Distributed Energy Storage System Market to Grow with a CAGR of 5.50% through 2028
Increasing demand for renewable energy and Growing
need for grid flexibility are likely to drive the market in the forecast period.
According to TechSci Research report, “Distributed
Energy Storage System Market – Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2028”, the Global Distributed
Energy Storage System Market stood at USD 4.08 billion in 2022 and is
anticipated to grow with a CAGR of 5.50% in the forecast period.
One of the primary drivers fueling the
growth of the global Distributed Energy Storage System (DESS) market is the
increasing integration of renewable energy sources, such as solar and wind
power, into the energy mix. As countries and regions worldwide seek to reduce
greenhouse gas emissions and transition towards cleaner energy alternatives,
renewables have gained prominence. However, renewable energy generation is inherently
intermittent, depending on factors like weather conditions and time of day. DESS technologies, including batteries,
provide a solution to this intermittency challenge. They store excess energy
produced during periods of high renewable generation and release it when demand
is high or when renewable sources are generating less power. This process,
often referred to as energy arbitrage, ensures a consistent and reliable energy
supply, helping to balance the electricity grid. The increasing share of renewables
in the energy mix has created a significant demand for DESS systems that can
effectively manage the variability of these clean energy sources. Governments,
utilities, and businesses are investing in DESS solutions to optimize renewable
energy utilization, enhance grid stability, and achieve sustainability goals.
This driver is expected to continue as renewable energy capacity expansion
remains a global priority.
Grid modernization initiatives undertaken by
governments and utilities worldwide are another major driver behind the growth
of the global Distributed Energy Storage System market. Electrical grids are
facing unprecedented challenges due to factors such as increased energy demand,
the proliferation of distributed energy resources (DERs), and the need to
enhance grid resilience in the face of climate-related events. DESS
technologies play a critical role in addressing these challenges. They offer
grid operators the ability to regulate voltage, support peak demand, and
provide ancillary services like frequency regulation. By deploying DESS systems
strategically across the grid, utilities can optimize grid operations, reduce
transmission and distribution losses, and ensure grid stability. Furthermore,
as smart grid technologies become more prevalent, DESS systems can seamlessly
integrate with advanced grid management systems. This integration enables
real-time communication and control, allowing for more efficient demand
response, load management, and the seamless integration of DERs. Governments
and utilities are actively investing in grid modernization efforts to enhance
the overall reliability and resilience of power systems. DESS technologies are
becoming an integral part of these initiatives, driving the demand for energy
storage solutions that can help create a more robust and adaptive electrical
grid infrastructure. This driver is expected to persist as the need for grid
modernization continues to grow in response to evolving energy challenges.
Browse over XX market data Figures spread
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Energy Storage System Market.”
The Global Distributed Energy Storage System Market is
segmented into capacity type, battery, application, end user, and region.
Based on battery, The Lithium-Ion segment had the
largest market share in 2022 & expected to maintain it in the forecast
period. Lithium-ion batteries offer a high energy density, which means they can
store a significant amount of energy in a relatively compact and lightweight
package. This makes them ideal for applications where space and weight
constraints are essential, such as residential and commercial
installations. Lithium-ion batteries are
known for their long cycle life, meaning they can undergo a large number of charge
and discharge cycles before experiencing significant degradation. This
longevity is crucial for DESS applications, as it ensures a stable and reliable
energy storage solution over an extended period. Lithium-ion batteries can
charge and discharge rapidly, making them well-suited for applications that
require quick responses to fluctuating energy demands. This capability is
particularly important for grid support services like frequency regulation and
peak shaving. Lithium-ion batteries have high charge and discharge efficiency,
meaning they can convert stored energy back into electricity with minimal
losses. This efficiency translates into cost savings and improved overall
system performance. Lithium-ion batteries have a low self-discharge rate, meaning
they retain their stored energy for more extended periods without significant
losses. This feature is beneficial for applications that require occasional or
emergency backup power. Lithium-ion batteries are relatively maintenance-free
compared to other battery technologies like lead-acid. They do not require
regular watering or equalization charging, reducing operating costs and hassle.
Ongoing research and development efforts have led to continuous improvements in
lithium-ion battery technology, resulting in increased energy density, longer
cycle life, and lower costs. These advancements have made lithium-ion batteries
even more attractive for DESS applications. Due to their widespread use in
consumer electronics, electric vehicles, and renewable energy installations,
lithium-ion batteries benefit from economies of scale and readily available
manufacturing infrastructure. This has contributed to cost reductions and
widespread adoption.
Based on application, The Grid Storage segment had the
largest market share in 2022 and is projected to experience rapid growth during
the forecast period. Grid storage solutions play a critical role in ensuring
the stability and reliability of electrical grids. They provide essential
services like frequency regulation, voltage support, and grid balancing, which
are crucial for maintaining grid integrity. These services help mitigate the
challenges posed by intermittent renewable energy sources and fluctuations in
electricity demand. Grid storage systems
are highly effective in managing peak electricity demand. During periods of
high demand, such as hot summer afternoons when air conditioning use peaks,
grid storage systems release stored energy to the grid. This reduces the strain
on power generation facilities and prevents grid congestion and blackouts. By
alleviating peak demand, grid storage solutions contribute to grid stability
and reduce the need for expensive peaker plants. The growing penetration of
renewable energy sources like solar and wind presents challenges related to
their intermittent nature. Grid storage systems store excess energy generated
during periods of high renewable output and release it when renewable
generation is low or absent. This smoothing of renewable energy fluctuations
facilitates their seamless integration into the grid, reducing the need for
backup fossil fuel generation and enhancing grid reliability. Grid storage
enhances grid resilience by providing backup power during grid outages. When
natural disasters or unforeseen events disrupt the grid, DESS systems can
ensure a continuous power supply to critical facilities, such as hospitals,
emergency response centers, and data centers. This capability is invaluable for
maintaining essential services and public safety. Grid storage solutions can improve
the overall efficiency of the grid by reducing transmission and distribution
losses. By storing excess electricity closer to where it's needed and
minimizing energy losses during long-distance transmission, DESS systems
contribute to a more efficient and cost-effective grid infrastructure.
Major companies operating in the Global Distributed
Energy Storage System Market are:
- Tesla Inc
- BYD Co. Ltd
- LG Chem
- Samsung SDI Co., Ltd.
- Panasonic Holdings Corporation
- ABB Ltd
- Siemens AG
- General Electric Company
- Eaton Corporation plc
- Sonnen GmbH
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“The Global Distributed Energy Storage System market
is expected to rise in the upcoming years and register a significant CAGR
during the forecast period. The global Distributed Energy Storage System (DESS)
market is being propelled by the increasing emphasis on enhancing grid
resilience and reliability. As energy demands surge and the integration of
renewable resources rises, power grids face greater challenges in maintaining
stability. DESS technologies offer a strategic solution by storing surplus
energy during periods of low demand and releasing it during peak demand or grid
disruptions. This process optimizes grid operations, reduces transmission
losses, and bolsters grid reliability. As governments, utilities, and
industries prioritize uninterrupted power supply and adapt to changing energy
landscapes, the demand for DESS as a grid-enhancing tool continues to surge. Therefore,
the market of Distributed Energy Storage System is expected to boost in the
upcoming years.,” said Mr. Karan Chechi, Research Director with TechSci
Research, a research-based management consulting firm.
“Distributed Energy Storage System Market - Global
Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By
Capacity Type (Single Phase Type, Three Phase Type, Double Phase Fire Line), By
Battery (Nickel-Cadmium, Lead Acid, Lithium-Ion), By Application
(Transportation, Grid Storage, Renewable Energy Storage), By End User
(Commercial, Residential), By Region, By Competition”, has evaluated
the future growth potential of Global Distributed Energy Storage System Market
and provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision-makers make sound investment decisions., The report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the Global Distributed Energy Storage System
Market.
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