Global Off Grid Energy Storage Systems Market Insights Forecasts to 2033

• The Global Off Grid Energy Storage Systems Market Size was Valued at USD 12.45 Billion in 2023
• The Market Size is Growing at a CAGR of 16.45% from 2023 to 2033
• The Worldwide Off Grid Energy Storage Systems Market Size is Expected to Reach USD 57.1 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Global Off Grid Energy Storage Systems Market Size is Anticipated to Exceed USD 57.1 Billion by 2033, Growing at a CAGR of 16.45% from 2023 to 2033.

Market Overview

An off-grid energy storage system or stand-alone system is a very small RE system not connected in any way to the electrical supply grid. It uses solar panels during the daytime to produce power, which is stored in a battery for use at night time or during only overcast conditions. It can also be used in electric cars. Many stand-alone energy storage gadgets are used in conditions as well as regions where connection to the power grid cannot be achieved such as in islands and wilderness areas. The others may include those who want to go solar and be out of their power supplier’s domination or those who want to support green energy.

For an example, The Government of India has started the Electric Mobility Promotion Scheme 2024 (EMPS 2024), it is a 500 crore scheme to boost up electric vehicles. Launched by the Ministry of Heavy Industries, the scheme will allow incentives of up to INR 10,000 per two-wheeler for approximately 3. For two-wheelers, the subsidy fell slightly short of INR 33 lakh, and for small 3-wheelers ranged up to INR 25000 for over 41000 units. The financial support shall be extended up to INR 50,000 for large three-wheelers only. The scheme is to promote the sale of electric two-wheelers and three-wheelers between 01 April, 2021 and 31 July, 2024. It is in conjunction with the Atmanirbhar Bharat initiative and aims at the development of a sustainable and competitive electric vehicle manufacturing market in India.

Report Coverage

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

Driving Factors

Propelled by a number of factors, one of the major factors is the ever-increasing demand for renewable sources of energy, especially solar and wind power. This increases the need for reliable energy storage solutions to solve the intermittent problem associated with these sources of energy. Moreover, rising grid-based electricity costs drive the use of off-grid systems, particularly in remote or rural areas, making them more cost-effective for many households and communities. Improving efficiency and reducing prices for energy storage technologies, such as lithium-ion batteries, increase their feasibility for off-grid systems in many more applications. Finally, the rise in awareness and desire for energy independence, sustainability, and resilience has further driven up the adoption of off-grid energy storage systems as a way to realize these goals.

Restraining Factors

The primary one is the capital cost of such systems because the initial deployment of the off-grid energy storage is expensive and requires a high cost of equipment, which in some cases can be several orders of magnitude larger than grid-alternative systems in larger-scale applications. In addition, the off-grid systems can at times be difficult to design, install, and maintain because the users need to have special knowledge and technical expertise. Globally, the technology for reliable and cost-effective storage of energy, especially for long-duration storage, is not yet available, and this has limited the wide deployment of off-grid systems. Also, some areas without standard regulation, policy, and incentives will bring uncertainty, creating a dreary environment with no motivation for relevant investment in off-grid energy storage projects.

Market Segmentation

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

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

Based on the type, the off grid energy storage systems market is classified into lithium-ion batteries, lead acid batteries, flow batteries, flywheel energy storage, and pumped hydro storage. Among these, the lithium-ion batteries segment is estimated to hold the highest market revenue share through the projected period. This is due to lithium solar batteries being rechargeable energy storage devices that may be used to store excess solar power when used in conjunction with a solar energy system. Lithium-ion batteries are widely utilized in rechargeable electrical devices such as cell phones and electric vehicles (EVs). Lithium-ion batteries now account for more than 90% of all grid battery storage systems globally. Over the last 10 years, the cost of lithium batteries has continuously decreased which is significantly driving the off grid energy storage systems. Lithium-ion technology, like solar energy, has become considerably profitable as prices have dropped. High investment and innovation in the lithium-ion batteries are fuelling the market. Moreover, governments are focusing on the adoption of renewable energy and zero carbon emissions are the most important factors for the growth of off grid energy storage systems market. For instance, The Indian government has made creditable efforts to promote domestic production of lithium-ion batteries. One important initiative in this direction is relaxed FDI norms, i.e., allowing up to 100% FDI under automatic route in the manufacturing of ACC batteries.

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

Based on the application, the off grid energy storage systems market is divided into residential, commercial, industrial, utility, and defense & military. Among these, the residential segment is anticipated to hold the largest market share through the forecast period. It can be due to a variety of factors, such as increasing demand from residential customers in the reliable and sustainable power sources, combined with an increase in the deployment of off-grid power systems by these customers across remote or rural areas. Moreover, residential-scale energy storage technologies, such as lithium-ion batteries, are becoming affordable and accessible, hence can be replicated amongst a bigger population of homeowners. Government incentives and policies also played a huge role in incentivizing the installation of off-grid energy storage systems within the residential market through net-metering programs and tax credits. The residential sector is expected to stay at the forefront of the off-grid energy storage system market throughout the forecast period, driven by an increasing demand for energy independence, sustainability, and cost savings among homeowners.

Regional Segment Analysis of the Off Grid Energy Storage Systems 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)

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

North America is anticipated to hold the largest share of the off grid energy storage systems market over the predicted timeframe. Factors such as the already well-established renewable energy sector, especially in the United States, where solar and wind power are being greatly deployed, have placed North America at the biggest market foreseen over the projected period in off-grid energy storage systems. This has created strong demand for reliable and scalable energy storage solutions to support the grid integration of these intermittent renewable sources. Government incentives and related policies, such as tax credits and renewable energy targets, also raise the level of adoption for off-grid energy storage systems in North America. It has also seen high demand for off-grid energy storage solutions to meet the desire for energy independence and security from the large rural and remote populations residing in this region, most of whom do not have access to reliable grid-connected electricity. Moreover, the presence of major energy storage technology manufacturers and an infrastructural setup well-suited for deployment and maintenance supported North America's leadership in the off-grid energy storage systems market.

Asia Pacific is expected to grow at the fastest CAGR growth of the off grid energy storage systems market during the forecast period. The rapid growth of the renewable energy sector in countries like China, India, and Japan will ensure the fastest growth in the off-grid energy storage systems market during the forecast period in the Asia Pacific region. Specifically, the strong demand comes from the need for reliable and modular energy storage solutions that enable the running of these resources by handling the variability of solar and wind power. Also, the large rural and remote populations of the region that lack grid-connected electricity have been increasingly accessing off-grid energy storage systems to fulfill their basic power requirements. In addition, with a drop in the prices of energy storage technologies and increasing availability, mainly in developing economies, the adoption of these systems has surged across the Asia Pacific region. Furthermore, a huge contribution to the deployment of off-grid energy storage systems has been made by initiatives and policies of the government for the growth of renewable energy and energy access in remote areas through various supports and incentives. With demand for sustainable and reliable energy continuing to grow, this will become one of the fastest-growing segments in global off-grid energy storage system markets.  

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the off grid energy storage systems 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
• Samsung SDI
• 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 July 2024, Sungrow Power Supply, a Chinese photovoltaic inverter manufacturing giant recently announced to partnership with Saudi Arabia’s Algihaz Holding for a huge energy storage project.

• In December 2023, Hyderabad-based electrical infrastructure company, Jayram Industries India (JIIPL) secured the contract from NTPC Renewable Energy (NTPC REL) for the setting up of a 250kW/1,200 kWh battery energy storage system (BESS) supporting solar power projects at the Khavda Renewable Energy Park in the Rann of Kutch, Gujarat.

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 systems market based on the below-mentioned segments: 

Global Off Grid Energy Storage Systems Market, By Type

• Lithium-ion Batteries
• Lead Acid Batteries
• Flow Batteries
• Flywheel Energy Storage
• Pumped Hydro Storage

Global Off Grid Energy Storage Systems Market, By Application

• Residential
• Commercial
• Industrial
• Utility
• Defense & Military

Global Off Grid Energy Storage Systems 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