Global Energy Storage as a Service (ESaaS) Market Size (By Service: Customer Energy Management Services, Ancillary Services, Bulk Energy Services, Distribution Infrastructure Services, Transmission Infrastructure Services, and Others; and By End-User: Utility, and Commercial, Industrial and Residential) - Global Industry Analysis, Market Size, Opportunities and Forecast, 2021 - 2028
From 2021 to 2028, the global energy storage as a service (ESaaS) market is predicted to grow at a CAGR of 9.8%, from US$ 1,230 million in 2020 to US$ 2,620 million in 2028.
Energy storage as a service (ESaaS) is referred to as the deployment of energy storage under a fee-for-service, shared savings, or management model rather than acquisition of the service by the end-user. ESaaS has the potential to shape the future of battery storage and renewable energy systems. With storage as a service, consumers will benefit not only from improved technology and lower costs, but also from a slew of other benefits that come with the 'as a service' model. Rental solutions will help to change this by providing a flexible method to operating the most versatile and flexible grid asset in the energy system. In the case of ESaaS, energy storage companied can accumulate electricity during non-peak periods and discharge it to energy users in peak periods, or they can combine this technology with a mix of distributed energy resources (DER), which helps energy users mitigate peak demand charges, potentially saving the customer money.
The increasing trend for power management services in residential and industrial sectors is creating a robust demand for ESaaS industry. Power management systems ensure that electrical distribution networks, as well as the assets connected to them, are safe, dependable, efficient, and compliant. Power management services also save extra power and assist users to spend them efficiently thus also fueling the energy storage as a service market. The growing importance of energy storage is creating awareness among the world and many public and private giants have started spending on the storage of energy. For instance, in a Series B financing round, Chevron Technology Ventures, the oil goliath's venture capital subsidiary, invested in long-duration energy storage company Malta Inc.
According to a new analysis from the Energy Information Administration (EIA), large-scale battery storage installations in the United States will increase tenfold between 2019 and 2023, with enough capacity to provide 10,000 MW to the grid being constructed between 2021 and 2023. Moreover, a rise in investments in renewable energy storage is expected to create prosperous growth for the market in the coming years. Investment in battery storage systems is beginning to follow suit as more buildings and urban infrastructure move to renewable energy sources for their power needs. With solar and wind power helping renewable energy overtake fossil fuels in Europe (2020), the demand for energy storage is on the rise to provide reliable round-the-clock power supplies. In addition, battery storage in the UK, which was roughly 1.2GW in 2021, is likely to quadruple by next year. This shows a clear trend of energy storage is been on a rise.
Service, end-user, and geography are the three segments that make up the global energy storage as a service (ESaaS) market. Customer energy management services, bulk energy services, distribution infrastructure services, supplementary services, transmission infrastructure services, and others are all part of the service category. In 2020, customer energy management services gained a considerable proportion of market share based on service. Customers must be understood and engaged in order to successfully adapt to their new role as active participants in the power system. Customer involvement is also influenced by the characteristics of information and communication technologies (ICT), which are improved in response to the requirements, interests, and advantages of consumers. However, the ancillary services are projected to register the fastest growth rate during the forecast timeframe.
The end-user segment is categorized into utility, and industrial, commercial and residential. Among them, the industrial, commercial, and residential segments contributed to more than 2/3rd of the total segment share in 2020. Meanwhile, the utility segment is expected to gain a significant impetus throughout the forecast period from 2021 to 2028. Growing emphasis on renewable power generation and battery storage by utility fuels the segmental growth.
Energy Storage as a Service (ESaaS) Market Geographical Analysis
The global energy storage as a service (ESaaS) market is classified into North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa. In 2020, the North American region dominated the regional market, accounting for over a one third of the total market share. The increasing projects of smart buildings, growth in renewable power generation, and rise in energy consumption due to the presence of end-user industries such as aerospace, automotive, healthcare, and others will drive the regional growth. On the other hand, the quickest growth is expected to register by the Asia-Pacific region due to growing urbanization and industrialization in emerging economies such as China and India. Furthermore, increasing energy consumption in the industrial and residential sectors among these countries is also creating a robust demand for energy storage as a service market.
Global Energy Storage as a Service (ESaaS) Segment Analysis
By Service Segment
· Bulk Energy Services
· Ancillary Services
· Transmission Infrastructure Services
· Customer Energy Management Services
· Distribution Infrastructure Services
By End-User Segment
· Industrial, Residential and Commercial
Energy Storage as a Service (ESaaS) Market Leading Companies
This section of the report identifies the market's major players. ABB, Centrica, Customized Energy Solutions Ltd., Enel X, ENGIE Storage Services NA LLC., Honeywell International Inc., Johnson Controls, NRStor Inc., Orsted Siemens, Suntuity Solar LLC, Veolia, and WGL Holdings, Inc. are the key companies mentioned in the research.
Energy Storage as a Service (ESaaS) Market Regional Overview
· Rest of Europe
· Rest of Latin America
· South Korea
· Rest of Asia-Pacific
Middle East & Africa
· South Africa
· Rest of Middle East & Africa