Utility batteries are non-dynamic batteries that are connected to power generation assets or distribution networks. Utility batteries store energy and facilitate it to the required distribution network in case of need. They use a renewable energy source to meet the growing energy demand. In addition, these batteries are fast and possess high cycle efficiency. The utility battery system framework offers environment-friendly power yield.
The increasing demand for uninterrupted power supply is one of the crucial factors driving the growth of the global utility battery market. Besides this, the growing availability and adoption of renewable sources of energy along with the grid modernization process is further implementing the growth of the market. For instance, the energy from renewable sources like wind, sunlight, and biomass is stored in the batteries and delivered to the grid whenever there is a high need; therefore, it maintains the balance when demand exceeds. Also, the advent of microgrids plays a vital role. Such an idea of using energy from sustainable power sources like sunlight for energy production is encouraging the interest area for battery energy storage arrangement in the off framework and utility field. Therefore, it is also said that development in the market will very much depend on the increase in the selection of renewables.
The global utility battery market can be segmented into industry verticals, application, technology, and region.
By industry vertical, the market can be segmented into automotives, utilities, and energy & power.
By application, the market can be segmented into utility, commercial, and residential.
By technology, the market can be segmented into flow battery, lead-acid battery, lithium-ion battery, and others.
Asia Pacific accounts for the largest share in the global utility battery market as growing economies like China are among the major raw material suppliers. Also, the growing initiatives of the government to encourage the inclusion of renewable sources for the production of energy will further accelerate the growth of the regional market. In addition, the growing investment by the government and prominent market leaders to establish proper infrastructure will also accelerate the growth of the market.
Some of the significant players in the global utility battery market are LG Chem, Samsung SDI Co. Ltd., BYD Company Ltd., NGK Insulators Ltd., and Kokam. To cite, it was revealed in 2020 that Tesla, Inc. plans to eliminate the use of cobalt in the batteries used in its energy vehicles and instead use lithium-iron technologies such as lithium iron phosphate. This is anticipated to lead to significant cost savings as it is economical and helps to reduce the cost of batteries.