At 14.2% CAGR, the Asia Pacific Lithium-Ion Battery Energy Storage Market is projected to be worth US$ 11,538.72 million by 2028, says Business Market Insights

According to Business Market Insights research, the Asia Pacific lithium-ion battery energy storage market  was valued at US$ 5,939.61 million in 2023 and is expected to reach US$ 11,538.72 million by 2028, registering a CAGR of 14.2% from 2023 to 2028. Rising number of wind farms and growing establishment of solar plants are the critical factors attributed to the Asia Pacific lithium-ion battery energy storage market  expansion.        

A network of decentralized, medium-scale power-generating units, such as wind farms, solar parks, combined heat and power plants, and adaptable power consumers and storage devices, makes up a virtual power plant (VPP). Depending on the market setting, VPPs can carry out various tasks. A virtual electrical grid that connects hundreds or even thousands of households and forms the backbone of a virtual power plant. Many homes might have already installed solar panels and energy storage systems. For backup purposes, a virtual power plant can use BESS together. It can be utilized when there is a need to remove extra power from the grid.

Various organizations around the globe are focusing on modernizing their energy storage systems by developing innovative ways like VPP to increase grid resilience, considering cases of extreme weather. A few of the key players have already started implementing virtual power plants through various collaborations. For instance, to enable the creation of the first virtual power plant (VPP) project in Singapore in 2021, Hitachi ABB Power Grids was chosen to install its ground-breaking energy storage technology. The Energy Research Institute at Nanyang Technological University, Singapore (ERI@N), started working on the project in 2019, and it was funded by Sembcorp Industries and Singapore's Energy Market Authority (EMA). In 2020, a joint venture between Kraftwerke and Toshiba Energy Systems & Solutions Corporation was expected to be formed. Similarly, Next Kraftwerke Toshiba Corporation, a virtual power plant (VPP) service provider in Japan, permits third parties to set up their VPP. Thus, considering the above instances, a virtual power plant is expected to fuel the lithium-ion battery energy storage market during the forecast period.

On the contrary, availability of alternative technology hampers the Asia Pacific Lithium-Ion Battery Energy Storage Market.  

Based on capacity, the Asia Pacific lithium-ion battery energy storage market is segmented into 0-10 kW, 10-20 kW, 20-50 kW, and Above 50 kW. The 10-20 kW segment held 29.6% share of Asia Pacific Lithium-Ion Battery Energy Storage Market in 2023, amassing US$ 1,759.41 million. It is projected to garner US$ 3,390.33 million by 2028 to expand at 14.0% CAGR during 2023–2028.

Based on connection type, the Asia Pacific lithium-ion battery energy storage market is segmented into on-grid and off-grid. The on-grid segment held 68.6% share of Asia Pacific Lithium-Ion Battery Energy Storage Market in 2023, amassing US$ 4,073.92 million. It is projected to garner US$ 8,316.12 million by 2028 to expand at 15.3% CAGR during 2023–2028.

Based on end use, the Asia Pacific lithium-ion battery energy storage market is segmented into residential, commercial and industrial, and utility. The utility segment held 43.6% share of Asia Pacific Lithium-Ion Battery Energy Storage Market in 2023, amassing US$ 2,589.57 million. It is projected to garner US$ 5,217.10 million by 2028 to expand at 15.0% CAGR during 2023–2028.

Based on country, the Asia Pacific lithium-ion battery energy storage market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. Our regional analysis states that the China captured 36.1% share of Asia Pacific Lithium-Ion Battery Energy Storage Market in 2023. It was assessed at US$ 2,146.91 million in 2023 and is likely to hit US$ 4,280.87 million by 2028, exhibiting a CAGR of 14.8% during the forecast period.      

Key players dominating the Asia Pacific lithium-ion battery energy storage market are ABB Ltd; BYD Co Ltd; Contemporary Amperex Technology Co Ltd; Doosan Gridtech Inc; Exide Industries Ltd; General Electric Co; Hitachi Energy Ltd; LG Chem Ltd; Mitsubishi Heavy Industries Ltd; Panasonic Holdings Corp; Samsung SDI Co Ltd; Siemens Energy AG; and Toshiba Corp, among others.  

• In 2022, Exide's Li-ion cell plant in Karnataka is to be ready in 27-30 months. The project, spread over 80 acres, will expand to become a 12-Gwh (Gigawatt hour) capacity integrated lithium-ion battery facility involving a total investment of Rs 6,000 crore. It will take 8-10 years to reach its peak capacity.

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