Market Size of Europe Battery Energy Storage System Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 1.67 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Battery Energy Storage System Market Analysis
The Europe Battery Energy Storage System Market size is expected to grow from USD 11.10 billion in 2023 to USD 12.05 billion by 2028, at a CAGR of 1.67% during the forecast period (2023-2028).
- Factors such as increasing demand for uninterrupted power supply during the peak hours of the day when battery energy storage systems serve as a backup is likely going to drive the European battery energy storage system market.
- On the other hand, the mismatch in the demand and supply of the raw materials used for battery manufacturing is expected to restrain the market during the forecast period.
- New generation batteries, such as lithium-sulfur and solid-state, due to technological improvements such as an increase in efficiency and production scale-up, are expected to take over the market by 2030 or 2035. These advancements in batteries are expected to create several opportunities for the European battery energy storage market in the future.
Europe Battery Energy Storage System Industry Segmentation
Battery energy storage is considered a critical technology in the transition to a sustainable energy system. The battery energy storage systems regulate voltage and frequency, reduce peak demand charges, integrate renewable sources, and provide a backup power supply. Batteries play a crucial role in energy storage systems and are responsible for around 60% of the system's total cost.
The European battery energy storage market is segmented by battery type (lithium-ion, lead-acid, flow, and others), application (residential, commercial, and industrial), and geography (the United Kingdom, Germany, France, and the rest of Europe). The report offers the market size and forecasts for Europe's battery energy storage market for all the above segments.
| Battery Type | |
| Lithium-ion Battery | |
| Lead-acid Battery | |
| Flow Battery | |
| Other Battery Types |
| Application | |
| Utility | |
| Residential | |
| Commercial and Industrial |
| Geography | |
| Germany | |
| United Kingdom | |
| France | |
| Rest of the Europe |
Europe Battery Energy Storage System Market Size Summary
The European battery energy storage system market is poised for growth, driven by the increasing demand for reliable power supply during peak hours and the integration of renewable energy sources. The market is expected to experience a steady expansion over the forecast period, with advancements in battery technology, such as lithium-sulfur and solid-state batteries, offering significant opportunities for future development. Despite challenges related to the supply chain of raw materials for battery manufacturing, the market is supported by the growing adoption of lithium-ion batteries, which are favored for their high energy density, efficiency, and low environmental impact. These batteries play a crucial role in storing energy from renewable sources like solar and wind, aligning with Europe's ambitious renewable energy targets and carbon neutrality goals.
The market landscape is characterized by a fragmented structure with key players such as BYD Company Ltd., Contemporary Amperex Technology Co Ltd., Panasonic Corporation, Toshiba Corp., and LG Chem Ltd. Government initiatives, particularly in countries like Germany, are further bolstering the market by providing incentives for battery storage systems linked to photovoltaic installations. These efforts are complemented by the increasing decentralization of electrical systems, such as rooftop solar energy, which is driving the demand for residential PV batteries. As Europe continues to expand its renewable energy capacity, the battery energy storage system market is expected to play a pivotal role in enhancing energy security and supporting the transition to a clean energy future.
Europe Battery Energy Storage System Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD, till 2028
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.1.1 Increase in Adoption of Renewable Energy
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1.5.1.2 Declining Cost of Lithium Ion Battery
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1.5.2 Restraints
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1.5.2.1 Shift Towards Other Energy Storage Systems
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1.6 Supply Chain Analysis
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1.7 Porter's Five Forces Analysis
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1.7.1 Bargaining Power of Suppliers
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1.7.2 Bargaining Power of Consumers
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1.7.3 Threat of New Entrants
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1.7.4 Threat of Substitute Products and Services
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1.7.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Battery Type
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2.1.1 Lithium-ion Battery
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2.1.2 Lead-acid Battery
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2.1.3 Flow Battery
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2.1.4 Other Battery Types
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2.2 Application
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2.2.1 Utility
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2.2.2 Residential
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2.2.3 Commercial and Industrial
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2.3 Geography
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2.3.1 Germany
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2.3.2 United Kingdom
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2.3.3 France
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2.3.4 Rest of the Europe
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Europe Battery Energy Storage System Market Size FAQs
What is the current Europe Battery Energy Storage System Market size?
The Europe Battery Energy Storage System Market is projected to register a CAGR of 1.67% during the forecast period (2024-2029)
Who are the key players in Europe Battery Energy Storage System Market?
Toshiba Corp, BYD Company Ltd , Contemporary Amperex Technology Co Ltd-, Panasonic Corporation and LG Chem Ltd are the major companies operating in the Europe Battery Energy Storage System Market.
