Global Energy Systems Market Grew to $17B in 2023

energy storage systems, smoke from a factory power station

(Credit: Pixabay)

by | Mar 20, 2023

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energy storage systems smoke from power plant

(Credit: Pixabay)

The global advanced energy storage systems market grew from $16.56 billion in 2022 to $17.89 billion in 2023 at a compound annual growth rate (CAGR) of 8.0%, according to’s “Advanced Energy Storage Systems Global Market Report 2023.”

The advanced energy storage system market consists of sales of mechanical storage systems, hydrogen energy storage systems, advanced chemistry batteries, flow batteries, and capacitors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers.

Advanced energy storage systems refer to advanced devices that convert electrical energy from power systems and store it to supply electrical energy when needed later.

Asia-Pacific was the largest region in the advanced energy storage system market in 2022. The regions covered in the advanced energy storage systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The main technology of advanced energy storage systems is pumped hydro storage, electrochemical storage, electromechanical storage, and thermal storage. Electrochemical energy storage encompasses all secondary batteries.

Batteries use an electrochemical oxidation-reduction reverse reaction to convert the chemical energy contained in their active materials into electric energy. Batteries are currently manufactured in a variety of sizes for a wide range of applications. Advanced energy storage systems are applied in transportation, grid storage, and other applications. 

The increasing investments in renewable energy are expected to propel the growth of the advanced energy storage systems market. Renewable energy, also known as clean energy, is in high demand as it is a non-polluting source of energy and is replenished by nature.

Governments and private sectors globally are significantly investing in renewable energy as it is beneficial for minimizing pollution while conserving natural resources. This rise of investments in renewable energy will create a significant demand for advanced energy storage systems as these are essential to store and manage the energy generated as well as supply for use when the needs arise.

For instance, according to the estimates by the autonomous intergovernmental organization the International Energy Agency (IEA), the global power sector investment was expected to rise by 5% to more than $820 billion in 2021 over 2020. Renewables dominated new power generation investment, accounting for 70% of the $530 billion spent on all new power generation capacity in 2021.

The remaining amount was invested in grids and storage. A dollar spent on wind and solar photovoltaic (PV) deployment currently generates four times the electricity of a dollar spent on the same technologies a decade ago, owing to rapid technological advancements and cost reductions. Therefore, the increasing investments in renewable energy will drive the growth of the advanced energy storage systems market.

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