South America Energy Storage Market Size (2024 - 2029)

The South America energy storage market is anticipated to experience growth driven by factors such as the decreasing costs of lithium-ion batteries and the rising demand for uninterrupted power supply. The expanding renewable energy sector further necessitates enhanced energy storage solutions, although challenges like the scarcity of essential minerals for battery production may hinder market expansion. The batteries segment is projected to dominate the market due to the increasing integration of renewable energy into grids and the need for long-term storage. Additionally, advancements in Compressed Air Energy Storage technology present new opportunities for market growth. Brazil is expected to lead the region in energy storage demand, fueled by the needs of residential, industrial, and commercial sectors.

Home Market Analysis Energy & Power Research Energy Storage Technology Research South America Energy Storage Industry Market Size

Market Size of South America Energy Storage Industry

south america energy storage market size
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 7.39 %
Market Concentration Low

Major Players

south america energy storage market major players

*Disclaimer: Major Players sorted in no particular order

South America Energy Storage Market Analysis

The South America energy storage market is expected to grow at a CAGR of approximately 7.39% during the forecast period. Factors such as the declining prices of lithium-ion batteries with increased application range and improved adoption and increased demand for uninterrupted power supply are expected to drive the South America energy storage market. Moreover, the growing renewable energy sector which demands a higher need for energy storage is expected to promulgate the market. However, the demand-supply mismatch of raw materials such as a shortage of minerals required for lithium-ion batteries is expected to restrain the growth of the energy storage market in the region.

  • Batteries segment is expected to be the largest market during the forecast period in South America, owing to an increasing shift toward higher levels of renewable energy into grids and the need for long-term energy storage.
  • The Compressed air energy storage (CAES) can achieve an efficiency of 70-80%, which is a significant improvement from the current 25-35%. Achieving such high efficiency can help CAES becoming a mainstream energy storage technology, in turn, allowing this technology to explore significant untapped potentials and creating opportunities for the market players.
  • In South America, Brazil is expected to be the dominate during the forecast period marked by increasing energy demand from residential as well as industrial and commercial sector.

South America Energy Storage Industry Segmentation

The South America energy storage market report include:

Type
Batteries
Pumped-Storage Hydroelectricity (PSH)
Thermal Energy Storage (TES)
Fywheel Energy Storage (FES)
Application
Residential
Commercial & Indsutrial
Geography
Brazil
Argentina
Rest of South America
Need A Different Region Or Segment?
Customize Now

South America Energy Storage Market Size Summary

The South America energy storage market is poised for significant growth, driven by the declining costs of lithium-ion batteries and their expanding application range. The increasing demand for uninterrupted power supply and the burgeoning renewable energy sector are key factors propelling the market forward. However, challenges such as the demand-supply mismatch of raw materials, particularly the shortage of minerals essential for lithium-ion batteries, pose potential constraints. The batteries segment is anticipated to dominate the market, fueled by the transition towards integrating higher levels of renewable energy into grids and the necessity for long-term energy storage solutions. Additionally, advancements in technologies like Compressed Air Energy Storage (CAES) are expected to unlock new opportunities, enhancing the efficiency and mainstream adoption of energy storage systems.

Brazil is expected to lead the market in South America, supported by its substantial energy demand from residential, industrial, and commercial sectors. The country's reliance on hydropower and initiatives like 'Pro-GD' aim to boost renewable energy capacity, thereby increasing the need for energy storage systems. The Argentine market, traditionally focused on pumped hydropower, is also exploring battery-based utility-scale storage systems. The region's energy storage market is characterized by its fragmentation, with key players including GS Yuasa Corporation, Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, LG Chem Ltd, and Samsung SDI Co. Ltd. Government policies and investments in distributed generation are expected to further drive the market's expansion during the forecast period.

Explore More

South America Energy Storage Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast, in USD billion, till 2025

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Batteries

      2. 2.1.2 Pumped-Storage Hydroelectricity (PSH)

      3. 2.1.3 Thermal Energy Storage (TES)

      4. 2.1.4 Fywheel Energy Storage (FES)

    2. 2.2 Application

      1. 2.2.1 Residential

      2. 2.2.2 Commercial & Indsutrial

    3. 2.3 Geography

      1. 2.3.1 Brazil

      2. 2.3.2 Argentina

      3. 2.3.3 Rest of South America

South America Energy Storage Market Size FAQs

The South America Energy Storage Market is projected to register a CAGR of 7.39% during the forecast period (2024-2029)

GS Yuasa Corporation, Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, LG Chem Ltd and Samsung SDI Co. Ltd. are the major companies operating in the South America Energy Storage Market.

South America Energy Storage Market Report Snapshots

South America Energy Storage Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)