In the latest version of its market report, ‘Batteries for stationary energy storage 2023–2033’, IDTechEx predicts that by 2033, global cumulative stationary battery storage capacity is set to exceed 2 TWh.

The report includes a holistic view of the stationary battery storage market, and incorporates a comprehensive overview of market forecasts, key player analysis, technology trends and applications, business models giving rise to revenue streams, and regional analysis for the top installing countries.

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 over 90% of global installations of electrochemical energy storage.

Various factors are driving the battery energy storage system (BESS) market. First, the necessity for higher levels of renewable energy integration into electricity grids will require higher volumes of BESS to help stabilise electricity grids while providing energy security and supply. Second, 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 BESS capacity in 2033 while rivalling each other for total deployments. The storage targets, clear market regulations, and profitable business models in these countries play a key role in the volume of successful project installations, especially on the front-of-the-meter (FTM) side.

Annual FTM installations will take a larger share of global annual BESS installations, reckoned 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.