Battery Energy Storage System Battery Energy Storage System Market worth 8.54 Bi | Page 8

Summary
The battery energy storage system market is expected to grow from USD 1.98 Billion
in 2018 to reach USD 8.54 Billion by 2023, at a CAGR of 33.9% between 2018 and
2023. Factors that drive the growth of the market include the increasing demand for
grid-connected solutions, high demand for the lithium-ion technology in the renewable
energy industry, and declining prices of lithium-ion batteries.
The battery energy storage systems market for on-grid connection is expected to grow
at a higher CAGR between 2018 and 2023. The on-grid battery energy storage
systems use the utility grids for supplying electricity to consumers, which also helps
reduce the energy bills. The load leveling, peak shaving, and power demand
management are the main applications of any on-grid connected battery energy
storage system installed with electrical grids. These factors contribute to the growth of
the market for on-grid battery energy storage systems.
The market for the customer-owned battery energy storage systems is expected to
grow at the highest CAGR between 2018 and 2023. The customer-owned battery
energy storage systems help reduce the electricity cost, as electricity is charged under
the time-of-use (TOU) tariff. Under the TOU tariff, the customer can easily reduce the
energy cost (electricity cost and annual investment cost) through the adoption of
battery energy storage systems.