The global grid-scale battery market is expected to be valued at USD 1.37 Billion in 2018 and is likely to grow at a CAGR of 33.52% during the forecast period to reach USD 5.82 Billion by 2023. The growth of this market can be attributed to the increasing investments in renewable energy, reducing costs of grid-scale batteries owing to technological advancements and expanded deployment, and government subsidies and regulations for enhancing energy efficiency.

In this report, the grid-scale battery market has been segmented on the basis of type into lithium-ion, lead acid, flow, sodium-based and other batteries. The other batteries include nickel-cadmium, nickel metal-hydride, and nickel-iron batteries. Lithium-ion batteries are expected to hold the largest share of the market throughout the forecast period. These batteries have high energy and power density, which allows them to be lightweight with less standby losses and high life expectancy of 5–15 years with 98% efficiency. In addition, these batteries are lighter in weight than nickel-cadmium and nickel metal-hydride batteries.

The market has also been segmented on the basis of ownership-model into utility owned and third-party owned segments. The market for the third-party owned segment is likely to grow at the highest rate between 2018 and 2023. North America, Europe, and RoW have widely adopted the third-party owned model as it boosts overall grid stability. In addition, third-party owned systems receive incentives from various governments.

Based on application, the grid-scale battery market has been segmented into renewable integration, peak shifting, ancillary services, back-up power, and others (including microgrids, ramping, black start, and transmission/distribution upgrade deferral). Factors such as attainment of renewable targets and energy efficiency; increased reliability, security and resiliency from microgrid applications are expected to drive the growth of the market for renewable integration during the forecast period.

The market has been segmented on the basis of region into North America, Europe, Asia Pacific, and RoW. North America dominates the market. The growth of the market in North America can be attributed to the increasing demand for renewable energy storage in the residential, non-residential, and utility sectors.

The major factors restraining the growth of the grid-scale battery market include hazardous environmental effects and high capital investments. The market is fragmented and offers opportunities for consolidation.

In this market, most players are global multinational companies. Some of the leading players in the grid-scale battery market are LG Chem (South Korea), Samsung (South Korea), Panasonic (Japan), Fluence (US), Tesla (US), BYD Company (China), ABB (Switzerland), GE (US), GS Yuasa (Japan), Toshiba (Japan), Saft (France), S&C Electric (US), and NGK Insulators (Japan). These players have adopted growth strategies such as product launches, contracts and agreements, and expansions to capture a larger share of the market.

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