APAC to lead global battery energy storage markethttps://energymanagementsummit.co.uk/wp-content/uploads/2022/04/china-city-6156596_1280.jpg 960 640 Stuart O'Brien Stuart O'Brien https://secure.gravatar.com/avatar/81af0597d5c9bfe2231f1397b411745a?s=96&d=mm&r=g
The Asia-Pacific (APAC) region is set to lead the global battery energy storage market, accounting for 68% of the global market value through 2026, with China, Japan, India, South Korea and Australia propelling the regional market.
That’s according to GlobalData’s latest report, ‘Battery Energy Storage Market Size, Share and Trends Analysis by Technology, Installed Capacity, Generation, Drivers, Constraints, Key Players and Forecast, 2021-2026’, which reveals that the global market for the battery energy storage is estimated to grow to $10.84bn in 2026, out of which APAC will account for $7.33bn.
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.”
China, one of the fastest-growing economies, is expected to lead the global battery energy storage market with $4.04bn in 2026. A mammoth target of 1,200 GW of wind and solar capacity will provide considerable growth opportunities to the energy storage 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.
Pullagura added: “The rapid 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, leading to a significant growth in the market over the forecast period. Grid transformations, improving electrification rates, and electricity provisions for the rapidly growing population will create market opportunities.”
Over the last decade, various new digital and smart technologies have been integrated. Countries have been aggressively promoting the modernization of grids and enhancing the grids’ capability to meet the requirements of the present and future. Additionally, 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.
Pullagura concluded: “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.”