Market Size of North America Battery Energy Storage System Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.91 Billion |
| Market Size (2029) | USD 15.28 Billion |
| CAGR (2024 - 2029) | 31.28 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Battery Energy Storage System Market Analysis
The North America Battery Energy Storage System Market size is estimated at USD 3.91 billion in 2024, and is expected to reach USD 15.28 billion by 2029, growing at a CAGR of 31.28% during the forecast period (2024-2029).
- Over the medium term, factors such as declining prices of lithium-ion batteries and increased penetration of renewable energy are likely to drive the North America battery energy storage systems market in the forecast period.
- On the other hand, other energy storage systems will likely hinder the growth of the North America battery energy storage systems (BESS) market in the studied period.
- Nevertheless, technological advancements in new battery technologies to store energy will likely create lucrative growth opportunities for the North America BESS market during the forecast period.
- The United States is the fastest-growing market during the forecast period due to the rising energy demand. This growth is attributed to increasing investments, coupled with supportive government policies in the country.
North America Battery Energy Storage System Industry Segmentation
A battery energy storage system is an electrochemical device that can convert electrical energy to chemical energy or vice-versa, depending on the usage. It is a technology that uses different battery chemistries to store energy generated from power sources.
The North America battery energy storage system market is segmented into type, application, and geography. By technology type, the market is segmented into lithium-ion batteries, lead-acid batteries, and other types. By application, the market is segmented into residential, commercial & industrial, and utility. The report also covers the market size and forecasts for the battery energy storage system market across major countries. The market sizing and forecasts for each segment are based on revenue (USD).
| Technology Type | |
| Lithium-ion Batteries | |
| Lead-Acid Batteries | |
| Other technology types |
| Application | |
| Residential | |
| Commercial & Industrial | |
| Utility |
| Geography | |
| United States | |
| Canada | |
| Rest of North America |
North America Battery Energy Storage System Market Size Summary
The North America battery energy storage system market is poised for substantial growth, driven by the declining costs of lithium-ion batteries and the increasing integration of renewable energy sources. Technological advancements in battery technologies are expected to create significant opportunities, despite potential competition from other energy storage systems. The United States is anticipated to be the fastest-growing market within the region, fueled by rising energy demand and supportive government policies. The efficiency and technical advantages of lithium-ion batteries over traditional lead-acid batteries, such as higher energy density and lower maintenance requirements, are contributing to their widespread adoption. This shift is further supported by government initiatives and investments in battery manufacturing infrastructure, which are expected to bolster the market's expansion.
The market landscape in the United States is characterized by a significant increase in battery energy storage systems, particularly in residential and commercial sectors, supported by investments in renewable energy infrastructure. The adoption of solar photovoltaic systems, driven by government incentives like net metering, is a key factor propelling market growth. Large-scale battery storage capacity additions, particularly in regions like California and Texas, underscore the market's expansion. The market is moderately fragmented, with key players such as BYD Company Limited, LG Energy Solution Ltd., and Tesla Inc. leading the charge. Recent initiatives, including utility-scale storage ventures and collaborative projects, highlight the ongoing efforts to enhance energy storage capabilities and integrate renewable energy sources into the grid.
North America 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 BATTERIES
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1.5.2 Restraints
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1.5.2.1 PRESENCE OF 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 Substitutes 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 Technology Type
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2.1.1 Lithium-ion Batteries
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2.1.2 Lead-Acid Batteries
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2.1.3 Other technology types
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2.2 Application
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2.2.1 Residential
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2.2.2 Commercial & Industrial
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2.2.3 Utility
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2.3 Geography
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2.3.1 United States
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2.3.2 Canada
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2.3.3 Rest of North America
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North America Battery Energy Storage System Market Size FAQs
How big is the North America Battery Energy Storage System Market?
The North America Battery Energy Storage System Market size is expected to reach USD 3.91 billion in 2024 and grow at a CAGR of 31.28% to reach USD 15.28 billion by 2029.
What is the current North America Battery Energy Storage System Market size?
In 2024, the North America Battery Energy Storage System Market size is expected to reach USD 3.91 billion.
