Market research and competitive intelligence provider Fact.MR reveals that the global distributed energy storage system market is currently worth US$ 4.2 billion and is set to surge ahead at a CAGR of 9.6% from 2022 to 2032. The market is poised to grow due to increased demand for energy consumption per capita and the shift towards renewable sources for power generation.
Rapid industrialization, urbanization, and increasing use of electronic devices and machines have substantially increased global power demand. Power generation from fossil fuels has many hazards and renewable energy sources are not available round the clock. Distributed energy storage systems can help in storing the extra power generated and distribute this power as and when required.
Distributed energy storage systems can be integrated into the main grid to increase the flexibility and reliability of grid systems. Distributed energy storage, when positioned in the distribution grid, can prevent fluctuations in power and problems related to power quality.
Distributed energy storage systems can be set up in remote areas that are far from the main electricity grid, a factor that is expected to increase revenue generation for market players. Owing to the increasing demand for power/electricity, sales of distributed energy storage systems are expected to witness significant growth over the coming years.
Key Takeaways from Market Study
- The global market for distributed energy storage systems is projected to grow 2.5X and reach US$ 10.6 billion by 2032.
- The market exhibited 7.2% CAGR between 2017 and 2021.
- Under battery type, lithium-ion batteries dominate with US$ 1.5 billion valuation in 2022.
- North America accounted for a market of 27.5% in 2021.
- East Asia represents 21.5% market share in 2022.
- Distributed energy storage system sales are expected to increase at CAGRs of 11.4% and 9.4% in East Asia and North America, respectively.
“Distributed energy storage system market is highly lucrative owing to increasing electric vehicle charging infrastructure,” says a Fact.MR analyst.
Collaborations between various companies, from power, battery, and electric vehicles, to construct distributed energy storage systems has had a significant impact on overall market expansion. Advancements in storage systems such as enhanced power storage capacity, integration of smart features such as control and monitoring of power generation and consumption, use of synthetic hydrogen and methane, utilization of various distributed energy resources, and others have created significant market growth opportunities.
Prominent distributed energy storage system manufacturers are ABB, Antora Energy, AutoGrid Systems, Inc. Black & Veatch Holding Company, BYD Motors Inc., Cision US Inc., Eos Energy Enterprises, Inc., Fluence, GENERAL ELECTRIC, Hitachi Energy Ltd., Jabil Inc., Johnson Controls, NEC Corporation, NextEra Energy Resources, LLC, Panasonic Corporation, SAMSUNG SDI CO. LTD., Schneider Electric, Tesla, and TOSHIBA CORPORATION.
Here below are some related developments:
In June 2022, Lingtan Intelligence released its Tensorpack T 200kWh/100kW distributed energy storage DES system, battery, and energy management system, integrating batteries, thermal management system, DC/AC bidirectional converter, and fire protection system in the cabinet.
In October 2021, Gogoro, Taipower, and Enel X collaborated to offer bidirectional charging through their battery swapping stations. This will broaden distributed energy storage systems by using more diverse sources.
In September 2021, SimpliPhi Power and Lumin partnered to launch a user-friendly app
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