What factors drive the market for battery energy storage systems?

Network and escalating use of lithium-ion battery energy storage systems due to their excellent characteristics are among the factors that drive the market for battery energy storage systems. Battery energy storage systems can store energy from renewable sources such as the sun and wind.

What is a battery energy storage system?

Battery energy storage systems (BESS) are rechargeable batteries that can store energy from different sources and discharge it when required. BESS consists of one or more batteries that can balance the electric grid, deliver backup power, and enhance grid stability.

What is the segmentation of electricity market?

By application, the market is segmented into residential, non-residential, utility, and others. The utility segment is projected to account for the leading share in the industry due to increasing electrification initiatives to power distant and remote locations.

What drives battery energy storage industry growth?

Manufacturing economies of scales and innovative business cases are the main drivers for the growth of the battery energy storage industry. North America occupies the second-largest share in the market for battery energy storage systems, with the U.S. being the major contributor to regional growth.

What is the future of battery energy storage systems?

The battery energy storage systems industry has witnessed a higher inflow of investments in the last few years and is expected to continue this trend in the future. According to the International Energy Agency (IEA), investments in energy storage exceeded USD 20 billion in 2022.

Are lead-acid batteries a good choice for energy storage systems?

Lead-acid batteries have the second-largest revenue share in the market for battery energy storage systems. They are a good choice because they are relatively cheaper compared to other batteries and can be easily manufactured using relatively low technology equipment.