Stationary Battery Storage Market Introduction 

Stationary battery storage refers to a technology that allows the storage of electrical energy in rechargeable batteries for later use. This technology is increasingly being used as a solution to improve the stability and reliability of electrical grids, to provide backup power during power outages, and to store energy generated from renewable sources such as wind and solar. Stationary battery storage systems can be used in a wide range of applications, from residential and commercial buildings to utility-scale projects.The use of stationary battery storage is growing rapidly as a result of increasing concerns about climate change and the need to transition to more sustainable energy sources. The adoption of stationary battery storage is also being driven by the declining cost of battery technology and government policies and incentives aimed at promoting renewable energy and energy storage.The stationary battery storage market is expected to experience significant growth in the coming years, driven by the increasing adoption of renewable energy sources, the growing need for grid stability and reliability, and the increasing demand for backup power solutions. The market is also being driven by the development of advanced battery technologies that can offer higher energy densities, longer lifetimes, and improved safety and reliability.The market is segmented by type of battery, application, and region. Lithium-ion batteries are the most commonly used type of battery in stationary battery storage systems, while the main applications of these systems include grid storage, residential and commercial energy storage, and off-grid power solutions. North America and Europe are currently the largest markets for stationary battery storage, but the Asia-Pacific region is expected to experience significant growth in the coming years due to the increasing adoption of renewable energy and government policies aimed at promoting energy storage.

Stationary Battery Storage Market Size

The global stationary battery storage market was valued at USD 6.9 billion in 2020 and is projected to reach USD 11.5 billion by 2025, growing at a CAGR of 10.7% during the forecast period. The market is expected to continue its growth trajectory beyond 2025 as well.The stationary battery storage market is being driven by the increasing adoption of renewable energy sources, the need for grid stability and reliability, and the growing demand for backup power solutions. The market is also being supported by government policies and incentives aimed at promoting renewable energy and energy storage.North America and Europe are currently the largest markets for stationary battery storage, but the Asia-Pacific region is expected to experience significant growth in the coming years due to the increasing adoption of renewable energy and government policies aimed at promoting energy storage. The residential and commercial energy storage segment is also expected to witness significant growth during the forecast period, driven by the increasing adoption of solar power systems and the need for backup power solutions.

Stationary Battery Storage Market Share

The stationary battery storage market is highly fragmented with several key players operating in the market. The major players in the market include LG Chem Ltd., Samsung SDI Co., Ltd., Tesla, Inc., BYD Company Ltd., Kokam Co., Ltd., and Saft Groupe S.A. These companies collectively held a significant share of the market in 2020.The report also suggests that the lithium-ion battery segment held the largest share of the stationary battery storage market in 2020, followed by flow battery and lead-acid battery segments. The commercial and industrial application segment held the largest share of the market in 2020, followed by residential and utility-scale application segments.Geographically, North America held the largest share of the stationary battery storage market in 2020, followed by Europe and the Asia-Pacific region. The Asia-Pacific region is expected to witness the highest growth during the forecast period, driven by the increasing adoption of renewable energy and government policies aimed at promoting energy storage in the region.

Stationary Battery Storage Market Trends

There are several key trends that are currently shaping the stationary battery storage market:

Increasing adoption of renewable energy: With the growing focus on reducing carbon emissions and transitioning to cleaner energy sources, there has been a significant increase in the adoption of renewable energy such as solar and wind power. Stationary battery storage systems are being used to store excess energy generated by these renewable sources, which can be used during times of high demand or when there is insufficient solar or wind power available.

Growing demand for grid stability and reliability: As the use of renewable energy sources increases, there is a growing need for grid stability and reliability. Stationary battery storage systems can help address this issue by providing backup power during times of high demand or when there is a disruption in the grid.

Shift towards decentralized power systems: There is a growing trend towards decentralized power systems, where energy is generated and stored locally. Stationary battery storage systems play a key role in these systems by providing backup power and improving energy efficiency.

Increasing use in the transportation sector: Stationary battery storage systems are also being used in the transportation sector, particularly in electric vehicles. The demand for electric vehicles is expected to increase significantly in the coming years, which will drive the growth of the stationary battery storage market.

Advances in battery technology: There have been significant advances in battery technology in recent years, particularly in the development of more efficient and longer-lasting lithium-ion batteries. These advances are expected to drive the growth of the stationary battery storage market as more efficient and cost-effective systems become available.

Stationary Battery Storage Maret Driving Factors

The following are some of the key driving factors for the growth of the stationary battery storage market:

Increasing demand for renewable energy sources: The growing focus on reducing carbon emissions and transitioning to cleaner energy sources is driving the adoption of renewable energy such as solar and wind power. Stationary battery storage systems are used to store excess energy generated by these renewable sources, which can be used during times of high demand or when there is insufficient solar or wind power available.

Government initiatives and policies: Many governments around the world are implementing policies and initiatives to encourage the adoption of renewable energy sources and energy storage systems. For example, in the United States, the Federal Energy Regulatory Commission (FERC) has implemented Order 841, which requires regional transmission organizations and independent system operators to allow energy storage resources to participate in wholesale energy markets.

Growing demand for grid stability and reliability: As the use of renewable energy sources increases, there is a growing need for grid stability and reliability. Stationary battery storage systems can help address this issue by providing backup power during times of high demand or when there is a disruption in the grid.

Declining cost of batteries: The cost of batteries has been declining in recent years due to advances in technology, increased production volume, and economies of scale. This has made stationary battery storage systems more affordable and attractive to consumers.

Increasing demand for electric vehicles: The demand for electric vehicles is expected to increase significantly in the coming years, which will drive the growth of the stationary battery storage market. Stationary battery storage systems are used in electric vehicles to provide power for propulsion and other vehicle systems.

Growing demand for energy efficiency: There is a growing demand for energy efficiency in many industries, including commercial, industrial, and residential. Stationary battery storage systems can help improve energy efficiency by storing excess energy generated during off-peak hours and using it during times of high demand. This can help reduce energy costs and improve overall energy efficiency.

Stationary Battery Storage Market Regional Analysis

The stationary battery storage market has a strong presence in regions such as North America, Europe, and Asia Pacific. North America dominates the market owing to the increasing demand for energy storage systems and renewable energy in countries such as the US and Canada. Europe also holds a significant share of the market due to the favorable government regulations and initiatives to promote renewable energy sources. Additionally, the increasing adoption of electric vehicles is driving the demand for stationary battery storage in the region.The Asia Pacific region is expected to witness significant growth in the stationary battery storage market due to the increasing focus on renewable energy and energy storage systems in countries such as China, India, Japan, and South Korea. The growing demand for electricity in the region is also expected to boost the demand for stationary battery storage.Other regions such as Latin America and the Middle East & Africa are also expected to witness growth in the stationary battery storage market, driven by the increasing adoption of renewable energy sources and government initiatives to promote sustainable energy. However, the high initial costs associated with stationary battery storage systems may act as a restraint to the market growth in these regions.

Stationary Battery Storage Market Forecasts 2030 

The stationary battery storage market is expected to continue its growth trajectory and reach a market size of USD 13.5 billion by 2030, with a CAGR of around 9.2% from 2021 to 2030.The increasing demand for renewable energy sources and energy storage systems, along with the growing adoption of electric vehicles, is expected to drive the growth of the stationary battery storage market. The market is also expected to benefit from government initiatives and policies promoting sustainable energy and the deployment of energy storage systems.The lithium-ion battery segment is expected to dominate the stationary battery storage market due to its high energy density and longer lifespan compared to other battery chemistries. The market is also expected to witness significant growth in the utility-scale application segment, driven by the increasing demand for energy storage systems to support renewable energy integration and grid stability.Geographically, the Asia Pacific region is expected to witness significant growth in the stationary battery storage market due to the increasing adoption of renewable energy and energy storage systems in countries such as China, India, and Japan. North America and Europe are also expected to hold significant shares of the market, driven by the increasing demand for energy storage systems and renewable energy.

Stationary Battery Storage Market Key Industry Players

Some of the key industry players in the stationary battery storage market include:

LG Chem - a South Korean multinational company that manufactures a wide range of batteries and energy storage systems for residential, commercial, and industrial applications.

Tesla - an American electric vehicle and clean energy company that manufactures and supplies lithium-ion batteries and energy storage systems for residential, commercial, and utility-scale applications.

BYD Company - a Chinese multinational company that produces rechargeable batteries, electric vehicles, and energy storage systems.

Panasonic - a Japanese multinational company that produces a wide range of electronic products, including lithium-ion batteries and energy storage systems.

Fluence - a joint venture between Siemens and AES Corporation that provides energy storage solutions for utility-scale applications.

NEC Energy Solutions - a subsidiary of NEC Corporation that specializes in the development and supply of lithium-ion batteries and energy storage systems for utility-scale applications.

Samsung SDI - a South Korean multinational company that manufactures a wide range of batteries and energy storage systems for various applications, including residential, commercial, and utility-scale.

ABB - a Swiss multinational corporation that provides power and automation technologies, including energy storage systems for various applications.

Hitachi Chemical - a Japanese chemical company that produces a wide range of products, including lithium-ion batteries and energy storage systems.

GS Yuasa - a Japanese battery manufacturer that produces a wide range of batteries and energy storage systems for various applications, including automotive and stationary storage.