Energy Storage as a Service Market Highlights

• Global energy storage as a service market revenue is poised to garner USD 3.6 billion by 2032 with a CAGR of 9.7% from 2023 to 2032
• North America energy storage as a service market value occupied around USD 446.4 million in 2022
• Asia-Pacific energy storage as a service market growth will record a CAGR of more than 11% from 2023 to 2032
• Among service, the customer energy management services sub-segment generated more than USD 460.8 million revenue in 2022
• Based on end-user, the industrial, residential & commercial sub-segment generated over 71% market share in 2022
• Collaboration between energy companies and technology firms to drive research and development for next-generation storage solutions is a popular energy storage as a service market trend that fuels the industry demand

Energy Storage as a Service (ESaaS) enables facilities to harness the benefits of an energy storage system through service agreements rather than outright acquisition. As energy storage assumes a more critical role in modern grid infrastructure, diverse economic models are emerging. ESaaS, in particular, is gaining traction among service providers. Energy and sustainability managers in corporate, commercial, and industrial (C&I) sectors increasingly seek cost-effective, tailored energy solutions that deliver consumption reduction and cost savings without requiring capital expenditure or disrupting day-to-day operations.

ESaaS represents a promising concept capable of attracting financing and driving industry expansion, especially since energy storage transactions were previously avoided by investors due to cash flow complexities. The global ESaaS market is propelled by rising energy consumption and heightened demand for power management in industrial and residential sectors worldwide. The simplicity and cost-effectiveness of energy storage services appeal to customers globally.

The industry's growth is further fueled by increasing industrialization in developing economies such as India, Brazil, and China, which generate significant energy demand. ESaaS models offer various services, including ancillary and energy management services, ensuring reliable electricity supply, blackout prevention, and lower electricity prices. However, the onset of the Coronavirus pandemic in 2020 led to sluggish market growth. National lockdowns and travel restrictions impacted the market, with closures of various industrial and commercial complexes resulting in job losses.

Global Energy Storage as a Service Market Dynamics

Market Drivers

• Growing demand for energy storage solutions in grid modernization efforts
• Increasing adoption of renewable energy sources necessitating efficient energy storage
• Cost-effectiveness and flexibility of energy storage as a service (ESaaS) models
• Government incentives and regulations promoting energy storage deployment

Market Restraints

• High initial investment costs for energy storage infrastructure
• Regulatory barriers and uncertain policy frameworks in some regions
• Limited technological maturity and standardization in the energy storage sector

Market Opportunities

• Expansion of ESaaS offerings in emerging markets with rising energy demand
• Integration of advanced technologies such as AI and IoT to enhance energy storage efficiency
• Development of innovative financing models to overcome capital expenditure challenges

Energy Storage as a Service Market Report Coverage

Energy Storage as a Service Market Insights

The necessity to upgrade aging infrastructure for power transmission and generation has compelled utilities to invest in policies governing Distributed Energy Resources (DER). These resources encompass demand-response capabilities, renewable energy, and other energy-saving technologies aimed at reducing energy consumption and enhancing cost management. This investment in energy distribution systems is expected to drive demand for Distributed Energy Resources (DER), consequently fueling the growth of the Energy Storage as a Service market. Additionally, increasing energy consumption and a growing emphasis on power management in both residential and industrial sectors have heightened global interest in the convenience and cost-effectiveness offered by energy storage services.

Furthermore, the growing investment in renewable energy storage and sourcing solutions is poised to propel growth over the energy storage as a service market forecast period. The focus on integrating renewable energy, thermally activated technologies, energy storage, distributed generation, and demand response into electricity distribution and transmission systems has bolstered investments in renewable energy assets. This shift is driven by the need to reduce reliance on oil, gas, and coal for electricity generation.

Moreover, renewable energy power plants utilize storage technologies to mitigate the variable outputs associated with these energy sources, ensuring a consistent electricity supply that meets demand. Storage technologies also support the immediate discharge of power to the grid, which is crucial for grid stability during periods of unexpected electricity demand. In contrast, fossil fuel-based energy generation systems have longer ramp-up times and slower response rates, highlighting the importance of quick response times provided by storage technologies in maintaining grid stability. Thus, increasing investment in renewable energy storage and sources solutions will boost the growth during the energy as a service industry forecast period.

Energy Storage as a Service Market Segmentation

The worldwide market for energy storage as a service is split based on service, component end-user, and geography.

ESaaS Market by Service

• Customer Energy Management Services
• Ancillary Services
• Bulk Energy Services
• Distribution Infrastructure Services
• Transmission Infrastructure Services
• Others

According to energy storage as a service industry analysis, the customer energy management services sector is the biggest service. Through customised solutions, this category largely focuses on enabling clients to effectively control their energy use and expenses. Customer Energy Management Services help people and companies optimise energy use, cut waste, and put demand-response plans into place by utilising cutting-edge technology and data. Predictive analytics, demand management tools, energy audits, and real-time monitoring are frequently included in these services. They could also include the use of energy storage devices and renewable energy sources to further improve sustainability and efficiency. Significant demand is being driven within the ESaaS market by the prevalence of customer energy control services, which highlights the increased emphasis on energy saving and cost control across multiple industries.

ESaaS Market by Component

• Service Contract
• Control and Monitoring System
• Energy Storage System

The energy storage system (ESS) sector is the largest subset of the energy storage as a service market. The storage, delivery, and control of energy are made possible in large part by energy storage systems, which are vital to the stability and dependability of the grid. These systems combine a number of technologies, including flywheels, pumped hydro storage, and batteries, to satisfy a range of energy storage requirements. They make it easier to integrate demand-response capabilities, grid balancing services, and renewable energy sources. Energy storage systems provide cost savings and optimal energy management through flexible energy supply and consumption. The energy storage system sector, which forms the foundation of ESaaS solutions, is in high demand due to the global need for grid modernization and the growing uptake of renewable energy.

ESaaS Market by End-users

• Utility
• Industrial, Residential & Commercial

The leading end-user category in the energy storage as a service market is the industrial, residential & commercial segment. This section includes a wide variety of users, such as commercial and residential structures, as well as industrial facilities. Industrial organizations use ESaaS solutions to stabilize the grid, control peak demand, and increase energy efficiency. Energy storage is used by commercial buildings to save running costs, incorporate renewable energy sources, and provide a steady supply of electricity. ESaaS solutions help homeowners in residential settings reduce energy costs, maximize solar energy self-consumption, and improve resilience against power outages. The importance of the industrial, residential & commercial category highlights how widely energy storage technologies are being used across many industries, motivated by the need to meet sustainability objectives, operational efficiency targets, and energy savings.

ESaaS Market Regional Outlook

North America

Energy Storage as a Service Market Regional Analysis

The growth of the North American energy storage as a service market is attributed to the increasing demand for intelligent buildings and building automation. The rising need for services such as demand-energy response solutions, driven by enhancements in the commercial industry and the implementation of energy efficiency projects, is fueling market growth. Furthermore, the escalating share of renewable power generation and energy efficiency activities is projected to further boost the market in this region.

Moreover, Europe has significant share in the market due to the rising demand for renewable power generation and growth in the industrial sector. Meanwhile, in Middle Eastern and African countries, the growth is driven by oil and gas companies and substantial investments in the commercial sector. The advancement of integrated distributed energy resources (iDER), augmented data analytics, and Artificial Intelligence is emerging as strong growth opportunities, showcasing the lucrative potential of the Energy Storage as a Service market throughout the forecast period.

Asia-Pacific is anticipated to experience fastest growth in the energy storage as a service market over the coming years, driven by the increasing presence of untapped markets and rising energy consumption in the region. Within Asia Pacific, China is expected to emerge as a significant market for energy storage as a service. This is attributed to the ongoing industrialization, high energy consumption rates, and growing awareness of renewable energy sources in the country.

Energy Storage as a Service Market Players

Some of the top energy storage as a service companies offered in our report includes Veolia, NRStor Inc., Siemens, ENGIE Storage Services NA LLC., Honeywell International Inc., Suntuity Solar LLC, Customized Energy Solutions Ltd., Enel X, ABB, WGL Holdings, Inc., Johnson Controls, Centrica, and Orsted.