At 12.1% CAGR, the North America Lithium-Ion Battery Energy Storage Market is projected to be worth US$ 7,605.07 million by 2028, says Business Market Insights

According to Business Market Insights research, the North America lithium-ion battery energy storage market  was valued at US$ 4,295.34 million in 2023 and is expected to reach US$ 7,605.07 million by 2028, registering a CAGR of 12.1% from 2023 to 2028. Rising number of wind farms and growing establishment of solar plants are the critical factors attributed to the North America lithium-ion battery energy storage market  expansion.        

Lithium-ion batteries are highly efficient and flexible, making them well-suited for use in battery energy storage systems. They can store energy from solar panels during sunlight and discharge it when demand is high, providing reliable backup power for homes and businesses. Since these batteries are used for residential and commercial purposes, it is becoming affordable. The cost of lithium-ion batteries has been declining steadily in recent years, making them more cost-effective for homeowners and businesses to install. This has helped to increase the adoption of battery energy storage systems, particularly when paired with solar energy systems. Systems for storing energy using lithium-ion batteries can be scaled up or down to meet the requirements of various applications. This qualifies them for usage in utility-scale projects and in residential and commercial contexts.

The rise in capacity resulted from numerous governmental initiatives, including auctions, feed-in tariffs, net metering, and contracts for difference. From 2021 to 2022, governments of various countries made significant policies and target adjustments that affected solar PV growth. The Inflation Reduction Act, a law that increases support for renewable energy in the following ten years through tax credits and other measures, was submitted by the federal government of the US in August 2022. Solar PV was one of the primary technologies used to achieve these goals. Thus, growing development of solar plants in developed countries is driving the lithium-ion battery energy storage market growth.

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

Based on capacity, the North America 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 31.2% share of North America Lithium-Ion Battery Energy Storage Market in 2023, amassing US$ 1,341.31 million. It is projected to garner US$ 2,316.74 million by 2028 to expand at 11.6% CAGR during 2023–2028.

Based on connection type, the North America lithium-ion battery energy storage market is segmented into on-grid and off-grid. The on-grid segment held 69.0% share of North America Lithium-Ion Battery Energy Storage Market in 2023, amassing US$ 2,962.62 million. It is projected to garner US$ 5,487.00 million by 2028 to expand at 13.1% CAGR during 2023–2028.

Based on end use, the North America lithium-ion battery energy storage market is segmented into residential, commercial and industrial, and utility. The utility segment held 44.2% share of North America Lithium-Ion Battery Energy Storage Market in 2023, amassing US$ 1,897.24 million. It is projected to garner US$ 3,505.16 million by 2028 to expand at 13.1% CAGR during 2023–2028.

Based on country, the North America lithium-ion battery energy storage market is segmented into the US, Canada, and Mexico. Our regional analysis states that the US captured 76.1% share of North America Lithium-Ion Battery Energy Storage Market in 2023. It was assessed at US$ 3,270.08 million in 2023 and is likely to hit US$ 5,846.02 million by 2028, exhibiting a CAGR of 12.3% during the forecast period.      

Key players dominating the North America lithium-ion battery energy storage market are ABB Ltd; Blue Solutions SAS; 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 2023, GE Research has been granted two projects through the US Defense Advanced Research Projects Agency's (DARPA) Materials with Novel Transport Properties (MINT) program. The projects aim to explore the possibility of developing certain types of metal materials and batteries that could last indefinitely. The research could lead to self-healing metals that can withstand corrosion and never degrade. DARPA is funding the project to support its mission of extending the life of critical infrastructure and systems. GE Research's involvement in the program is part of its ongoing efforts to advance innovative technologies and materials that could have significant implications for various industries.

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