$3550
$2840
The US battery energy storage system market size is projected to reach US$ 21,214.54 million by 2031 from US$ 6,274.28 million in 2023. The market is expected to register a CAGR of 16.4% during 2023–2031. The increasing role of battery energy storage systems in energy transitions is likely to remain a key trend in the market.
US Battery Energy Storage System Market Analysis
Mounting share of renewable resources in the overall power mix and strengthening emphasis on achieving zero carbon emissions in different states fuel the US battery energy storage system market growth. The unstable geopolitical scenarios worldwide have exhibited the significance of energy storage facilities in managing energy crises. In many energy storage facilities, battery energy storage is one of the most viable and cost-efficient alternatives, driving the application of battery energy storage technologies in residential, commercial, and utility sectors.
Energy producers, transmission system operators, storage providers, and end users are stakeholders involved in the battery energy storage system ecosystem. Various sources, including natural gas, fossil fuels, and renewable energy (wind and solar), are used to generate energy. After power generation comes the process of transmission and storage. The energy storage process involves large-scale facilities and distributed power or energy storage systems. The final step consists of distributing the stored energy to end users or major application areas. End users of the battery energy storage system market are power plants and the commercial, residential, and utility sectors.
The energy resources for power generation primarily include coal, natural gas, nuclear, oil, and biomass. Renewable resources consist of solar, wind, and hybrid resources. The generated energy is transmitted to end-use areas as per requirement, but the surplus amount of produced energy is stored for later usage. Advantages of using energy storage Include a balanced supply of energy, reduced costs in peak hours, and proper utilization of stored surplus energy when required. Power Sonic Corporation; Apex Clean Energy; Consolidated Edison Company of New York, Inc. (conEdison, inc.); Fluence; Tesla Inc; Xcel Energy Pty Ltd.; NextEra Energy Inc; Polystar Containment; KORE Power, Inc.; and Delta Electronics, Inc. are among the key companies that offer battery energy storage systems.
Anode, separator, Cathode, and electrolyte are primary components in a lithium-ion battery cell. Cathode raw materials such as lithium and varying combinations of typically nickel, cobalt, manganese, phosphorus, and iron are obtained from the ground, processed into metal chemicals, and then combined to generate the cathode active material. Anodes are made primarily of graphite, which is produced from naturally occurring mined graphite. Individual lithium-ion battery cells are combined to form a battery pack for BESS, electric vehicles, and any other battery applications. Battery suppliers play a crucial part in the battery energy storage system market in the US. BYD Co. Ltd., LG Chem Ltd, and Panasonic Holdings Corp are among the providers of lithium-ion batteries in the US. End users of battery energy storage systems include power plants, residential and commercial buildings, and the commercial and utility sectors.
US Battery Energy Storage System Market Overview
Battery energy storage systems can strengthen grid resilience and reliability. Battery energy storage can also ease electricity costs through arbitrage, mitigating the risk of curtailment by providing backup power. These benefits have drawn the attention of developers and the US government to focus more on battery energy storage infrastructure. State governments are increasingly incentivizing the pairing of energy storage with solar. Also, the Inflation Reduction Act (IRA) offers tax credits for installing solar-plus-storage systems and standalone battery energy storage systems, which is steering the growth of the US battery energy storage system market.
Rising energy uncertainty and growing demand for energy drive the US battery energy storage system market growth. State economic development authorities offer noteworthy incentive package strategies to lower upfront expenditure and accelerate timelines for boosting the development of the battery energy storage system market in the country.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
US Battery Energy Storage System Market: Strategic Insights
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
US Battery Energy Storage System Market: Strategic Insights
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
US Battery Energy Storage System Market Drivers and Opportunities
Growing Focus on Establishing Vigorous Storage Infrastructure
The changing energy circumstances across the US are generating a demand for energy storage infrastructure. The growing energy demand displays the significance of energy storage systems. The storage system allows the storage of energy and its usage as per the requirement. Developments in energy storage systems and an increase in research and development in energy management systems are driving the battery energy storage system market. For instance, in the US, Stor4Build, an association on energy storage for buildings, is working to accelerate the optimization and deployment of storage technologies. The consortium is co-led by the National Renewable Energy Laboratory (NREL), U.S. Department of Energy (DoE), Oak Ridge National Laboratory (ORNL), and Lawrence Berkeley National Laboratory (Berkeley Lab).
In January 2024, Plus Power stated that it initiated operation at its Kapolei Energy Storage facility in Oahu, Hawaii. The plant is equipped with a grid-scale battery energy storage system, which helps in the transition of the state's electric power from coal to solar and wind. By June 2024, Plus Power is anticipated to be managing seven large-scale battery energy storage plants across Arizona and Texas for a total of 1,325 MW/3,500 MWh. Thus, the growing focus of countries on building a vigorous storage infrastructure is driving the battery energy storage system market in the US.
Growing Investment in Renewable Power Generation
The US government is focusing on reducing its carbon footprints, owing to which the energy industry is witnessing a transition toward clean energy. As a result, the government is boosting investments in green energy production. Power generation using fossil fuels is a key contributor to greenhouse gas (GHG) emissions that lead to climate change. The utilization of solar and wind energy is increasing due to rising focus on using clean and green energy, increasing climate change concerns, and rising government initiatives toward encouraging the usage of renewable energy across the US. By 2030, the US government targets to decrease net GHG emissions by ~50–52% compared to 2005 levels and achieve net zero emissions by 2050. Thus, the rise in concerns regarding greenhouse gas emissions is boosting the investment in renewable power generation, which is anticipated to propel the development of the battery energy storage system market over the forecast period.
US Battery Energy Storage System Market Report Segmentation Analysis
Key segments that contributed to the derivation of the US battery energy storage system market analysis are product and application.
- Based on type, the US battery energy storage system market is segmented into lithium-ion and others. The lithium-ion segment held a larger market share in 2023.
- In terms of connection type, the US battery energy storage system (BESS) market is segmented into on-grid and off-grid. The on-grid segment held a larger share of the market in 2023.
- Based on end user, the US battery energy storage system (BESS) market is segmented into residential, commercial, and utilities. The utilities segment held the largest share of the market in 2023.
US Battery Energy Storage System Market Share Analysis
In the US, two states (Texas and California) are increasingly expanding their solar and wind energy capacity, resulting in growing battery energy storage systems capacity in the country. As per the US Energy Information Administration (EIA), in current projects under construction or planning phase, Texas will surpass California's cumulative battery energy storage capacity in 2026, and the BESS capacity in Texas is expected to grow at a significant pace. This is owing to the increase in investment in developing renewable power projects in the region. The US battery energy storage market was valued at US$ 6.27 billion in 2023 and is expected to register a CAGR of 16.45% from 2023 to 2031, reaching US$ 21.21 billion by 2031.
US Battery Energy Storage System Market Report Scope
US Battery Energy Storage System Market News and Recent Developments
The US battery energy storage system market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the US battery energy storage system market are listed below:
- CATL and Volvo Cars signed a memorandum of understanding on a strategic partnership to deepen the cooperation in sustainable development. According to the agreement, Volvo Cars will collect retired batteries and hand them to downstream suppliers certified by Volvo Cars for the recycling and extraction of metals, including nickel, cobalt, and lithium. CATL will use these recycled materials to produce new batteries to power electric vehicles manufactured by Volvo Cars. The two parties will also establish an efficient, collaborative, and transparent management mechanism to ensure that the entire recycling and production process meets the quality requirements of both parties and complies with the legal and regulatory requirements of various regions worldwide. (Source: CATL, Press Release, April 2024)
- General Motors Co. (NYSE: GM) and Samsung SDI announced they plan to invest more than $3 billion to build a new battery cell manufacturing plant in the United States that is targeted to begin operations in 2026. The plant will have more than 30 GWh of capacity and will bring GM's total U.S. battery cell capacity to about 160 GWh when it is at full production. (Source: General Motors Co., Press Release, April 2023)
US Battery Energy Storage System Market Report Coverage and Deliverables
The "US Battery Energy Storage System Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- The size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- US battery energy storage system market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- US battery energy storage system market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the US battery energy storage system market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
Growing investment in renewable power generation is expected to be the key opportunity in the market.
Role of battery energy storage system in energy transitions production to stimulate the US battery energy storage system market growth in the coming years.
lithium-ion is expected to dominate the market over the forecast period.
growing focus on establishing vigorous storage infrastructure, and mounting energy demand are contributing to the growth of the US battery energy storage system 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 the key market players operating in the US battery energy storage system market.
The List of Companies - US Battery Energy Storage System 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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
Trends and growth analysis reports related to US Battery Energy Storage System Market
Jul 2024
Spent Nuclear Fuel Waste Management Market
Size and Forecast (2020–2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Reactor Type (Pressurized Water Reactors (PWR), Boiling Water Reactors (BWR), and Gas-Cooled Reactors, and Others); Disposal Type (Near Surface Disposal and Deep Surface Disposal); and Geography
Jul 2024
Solar PV Inverter Market
Size and Forecast (2020–2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Product Type (String, Micro, Central), Phase (Single Phase, Three Phase), Connectivity (Standalone, On-grid), Application (Residential, Community, Commercial and Industrial, Utility), Capacity (Below 5 kW, 5 - 15 kW, 15 - 25 kW, 25 - 50 kW, Above 50 kW); and Geography
Jul 2024
Offshore Oil and Gas Pipes Fittings and Flanges Market
Size and Forecast (2020–2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Product Type (Pipes, Fitting, and Flanges), Material Type (Steel, Alloy Steel, Nickel Alloys, and Copper Alloys); and Geography
Jul 2024
Turboexpander Market
Size and Forecast (2020–2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Loading Device (Compressor, Generator, and Hydraulic/Oil Brake), Power Capacity [Less than 1 MW (Up to 500 KW and 500 KW to 1 MW), 1 MW to 20 MW, and More than 20 MW], End User (Oil and Gas, Power Generation, and Industrial), and Geography
Jul 2024
Green Hydrogen Market
Size and Forecast (2020–2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Technology (Alkaline Electrolysis and PEM Electrolysis), Renewable Source (Wind Energy, Solar Energy, and Others), and End-use Industry (Chemical, Power, Food & Beverages, Medical, Petrochemicals, and Others), and Geography
Jul 2024
Thermal Energy Storage Market
Size and Forecast (2020–2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: Type (Sensible Heat Storage, Latent Heat Storage, Thermochemical Storage), Storage Material (Water, Molten Salt, PCM, Others), Application (District Heating and Cooling, Power Generation, Process Heating and Cooling), and End User (Utility, Nonutility) and Geography