The Asia-Pacific (APAC) region is set to lead the global battery energy storage market, accounting for 68 per cent of the global market value through 2026, according to GlobalData.
By its forecasts, the leading data and analytics company noted that China, Japan, India, South Korea and Australia will propel the regional market, with the global market for the battery energy storage estimated to grow to $10.84 billion in 2026, out of which APAC will account for $7.33 billion.
Bhavana Sri Pullagura, Senior Power Analyst at GlobalData said:
“Fall in battery technology prices, increasing need for grid stability and resilience of the integration of renewable power in the power market are some major factors that contribute to the growth.”
Bhavana Sri Pullagura
Analysing the trend and future potential of the battery energy storage market, the report highlights that China, one of the fastest-growing economies, is expected to lead the global batter energy storage market with $4.04 billion in 2026.
With the expectation of reaching a potential target of 1,200 GW of wind and solar capacity, this will provide considerable growth opportunities to the energy storage market over the forecast period, the report read.
Accelerated Growth to track along Rising Population
That said, it is evident that the accelerated “growth in demand for electricity and the wider use of renewable integration will keep the demand for battery energy storage market buoyant in other countries,” Pullagra said, adding that this will lead “to a significant growth in the market over the forecast period”.
China, South Korea, the US, Germany, and the UK will be the major markets on the back of supportive regulations and incentives. Additionally, ensuring grid transformations, improving electrification rates, and electricity provisions for the rapidly growing population will create additional market opportunities, Pullagura said.
Over the last decade, various new digital and smart technologies have been integrated into the APAC market. This has led to countries aggressively promoting the modernization of grids and enhancing the grids’ capability to meet the growing requirements of the present and future.
In addition, batteries are being deployed to aid smart grids, integrate renewables, create responsive electricity markets, provide ancillary services, and enhance both system resilience and energy self-sufficiency.
“GlobalData believes that encouraging policies and high electricity charges are also nudging the market to renewables and/or storage plus renewables at the end consumer level. As the power sector evolves to accommodate new technologies and adapt to varying market trends, energy storage will play a crucial role in the transition and transformation of the power sector.”
Bhavana Sri Pullagura
The report provides a comprehensive overview of other major regional markets, apart from APAC, namely the America’s, Middle East, Europe and Africa). It also provides insight into the drivers and restraints affecting the battery energy storage market, competitive landscape, policies and initiatives, recent market deals, battery system cost analysis, top company profiles, and key projects.
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