According to the new report titled ” Energy Storage as Service Market by Service (Customer Energy Management Services, Ancillary Services, Bulk Energy Services, Distribution Infrastructure Services, Transmission Infrastructure Services and Others), By End-user (Utility, Industrial, Residential and Commercial), Global Analysis to 2023″, the valuation of the Energy Storage (ES) as Service market was $61.04 Billion in 2023 and is projected to reach $147.74 Billion by 2032, at a CAGR of 10.32% from 2021 to 2032.
The Energy Storage as Service Market was valued at $61.04 Billion by 2023 and expected to grow at CAGR of 10.32% over forecast period. The Energy Storage as a Service (ESaaS) market refers to a business model where companies provide ES solutions to customers on a subscription or pay-per-use basis, rather than requiring customers to purchase and install the energy storage systems outright. This model allows customers to access the benefits of energy storage, such as backup power, load shifting, and grid stabilization, without the high upfront costs and maintenance responsibilities associated with owning the equipment. ESaaS providers typically install, operate, and maintain the ES systems at the customer’s site, while the customer pays a recurring fee for the service. This model can be particularly attractive to commercial and industrial customers who want to take advantage of ES technology to reduce electricity costs, increase resilience, or participate in demand response programs, but may not have the capital or expertise to invest in and manage the systems themselves. With the increasing frequency and severity of extreme weather events in global, there is a growing demand for resilient energy solutions. Energy storage systems can provide backup power during grid outages, helping critical facilities such as hospitals, data centers, and emergency services maintain operations.
Customer Energy Management Services held the largest share in the Energy Storage as Service market
By Service, its sub segmented into Customer Energy Management Services, Ancillary Services, Bulk Energy Services, Distribution Infrastructure Services, Transmission Infrastructure Services and Others. The Customer Energy Management Services (CEMS) play a crucial role in the ES as a Service (ESaaS) market by providing tailored energy solutions to customers, optimizing the use of energy storage systems, and maximizing the benefits derived from them. CEMS assess the energy needs and requirements of individual customers, analyzing their energy usage patterns, peak demand times, and goals such as cost savings, resilience, or sustainability objectives. This assessment helps determine the appropriate size, type, and configuration of ES systems needed to meet the customer’s objectives. CEMS design and install ES systems tailored to the specific requirements of each customer. This involves selecting the appropriate technologies, such as batteries, flywheels, or pumped hydro storage, and integrating them with existing energy infrastructure, such as solar panels or grid connections. Energy storage systems can help customers manage peak demand charges by storing energy during off-peak times and discharging it during periods of high demand, thus reducing electricity costs. ESaaS offerings allow customers to access energy storage solutions without the upfront capital investment required for purchasing and installing storage systems. This model provides flexibility for customers to scale their storage capacity based on their evolving needs.
North America headed the Energy Storage as Service market in 2023
North America has seen substantial investments in renewable energy sources such as solar and wind power. ES systems are increasingly being deployed to address the intermittency of renewable energy generation, store excess energy during times of low demand, and discharge it when demand is high. Aging grid infrastructure in North America is being modernized to improve efficiency, reliability, and resilience. ES systems play a crucial role in modernizing the grid by providing services such as frequency regulation, voltage support, and grid stabilization. With the increasing frequency and severity of extreme weather events such as hurricanes, wildfires, and storms, there is growing demand for energy storage systems to provide backup power and enhance energy resilience for critical infrastructure, businesses, and residential customers. Several states and provinces in North America have implemented policies and incentives to promote energy storage deployment. These include mandates, rebates, tax incentives, and favorable regulatory frameworks, which have contributed to the growth of the ESaaS market. The electrification of transportation, including the adoption of electric vehicles (EVs), is driving the demand for ES solutions to support EV charging infrastructure. ES systems can help manage the increased electricity demand from EV charging stations and provide grid services to support the integration of EVs into the grid.
Key market players operating in the market that are profiled in the report are Siemens Energy, Veolia, Honeywell International Inc., NRStor Inc., ENGIE Storage Services NA LLC, Customized Energy Solutions Ltd., YSG Solar, Suntuity, Hydrostor Inc. etc.