Battery Pack for Energy Storage System 2023

Key Features 

• 2018-2028 forecasts for battery packs for energy storage systems for residential (BESS), industrial & commercial BESS, and utility-scale BESS.
• Demonstrate the strong, consistently-growing potential for battery pack players such as suppliers of cells, battery modules, battery racks, safety components, battery management systems, and thermal management solutions, housing materials for BESS’ battery packs.
• Illustrate the battery pack supply chain landscape, including the key players for battery cells, battery modules and racks, battery pack components, and associated business models.
• Discuss market opportunities for players that supply materials, devices, or technology solutions to the Li-ion battery pack industry.
• Provide insight into different technologies currently used in battery packs, their components, and related technology trends.
• Provide insight into different approaches to recycling end-of-life batteries.

Product objectives

• Provide market metrics and forecasts for battery packs for the battery energy storage systems (BESS) for residential, industrial, and utility-scale applications
• Demonstrate the strong, consistently-growing potential for battery pack players such as suppliers of cells, battery modules, battery racks, safety components, battery management systems, and thermal management solutions, housing materials for BESS’ battery packs
• Illustrate the battery pack supply chain landscape, including the key players for battery cells, battery modules and racks, battery pack components, and associated business models.
• Discuss market opportunities for players that supply materials, devices, or technology solutions to the lithium-ion battery pack industry.
• Provide insight into different technologies currently used in battery packs, its components, and related technology trends.
• Provide insight into different approaches to recycling end-of-life batteries.

• Table of content
• Glossary
• Report objectives
• Scope of the report
• Definition
• Methodologies & definition
• About the authors
• Companies cited
• Three-page summary
• Executive summary
• Context
• Market forecasts
  • Market forecasts – key highlights 
  • Market share of various lithium-ion batteries for BESS
  • 2022-cost breakdown of NMC 811 and LFP
  • Evolution of battery cell average selling price (ASP) by application
  • 2018– 2028 lithium-ion battery pack demand for BESS (in GWh) - by application
  • Which BESS application have the biggest market share?
  • 2028 – 2028 lithium-ion battery pack market value for BESS (in $B)
  • 2028 – 2028 lithium-ion battery pack market value for BESS (in $B)
• Market trends, at different levels
  • Why is battery energy storage system (BESS)  important?
  • Global carbon-neutrality targets
  • Main market drives for battery energy storage systems (BESS)
  • Main application of BESS – market trends
  • Battery energy storage system target of various countries
• Market shares & supply chain
  • Lithium-ion battery raw materials suppliers – cobalt, lithium
  • Critical raw materials for battery assessment
  • Lithium-ion cell manufacturers for BESS – geographical overview
  • Properties of  lithium-ion batteries of various manufacturers for BESS
  • Top lithium-ion battery manufacturers market share 2022
  • Lithium-ion batteries module/Rack  for BESS- geographical overview
  • Main BMS players and their level of vertical integration
  • Thermal management system suppliers - geographical overview
  • Battery Safety components - geographical overview
  • Battery housing - geographical overview
  • Battery energy storage system (BESS) players - geographical overview
  • BESS Supply chain in Europe and USA: BESS capacity - current/announced
  • system Supply chain in Asia pacific and Africa: BESS capacity - current/announced
  • Top BESS capacity – by country
  • Global Cell production capacity (gigafactories) expansion
  • Top battery energy storage system (BESS) players market share 2022
  • Battery supply chain under reshaping
  • Battery business- Strong focus on E-mobility or BESS?
  • BESS supply chain– partnerships and M&A
  • Who supplies to whom
  • Battery recycling – supply chain
  • How are car makers planning to recycle their end-of-life
  • Technology trends
  • Battery pack components of BESS – technology trends
  • Battery pack for BESS  - Global trends
  • Cell technology
  • Battery modules and racks technology
  • Battery Management System (BMS)
  • Thermal management system
  • Main safety components (fuses and contactors)
  • Electrical Interconnects
  • Battery pack housing
• Impact of xEV on battery energy storage application – technology trends
  • Battery buffer storage for xEV DC charging
  • Vehicle-to-load technology such as Vehicle-to-Grid (V2G) and Vehicle-to-Home (V2H) solution
• Battery pack cost analysis
• Battery recycling and second-life application in BESS – technology trends
• Outlook

The annual demand for lithium-ion battery packs  for BESS will grow around 8-fold from 2022 to 2028

The total annual demand in GWh for lithium-ion battery packs for residential, industrial & commercial, and utility-scale BESS will grow from 35.7 GWh in 2022 to around 283.8 GWh by 2028 – about an 8-fold increase! Demand will be driven mainly by utility-scale BESS applications, which will require a battery capacity of 258 GWh, representing 90 % of the total market in GWh by 2028. Residential BESS applications will follow with 5.5% of the total demand by 2028, followed by industrial & commercial BESS applications. The total annual market for lithium-ion battery packs (for residential, industrial & commercial, and utility-scale) BESS will grow from around 8.2 billion dollars in 2022 to about 40 billion dollars, with a 30.2% CAGR2022-2028. A significant portion of the global battery pack market for the segments studied in this report (i.e., cells, battery modules & racks, battery management system, thermal management system, electrical interconnections, safety components, and housing) is the battery cell, representing around 70% of the total battery pack market. Although the cell price ($/kWh) is decreasing, the overall cell capacity per pack is increasing, thus keeping the cell’s share of the cost within a battery pack high.

​​Supply chain is dominated by USA (25%) followed by China (21%) and Europe (17%)

As of 2022, Fluence, Tesla, Wärtsila, Powin, and NextEra Energy are the top battery energy storage system (BESS) players. In 2022, the USA dominated the BESS market with 25%, followed by China with 21% and Europe with 17%. In the case of lithium-ion battery cells, battery cell supply is dominated by Asian players: China, with CATL and BYD; South Korea, with Samsung SDI, LG Energy Solution, and SK ON; and Japan, with Panasonic, for example. Although xEV applications dominate cell technology development and growth, the BESS market is also proliferating. Many cell manufacturers supply cells for EVs and BESS, such as CATL, LG Energy Solution, Samsung SDI, Solar MD, and Kore Power. There are many new partnerships, joint ventures, and acquisitions within the supply chain to reduce competition, secure access to strategic materials such as raw materials and battery cells, ensure growth and facilitate entry into new markets. For example, the joint venture between Nidec and Freyr, the acquisition of NEC Energy Solutions by LG Energy Solution, and a partnership between LG Energy Solution and Hanwha. Many BESS players, cell manufacturers, and renewable energy (PV, wind) providers are partnering with battery recycling companies or planning to establish battery recycling facilities.

Towards higher energy capacity, reduced cost (30-40%), and higher safety battery packs

The battery pack for a battery energy storage system comprises a fixed number of lithium-ion cells wired in series and parallel within a frame to create a module. The modules are then stacked and combined to form a battery rack with various control and protection systems, such as battery management systems, thermal management systems, safety components, and electrical interconnections. No "standard" lithium-ion battery pack exists for battery energy storage applications, as different applications (e.g., residential, industrial, and utility-scale BESS) have different requirements. However, at least partial standardization would allow manufacturing cost reduction and is highly desired.

A lithium-ion battery pack's performance depends on the battery chemistry, battery features (e.g., energy and power density, charge/discharge efficiency, calendar life, cycle life), and battery pack components. Regarding the various battery chemistries for BESS, the most common are lithium-nickel-manganese-cobalt-oxide (NMC) and cobalt-free lithium iron phosphate (LFP). However, LFP batteries dominate energy storage systems due to their lower cost, higher safety, and longer cycle life. Increasing energy capacity and power capability, lower cost, and better safety are the primary development areas of BESS battery packs.

3M, ABB, Albion,  Amara Raja, Aura Power, Ansys, Analog Devices, Autoliv, Amphenol, BYD, BMSER, Bergstrom, BOYD,  CATL, Cubenergy, Cactos, EVE, Elithion, Envision AESC, ESS, Engie, Envicool, EDF, Enercon, Eaton,ETI, Freyr, Fluence, Freeport-MeMoRan, Furukawa Electric, Gotion, GS Yuasa, Glencore, GE renewable Energy, GPtech,  Gamesa Electric, Hithium, Honeywell, Huawei, Hanwha, Hitachi Energy, Huasu, Hotstart, Henkel, Ingeteam, ION Energy, Infineon, Iberdrola,  Jiangsu Higee Energy Co., Ltd. (Higee), Korepower, Kokam, Kontrolmatik Technologies, Kehua Tech, Kooltronic, Keydeli, Kstar,  Leclanché,  LG Energy Solution, Littelfuse, Legrand, Laird, MPINarada, Mitsubishi, Mersen,  Marelli, Mahle, Morgan Advanced Materials, Power, Nidec, Neoen, Nornickel, Nuvation Energy, NextEra Energy, Northvolt, Orion BMS, Optifuse, Powin, Plus Power, Pomega, Panasonic, Pylontech, PCM, Plannenberg, RWE, RES,  Rohm, Renesas, ReGen, Sonnen, Sherritt, Saft, Samsung SDI, STMicroelectronics, Solar MD, SK Innovation, Schneider Electric, Sungrow, Sinexcel, Sineng, Sensata Technologies, Startec Energy, Sunon, Siemens, Suzlon, Sany, Schearo, Saint-gobain, Texas Instruments, Tesla, Toshiba, TotalEnergies, TATA Power,Trumony, Umicore, Vale, Vestas,  Wärtsilä, and more.