1. Market size and growth drivers
According to BloombergNEF, the global ESS market will continue to grow strongly during the period 2024–2030, with the main driving force coming from:
- The proportion of wind power and solar power increased sharply.
- Support policies from the US and EU.
- The cost of lithium-ion batteries continues to fall.
2. The role of battery manufacturers in the ESS supply chain
According to the IEA and various market reports, battery manufacturers in China, South Korea, Japan, the US and Europe are aggressively expanding their plant capacity to meet global ESS demand. Major battery companies have announced plans to increase production and expand plants in Europe and the US. This information can be verified through press releases and industry reports.
3. Major challenges holding back the ESS market
3.1. CAPEX & OPEX costs
Despite falling battery costs, overall system costs (including inverter, BMS, PCS, building infrastructure) remain a barrier as confirmed in the IEA report.
3.2. Raw material supply chain
Lithium, cobalt, and nickel—key battery materials—are subject to wild price swings. These data are published annually by the USGS and the IEA.
3.3. Non-uniform safety standards
Many countries are still finalizing fire protection standards for ESS. This is one of the issues mentioned in many official reports.
4. Future expansion opportunities
According to IRENA and IEA, BESS has development opportunities in the following areas:
- Microgrid in remote areas, islands.
- Applications for heavy industry.
- Improve grid stability in large cities.
Continued decline in battery costs, increased production scale and expanded policy support will be the key drivers for the growth of the global ESS market, according to reports by BloombergNEF and IEA.
