The Asia-Pacific (APAC) is expected to lead in battery energy storage systems up to 2025, with a market share of 53.5%, according to GlobalData, a leading data and analytics company on Wednesday.
The APAC last year was already the largest market for battery energy storage systems, accounting for 49.9% of the global market installed capacity.
The Battery Energy Storage System, Update 2021 – Global Market Size, Competitive Landscape, Key Country Analysis to 2025 report reveals that the fall in battery technology prices, the increasing need for grid stability and resilience for the integration of renewable power in the power market are the primary driving factors for the battery energy storage market.
By the end of 2025, the top four countries in the region, namely China, South Korea, Australia, and Japan are collectively expected to install a cumulative capacity of 20.45 gigawatts.
Commenting on the recent data, Bhavana Sri, power analyst at GlobalData, said China will likely overtake the US and lead the market at the country level in 2025.
'The market for battery energy storage in China is estimated to reach $3.22 billion in 2025. With its massive renewable energy capacity installation target, the cumulative installed capacity of the energy storage market in China is estimated to reach almost 12 gigawatts in 2025,' he added.
With the number of grid-connected renewable electricity generation plants increasing tremendously, the APAC region will focus on frequency regulation in the electric grid to normalize the variation in power generation from renewables.
Bu Gulsen Cagatay