The global battery energy storage market is forecast to grow to over $13bn by 2023 according to new research by GlobalData.
The report ‘Battery Energy Storage Market, Update 2019 – Global Market Size, Competitive Landscape and Key Country Analysis to 2023′ found that the Asia-Pacific (APAC) will continue to be the largest market reaching $6.05bn in 2023.
APAC countries are “increasing investments for improving their grid infrastructure and improving the market structure to attract foreign investments,” stated the report.
Falling technology prices and increasing pace of development in the power market are the primary driving factors for the battery energy storage market.
Asia-Pacific was the largest market for battery energy storage systems, accounting for 45% of the global market installed capacity in 2018.
With the number of grid-connected renewable electricity generation plants increasing significantly, countries such as China, India, Japan, South Korea, and the Philippines will “focus on frequency regulation in the electric grid to normalize the variation in power generation from renewables,” according to the report.
The US market for battery energy storage is estimated to reach $2.96bn in 2023, accounting for 23% of the global market.
GlobalData power analyst Bhavana Sri said: “The US has been the largest market for battery energy storage system (BESS) both in terms of cumulative installed capacity and by market value for projects installed up to 2018 and is likely to continue to lead the market at the country level.”
Lithium-ion is, and will continue to be, the preferred technology for market deployment, according to the market study.