Advanced Energy Storage Systems Market to Reach Valuation of USD 29 Million by 2028 - the Increase in the Electric Vehicle Market Globally, Growth in Renewable Energy Investments, and Regulatory Changes Demanding Energy Efficiency are Driving the Market Growth

Vantage Market Research

May 21, 2022

In terms of revenue, the global advanced energy storage systems market is probable to reach USD 29 Million by 2028, growing at a Compound Annual Growth Rate (CAGR) of 7.9% from 2022 to 2028.

The development of advanced energy storage systems to store the renewable generated electricity utilized to provide uninterrupted power supply during the power cut hours worldwide is driving the growth of the advanced energy storage systems market throughout the forecast period.

Key Highlights from the Report:

  • The transportation sub-segment is anticipated to grow at a substantial Compound Annual Growth Rate (CAGR). The transportation segment is accounted to hold the largest share of the advanced energy storage systems market throughout the forecast period. The growth of the transportation segment is attributed to the increasing deployment of lithium-ion batteries in the electric vehicles market. Moreover, investment and grid expansion in the modern infrastructure in the emerging countries also provides opportunities for the growth of the transportation segment in the market.

  • The electro-chemical sub-segment holds a substantial market share in 2021. The electro-chemical segment is projected to grow at the highest Compound Annual Growth Rate (CAGR) during the forecast period. The technological advancements and the increasing deployment of lithium-ion batteries are projected to result in economies of scale, which could decrease the cost of this technology and is further driving the growth in the advanced energy storage system market during the forecast period.

  • Asia Pacific is the fastest regional segment. The Asia Pacific region is anticipated to be the fastest-growing market for the advanced energy storage systems market during the forecast period. The rising use of renewable energy resources for power generation, particularly in India, China, and South Korea, and the increasing number of electric vehicles are driving the growth of the advanced energy storage systems in Asia Pacific.

Market Dynamics:

The development of advanced energy storage systems to store the renewable generated electricity utilized to provide uninterrupted power supply during the power cut hours worldwide is driving the growth of the advanced energy storage systems market during the forecast period. Furthermore, an increasing number of plug-in electric vehicle sales is expected to boost the demand for advanced energy storage systems market throughout the forecast period. Whereas, lead-acid batteries are further being used in the commercial electric drive vehicles due to their safety, reliability, low price, and high-power ability which is further projected to propel the growth of the advanced energy storage systems market in the years to come.

The rising investments in renewable energy, energy arbitrage, electrification of the transport sector, and regulations demanding energy efficiency are also the other major factors driving the growth of the advanced energy storage systems market throughout the forecast period. In addition, grid expansion and investments in modern and advanced infrastructure are expected to provide a profitable opportunity for the growth of the advanced energy storage system market in the upcoming years. Besides the harmful environmental impact, high capital investments are expected to hamper the advanced energy storage systems market growth during the forecast period.

North America is the largest market. North America is projected to account for the highest growth during the forecast period. North America is anticipated to witness substantial growth owing to the stringent CO2 reduction policies and declining cost of storage technologies during the forecast period.