Global rise in energy consumption as well as increasing need for energy efficiency in the electricity supply system has led to the growth in the advanced battery energy storage systems technology. Advanced battery energy storage market has multiple applications including solar (household solar PV) and wind energy (wind turbine). The rising demand for renewable energy has contributed to the growth of the advanced battery energy storage market in the last few years and this growth is expected to continue over the forecast period. Some of the application areas for the advanced battery storage systems include off grid electrification which is a key driver for market growth owing to unique capabilities of integrating large amounts of renewable energy. Advancement in battery storage technology, reduction in costs and increase in energy efficiency has further augmented for the advanced battery storage systems market growth.
Increasing trend of replacing sodium-sulphur battery by lithium-ion battery on account of cost effectiveness and energy efficiency were prime drivers of growth in the advanced battery storage market and this trend is expected to continue over the next seven years. Safer and efficient battery storage systems are also responsible for the rising consumption of this advanced battery systems. Although there are some regulatory barriers in certain parts of the world which have not allowed the advance battery storage system to become a mainstream option for the power sector, these barriers are being challenged by the growing need for more power quality, highly efficient energy systems and more sophisticated technology.
Rural electrification has become one of the key areas for the advanced battery energy sector in the recent years which is getting a lot of government support especially in the emerging economies including China and India. As a result, the advance battery storage market is expected to witness further growth in the emerging markets of the Asia Pacific region. The growth in the advanced battery storage in the recent years is also due to the installation of island systems which are basically deployed in areas where the power grid may be weak and unreliable. These types of island systems have been deployed in countries like India where the government has extended full support for the development of these systems using advanced battery energy storage owing to rising focus on energy storage.