US Battery Energy Storage System Market Size and Forecast (2021-2031)
US Battery Energy Storage System Market Size and Forecast (2021 – 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Lithium-Ion and Others), Connection Type (On-Grid and Off-Grid), End User (Commercial, Utilities, and Residential), and Country
$2,485 – $3,885
- Description
- Toplines
- Reasons for Buying
- Table of Contents
- List of Tables
- LIst of Figures
- List of Companies
- Reviews (0)
Description
Mounting Energy Demand is Boosting the US Battery Energy Storage System Market
Rising population and growing urbanization are a few factors steering the Use of energy in the US. As per the US Energy Information Administration (EIA), US energy consumption is anticipated to grow through 2050 owing to economic and population growth. EIA also mentioned that US electricity end-use consumption was about 3.2% higher in 2022 than in 2021. Battery energy storage has the potential application as energy storage to be used in times of crisis or in remote or distant locations where power networks are not available. Furthermore, due to the increasing energy uncertainties worldwide, the US government is boosting the application of battery energy storage. For instance, in May 2024, Plus Power secured a US$ 82 million tax equity investment from bank Morgan Stanley for the Arizona-based 90 MW/360 MWh Superstition BESS project, which is anticipated to be operational in June 2024. In February 2024, RWE completed the construction of three new battery energy storage systems totaling 190 MW (361 MWh) in Texas and Arizona. Thus, the increase in energy demand fuels the development of the battery energy storage system market in the US.
In the US, the manufacturers must offer in-demand products such as advanced Li-ion battery energy storage systems products and invest in the research and development of high energy density batteries such as sulfur-based batteries. In addition, the new entrants operating in the market may face challenges in yield expansion as compared to established or experienced manufacturers in the country. Moreover, factors that are responsible for high-quality product manufacturing include technical expertise, government incentives, raw material costs, and others. The Inflation Reduction Act (IRA) production incentives offered by the government may reduce costs by more than 40% if the battery manufacturers or giga factories can get raw materials at lower prices and improve the production yield to 90%. In that case, IRA will help in reducing the battery cost to the Chinese product levels.
Vehicle electrification plays an important role in the carbon emission reduction goals set by the US. In general, vehicle electrification focuses on the electrically powered powertrain and its auxiliary systems, such as onboard and offboard charging systems and wireless power transmission. Vehicle electrification also includes many aspects of vehicle functions present in a traditional non-electric vehicle, including electronic power steering, electronic stability program, electronic traction control, intelligent lighting system, intelligent electromagnetic suspension, four-wheel drive, airbag delivery system, and others. The rise in demand and deployment of electric vehicles (EVs) across the US propels the requirement for vehicle charging infrastructure or electric vehicle charging stations. Hence, the power and transport sectors are expected to demand BESS to charge electric vehicles and enable a greater shift toward decarbonization of the two sectors in the coming years.
The US battery energy storage system market analysis is carried out by identifying and evaluating key players in the market. BYD Co. Ltd; Saft America Inc; CATL; Tesla Inc; Samsung SDI Co Ltd; Panasonic Holdings Corp; AES Corp; NextEra Energy, Inc.; Ameresco Inc.; ESS, Inc.; Siemens AG; EOS Energy Enterprises Inc; KORE Power Inc; General Electric Co; LG Chem Ltd.; SAFT Groupe SA; and ESS Inc. are among the key players covered in the US battery energy storage system market report. The report includes growth prospects in light of current US battery energy storage system market trends and driving factors influencing the market growth.
Summary Info
| Industry: | |
|---|---|
| Pricing options: | |
| Geographical coverage: | |
| Year of Publication: |
According to our latest study on “US Battery Energy Storage System Market Analysis to 2031 – Country Analysis – by Type, Connection Type, and End User,” the market is expected to grow from US$ 6.27 billion in 2023 to US$ 21.21 billion by 2031; it is anticipated to record a CAGR of 16.4% from 2023 to 2031. The US battery energy storage system market report emphasizes the key factors driving the market and showcases the developments of prominent players.
Apart from growth drivers, the report covers the US battery energy storage system market trends and their foreseeable impact during the forecast period. Rising population and growing urbanization are a few factors steering the use of energy in the US. As per the US Energy Information Administration (EIA), energy consumption in the US is anticipated to grow through 2050 owing to economic and population growth. EIA also mentioned that US electricity end-use consumption was about 3.2% higher in 2022 than in 2021. Battery energy storage has the potential application as energy storage to be used in times of crisis or in remote or distant locations where power networks are not available. Furthermore, due to the increasing energy uncertainties worldwide, the US government is boosting the application of battery energy storage. For instance, in May 2024, Plus Power secured a US$ 82 million tax equity investment from bank Morgan Stanley for the Arizona-based 90 MW/360 MWh Superstition BESS project, which is anticipated to be operational in June 2024. In February 2024, RWE completed the construction of three new battery energy storage systems totaling 190 MW (361 MWh) in Texas and Arizona. Thus, the increase in energy demand contributes to the growing US battery energy storage system market size.
US Battery Energy Storage System Market Share, 2023
Source: the Research Team Analysis
By type, the US battery energy storage system market is bifurcated into lithium-ion and others. Lithium-ion battery energy storage systems include lithium-iron-phosphate and lithium-nickel-manganese-cobalt batteries. The lithium-ion segment accounted for a significant US battery energy storage system market share in 2023 and is anticipated to maintain its dominance during the forecast period. The market, in terms of connection type, is bifurcated into on-grid and off-grid. Based on end user, the market is segmented into utilities, residential, and commercial.
Lithium-ion batteries are rechargeable energy storage solutions that are paired with a solar or wind energy system to store excess power generated in these power plants. Lithium-ion battery energy storage systems are commonly used in energy storage applications in solar, wind, and other renewable-based energy storage. The lithium-ion battery energy storage system has characteristics such as higher depth of discharge, higher energy density, long lifespan, high efficiency, and less maintenance. The lithium-ion battery energy storage is lightweight; it lasts longer; it has few self-charges; and it takes up less area than other battery energy storage solutions. It is most widely used in EV charging stations, grid modernization, and other energy storage applications. Moreover, the increasing adoption in the utility grid and energy storage systems is contributing to the demand for lithium-ion battery energy storage systems. In addition, the cost of lithium-ion batteries reduced rapidly from 2012 to 2022 and is expected to decline by 25-50% by 2030 with the rise in improved manufacturing techniques.
Battery energy storage system capacity in the US has been increasing rapidly since 2021, owing to the rise in government initiatives and investment in renewable power generation, along with the expansion of microgrids and BESS capacity across the country. In addition, the US has been facing unpredictable or bad weather conditions for the last 4 to 5 years, which has affected power grid reliability and resulted in power outages in the country. This has increased the demand for battery energy storage systems, which will benefit the utility grid in maintaining reliable and stable power in case of peak demand and power outages while maintaining the power charges to its consumers.
The growing number of trusted suppliers is one of the key factors for increasing the production of lithium-ion battery energy storage systems, contributing to the growth of the overall US battery energy storage system market size. At present, the expansion of the US battery energy storage system market is highly dependent on the supply chain. BESS projects are slated for deployment in the next 2-5 years, and utilities, independent power producers (IPPs), and storage project developers primarily depend on supply chain resources. Major components of supply chain management include supply chain planning, demand forecasting, production planning, supplier collaboration, and risk management.
Many crucial BESS components, ranging from battery cells to semiconductors in inverters and control systems, depend on supply chains, which are vulnerable to supply shudders from various sources, regulation changes, and raw material shortages. Planned and strategic business partnerships, multi-sourcing, and local sourcing are significant factors considered in defining a supply chain strategy, along with the potential technology shifts. In addition to BESS components, other concerning factors in the sector are engineering, procurement, and construction (EPC) capabilities. Strategic business partnerships with large EPC players ready for large-scale battery energy storage system installations are critical to ensure the effective execution of battery energy storage system projects.
Vehicle electrification plays an important role in the carbon emission reduction goals set by the US. In general, vehicle electrification focuses on the electrically powered powertrain and its auxiliary systems, such as onboard and offboard charging systems and wireless power transmission. Vehicle electrification also includes many aspects of vehicle functions present in a traditional nonelectric vehicle, including electronic power steering, electronic stability program, electronic traction control, intelligent lighting system, intelligent electromagnetic suspension, four-wheel drive, and airbag delivery system. The rise in demand and deployment of electric vehicles (EVs) across the US propels the requirement for vehicle charging infrastructure or electric vehicle charging stations. Hence, the power and transport sectors are expected to boost the US battery energy storage system market growth in the coming years.
The EV charging stations and solar photovoltaic (PV) plant coupling resulted in reducing the peak charging demand, power loss mitigation, increased self-consumption of locally produced PV energy, and demand charges at fast EV charging stations. Integration of BESS in EV charging stations reduces the dependence of fast charging stations on the grid and minimizes grid connection size. The rapidly growing electric vehicle industry is projected to fuel the demand for fast charging stations with suitable energy storage. The demand for battery electric storage systems is on the rise to avoid the power curtailment of the charging vehicles. In addition, a rise in investment and integration of solar power facilities in EV charging infrastructure is expected to propel the requirement for battery energy storage systems during the forecast period.
BYD Co. Ltd; Saft America Inc; CATL; Tesla Inc; Samsung SDI Co Ltd; Panasonic Holdings Corp; AES Corp; NextEra Energy, Inc.; Ameresco Inc.; ESS, Inc.; Siemens AG; EOS Energy Enterprises Inc; KORE Power Inc; General Electric Co; LG Chem Ltd.; SAFT Groupe SA; and ESS Inc. are among the key players profiled in the US battery energy storage system market report. Companies in the market mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings.
o Highlights key business priorities in order to assist companies to realign their business strategies
o The key findings and recommendations highlight crucial progressive industry trends in the US battery energy storage system market, thereby allowing players across the value chain to develop effective long-term strategies
o Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
o Scrutinize in-depth the US market trends and outlook coupled with the factors driving the market, as well as those hindering it
o Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution
TABLE OF CONTENTS
1. Introduction
1.1 the Research Team Research Report Guidance
1.2 Market Segmentation
2. Executive Summary
2.1 Key Insights
2.2 Market Attractiveness
3. Research Methodology
3.1 Secondary Research
3.2 Primary Research
3.2.1 Hypothesis formulation:
3.2.2 Macro-economic factor analysis:
3.2.3 Developing base number:
3.2.4 Data Triangulation:
3.2.5 Country level data:
4. US Battery Energy Storage System Market Landscape
4.1 Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
4.3.1 List of Containerized Battery Energy Storage System Players
4.3.2 Key Strategies and Developments in the Battery Energy Storage System Supply Chain
4.3.2.1 Flexibility in Supply Chains:
4.3.2.2 Collaboration with Domestic Raw Material Suppliers:
4.3.2.3 Emphasis on Product Features:
4.3.2.4 Efficient Sales and Operations Planning (S&OP)
4.3.2.5 Integration of Automation
4.3.3 Key BESS Logistic Challenges
4.3.4 Role of BESS in Vehicle Electrification
4.3.5 Geopolitical Scenario Analysis
4.4 Supply Chain Analysis
4.4.1 Supply Chain Risk Assessment for BESS
4.5 BESS Cost Analysis
4.6 List of End-to-End BESS Providers
4.7 The US Battery Energy Storage System Installation Capacity by Geography
4.7.1 Microgrid Construction and Charging Station Analysis
5. US Battery Energy Storage System Market – Key Market Dynamics
5.1 US Battery Energy Storage System Market – Key Market Dynamics
5.2 Market Drivers
5.2.1 Growing Focus on Establishing Vigorous Storage Infrastructure
5.2.2 Mounting Energy Demand
5.3 Market Restraints
5.3.1 Scarcity of Raw Materials
5.4 Market Opportunities
5.4.1 Growing Investment in Renewable Power Generation
5.5 Future Trends
5.5.1 Role of Battery Energy Storage System in Energy Transitions
5.6 Impact of Drivers and Restraints:
6. US Battery Energy Storage System Market Analysis
6.1 US Battery Energy Storage System Market Revenue (US$ Million), 2021-2031
6.2 US Battery Energy Storage System Market Forecast and Analysis
7. US Battery Energy Storage System Market Analysis – by Type
7.1 Lithium Ion
7.1.1 Overview
7.1.2 Lithium Ion: US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million)
7.2 Others
7.2.1 Overview
7.2.2 Others: US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million)
8. US Battery Energy Storage System Market Analysis – by Connection Type
8.1 On-Grid
8.1.1 Overview
8.1.2 On-Grid: US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million)
8.2 Off-Grid
8.2.1 Overview
8.2.2 Off-Grid: US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million)
9. US Battery Energy Storage System Market Analysis – by End User
9.1 Commercial
9.1.1 Overview
9.1.2 Commercial: US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million)
9.2 Utilities
9.2.1 Overview
9.2.2 Utilities: US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million)
9.3 Residential
9.3.1 Overview
9.3.2 Residential: US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million)
10. Competitive Landscape
10.1 Heat Map Analysis of Key Players
10.2 Company Positioning and Concentration
10.3 List of BESS Start-ups
10.4 List of BESS Dominant Players
11. Industry Landscape
11.1 Overview
11.2 Market Initiative
11.3 Product Development
12. Company Profiles
12.1 BYD Co Ltd
12.1.1 Key Facts
12.1.2 Business Description
12.1.3 Products and Services
12.1.4 Financial Overview
12.1.5 SWOT Analysis
12.1.6 Key Developments
12.2 Contemporary Amperex Technology Co Ltd
12.2.1 Key Facts
12.2.2 Business Description
12.2.3 Products and Services
12.2.4 Financial Overview
12.2.5 SWOT Analysis
12.2.6 Key Developments
12.3 Tesla Inc
12.3.1 Key Facts
12.3.2 Business Description
12.3.3 Products and Services
12.3.4 Financial Overview
12.3.5 SWOT Analysis
12.3.6 Key Developments
12.4 Samsung SDI Co Ltd
12.4.1 Key Facts
12.4.2 Business Description
12.4.3 Products and Services
12.4.4 Financial Overview
12.4.5 SWOT Analysis
12.4.6 Key Developments
12.5 Panasonic Holdings Corp
12.5.1 Key Facts
12.5.2 Business Description
12.5.3 Products and Services
12.5.4 Financial Overview
12.5.5 SWOT Analysis
12.5.6 Key Developments
12.6 AES Corp
12.6.1 Key Facts
12.6.2 Business Description
12.6.3 Products and Services
12.6.4 Financial Overview
12.6.5 SWOT Analysis
12.6.6 Key Developments
12.7 NextEra Energy Inc
12.7.1 Key Facts
12.7.2 Business Description
12.7.3 Products and Services
12.7.4 Financial Overview
12.7.5 SWOT Analysis
12.7.6 Key Developments
12.8 Ameresco Inc
12.8.1 Key Facts
12.8.2 Business Description
12.8.3 Products and Services
12.8.4 Financial Overview
12.8.5 SWOT Analysis
12.8.6 Key Developments
12.9 Siemens AG
12.9.1 Key Facts
12.9.2 Business Description
12.9.3 Products and Services
12.9.4 Financial Overview
12.9.5 SWOT Analysis
12.9.6 Key Developments
12.10 Eos Energy Enterprises Inc
12.10.1 Key Facts
12.10.2 Business Description
12.10.3 Products and Services
12.10.4 Financial Overview
12.10.5 SWOT Analysis
12.10.6 Key Developments
12.11 KORE Power Inc
12.11.1 Key Facts
12.11.2 Business Description
12.11.3 Products and Services
12.11.4 Financial Overview
12.11.5 SWOT Analysis
12.11.6 Key Developments
12.12 General Electric Co
12.12.1 Key Facts
12.12.2 Business Description
12.12.3 Products and Services
12.12.4 Financial Overview
12.12.5 SWOT Analysis
12.12.6 Key Developments
12.13 LG Chem Ltd
12.13.1 Key Facts
12.13.2 Business Description
12.13.3 Products and Services
12.13.4 Financial Overview
12.13.5 SWOT Analysis
12.13.6 Key Developments
12.14 Saft Groupe SA
12.14.1 Key Facts
12.14.2 Business Description
12.14.3 Products and Services
12.14.4 Financial Overview
12.14.5 SWOT Analysis
12.14.6 Key Developments
12.15 ESS Inc.
12.15.1 Key Facts
12.15.2 Business Description
12.15.3 Products and Services
12.15.4 Financial Overview
12.15.5 SWOT Analysis
12.15.6 Key Developments
13. Appendix
13.1 About the Research Team
LIST OF TABLES
Table 1. US Battery Energy Storage System Market Segmentation
Table 2. List of Containerized Battery Energy Storage System Players
Table 3. List of End-to-End BESS Providers
Table 4. The US Battery Energy Storage System Installation Capacity by Geography (MW)
Table 5. US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million)
Table 6. US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million) – by Type
Table 7. US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million) – by Connection Type
Table 8. US Battery Energy Storage System Market – Revenue and Forecast to 2031 (US$ Million) – by End User
Table 9. List of BESS Start-ups
Table 10. List of BESS Dominant Players
LIST OF FIGURES
Figure 1. US Battery Energy Storage System Market Segmentation, by Country
Figure 2. PEST Analysis
Figure 3. Battery Energy Storage System Ecosystem
Figure 4. Battery Energy Storage System Supply Chain
Figure 5. Cost Reduction Drivers of Battery Energy Storage System
Figure 6. Microgrid Installation by Year, 2018-2023
Figure 7. State-wise Microgrid Installations as of December 2023
Figure 8. Impact Analysis of Drivers and Restraints
Figure 9. US Battery Energy Storage System Market Revenue (US$ Million), 2021-2031
Figure 10. US Battery Energy Storage System Market Share (%) – by Type, 2023 and 2031
Figure 11. Lithium Ion: US Battery Energy Storage System Market- Revenue and Forecast to 2031 (US$ Million)
Figure 12. Others: US Battery Energy Storage System Market- Revenue and Forecast to 2031 (US$ Million)
Figure 13. US Battery Energy Storage System Market Share (%) – by Connection Type, 2023 and 2031
Figure 14. On-Grid: US Battery Energy Storage System Market- Revenue and Forecast to 2031 (US$ Million)
Figure 15. Off-Grid: US Battery Energy Storage System Market- Revenue and Forecast to 2031 (US$ Million)
Figure 16. US Battery Energy Storage System Market Share (%) – by End User, 2023 and 2031
Figure 17. Commercial: US Battery Energy Storage System Market- Revenue and Forecast to 2031 (US$ Million)
Figure 18. Utilities: US Battery Energy Storage System Market- Revenue and Forecast to 2031 (US$ Million)
Figure 19. Residential: US Battery Energy Storage System Market- Revenue and Forecast to 2031 (US$ Million)
Figure 20. Heat Map Analysis of Key Players
Figure 21. Company Positioning and Concentration
The List of Companies – US Battery Energy Storage System Market
o BYD Co. Ltd
o Saft America Inc
o CATL
o Tesla Inc
o Samsung SDI Co Ltd
o Panasonic Holdings Corp
o AES Corp
o NextEra Energy, Inc.
o Ameresco Inc.
o ESS, Inc.
You must be logged in to post a review.
Reviews
There are no reviews yet.