on domestic energy generation, renewable energy sources and energy storage technologies such as smart power storage systems. To reduce their susceptibility to external supply disruptions, countries can prioritize the growth of their own energy resources.

 The European Union has also been dealing with the scarcity of the energy sources, as well as the dramatic rise in pricing. The EU imports a major portion of its energy from Russia. It also relies on Russia for 35% of its natural gas imports, 20% of its crude oil imports and 40% of its coal imports. The increase in oil and gas costs is having a devastating worldwide impact.

By Technology

• Lithium-ion Batteries
• Advanced Lead-Acid Batteries
• Flow Batteries
• Others

By Connection

• On-grid
• Off-grid

By Application

• Residential
• Commercial
• Industrial
• Utility

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In August 2022, ABB Corporation, a Swedish international company, acquired Siemens' low-voltage NEMA motor division. ABB will gain an established North American client base, a respected product line and capable operations, sales and management personnel as a result of the acquisition.
• In July 2022, Eos Energy Enterprises, Inc., a prominent provider of zinc-based long-term energy storage systems, increased its R&D capacity to discover new iterations of its Znyth aqueous battery and increase the production and launch of its energy storage products.
• In May 2022, Salient Energy, a company developing proprietary zinc-ion batteries as a lithium-ion battery replacement in residential energy storage, announced a partnership with Horton World Solutions (HWS), a sustainable manufacturer of framing systems.

Why Purchase the Report?

• To visualize the global smart power storage systems market segmentation based on technology, connection, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of smart power storage systems market level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global smart power storage systems market report would provide approximately 61 tables, 58 figures and 202 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies