Global Off Grid Energy Storage Market Insights Forecasts to 2033

• The Global Off Grid Energy Storage Market Size was Valued at USD 12.85 Billion in 2023
• The Market Size is Growing at a CAGR of 16.69% from 2023 to 2033
• The Worldwide Off Grid Energy Storage Market Size is Expected to Reach USD 60.15 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Global Off Grid Energy Storage Market Size is Anticipated to Exceed USD 60.15 Billion by 2033, Growing at a CAGR of 16.69% from 2023 to 2033.

Market Overview

Off-grid energy storage refers as renewable energy system that is not connected to the electricity grid. Off-grid energy storage is also known as a stand-alone system. Off-grid energy storage systems are used in remote locations where it is not possible to connect to the grid, or by people who want to be independent from their power provider. They can also be used as emergency power generation equipment in areas with frequent power outages. Off-grid energy storage consists of all the key components, which are solar panels plus mounting structure, batteries, an inverter, and other supportive equipment, all functioning in one single unit to ensure optimal power generation.

In year 2023 the report according to International Renewable Energy Agency (IRENA) total off-grid storage in Africa region is around 1317.347MW and in Asia region approximately 9893.034MW generated and stored.

Report Coverage

This research report categorizes the market for off grid energy storage 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 off grid 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 off grid energy storage market.

Driving Factors

Rising demand for grid energy storage systems owing to ongoing grid modernization is driving the off-grid energy storage market growth. The most common renewable energy types that are stored in grids are solar and wind energy. However, when the sun is covered by clouds or by changing wind currents, the energy-generating process is interrupted. Such fluctuations require the use of flexible grid systems for energy storage. Grid modernization is progressively using battery energy storage systems. When the amount of electricity generated exceeds the amount of electricity required, these solutions assist grid operators in saving electricity. The adoption of these systems improves the electricity supply systems’ dependability and flexibility in terms of electric power generation, transmission, and distribution and ultimately drives the off-grid energy storage market. The use of lithium-ion batteries in various electrical and electronics act as an important factor for off-grid energy storage market growth. For instance, In August 2024, India is set to open its first lithium mines in the Katghora region of Korba district, Chhattisgarh, subsequent the Geological Survey of India (GSI) confirm major lithium reserves.

Restraining Factors

Because energy storage technologies are relatively expensive, like batteries, compared to traditional grid-connected power sources, it can be quite challenging for off-grid users, mostly in developing countries, to afford an upfront investment. It's actually rather expensive to set up energy storage system with big storage units, inverters, and other associated equipment; this could be a barrier to entry for so many potential off-grid consumers. Installations and maintenance of the energy storage systems in most of the off-grid locations are further hampered by lacking appropriate infrastructural setup, including reliable transportation and distribution networks.

Market Segmentation

The off grid energy storage market share is classified into product and application.

• The lithium-ion battery segment is estimated to hold the highest market revenue share through the projected period.

Based on the product, the off grid energy storage market is classified into lithium-ion battery, lead-acid battery, and others. Among these, the lithium-ion battery segment is estimated to hold the highest market revenue share through the projected period. This is driven by the fact that they have capacity to store electrical energy produced by renewable energy sources, such as wind and solar energy. Due to their high energy density, lithium-ion batteries are the most popular type of batteries used in independent energy storage systems. Li-ion, lithium iron phosphate, lithium manganese oxide, and lithium nickel cobalt aluminum batteries are among the types of batteries in this group. Energy in lithium-ion cells is so dense and high, therefore making it considered perfect for huge capacities of power storage. In fact, the best features about lithium-ion batteries are their huge energy density ups to 630 Wh/l, 90% efficiency, and the durability with a 5-8% self-discharging profile per month at 21°C. Some are characteristics of lithium batteries, e.g., lithium-ion batteries low self-discharge and hence little memory effect. It is for this reason that they have a very long cycle life and are much preferred over lead-acid batteries.

• The industrial UPS segment is anticipated to hold the largest market share through the forecast period.

Based on the application, the off grid energy storage market is divided into family backup power, industrial UPS, unattended equipment, and others. Among these, the industrial UPS segment is anticipated to hold the largest market share through the forecast period. This has grown colossally in recent times with the growing demand for reliable and uninterrupted power supply in industries. Nearly all the industrial processes and manufacturing operations, including some quite critical in infrastructural works, call for electricity without any breaks at all to avoid disruption of production, loss of data, and damage to expensive equipment. The industrial UPS provides backup power in case of grid failure or outage and ensures mission-critical industrial processes run continuously. Moreover, this growing interest in taking automation, robotics, and digital technologies across industries generates demand for a robust and reliable power backup arrangement; hence, the industrial UPS will turn out to be critical in terms of industries. The flexibility of the industrial UPS systems to be put together in accordance with different power requirements for diverse industry verticals has also largely contributed toward their widespread acceptance and dominance in the global market during the projected period.

 Regional Segment Analysis of the Off Grid Energy Storage Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Europe is anticipated to hold the largest share of the off grid energy storage market over the predicted timeframe.

Europe is anticipated to hold the largest share of the off grid energy storage market over the predicted timeframe. Off-grid energy storage has gained significant attention in the context of electrical energy management for off-grid living and independent power supply in the European region. These systems utilize batteries, such as lithium-ion and lead-acid, to store excess electrical energy generated from renewable sources like solar and wind power due to the unpredictable climate conditions in European region and that drives the off-grid energy storage market. Lithium-ion batteries, with their high energy density, low self-discharge rate, and minimal memory effect, have become increasingly popular in off-grid solar markets. For instance, European Lithium is a mining exploration and development company that wholly owns the Wolfsberg lithium project which is located 270km SW of Vienna, in Carinthia, Austria, Wolfsberg is a hard rock lithium deposit with historical exploration a JisORC resource, with exploration upside. Close to road and rail infrastructure European Lithium is well located to service European consumers, the EV industry, and a growing number of battery manufacturers in the region. A recently completed positive PFS supports planned lithium hydroxide sales into an integrated European battery supply chain.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the off grid 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

• EnerSys
• Samsung SDI
• LG
• Sonnen
• Fronius
• Toshiba
• Mitsubishi Heavy Industries
• Sumitomo Electric Industries
• Enphase
• SAFT
• NEC Energy Solutions
• BYD
• Tianneng Battery
• CALB
• GE
• ABB
• Hitachi Chemical Co., Ltd.
• 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 2024, top photovoltaic inverter and energy storage solutions provider, Sungrow Power Supply Co. Ltd (Sungrow) announced that it has come with a strategic partnership with Larsen & Toubro (L&T) to supply 165 MW PV inverters and 160 MW/760 MWh energy storage systems for AMAALA – a luxury tourist destination in Saudi Arabia.

• In July 2024, The Ministry of Energy and Water Resources (MoEWR) of Somalia issued a competitive tender for the provision of solar and storage technology at 46 different sites in the capital Mogadishu.

• In February 2024, PowerPlus Energy, an energy storage company, collaborated with PV installer Springers Solar to complete an improvement to an island solar and battery system in the Australian state of Queensland that brightly demonstrates how far clean technology has come.

• In February 2024, MG Motor India partnered with BatX Energies. The partnership would work toward developing India’s first off-grid, solar electric vehicle station that would be powered using the repurposed MG EV batteries. Such moves are a sign of a shift toward a circular economy where the used batteries of MG EVs will have extended application.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the off grid energy storage market based on the below-mentioned segments: 

Global Off Grid Energy Storage Market, By Product

• Lithium-ion Battery
• Lead-acid Battery
• Others

Global Off Grid Energy Storage Market, By Application

• Family Backup Power
• Industrial UPS
• Unattended Equipment
• Others

Global Off Grid Energy Storage Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa