Germany Energy Storage Market Insights Forecasts to 2033

• The Market Size is Growing at a CAGR of 9.8% from 2023 to 2033
• The Germany Energy Storage Market Size is Expected to Hold a Significant Share by 2033

The Germany Energy Storage Market Size is Anticipated to Hold a Significant Share by 2033, Growing at a CAGR of 9.8% from 2023 to 2033.

Market Overview

Energy storage systems enable the decoupling of energy usage from energy generation, whether it is for electricity or heat. Electricity is usually stored through chemical methods like lead acid or lithium-ion batteries, or via mechanical methods such as pumped hydro storage. More advanced thermal energy storage systems, such as molten salts in concentrating solar power, can store energy more compactly than simple hot-water tanks. Battery systems can aid in various services essential for the transition, such as offering frequency response, reserve capacity, black-start capability, and other grid services, as well as storing power in electric vehicles, upgrading mini-grids, and supporting the "self-consumption" of rooftop solar power. In the future, batteries could help to handle large amounts of unpredictable renewable electricity by storing excess energy for later use when solar or wind power is insufficient. Thermal energy storage (TES) aids in the incorporation of large amounts of renewable energy in power generation, industry, and buildings areas. TES technologies consist of molten-salt storage, as well as solid-state and liquid air versions. In 2023, 555,000 residential storage systems were installed in Germany, with a total capacity of 5.0GWh, marking a 166% increase from the previous year. This accounted for 52.6% of Europe's new installed capacity and played a key role in driving overall market growth.

Report Coverage

This research report categorizes the market for the Germany energy storage market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Germany energy storage market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Germany energy storage market.  

Driving Factors

The need for items like stationary batteries, private personal vehicle batteries, and lithium-ion batteries is forecasted to stay elevated and grow in the coming years. In particular, the private and commercial sectors are the main drivers of growth, especially in the areas of system integration, sector coupling, and electromobility. In the year 2020, over 100,000 new home storage units were introduced in Germany, increasing the total count to 300,000. In 2023, Germany emerged as the biggest energy storage market in Europe. According to Trend Force data, Germany saw an increase of approximately 4GW/6.1GWh in new energy storage capacity in 2023, marking a 124%/116% rise from the 2022 year, with residential storage taking the forefront that representing more than 83%/81%. Furthermore, Germany holds the record for the highest number of residential storage installations in the European market.  

Restraining Factors

The challenge of developing efficient and smart power grids nationwide to capture and store the increasing renewable energy continues to be a hindrance to market expansion.

Market Segmentation

The Germany energy storage market share is classified into type and application.

• The batteries segment is expected to hold the largest market share through the forecast period.   

The Germany energy storage market is segmented by type into batteries, pumped-storage hydroelectricity (PSH), thermal energy storage (TES), and others. Among them, the batteries segment is expected to hold the largest market share through the forecast period. According to the IRENA study on electricity storage and renewables, costs and markets to 2030, battery electricity storage systems have significant potential for deployment and cost reduction. By 2030, the overall costs of installation may decrease by 50% to 60% due to improved manufacturing processes, enhanced material combinations, and reduced material consumption. Battery durability and efficiency will continue to increase, ultimately leading to lower service costs.

• The utilities' segment dominates the market with the largest market share over the predicted period.

The Germany energy storage market is segmented by application into residential, utilities, and non-residential. Among them, the utilities segment dominates the market with the largest market share over the predicted period. The utilities' need for energy storage systems is driven by the necessity to improve grid operations, handle peak demand effectively, incorporate more renewable energy sources, and strengthen grid resilience. Energy storage is essential for utilities to address the unpredictable nature of renewable energy sources, guaranteeing a consistent and dependable electricity supply.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Germany energy storage market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Enel SpA
• Renewable Energy Systems Ltd
• STEAG GmbH
• Fraunhofer-Gesellschaf
• Redt Energy PLC
• Sungrow Power Supply Co. Ltd
• Fluence Energy Inc.
• RWE AG
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In May 2023, Construction of a significant battery storage project in North Rhine-Westphalia is initiated by RWE at two sites. In November 2022, RWE revealed its intention to set up 220 MW of battery storage capacity at two retired lignite-fired and coal-fired power plants in North Rhine-Westphalia, Germany, costing approximately USD 147 million.

Market Segment

This study forecasts revenue at Germany, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Germany Energy Storage Market based on the below-mentioned segments:

Germany Energy Storage Market, By Type

• Batteries
• Pumped-Storage Hydroelectricity (PSH)
• Thermal Energy Storage (TES)
• Others

Germany Energy Storage Market, By Application

• Residential
• Utilities
• Non-Residential