ENERGY STORAGE Rising demand for grid energy storage systems as a result of ongoing grid modernization
The European battery energy storage system market is expected to witness market growth of 24.6% CAGR during the forecast period from 2021-2027. This was revealed in the latest report from the market research store RESEARCH AND MARKETS.
Some of the growth catalysts for the battery energy storage system market are rising demand for grid energy storage systems as a result of ongoing grid modernization, increasing adoption of lithium-ion batteries in the renewable energy sector, and the growing trend of adopting a low-carbon and fossil-fuel-free economy, as well as the ongoing renewable energy revolution.
On the other hand, the substantial capital cost necessary to build battery energy storage devices is expected to act as the key barrier to the growth of the market during the forecasting period.
A surge in the number of rural electrification projects around the world increased demand for continuous power supply, due to the rise in the number of data centers, and declined lithium-ion battery prices are expected to create significant opportunities for the deployment of battery energy storage systems in the coming years. However, producers of battery energy storage systems face hurdles due to variables such as the difficulty of placing battery energy storage systems on islands or in isolated places, lithium-ion battery overheating, and lithium-ion battery aging.
In the region, national governments have set important goals to accelerate the 'green wave' created by disruptions in industrial processes. In August 2020, for example, ABB announced a partnership with Zenob Energy Limited, a BESS producer, to develop an advanced traction power solution for UK railways. The goal of the partnership is to build a 25 kilovolt (kV) rail traction power system that is expected to deliver output by converting power from batteries to provide trains with a continuous power supply.
In addition, the large carbon reduction objectives set forth by regional organizations like the European Commission and national governments are expected to help the regional market to expand. Moreover, diverse variety of encouraging renewable deployment goals and energy security regulations is expected to help the regional market in the long run.
The German market dominated the European battery energy storage system market by country in 2020, and is expected to continue to be a dominant market till 2027; thereby, achieving a market value of USD812.7 million by 2027. The UK market is estimated to grow at a CAGR of 23.6 % during 2021 - 2027. Additionally, the France market is expected to witness a CAGR of 25.5 % during 2021 - 2027.