Solar Energy Storage Market Research, 2031
The global solar energy storage market size was valued at $9.8 billion in 2021, and is projected to reach $20.9 billion by 2031, growing at a CAGR of 7.9% from 2022 to 2031.
Solar energy storage generally includes energy storage batteries that is used for storage of excess solar power. Generally, solar battery is installed with inverter. It is rechargeable and can be used in solar panel systems. For industrial installations, solar battery can be used with other renewable power sources such as hydropower and wind power. In future, solar battery will be used with other renewable power sources as a part of renewable electricity mix to provide sustainable energy solutions. Some of the major installations of solar battery include solar charging stations, storage for power plants, and storage system for off-grids.
Rise in demand for eco-friendly and cost-effective energy solutions for industrial and commercial energy storage installation is expected to drive the solar energy storage market growth. Moreover, the installation of solar battery can effectively reduce carbon footprints. Implementation of solar energy storage battery can make a nation energy independent and reduce the dependence on imported fossil energy resources. Furthermore, growing interest of industry players toward renewable energy storage solutions is expected to increase investment opportunities during the forecast timeframe. For instance, countries, such as the UK and Portugal, are encouraging capacity auctions for solar battery storage instead of conventional energy storage systems. Such developments are projected to positively impact the market growth.
However, the initial installation cost is a burden for small & medium-sized enterprises. At the current stage, financing for solar project requires selling of assets to aggregators to maintain sufficient liquid capital to develop the next project and cover operational overhead. These factors together may negatively impact the solar energy storage market growth.
Nonetheless, the rise in prominence of energy trading with block chain and AI technologies opened new market opportunities. This will provide the owner of solar battery and solar PV systems a new opportunity to export the excess energy and sell it at premium price. This is anticipated to increase the demand for the solar energy storage; thus creating remunerative opportunities for the market.
The solar energy storage market analysis is segmented on the basis of type, installation, and region. On the basis of type, the market is categorized into lead acid, lithium ion, flow battery, and others. On the basis of installation, it is divided into on-grid and off-grid. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
In 2021, the lithium ion segment was the largest revenue generator, and is anticipated to grow at a CAGR of 8.6% during the forecast period. Lithium ion battery is a type of rechargeable battery, which consists of lithium ions moving from negative to positive electrode. The utilization of lithium ion batteries has increased in the electrical sector owing to the rise in industrialization, urbanization, and growing consumer demand for various electric-based devices, vehicles and growing prominence of sustainable energy solutions is expected to surge the demand for lithium ion solar battery; thus helps in increase the potential sales for the market. Moreover, the energy density and efficiency of lithium ion battery is very high than that of other solar batteries. These factors are expected to increase the demand for lithium ion based solar energy storage market.
By installation, the on grid segment dominated the global market in 2020, and is anticipated to grow at a CAGR of 8.2% during forecast period. On-grid solar energy system is also known as grid tied solar system, on-grid solar energy system generate energy using solar energy system that is directly connected to utility power grid. This system works in collaboration with utility power grid. Factors such as rise in the urbanization, advancement in technology in the field of solar energy storage, and increase in the number of installments of on-grid solar energy system in both developed and developing economies such as the U.S., China, and India has increased the demand for solar energy storage market.
Moreover, the demand for solar energy system has increased among people owing to its ease of installment, cost effective operation, the electricity produced by the system is routed to the grid from where it is used to run the various household appliances such as AC, TV, electrical appliances, and others. This is escalating the demand for on-grid solar energy storage system. This is projected to drive the potential sales of on grid installation based solar energy storage system.
The Asia-Pacific solar energy storage market size is projected to grow at the highest CAGR of 8.6% during the forecast period and accounted for 35% of solar energy storage market share in 2021. According to report published by BP Statistical Review of World Energy in 2021, solar energy generation in Asia-Pacific in 2019 held at 392,000 GWh and reached 470,300 GWh in 2020. This is attributed to enhance the performance of solar energy storage batteries in the Asia-Pacific region. Moreover, China being the largest producer of solar power is expected to further foster the growth of the market in Asia-Pacific region. In addition, growing number of investment opportunities in new solar power projects will further influence the market growth in this region.
For instance, in March 2021, VRB Energy signed an agreement with Xiangyang Municipal Government to build 100 MW solar plant with vanadium flow battery. This is anticipated to increase demand for the solar energy storage market in the Asia-Pacific region; thus, creating most remunerative opportunities for the market
The global solar energy storage market forecast profiles leading players that include ADARA POWER,BASF SE, BMW, ENERSYS, Evonik Industries AG, KOKAM, Leclanché SA, LG CHEM, LG Electronics, MAXWELL TECHNOLOGIES, Owens Corning, PPG Industries, Inc., PRIMUS POWER, SAMSUNG, Siemen, Sumitomo Chemical Co., Ltd, and THE LUBRIZOL CORPORATION. The global solar energy storage market report provides in-depth competitive analysis as well as profiles of these major players.
Impact of COVID-19 on the global solar energy storage industry
The global solar energy storage market had high impact of COVID-19 due to social distancing norms and shortage of manpower. This led to delayed installations and cancellation of new projects. In addition, the sharp decline in consumer expenditure highly affected the demand. Reduced expenditure of consumers during the lockdown highly impacted the market for solar products, including various solar energy storage systems.
Moreover, the upstream and downstream channels have been affected due to restrictions on movement, which lead to increase in the amount of inventories. Furthermore, high dependency on Chinese exports for solar cell, solar energy storage, and solar module negatively impacted the market. India imports around 80% of its solar products from China. As the manufacturing firms in China were idle for the last 6-7 months, it highly impacted the production process in India.
However, shifting trend toward remote working is considered a vital solution to improve the market conditions. Various automation companies utilize remote connectivity to ensure the access to field operators and service engineers who cannot be on site at this time. In the 2nd quarter of COVID-19, approximately 20% of people preferred electric micro mobility devices which are working on lithium ion battery.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the solar energy storage market analysis from 2021 to 2031 to identify the prevailing solar energy storage market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the solar energy storage market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global solar energy storage market trends, key players, market segments, application areas, and market growth strategies.
Solar Energy Storage Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 20.9 billion |
 Growth Rate | CAGR of 7.9% |
 Forecast period | 2021 - 2031 |
 Report Pages | 324 |
 By Type |
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 By Installation |
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 By Region |
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 Key Market Players | The Lubrizol Corporation, SAMSUNG, Leclanché SA, Primus Power, Kokam, LG Electronics Inc., EVONIK INDUSTRIES AG, Owens Corning, LG Chem Ltd, BASF SE, BMW, PPG Industries, Inc., Sumitomo Chemical Co., Ltd, ADARA POWER, Siemens Energy, MAXWELL TECHNOLOGIES, Enersys |
Analyst Review
According to CXOs of leading companies, the solar energy storage market is expected to witness considerable growth. This is attributed to a significant surge in the demand from residential and commercial end-users. Solar energy storage batteries are extensively used in the hospitals, hotels, hostels, schools, educational institutions, and restaurants for utility purposes.
In addition, rise in concern from governments across emerging nations, such as China, India, and South Korea, regarding zero emission norms is expected to drive the market growth. Governments across different countries implement new rebate and energy schemes on excess amount of energy for residential as well as commercial users. This is expected to enhance the market penetration in new customer segments. The CXOs further added that sustained economic growth and the development of the residential & commercial sector have surged the popularity of solar energy storage.
On grid solar installation system is projected to increase the demand of solar energy storage market.
Increasing demand for grid energy storage systems owing to ongoing grid modernization and innovative solution for renewable energy storage systems is expected to act as boosting factor for solar energy storage market.
ADARA POWER, BASF SE, BMW, ENERSYS, Evonik Industries AG, KOKAM, Leclanché SA, LG CHEM, LG Electronics, MAXWELL TECHNOLOGIES, Owens Corning, PPG Industries, Inc., PRIMUS POWER, SAMSUNG, Siemen AG, Sumitomo Chemical Co., Ltd, and THE LUBRIZOL CORPORATION.
The global solar energy storage market size was valued at $9.8 billion in 2021, and is projected to reach $20.9 billion by 2031, growing at a CAGR of 7.9% from 2022 to 2031.
type, installation, and region. On the basis of type, the market is categorized into lead acid, lithium ion, flow battery, and others. On the basis of installation, it is divided into on-grid and off-grid. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The lithium-ion type of battery segment dominated the global market, in terms of revenue in 2021, with 44% of the total share. This is attributed to the fact that rise in industrialization, urbanization, and growing consumer demand for various electric-based devices, vehicles and growing prominence of sustainable energy solutions is expected to surge the demand for lithium-ion solar battery; thus, helps in increase the potential sales for the market.
Solar and wind energy are the most prominent renewable energy types that are stored in grids. However, the concealing of the sun by clouds or fluctuating wind currents leads to variations in the process of energy generation. Such fluctuations create the requirement for flexible grid systems used to store energy. Battery energy storage systems are becoming an integral part of grid modernization. These systems help grid operators to save electricity when the electricity generated exceeds the electricity demand. The adoption of these systems improves the reliability and flexibility of electricity supply systems with respect to the generation, transmission, and distribution of electric power. This may act as a one of the key drivers responsible for the growth of solar energy storage market.
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