APAC to lead global battery storage market, clock 68% share by 2026

Share

The global battery energy storage market will reach $10.84 billion in 2026, with the Asia-Pacific (APAC) region accounting for $7.33 billion (68%) of the demand. China, Japan, India, South Korea, and Australia will propel the regional APAC market, according to a new report by data and analytics company GlobalData.

Bhavana Sri Pullagura, a senior power analyst at GlobalData, attributes the growth in the battery storage market to a “fall in battery technology prices, increasing need for grid stability and resilience of the integration of renewable power in the power market.” 

China, one of the fastest-growing economies, is expected to lead the global battery energy storage market with a $4.04-billion share in 2026. A mammoth target of 1,200 GW of wind and solar capacity will provide considerable growth opportunities to the energy storage market over the forecast period.

Besides China, South Korea, the US, Germany, and the UK will be the major markets on the back of supportive regulations and incentives.

Other countries will also see a buoyant demand due to the rapid growth in demand for electricity and the wider use of renewable integration. Grid transformations, improving electrification rates, and electricity provisions for the rapidly growing population will create market opportunities, explained Pullagura.

Over the last decade, various new digital and smart technologies have been integrated. Countries have been aggressively promoting grid modernization and enhancing the grid capability to meet the present and future requirements. Additionally, batteries are being deployed to aid smart grids, integrate renewables, create responsive electricity markets, provide ancillary services, and enhance both system resilience and energy self-sufficiency.

Pullagura concludes: “GlobalData believes that encouraging policies and high electricity charges are also nudging the market to renewables and storage plus renewables at the end consumer level. As the power sector evolves to accommodate new technologies and adapt to varying market trends, energy storage will play a crucial role in the transition and transformation of the power sector.”

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

Waaree starts solar module production at its USA facility
20 December 2024 Waaree Solar Americas has started trial production of PV modules at its facility in Texas. The facility is set to fully commission its Phase-1 manufac...