Global Cumulative Stationary BESS Capacity to Exceed 2 TWh by 2033

Battery demand for stationary energy storage is set to grow in line with an increasing number of renewable energy resources being added to electricity grids globally, alongside pressure from governments and states to reach targets pertaining to renewable energy generation and energy storage. Over the past decade, Li-ion batteries have become an increasingly important stationary energy storage technology. They now account for >90% of global installations of electrochemical energy storage.
Lithium-ion Battery Demand. Source: IDTechEx
IDTechEx predicts that by 2033, global cumulative stationary battery storage capacity is set to exceed 2 TWh.
Various factors are driving the Battery Energy Storage System (BESS) market. Firstly, the necessity for higher levels of renewable energy integration into electricity grids will require higher volumes of BESS to help stabilize electricity grids while providing energy security and supply. As well as this, energy and battery storage targets and clear policy frameworks are helping to expedite BESS deployments in the regions where these drivers have been announced. This is apparent in countries such as the US, China, and Australia
The US and China will be responsible for most of the global cumulative Battery Energy Storage Systems (BESS) capacity in 2033 while rivaling each other for total deployments. Without question, these countries’ storage targets, clear market regulations, and profitable business models play a key role in the volume of successful project installations, especially on the front-of-the-meter FTM side.
Annual front-of-the-meter (FTM) installations will take a larger share of global annual Battery Energy Storage System (BESS) installations, by GWh, than behind-the-meter (BTM) installations in the next decade. Moreover, the means for these large battery systems to produce revenues for their owners are becoming more apparent through mechanisms such as revenue stacking. As business models continue to mature, investor confidence in large BESS profitability will grow, thus facilitating reduced future project costs and increased installation volumes.
In the latest version of their market report, “Batteries for Stationary Energy Storage 2023-2033“, IDTechEx brings the reader a holistic and thorough view of the stationary battery storage market. The update to this report brings the latest developments across the industry, including a comprehensive overview of the following: market forecasts, key player analysis, technology trends and applications, business models giving rise to revenue streams, and regional analysis for the top installing countries.