February 18, 2025
Advanced Energy Storage Market

Advanced Energy Storage Market Is Expected To Be Flourished By Growing Applications In Renewable Energy Sector

Advanced energy storage refers to capturing energy produced at one time for use at a later time. Examples of advanced energy storage technologies include battery storage, flywheel energy storage, compressed air energy storage, and thermal energy storage. Advanced batteries are widely utilized in energy storage, with lithium-ion batteries being the most commonly used type for utility-scale projects and behind-the-meter energy storage systems. These batteries are utilized across various end-use applications such as residential and commercial buildings, utilities, transportation, and others. Growing deployments of renewable energy are driving the demand for advanced energy storage systems to store the excess and variability of energy produced by renewable sources such as solar and wind energy for later use.

The global Advanced Energy Storage Market is estimated to be valued at US$ 19.9 Bn  in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Two major drivers for the growth of the global advanced energy storage market are growing applications in renewable energy sector and rising demand for ancillary services. Growing deployments of renewable energy such as solar and wind energies that have variable energy production is driving the demand for advanced energy storage systems to store excess and variability of energy produced by these renewable sources for later use. Furthermore, advanced energy storage systems can provide ancillary services such as load balancing, back-up power support and peak power shaving, which is further fueling market growth. Lithium-ion batteries are increasingly being adopted for utility-scale energy storage projects as well as behind-the-meter energy storage systems due to their higher performance capabilities over other battery technologies. Government incentives and regulations supporting deployment of renewable energies and energy storage infrastructure are also positively impacting the market growth.

Segment Analysis

The advanced energy storage market is dominated by the lithium-ion sub-segment, accounting for over 65% share. Lithium-ion batteries have high energy density and longer lives compared to lead-acid and nickel-cadmium batteries. Their ability to perform in wide temperature ranges and fast-charging capabilities have increased their usage in electric vehicles, consumer electronics, and various grid-scale applications.

PEST Analysis

Political: Governments across regions are supporting the deployment of renewable energy through initiatives and policies. They are also providing subsidies for electric vehicle adoption, which is positively impacting the advanced energy storage market.
Economic: With declining costs of lithium-ion batteries, advanced energy storage solutions are becoming economically viable for a wider range of use cases like residential energy storage. The market is expected to grow further with investments in smart grid and renewable energy integration projects.
Social: Consumers are increasingly preferring sustainable energy sources and electric vehicles to reduce carbon footprint. There is a rising acceptance of smart grid and home energy storage solutions for backup power and self-consumption of solar energy.
Technological: Efforts to develop low-cost, high-performance batteries like solid-state lithium batteries are enabling new applications. Improvements in battery management systems and energy control platforms are also enhancing the reliability of advanced energy storage solutions.

Key Takeaways

The global Advanced Energy Storage Market Demand is expected to witness high growth over the forecast period owing to the rapid integration of renewable energy and increased investments in electric vehicles worldwide.

Regional analysis: Asia Pacific currently dominates the market and is expected to maintain its lead through 2030 backed by strong government support for renewable energy adoption in major economies like China and India. Rapid market penetration of electric vehicles is driving the energy storage demand in the region.

Key players: Key players operating in the advanced energy storage market are Himalaya Herbal Healthcare, Gaia Herbs, Nature’s Bounty, NOW Foods, NutriGold, Garden of Life, MegaFood, New Chapter, Sambucol, BioSchwartz, Solgar, Source Naturals, Nature’s Way, Jarrow Formulas, Pure Encapsulations. Players are focusing on product development to cater to various energy storage requirements emerging across industries.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →