Battery Storage Inverter Market Size, Share, Trends, Growth and Forecast 2030

Battery Storage Inverter Industry Prospective:

The global battery storage inverter market size was worth around USD 2194.67 million in 2022 and is predicted to grow to around USD 4216.38 million by 2030 with a compound annual growth rate (CAGR) of roughly 8.50% between 2023 and 2030.

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Battery Storage Inverter Market: Overview

A battery storage inverter is a unit that stores energy to be used at a later time. These inverters help in storing electricity in the form of direct current (DC) and changing it to alternating current (AC) when needed meant for further dispersion or consumption. Battery storage inverters play a crucial role in achieving electricity independence as consumers do not have to rely solely on electricity supplied by grids. Battery storage inverters have several applications including commercial, residential, and industrial; however, each end-user segment must invest in battery storage inverters specifically designed for the vertical. Apart from heating or cooling a closed facility and helping illuminate residential or commercial spaces, battery storage inverters are capable of interacting with the grid and feeding electricity back into the grid when necessary. Several factors in recent times have contributed to higher demand for high-performance battery storage inverters with increasing application in end-user verticals and innovation. The balancing machines market is subject to certain growth restrictions and challenges that may limit market growth during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global battery storage inverter market is estimated to grow annually at a CAGR of around 8.50% over the forecast period (2023-2030)
• In terms of revenue, the global battery storage inverter market size was valued at around USD 2194.67 million in 2022 and is projected to reach USD 4216.38 million, by 2030.
• The balancing machines market is projected to grow at a significant rate due to the increasing need to achieve electricity independence
• Based on end-user industry segmentation, utility-scale was predicted to show maximum market share in the year 2022
• Based on type segmentation, three-phase electric power was the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Battery Storage Inverter Market: Growth Drivers

Increasing need to achieve electricity independence to drive market growth

The global battery storage inverter market is expected to grow owing to the increasing need and emphasis on achieving electricity independence mainly concerning the residential sector. The global electricity demand rose by more than 1400 TWh between 2020 and 2021 as per official data. This has resulted in extreme pressure on companies providing electricity and power. However, the electricity production rate is currently unable to match the exponentially rising consumption rate, especially in emerging or underdeveloped nations with limited power generation infrastructure leading to the general population seeking measures to store excess energy and use it during situations when the power supply is cut off. A recent report by Development Asia claimed that nearly 350 million people in the Asia-Pacific region have limited access to electricity while over 150 million do not have any access at all. In addition to this, the increasing rate of natural calamities impacting power generation and distribution networks leaving many people stranded without electricity has further created an exceptional growth scope for battery storage inverters.

Declining prices of battery storage systems to help higher revenue generation

The increasing rate of innovation in the field of battery storage inverters has allowed a steady decline in the prices of these efficient energy storage systems. Earlier, with a high expense rate, the consumer base was largely limited. However, in recent times, factors such as growing disposable income coupled with reduced prices of battery storage inverters have allowed the balancing machines industry to grow further.

Battery Storage Inverter Market: Restraints

Environment impact of industry operations to restrict market growth

The global balancing machines market growth is expected to be restrained due to the growing concerns over the environmental impact of industry operations including manufacturing of battery storage inverters. These devices typically contain lithium-ion batteries resulting in extensive mining of essential raw materials that leads to environmental pollution. Moreover, proper disposal of battery storage inverters is an additional limitation since there is a general lack of an efficient disposal or battery reuse process. If the units are discarded in an open environment, it can lead to the dispersion of toxic chemicals and other contents of the batteries into the ecosystem.

Battery Storage Inverter Market: Opportunities

Growing integration with solar power technology to create growth opportunities

With the increasing focus on generating renewable and sustainable energy, more investments are made into integrating solar power technology and battery storage inverters since they can work in tandem to provide sustainable and long-term electricity independence. This includes working on creating a seamless integration between solar inverters and battery storage inverters where the latter can store excess energy created by the former unit. In June 2022, Natural Battery Technologies announced the launch of inverter batteries based on lithium-ion (Li-ion) for commercial and residential applications. The unit also functions as a solar-energy storage system and can function as a large-scale grid energy storage unit or a small home inverter. These attributes to improved rate of investment and overall cost-efficiency leading to higher consumption.

Rising rate of new product launches to create higher expansion possibilities

The global balancing machines market growth trend is expected to come across higher growth possibilities due to the increasing number of new product launches with affordable and efficient solutions. In September 2023, LG Energy Solution (LGES) announced the launch of Prime+. It is an energy storage system for the residential sector and is equipped with a battery and inverter system. It offers use of 10H or 16H Prime battery modules simultaneously and has a total capacity of 32 kilowatt-hours. In July 2023, the company launched a new range of hybrid inverters that worked well with low-voltage and high-voltage configurations. The latter variant can be connected to two batteries and has a total of 32 kWh in terms of capacity.

Battery Storage Inverter Market: Challenges

Limited lifespan of battery storage inverters and growing demand for alternate solutions to challenge market growth

The players operating in the battery storage inverter industry are expected to face growth challenges due to the limited lifespan of these units. After a specific cycle run, these inverters may start showing a dip in performance quality and require additional maintenance work. On the other hand, there is a growing segment for alternative solutions that have higher energy capacity as compared to battery storage inverters. The substitute solutions include thermal energy storage, grid-scale energy storage, virtual power plants, and ultracapacitors to name a few.

Battery Storage Inverter Market: Segmentation

The global battery storage inverter market is segmented based on end-user industry, type, and region.

Based on end-user industry, the global market segments are utility scale, commercial scale, and residential scale. In 2022, the highest growth was observed in the utility scale segment since battery storage inverters play a crucial role in managing, storing, and distributing power and energy as per requirement. During the forecast period, the demand for residential scale battery storage inverters is projected to grow at a faster rate due to increasing application in several household settings especially in areas prone to frequent power cuts. Furthermore, an increasing number of players are offering residential solutions leading to additional segmental push. In a typical residential setting, 10 kWh batteries are used.

Based on type, the balancing machines industry segments are three-phase electric power and single-phase electric power. In 2022, the demand was higher for three-phase electric power since this type of electric power distribution method has higher applications in commercial and industrial applications. As opposed to single-phase electric power, the three-phase system functions with the aid of three ACs exhibiting the same frequency but showcases a phase difference of 120 degrees. The enhanced efficiency and suitability for balanced loads are two main growth propellers.

Battery Storage Inverter Market: Report Scope

Battery Storage Inverter Market: Regional Analysis

Asia-Pacific to witness the highest growth rate during the assessment timeline

The global battery storage inverter market is expected to witness the highest growth in Asia-Pacific driven by the presence of a large number of battery storage inverter manufacturers and suppliers. The regional companies are investing heavily in the development of new-age inverters with exceptional performance and large-scale applications. The regional growth is further pushed by increasing support from government agencies to deploy battery storage inverters powered by renewable energy. In September 2023, the Indian government launched a new tender scheme to raise funds for battery energy storage system (BESS) asset development and manufacturing. The government is expected to use the funds for the construction of over 4,000MWh BESS resources. On the other hand, China’s leading inverter manufacturer Sungrow announced a partnership with Super Energy, an independent power producer to set up the largest solar-plus-storage project in Southeast Asia. North America is expected to grow at a steady pace. The regional growth is expected to be driven by increasing demand for battery storage inverters in the residential sector.

Battery Storage Inverter Market: Competitive Analysis

The global battery storage inverter market is led by players like:

• SMA Solar Technology AG
• KACO New Energy
• Sensata Technologies Inc.
• Poweroneups
• GOODWE
• Ingeteam
• Guangdong Zhicheng Champion Group Co. Ltd.
• SUNGROW
• Eaton
• SolaX Power.

The global battery storage inverter market is segmented as follows:

By End-User Industry

• Utility Scale
• Commercial Scale
• Residential Scale

By Type

• Three-Phase Electric Power
• Single-Phase Electric Power

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa