Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the U.S. Battery Energy Storage System market.
Trusted Business Insights presents an updated and Latest Study on U.S. Battery Energy Storage System Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the U.S. Battery Energy Storage System market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: U.S. Battery Energy Storage System Market
The U.S. battery energy storage system market size was valued at USD 225.5 million in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 12.8% from 2021 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 2021-2027. 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.
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.
Application Insights: U.S. Battery Energy Storage System Market
The data center application segment accounted for the largest revenue share of 38.7% of the market in 2019. The rising need for uninterruptible power supply in data centers to enhance business productivity is expected to drive the market over the forecast period. Technology advancements such as dual usage of data center UPS systems as grid stabilizers in local electricity networks will further boost adoption of energy storage across data centers.
The telecom application segment was valued at USD 82.0 million in 2019. The telecom companies have been establishing contracts with battery energy storage systems manufacturers in order to facilitate cost-effective and continuous supply of power. Increasing telecom subscriptions in the economy have led to growth in telecom tower installations, thereby increasing the need to use battery energy storage systems.
Industrial application segment is anticipated to witness a CAGR of 25.9% from 2021 to 2027. The growing IT industry has led to increased utilization of UPS systems in order to protect computer networks and ensure continuous service. A rising number of power outages and voltage fluctuations have necessitated the adoption of UPS systems in commercial and industrial buildings, which is likely to propel demand over the forecast period
The others segment is expected to witness a significant CAGR of 25.4% over the forecast period. Other applications majorly include forklift trucks which are utilized for material handling. The U.S. has witnessed a rapid increase in demand for forklifts over the past years. Low charge time, runtime, and low cycle life of lead-acid batteries have led to the replacement of these batteries with lithium-ion batteries based energy storage systems.
Product Insights: U.S. Battery Energy Storage System Market
The lithium-ion battery product segment is anticipated to account for a CAGR of 22.9% over the forecast period. Lithium-ion battery storage systems are used in numerous areas including communication base station, commercial and industrial buildings, grid frequency modulation, household energy storage, and smooth output of renewable energy. Rising demand for electricity along with shift from conventional fuel to renewable energy is anticipated to fuel the product segment growth during the forecast period.
The lead-acid battery product segment occupied largest revenue share and was valued at USD 67.2 million in the U.S. battery energy storage system market in 2019. Lead-acid battery advantages such as low-cost, simple manufacturing process, durability, dependability, low maintenance costs, and high discharge rate capability are expected to increase its demand over Li-ion and NiCd batteries. In addition, abundant availability of lead-acid battery in various sizes and specifications is expected to sustain the demand for these batteries over the next seven years.
The flywheel battery product segment is expected to witness significant a CAGR of 26.9% over the forecast period. The segment is growing in accordance with the growing energy storage demand in U.S. Market players are focusing on flywheel systems owing to their long life and higher efficiency as compared to other batteries.
In August 2019, VYCON Inc. added a new product VDC-XXT flywheel model to its existing family of products. The product can be paired with three-phase UPS, and it utilizes the patented technology of the company. This product will help the client to reduce its initial cost, and also it lowers ongoing energy and operational cost over the life of the product installed.
The others segment includes products such as redox flow batteries, alkaline batteries, silver oxide batteries, zinc-carbon batteries, iron batteries, and pure lead batteries. Exide Technologies; GS Yuasa Corporation; Eveready Industries India Ltd.; EnerSys; Duracell, Inc.; BYD Co., Ltd.; and Panasonic Corporation are the major players that have extensive battery product portfolios. Alkaline batteries and button silver oxide batteries are used in watches, calculators, and medical devices and instruments.
Key Companies & Market Share Insights: U.S. Battery Energy Storage System Market
The market is consolidated in nature and is lead 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:
Key companies Profiled: U.S. Battery Energy Storage System Market Report
- General Electric
- Hitachi Ltd.
- GS YuasaBeckett Energy Systems
- Exide Technologies
- Samsung SDI
- AES Energy Storage
- Imergy Power Systems Inc.
- Altair Nanotechnologies Inc.
This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the U.S. battery energy storage system market report on the basis of application and product:
Application Outlook (Revenue, USD Million, 2016 – 2027)
- Data Center
Product Outlook (Revenue, USD Million, 2016 – 2027)
- Flywheel battery
- Lead-acid battery
- Lithium-ion Battery
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