The global battery energy storage market is forecast to grow to $13.13 bn by 2023. Asia-Pacific (APAC) and EMEA will be the dominant markets for battery energy storage systems over the forecast period 2019-2023, according to analysts GlobalData..

The company’s latest report. Battery Energy Storage Update 2019 – Global Marlet size, Competitive Landscape and Key Country Analysis to 2023 – reveals that the fall in technology prices and increasing pace of development in the power market are the primary driving factors for the battery energy storage market.

Asia-Pacific will continue to be the largest market reaching $6.05bn in 2023, as countries are increasing investments for improving their grid infrastructure and improving the market structure to attract foreign investments. With respect to technology, lithium-ion is and will continue to be, the preferred technology for market deployment.

Bhavana Sri, power analyst for GlobalData commented: “The US has been the largest market for battery energy storage systems (BESS) both in terms of cumulative installed capacity and by market value for projects installed up to 2018 and is likely to continue to lead the market at the country level. The US market for battery energy storage is estimated to reach $2.96bn in 2023, accounting for 23% of the global market.”

Asia-Pacific was the largest market for battery energy storage systems and it accounted for 45% of the global market installed capacity in 2018. The region is also expected to maintain its top position in the forecast period. With the number of grid-connected renewable electricity generation plants increasing tremendously, countries such as China, India, Japan, South Korea, and the Philippines will focus on frequency regulation in the electric grid to normalise the variation in power generation from renewables.