U.S. Battery Energy Storage System Market To Hit Value .8 Billion By 2027Posted by Mrudula Anil Karmarkar on January 13th, 2021 The U.S. battery energy storage system market size is expected to reach USD 1.8 billion by 2027, expanding at a CAGR of 23.9%, according to a new report by Grand View Research, Inc. Rising deployment of renewable energy sources such as solar and wind are resulting in increased adoption of storage systems owing to the grid reliability offered by the technology. It provides constant power supply to the grid and compensates for intermittent nature of renewable power supply. The systems are widely used in industries including medical, marine, telecommunication, production, energy, and information technology. With increasing requirement of efficient grid management, constant load management, and continuous power supply, the market is expected to witness significant growth over the forecast period. The manufacturers supply batteries both through direct supply and third-party supply agreements to the manufacturers in the industry. The manufacturers assemble different batteries depending on the requirements of the end-use industries. The system manages the power quality, aids time shifting, and improves grid efficiency. Industry participants are focusing on largely commercializing flywheel storage as it is more economical than batteries. The main reasons for this are the long service life and low maintenance costs of the flywheel compared, which compensates for the higher purchase costs at the beginning of the installation. While flywheel storage normally has the same lifespan as the UPS technology, batteries have to be replaced several times during the lifespan of a UPS. The U.S. battery energy storage system market size was valued at USD 336.6 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 23.9% from 2020 to 2027. The growing use of battery storage systems in industries to support equipment with critical power supply in case of an emergency including grid failure and trips is expected to drive the market. The rising need for uninterruptible power supply in data centers and telecommunications to enhance the business productivity is expected to drive the market over the forecast period. Large scale renewable energy installation in the U.S. economy will lead to enhanced deployment of battery energy storage systems in order to prevent intermittent power supply from renewable sources. Stringent government regulations regarding environment protection have resulted in increased use of solar and wind energy, which needs to be converted and stored in off-grid power storage systems. U.S. Battery Energy Storage System Market Report Highlights
In the U.S., the market value chain is characterized by equipment suppliers, battery energy storage manufacturers, and end-use markets. Battery energy storage system utilizes batteries, modules packs, connectors, cables, and bus bars as a part of the manufacturing process. Batteries form a major key component of the battery energy storage system. These batteries find their application in areas including emergency power supply system, battery system for wind power output fluctuation management, and stand-alone PV systems. Advantageous features such as favorable cost, performance ratio, easy charging, and easy recyclability work in favor of these batteries, which is further expected to drive the market. Continuous innovation in energy storage technology is driving the market. Industrial leaders such as U.S. based company Power Electronics, is innovating dual solar-inverter-plus-storage products, along with expansion of its solar charging offering. Demand for an alternative of Lithium-ion technology such as zinc technology is growing, especially in areas which are fire-sensitive where lithium-ion batteries are still seen as somewhat risky. Battery energy storage systems are anticipated to have high growth and high penetration on account of easy charging properties coupled with re-energization of the electrolyte liquid resulting in low wastage. Moreover, increasing applications in backup power, portable power, and stationary applications is further expected to surge market growth. Have a Query? Ask Our Expert: https://www.grandviewresearch.com/inquiry/450506/ibb The market is consolidated in nature and is dominated by numerous key players. The key companies are adopting various organic and inorganic growth strategies with an aim to enhance their product offerings in order to gain market share. The battery manufacturers supply batteries both through direct supply and third-party supply agreements to the battery energy storage system manufacturers. The manufacturers assemble different batteries depending on the requirements of the end-use industries. With the increasing requirement of efficient grid management, constant load management, and continuous power supply, the market is expected to witness significant growth over the forecast period. Some of the prominent players in the U.S. battery energy storage system market include:
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