USA: +1 312-376-8303
EU: +44 208-144-9523
info@cognitivemarketresearch.com
D&B D-U-N-S No : 85-356-3074
Home
Énergie et puissance
Storage and Distribution

Storage and Distribution Market Research Reports

"Energy Revolution: How Storage and Distribution are Shaping Our Sustainable Future (2024 Market Size: USD 230 billion)"!

Storage and Distribution Industry Overview

In recent years, the energy storage and distribution market has experienced substantial development as a result of the global initiative to promote sustainable infrastructure and renewable energy. The energy storage and distribution market size was USD 180 billion in 2023. In 2024, energy storage and distribution market size is USD 230 billion and will be USD 615.8 billion by 2031, with a compound annual growth rate (CAGR) of 13.10%. Lithium-ion batteries maintained their dominance in 2023, comprising nearly 75% of the battery storage market. Their efficiency and decreasing costs have rendered them the preferable option for both grid and off-grid applications. 

Investments in solid-state battery technology is increase in 2024, with an 5% market share. These batteries provide enhanced safety profiles and higher energy densities. There was a significant increase in the integration of energy storage with renewable sources, with battery storage being included in 30% of new solar installations in 2023. Government incentives and the decreasing costs of solar PV and battery systems drive this trend to 40% in 2024. Microgrids are expand by 15% annually as the transition to decentralized energy systems garnered momentum. Microgrids are constitute 12% of the total distributed energy resources market by 2024. The investments in smart grid technologies, such as advanced metering infrastructure and grid management software, is increase to USD 55 billion in 2024, with an USD 45 billion invested in 2023. 

These technologies optimize energy distribution and increase grid resilience. The V2G market, which was valued at USD 1 billion in 2023, is reach to USD 1.5 billion in 2024. Investments in hydrogen storage technologies exceeded USD 2 billion in 2023 and is rising by 30% in 2024. Hydrogen is essential as a pure fuel alternative and a long-duration energy storage solution. Although flow batteries are currently a minor market segment, they are expand at a compound annual growth rate (CAGR) of 25% through 2024. This technology is well-suited for large-scale applications due to its extended discharge times.

Top Countries Contributing in Storage and Distribution Market

United States (2024 Market Size: USD 70 billion)

According to cognitive market research, The United States energy storage and distribution market size was USD 60 billion in 2023, and will be USD 70 billion in 2024. Due to substantial investments in grid modernization and renewable energy integration, the United States continues to be a leader in energy storage. Utilities comprise 60% of the market share, with residential and commercial markets also being significant users. The residential market is increasingly utilizing battery storage solutions, particularly lithium-ion, as a result of the Investment Tax Credit and the decreasing costs. Globally, the United States holds a significant revenue share of 30% of the energy storage market. Furthermore, the adoption of vehicle-to-grid (V2G) technology will increase by 50% from 2023 to 2024, and the nation is a pioneer in this field. The Inflation Reduction Act of the United States government has been instrumental in supporting the market by providing tax incentives and subsidies. Another significant trend is the implementation of smart grid technologies, with an 20% increase in investments in advanced metering infrastructure in 2024. By 2024, energy storage will be included in over 40% of new installations, which is also a trend toward the integration of renewable energy sources, particularly solar and wind.

China (2024 Market Size: USD 52 billion)

In 2023, the China's energy storage and distribution market share is 25% of the total revenue generated and its market size was USD 40 billion and will be USD 52 billion in 2024. Utilities, transportation, and industrial markets are the primary sectors that employ energy storage. Over 70% of the market is accounted for by the utility sector, which implements large-scale battery storage systems to facilitate the integration of renewable energy sources. Electric vehicles (EVs) are substantial contributors to the demand for energy storage in the transportation market. China is making substantial investments in V2G systems, which are expected to experience a 40% increase in 2024. The expansion of energy storage capacities is being driven by government policies that aim to achieve carbon neutrality by 2060. China's objective is to surpass 25 GW of operational energy storage capacity in 2024, representing a substantial increase from the 25 GW achieved in 2023. Solid-state and lithium-ion batteries are the most prevalent technologies, with the former acquiring momentum as investments increase. The emphasis on renewable energy, particularly solar and wind, is bolstered by energy storage initiatives, which improve grid stability and reliability.

Germany (2024 Market Size: USD 12 billion)

The Germany energy storage and distribution market holds a revenue share of 7% andits market size was USD 10 billion in 2023 and USD 12 billion in 2024. The nation is a pioneer in the integration of renewable energy with storage solutions. Residential, commercial, and utility sectors are the primary users. The Energiewende policy in Germany has stimulated investments in storage systems and renewable energy. Residential battery storage systems experience a substantial increase, with a 30% growth rate in 2024. The utility sector is responsible for 50% of the total market and concentrates on large-scale storage solutions to balance intermittent renewable generation. Additionally, Germany is making strides in hydrogen storage technology, with an 25% increase in investments in renewable hydrogen production by 2024. Furthermore, Germany's dedication to decarbonization is demonstrated by its extensive investment in solar and wind energy, with 35% of new solar installations in 2024 being coupled with storage. The adoption of electric vehicles (EVs) is propelling the development of the V2G market, which reach 20% in 2024.

Japan (2024 Market Size: USD 9.5 billion)

According to cognitive market research, The Japan energy storage and distribution market size was USD 8 billion in 2023, and will be USD 9.5 billion in 2024. Japan holds 5% of the global market share. Residential, commercial, and transportation Japans are the primary users. The market is dominated by lithium-ion batteries, which are the most prevalent residential energy storage solutions. Government incentives for renewable energy adoption stimulate a 25% increase in residential installations by 2024. Additionally, the commercial sector makes a substantial contribution by emphasizing energy efficiency and demand response. Japan is investing in V2G systems, with an 30% increase in adoption by 2024, thereby improving grid flexibility. Numerous pilot projects are currently underway, and the investments will increase by 20% in 2024. Hydrogen storage is becoming increasingly popular. Storage solutions facilitate the integration of renewable energy, notably solar, with 30% of new solar installations incorporate storage by 2024. Japan is a prominent participant in the market due to its strategic emphasis on energy resilience and innovation.

South Korea (2024 Market Size: USD 8.5 billion)

In 2023, the South Korea energy storage and distribution market share is 4% of the total revenue generated and its market size was USD 7 billion, and USD 8.5 billion in 2024. Commercial, utilities, and transportation are the primary sectors that utilize this resource. Driven by government initiatives to improve grid stability and expand renewable energy capacity, the utility sector occupies the forefront. South Korea is making substantial investments in solid-state and lithium-ion batteries, with 30% increase in growth in 2024. Significant energy storage adoption is also observed in the commercial market, with an emphasis on cost reduction and energy efficiency. The V2G market is in the process of emergence, with an 25% growth in 2024, attributable to the increasing number of EVs. Investments in energy storage systems have been expedited by the government's Green New Deal, which is designed to increase the proportion of renewable energy in the energy balance. South Korea have an excess of 5 GW of energy storage capacity in 2024, a significant increase from the 4 GW it had in 2023.

India (2024 Market Size: USD 7.5 billion)

In 2023, the India's energy storage and distribution market size was USD 6 billion, and USD 7.5 billion in 2024. India's primary sectors of utilization are utilities, transportation, and commercial, accounting for 3% of the global market share. The utility sector, which comprises 60% of the market, concentrates on the integration of renewable energy sources, particularly solar, with storage solutions. India is making substantial investments in lithium-ion batteries, with a 35% increase in installations in 2024. The transportation market is also on the rise, with the adoption of V2G systems and electric vehicles drive a 40% increase in 2024. Government policies, including the National Energy Storage Mission, are fostering an environment that is conducive to energy storage investments. Battery storage is becoming more prevalent in the commercial market as a means of cost reduction and energy management, with a 25% increase in 2024. India is dedicated to the integration of renewable energy and has set a goal of achieving over 10 GW of energy storage capacity by 2024.

Australia (2024 Market Size: USD 6.5 billion)

As per cognitive market reserch, The Australia energy storage and distribution market share is 3% and its market size was USD 5 billion in 2023, and USD 6.5 billion in 2024. Residential, utilities, and commercial sectors are the primary users. More than 25% of residences have solar and battery storage systems in 2024, a significant increase from 20% in 2023. The residential market is the leading sector. The utility sector is also significant, with a particular emphasis on large-scale storage solutions to facilitate the integration of renewable energy sources, such as solar and wind. Australia is investing in V2G systems, which experience a 30% increase in growth in 2024, thereby improving grid resilience. Substantial investments in energy storage have been stimulated by the government's Renewable Energy Target and a variety of state-level incentives. Furthermore, Australia is investigating hydrogen storage technologies, with an 25% increase in investment in 2024. In addition, there is a significant emphasis on microgrids and decentralized energy systems, with a 15% increase in 2024.

United Kingdom (2024 Market Size: USD 5 billion)

The UK energy storage and distribution market size is USD 4 billion in 2023 and USD 5 billion in 2024. UK holds a 2% of the global market share. Residential, commercial, and utilities comprise the primary sectors that utilize this resource. Investments in grid-scale battery storage systems will increase by 20% in 2024, which will facilitate the integration of renewable energy. The utility sector is the largest. Battery storage installations is rising by 30% in 2024, which is also a significant factor in the residential market. The UK government's Net Zero Strategy and incentives for renewable energy adoption have been significant factors. Energy storage development is facilitated by the commercial sector's emphasis on demand response and energy efficiency. The UK is also making progress in V2G technology, with a 25% growth in 2024, primarily due to the increasing adoption of EVs. Furthermore, hydrogen storage is making progress, with an 20% increase in investments in 2024.

France (2024 Market Size: USD 4.5 billion)

The energy storage and distribution market in France was valued at USD 3.5 billion in 2023, and USD 4.5 billion in 2024. France holds a revenue share of 2% of the global market. Residential, commercial, and utilities comprise the primary sectors that utilize this resource. The utility sector is the leader in the integration of renewable energy sources with storage solutions, with a particular emphasis on solar and wind. Battery installations increase by 25% in 2024 as residential energy storage is also expanding. Growth has been significantly stimulated by the French government's energy transition policies and incentives for renewable energy adoption. Energy storage is becoming more prevalent in the commercial market as a means of cost reduction and energy management. France is also investing in hydrogen storage, with a 20% increase in investments in 2024. The adoption of electric vehicles (EVs) is facilitating the growth of the V2G market, which reach 20% in 2024. France's objective is to improve grid stability and resilience by continuing to invest in energy storage technologies.

Canada (2024 Market Size: USD 3.8 billion)

In 2023, the Canada energy storage and distribution market share is 2% and its market size was USD 3 billion, and USD 3.8 billion in 2024. Residential, commercial, and utilities comprise the primary sectors that utilize this resource. The utility sector, which comprises 60% of the market, concentrates on the integration of renewable energy sources with storage solutions. Battery storage installations increase by 30% in 2024 as the residential market continues to employ it due to government incentives and decreasing costs. Additionally, the commercial market experiences substantial adoption, with an emphasis on demand management and energy efficiency. The 25% growth in 2024 is a result of Canada's investment in V2G systems, which is being bolstered by the increasing adoption of electric vehicles. Furthermore, Canada is investigating hydrogen storage technologies, with a 20% increase in investment in 2024. The energy storage and distribution market is experiencing substantial development as a result of the government's emphasis on decarbonization and the integration of renewable energy.

PESTEL Analysis of Storage and Distribution Market

Political

The energy storage and distribution market is substantially affected by the political landscape. Governments worldwide are enacting policies to encourage the use of renewable energy and to mitigate carbon emissions. For example, the European Union's Green Deal is designed to achieve climate neutrality by 2050, which is catalyzing investment in energy storage. In the same vein, the U.S. Inflation Reduction Act offers tax credits and incentives for energy storage initiatives, thereby promoting market growth. Cross-border collaborations are fostered by international cooperation on climate objectives, while political stability in critical regions facilitates long-term investments. Nevertheless, the market may be impacted by political risks, including trade tensions and regulatory changes. Tariffs on battery imports or materials can disrupt supply chains, increasing costs. Additionally, modifications in government policies or leadership may result in modifications to energy priorities, which could impact market growth and investments. Political instability can impede infrastructure development and discourage foreign investment in emerging markets. Countries endeavor to establish secure supply chains and energy independence, which are also influenced by geopolitical factors. For instance, the dependence on specific countries for critical minerals, such as lithium and cobalt, has led to concerns regarding supply security, which has prompted political action to diversify sources. 

Economical

The energy storage and distribution market is substantially affected by the economic environment. In 2023, the global market size was USD 100 billion, and USD 120 billion in 2024. Consequently, the market is showing strong growth. Subsidies and tax credits are essential economic incentives that stimulate investment in energy storage technologies. These incentives expedite the adoption rate by reducing the cost barriers for both businesses and consumers. The increasing demand for grid stability and the integration of renewable energy drives the market's expansion. The demand for efficient energy storage solutions is on the rise as renewable energy sources such as solar and wind become more prevalent. The demand for energy storage is further fueled by the economic growth of emerging markets, which are investing in renewable energy initiatives and infrastructure. Nevertheless, the market's expansion may be affected by economic obstacles, including inflation, currency fluctuations, and interest rate fluctuations. The overall cost of energy storage systems can be influenced by inflationary pressures, which can increase the cost of basic materials and manufacturing. International trade and investment decisions may be influenced by currency fluctuations, while financing for large-scale initiatives may be impacted by increasing interest rates. Additionally, the market's vulnerabilities have been underscored by the global supply chain disruptions that have occurred in recent years. 

Social

Social factors significantly influence the energy storage and distribution market. The growing public consciousness of environmental issues and climate change is driving the demand for renewable energy and sustainable solutions. A shift toward energy-efficient technologies and renewable energy sources is being prompted by the increasing awareness of consumers' carbon footprints. The energy storage market is experiencing growth as a result of this societal transition, as businesses and individuals endeavor to mitigate their environmental impact. The market is also impacted by the proliferation of electric vehicles (EVs), which results in a heightened demand for energy storage solutions. The growth of vehicle-to-grid (V2G) systems is partially due to the attraction of consumers to the advantages of electric vehicles (EVs), including reduced fuel costs and reduced emissions. These systems enable electric vehicles (EVs) to communicate with the infrastructure, thereby offering energy storage and distribution services. Additionally, the successful execution of energy storage initiatives is contingent upon community engagement and social acceptance. The sanctioning of projects and the reduction of resistance to infrastructure development can be facilitated by public support for renewable energy initiatives.

Technological

Advanced technological developments are essential for the advancement of the energy storage and distribution market. The efficiency, capacity, and safety of energy storage systems have been considerably enhanced by advancements in battery technology, including lithium-ion and solid-state batteries. Global energy storage capacity reached 25 GW in 2023, and 30 GW in 2024, indicating ongoing technological advancements. Lithium-ion batteries continue to be the most prevalent technology as a result of their high energy density and decreasing costs. Nevertheless, the safety and efficacy of alternative technologies, such as solid-state batteries, are enhanced through research and development. Solid-state batteries, which utilize solid electrolytes in place of liquids, enhance safety in a variety of applications by reducing the likelihood of fires and leakage. The optimization of energy storage and distribution is significantly influenced by software platforms and energy management systems (EMS). These technologies facilitate the more effective integration of renewable energy sources into the grid, thereby improving the reliability and stability of the grid. Artificial intelligence and machine learning are employed by advanced EMS solutions to anticipate energy demand and optimize storage utilization, resulting in a more efficient energy distribution.

Environmental

The energy storage and distribution market is fundamentally influenced by environmental considerations, which in turn stimulate the demand for sustainable solutions and shape market dynamics. There is an increasing emphasis on the reduction of greenhouse gas emissions and the transition to renewable energy sources as global awareness of climate change increases. This transition is significantly facilitated by energy storage systems, which facilitate the integration of intermittent renewable energy sources, including solar and wind, into the energy infrastructure. Energy storage offers numerous environmental advantages, including the reduction of fossil fuel dependence, the reduction of carbon emissions, and the improvement of grid resilience. Energy storage systems assist in the regulation of supply and demand by storing surplus renewable energy and releasing it when necessary, thereby decreasing the necessity for fossil fuel-based peaking power plants. This enhances the sustainability and cleanliness of the energy grid. Nevertheless, the environmental impact of energy storage systems, particularly battery technologies, must be meticulously managed. Resource extraction, waste management, and potential pollution are among the environmental challenges that can result from the production and disposal of batteries. The extraction of critical materials, including lithium, cobalt, and nickel, can have environmental and social repercussions, such as water pollution and habitat devastation, which are essential for battery production.

Legal

The energy storage and distribution market is significantly influenced by legal factors, which comprise regulations, standards, and compliance requirements that shape market dynamics. Governments across the globe are establishing legal frameworks to facilitate the integration of energy storage systems and renewable energy, thereby stimulating market expansion. These regulations encompass grid interconnection standards, renewable energy targets, and safety requirements for energy storage installations. Energy storage solutions are in high demand in numerous regions due to legal mandates that require the integration of renewable energy. For instance, the Renewable Energy Directive of the European Union establishes mandatory objectives for member states, which motivates investments in storage technologies to achieve renewable energy objectives. Similarly, the deployment of storage systems is encouraged in the United States by state-level mandates, such as California's energy storage targets, to improve grid reliability and resilience. In the energy storage market, safety regulations are of the utmost importance, particularly for battery technologies. Organizations such as the International Electrotechnical Commission (IEC) and Underwriters Laboratories (UL) establish standards for battery safety, performance, and transportation. It is imperative to adhere to these standards in order to guarantee the secure operation of energy storage systems and safeguard consumers.

Key Players of Storage and Distribution Market

Tesla, Inc.

In 2023, Tesla, Inc., a market leader in energy storage, generated a revenue of USD 12 billion from its energy storage and distribution segment. In 2024, it generates USD 15 billion. Tesla's ongoing expansion in battery manufacturing and deployment, particularly through its Megapack and Powerwall products, is evident in this growth. In 2023, the company's research and development endeavors, which were concentrated on enhancing battery technology and increasing energy density, amounted to USD 3 billion. Tesla targets the residential market with its Powerwall, while the Megapack is designed to meet the storage requirements of utilities. Tesla is a dominant participant in the global energy storage market, with a 20% market share in 2024. This proportion is bolstered by its manufacturing capacity at the Gigafactory in Nevada and supplementary production facilities in Germany and China. The company's strategic focus on the integration of renewable energy sources, such as solar, with energy storage is well-positioned for continued growth. Tesla also actively engages in vehicle-to-grid (V2G) initiatives, utilizing its electric vehicles to offer grid services. Tesla's market leadership and meaningful contributions to the global transition to sustainable energy solutions sustained by its innovations and capacity expansion as demand for energy storage systems increases.

LG Energy Solution

In 2023, LG Energy Solution, a prominent player in the energy storage market, generated revenue of USD 11 billion, and USD 13 billion in 2024, from its energy storage and distribution segment. The company's R&D investment in 2023 was USD 1.5 billion, with a focus on the development of solid-state batteries and the improvement of battery chemistry. Grid storage and renewable energy integration are among the numerous applications in which LG's lithium-ion batteries are employed. LG Energy Solution holds 15% of the global energy storage market, a result of its extensive production capabilities in Europe, the United States, and South Korea. The organization is a prominent participant in the industry due to its emphasis on technological advancements, including next-generation solid-state batteries and high-density battery cells. Furthermore, in an effort to fortify its market presence, LG Energy Solution is broadening its alliances with utilities and renewable energy providers. LG's strategic investments in production capacity and innovation strengthen its competitive position and facilitate the widespread adoption of renewable energy solutions as the demand for energy storage continues to increase.

Contemporary Amperex Technology Co. Ltd. (CATL)

Contemporary Amperex Technology Co. Ltd. (CATL) is a prominent company in the energy storage and distribution market, with an USD 10 billion from this segment in 2023, and USD 12 billion in 2024. Battery technology, energy density enhancements, and recycling initiatives were the primary areas of focus for the company's R&D investments in 2023, which totaled USD 1.2 billion. Similar expenditures are in 2024. Battery manufacturing for electric vehicles, consumer electronics, and energy storage systems comprise CATL's principal business segments. CATL is maintain 20% of the global energy storage market share in 2024, which bolstered by its robust manufacturing capabilities in China and the expansion of production in Europe. The company's emphasis on lithium-ion batteries, particularly LFP (lithium iron phosphate) technology, provides benefits in terms of safety and endurance, rendering it appropriate for large-scale energy storage applications. CATL is also investigating solid-state battery technology as part of its long-term strategy. The organization's market presence is further enhanced by its involvement in grid-scale projects and its partnerships with numerous renewable energy providers. As the global demand for energy storage increases, CATL's commitment to strategic partnerships and innovation is solidify its position as a market leader further.

Samsung SDI

In 2023, Samsung SDI, a substantial actor in the energy storage market, reported a revenue of USD 8 billion from its energy storage and distribution segment. In 2024, it will generate USD 9.5 billion. The company allocated USD 1 billion for research and development in 2023, with a particular emphasis on the development of solid-state batteries, safety enhancements, and battery materials. Samsung SDI's lithium-ion batteries are extensively employed in a variety of applications, such as grid storage and the integration of renewable energy. The company's manufacturing facilities in Europe and South Korea contribute to its 10% market share in the global energy storage market by 2024. Samsung SDI is a competitive participant in the market due to its emphasis on technological advancements, including high-capacity battery cells and solid-state batteries. Furthermore, in order to fortify its market presence, the organization is broadening its alliances with utilities and renewable energy providers. Samsung SDI's strategic investments in production capacity and innovation bolster its market position and facilitate the widespread adoption of sustainable energy solutions as the demand for energy storage continues to increase.

Panasonic Corporation

The energy storage and distribution segment of Panasonic Corporation, a significant actor in the energy storage market, generated a revenue of USD 7 billion in 2023 and USD 8 billion in 2024. Battery chemistry, energy density, and recycling technologies were the primary areas of focus for the company's R&D investments in 2023, which totaled USD 800 million. Grid storage and renewable energy integration are among the numerous applications in which Panasonic's lithium-ion batteries are employed. Panasonic holds 7% of the global energy storage market share in 2024, in part due to its production facilities in the United States and Japan. The organization is positioned as a significant participant in the industry due to its emphasis on technological advancements, including recycling initiatives and next-generation battery cells. Furthermore, Panasonic's market presence is further enhanced by its partnerships with renewable energy providers and automotive manufacturers. As the demand for energy storage increases, Panasonic's emphasis on strategic partnerships and innovation fortify its competitive position and facilitate the global transition to renewable energy.

Recent developments in Storage and Distribution Market

Conclusion

With a global capitalization of almost USD 100 billion, the energy storage and distribution market saw substantial growth in 2023. In 2024, energy storage and distribution market size is USD 230 billion and will be USD 615.8 billion by 2031, with a compound annual growth rate (CAGR) of 13.10%.  Battery efficiency and capacity are driving advancements, with major businesses like CATL, LG Energy Solution, and Tesla investing billions in research and development. With a strong demand for renewable energy integration, the worldwide energy storage capacity to approach 30 GW in 2024, up from 25 GW in 2023. Even while the commercial and residential markets are quickly embracing battery solutions, the utility sector, which uses them at a rate of more than 60%, leads the way in establishing large-scale storage systems. Residential installations in the US increased by 20% in 2023 and 30% in 2024. Germany and China, two countries with sizable renewable energy storage markets, account for seven percent and twenty-five percent of the total, respectively.

There will likely be a 25% increase in investments in green hydrogen by 2024, thanks to the rising popularity of emerging technologies like solid-state and hydrogen storage. Increased grid resilience is a side effect of the proliferation of electric vehicles, which is also driving the expansion of vehicle-to-grid (V2G) systems. The energy storage and distribution industry seems to have bright prospects in the future. Market growth will be sustained as long as decarbonization and sustainable energy are central tenets of international policy. As a result of the rising demand for renewable integration and technological developments, the market's capacity might triple by 2030.