Grid Connected Battery Energy Storage Market Size, Share, By Battery Type (Lithium-Ion Batteries, Sodium-Ion Batteries, Flow Batteries, Nickel Cadmium Batteries, and Others), Connection Type (On-Grid Connection and Off-Grid Connection), End-User (Residential, Non-Residential, and Utilities), and Region - Trends, Analysis, and Forecast till 2035

• The grid connected battery energy storage market size is anticipated to be worth USD 23.2 Billion by 2035.
• The market was worth USD 2.0 Billion in 2024.
• Target market is developing at a CAGR of 27.7%.

A system that employs batteries to store energy from the electrical grid and release it when needed is known as grid connected battery energy storage. It is a type of battery energy storage (BESS) and is connected to the power grid. The grid connected battery energy storage can help to reduce instability in the electric grid, helps in making the power supply more reliable and consistent, and helps in reducing the strain on the grid by storing energy during peak hours, thereby driving the grid connected battery energy storage market growth. Additionally, the growing demand of peak shaving, the enhanced microgrid applications, and growing awareness of climate change, drives consumers attention toward grid connected battery storage.

Ramifications of AI in this market:

Artificial Intelligence (AI) can be used to optimize the grid connected battery energy storage market. AI can help in improving power optimization, predict when batteries need maintenance, stabilize the grid, and can help in integrating renewable energy. Additionally, it helps asset owners and investors to understand the cost of cycling, future degradation, and increased availability.

Key Drivers of Target Market:

Ability of Grid Connected Battery Energy Storage to Stabilize the Grid Helps in Driving the Market Growth

Grid connected battery energy storage systems can help in reducing grid instability by storing energy during low demand periods and releasing it during high demand periods. This help in flattening curve and reduce the need for additional power generation. Additionally, it smoothens the voltage fluctuations, enhances energy regulations, reduces the need for additional power generation, improves reliability, and optimizes energy costs, thereby stabilizing the grid.

• For instance, in June 2021, Honeywell launched a grid connected battery energy storage platform to help consumers optimize the energy costs. This battery storage platform played a crucial role in grid stability and reduced the need for non-renewable power sources, thereby making it sustainable. Additionally, it improved resiliency and reduced supply costs.

Restraints:

High Initial Cost of These Systems may Limit the Market Growth

In addition to installation expenses, grid-connected battery energy storage systems come with a high upfront cost for buying batteries, inverters, and other components. This can be costly, particularly for underdeveloped nations or small consumers.

• Counterbalance Statements: Implementing financial incentives and cost reduction strategies, including government subsidies, research into efficient storage technologies, and increasing manufacturing scale, can prevent market growth stifling.

Opportunities:

Amalgamation of Advance Technologies in Grid Connected Battery Energy Storage Unlocks Growth Potential in Impending Years

Batteries, sophisticated software, and computerized control systems are some of the advanced technologies used by grid connected battery energy storage systems (BESS). These technologies lessen dependency on traditional power generation, increase the use of renewable energy, and lower energy prices.

• For instance, in April 2024, Schneider Electric, global leader in digital transformation of energy management and automation, announced the launch of its latest battery energy storage system (BESS). This BESS was invented and intended to be a component of an architecture that was both scalable and adaptable. This completely integrated microgrid system controlled optimization, electrical distribution, and renowned digital and field services.

Battery type, connection type, end-user, and region are the segmentations of this market.

Battery Type

On the ground of battery type, the market is broken down into lithium-ion batteries, sodium-ion batteries, flow batteries, nickel cadmium batteries, and others. The sodium-ion batteries segment exercised control over the market due to it has high energy density, it is cost-effective, environmental-friendly, versatile, safe, temperature-resistant, and long lasting.

• For instance, in November 2024, the Chinese EV giant BYD launched the world’s first high performance sodium-ion grid scale battery energy storage system. It used the company’s Long Blade Battery, had a CTS super integrated design, and was the world’s first high-performance sodium-ion grid connected battery energy storage system. It had ultra-high energy density, exceptional safety standards and flexible module design.

Connection Type

The connection type of this market is sub-segmented into the on-grid connection and off-grid connection. The on-grid connection segment governs the market due to its widespread applications in homes, small businesses, and commercial buildings, and it is also essential for grid stability.

End-User

In regard to end-user the market is classified into residential, non-residential, and utilities. The utility segment holds the largest grid connected battery energy storage market share as it stabilizes the grid, manages peak demand, integrates renewable energy sources, and ensures a reliable power supply.

• For instance, in September 2024, GE Vernova Inc., announced the launch of its advanced containerized solution for battery enabled energy storage, i.e., the RESTORE DC BLOCK. This product supported grid use cases for utility-scale renewable energy and energy storage projects. Additionally, it offers enhanced safety, efficiency, flexibility, and long-term performance.

Region

Based on region, the market is analyzed across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This region holds the biggest grid connected battery energy storage market share due to availability of highly advanced solutions for storing power from renewable channels. Additionally, there is rapid cost reductions and demand for storing renewable energy in the countries of this region.

• For instance, in November 2024, intelligent power management company Eaton, announced the launch of xStorage grid connected battery energy storage system (BESS) to accelerate decarbonization projects and maximize the impact of onsite renewables. By providing the ability to strategically dispatch stored energy and operating independently from the electric grid, the solution can help communities and businesses reduce energy costs, lower carbon emissions, and maintain power during utility outages.

Asia Pacific: This region is expected to have the largest growing market during the forecast period. This is due to a number of factors such as, rapid urbanization, government support, investment, technological progress, fast-developing economies, and population growth.

• For instance, in October 2024, Singapore’s government and Energy Market Authority (EMA) announced power sector and grid enhancement, which included a possible expansion of Southeast Asia’s biggest BESS and flow battery. The proposed solutions involved increasing energy imports from abroad, utilizing Singapore's diverse technologies, upgrading the grid for grid connected battery energy storage system, and expediting connection times for new energy projects.

Grid Connected Battery Energy Storage Market Report Scope:

Segmentation:

By Battery Type:

• Lithium-ion Batteries
• Sodium-Ion Batteries
• Flow Batteries
• Nickel Cadmium Batteries
• Others

By Connection Type:

• On-Grid Connection
• Off-Grid Connection

By End User:

• Residential
• Non-Residential
• Utilities

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The companies operating in the market are Tesla, General Electric Company, NextEra energy, ABB, Aquion Energy, and others. They companies are applying plan of action including new product launches, partnerships, and others for enhancing their position in the market.  

List of Key Players in the Market:

• Tesla
• General Electric Company
• NextEra Energy
• ABB
• Aquion Energy
• Fluence
• LG Chem
• TOSHIBA CORPORATION
• Panasonic Life Solutions India Pvt. Ltd.
• SAMSUNG SDI
• Siemens
• POWERTREE Services Inc.
• BYD India Private Limited
• NEC Corporation
• Fourth Power, Inc.

• In November 2024, Georgia Power's first grid-connected battery energy storage system (BESS) at the Mossy Branch Battery Facility had begun commercial operation. Georgia's grid resilience was improved by the facility's 65 megawatts of deployable battery storage capacity.
• In September 2024, Honeywell Automation India had successfully launched a microgrid Battery Energy Storage System (BESS) for SECI's Lakshadweep Islands project. This further promoted decarbonization and remote operation of renewable energy storage in India.

Analyst View:

Grid connected battery energy storage has several benefits, including the ability to lessen grid instability, improve power supply consistency and reliability, minimize grid strain by storing energy during peak hours, and eliminate the need for additional infrastructure, such as transformers and electric equipment. These elements contribute to the expansion of the target market.

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