Global ESS Market to Reach 235GWh This Year, Up 27% from Previous Year

2.6 Times Increase to 618 GWh Scale by 2035

Source=SNE Research

The lithium-ion battery (LIB) ESS (energy storage system) market size is expected to grow by 27% this year to 235 GWh compared to the previous year. The market size in terms of value is expected to grow by 14% to approximately 40 billion USD (about 53 trillion KRW).

According to the 'Global ESS Market Outlook' report published by SNE Research on the 5th, the ESS market size this year is 235 GWh and is predicted to grow to 618 GWh and 80 billion USD over the next 35 years.

ESS is used in various fields based on its characteristic of being able to store electricity. It is receiving significant attention in the smart grid sector, where renewable energy is stored and used when needed. In particular, the ESS market using LIBs with high energy density is experiencing substantial growth.

Domestically, the solar-linked ESS business has grown significantly, but the market was greatly contracted after a series of domestic ESS fire incidents in 2018. Recently, with the announcement of the ESS industry development strategy led by the Ministry of Trade, Industry and Energy, market recovery is expected. Additionally, domestic battery manufacturers such as LG Energy Solution, Samsung SDI, and SK On have expressed enthusiasm for the ESS market by planning to use highly safe LFP batteries for ESS applications.

The ESS market is expected to record an average annual growth rate of 10.6% until 2035, reaching 618 GWh. The main demand sector is the smart grid. By country, China is expected to hold the largest share. North America is ranked as the region with the next highest demand. The North American ESS market is projected to grow to 181 GWh by 2035.

A representative from SNE Research stated, "The ESS market is the LIB market expected to grow significantly after EVs," and added, "It is almost the only market that can serve as an alternative for the LIB industry, which faces concerns due to the chasm crisis emerging in the EV market."