Japan Battery Energy Storage Market Insights Forecasts to 2032
- The Japan Battery Energy Storage Market Size was valued at USD xx.xx Billion in 2022.
- The market is growing at a CAGR of xx.xx% from 2022 to 2032.
- The Japan Battery Energy Storage Market Size is expected to reach USD xx.xx Billion by 2032.
- Japan is expected to grow the fastest during the forecast period.
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The Japan Battery Market Size is expected to reach USD xx.xx Billion by 2032, at a CAGR of xx.xx% during the forecast period 2022 to 2032.
Japan is working to increase its utilization of renewable energy in its power grid. Japan has actively promoted the use of renewable energy sources and has set lofty targets for energy storage deployment. It has set a target of 3 to 4 gigawatts of battery storage capacity by 2030, demonstrating the government's commitment to the renewable energy sector. Renewables, such as solar and wind, are, nevertheless, transient energy sources, therefore energy storage devices are critical in balancing supply and demand. Battery energy storage improves out oscillations in renewable energy production and offers a constant and reliable power supply.
The requirement for incorporating intermittent renewable energy sources like solar and wind into the grid, increasing grid stability and reliability, and handling peak demand challenges are the key drivers for the battery energy storage market in Japan. Because of the country's susceptibility to natural disasters like as earthquakes and typhoons, Japan is particularly interested in energy storage devices. For instance, the Fukushima nuclear tragedy in 2011 sparked a move in the country toward a more diversified and robust energy infrastructure. During an emergency, battery energy storage can supply backup power and aid in disaster management operations. Furthermore, Japan is the market leader in advancing the use of electric vehicles, and the inclusion of EVs with battery energy storage is currently gaining traction. It enables vehicle-to-grid (V2G) applications, in which EVs can discharge stored energy back to the grid during high-demand periods, by employing EV batteries for energy storage.
Additionally, the Japanese government has backed the battery energy storage industry with numerous laws and subsidies. For example, they implemented feed-in tariffs for renewable energy sources, such as energy storage devices, which aided in investment and deployment. Also, the government has established grants and tax breaks to stimulate the use of energy storage systems. Furthermore, the recent decline in lithium-ion battery prices is having a significant impact on the expansion of the battery energy storage business. Because of reduced battery prices, battery energy storage is becoming more accessible, profitable, and appealing as an alternative for providing a stable and uninterrupted power supply.
However, the high capital investment needed to deploy battery energy storage devices is limiting industry expansion. These systems are mostly used in large BESS plants to meet peak energy demand. Lithium-ion batteries are expensive because they have a high energy density, a low self-discharge rate, and need less maintenance. But lithium-ion battery prices are projected to fall in the future. Furthermore, battery energy storage systems necessitate additional infrastructure such as power conversion systems, control systems, thermal management systems, and safety precautions. These components increase the system's total expenditures.
Japan Battery Energy Storage Market Report Coverage
|Market Size in 2022:||USD xx.xx Billion|
|Forecast Period 2022-2032 CAGR:||xx.xx%|
|2032 Value Projection:||USD xx.xx Billion|
|Historical Data for:||2018-2021|
|No. of Pages:||200|
|Tables, Charts & Figures:||130|
|Segments covered:||By Battery Type, By Connection Type, By Energy Capacity,By Ownership, By Application, and COVID-19 Impact Analysis|
|Companies Covered:||Panasonic Corporation, Toshiba Corporation, Nissan Motor Co., Ltd., Hitachi Chemical Co., Ltd., FDK Corporation, ELIIY-Power, KYOCERA, NEC Corporation, Murata, EV Energy, Marubeni Corporation, and GS Yuasa International Ltd And Other Key Venders|
|Pitfalls & Challenges:||COVID-19 has the potential to impact the global market|
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This research report categorizes the market for Japan Battery Energy Storage Market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan Battery Energy Storage Market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan Battery Energy Storage Market.
- In 2022, the lithium-ion segment is witnessing a higher growth rate over the forecast period.
Based on the battery type, the Japan Battery Energy Storage Market is segmented into lithium-ion, lead acid, flow batteries, and others. Among these, the lithium-ion segment is witnessing a higher growth rate over the forecast period. The segment's growth is expected to be driven by the growing installation of new large-capacity grid infrastructure, as well as continued developments in Li-ion battery energy storage technologies. In addition, lithium-ion batteries have high energy conversion rates during their charging and discharging procedures, resulting in outstanding efficiency. Because of this efficiency, lithium-ion batteries are a cost-effective alternative with lower energy losses and improve system efficiency in general.
- In 2022, the on-grid segment accounted for the largest revenue share of more than 63.5% over the forecast period.
On the basis of connection type, the Japan Battery Energy Storage Market is segmented into on-grid and off-grid. Among these, the on-grid segment is dominating the market with the largest revenue share of 63.5% over the forecast period. The growing requirement for utility-scale supplementary amenities, as well as the growing demand to provide high-demand electricity to customers via energy storage systems rather than extending power lines and transformers, are driving the rise of this market. The ongoing expansion of battery energy storage system investments by various major and small-scale utility firms is expected to benefit the on-grid battery energy storage technology market in general. The segment context is projected to benefit from the growing establishment of huge power networks by both publicly and privately owned utility firms, as well as increased investments to transform grid infrastructure.
- In 2022, the above 500 MWh segment is witnessing significant CAGR growth over the forecast period.
On the basis of energy capacity, the Japan Battery Energy Storage Market is segmented into below 100 MWh, between 100 to 500 MWh, and above 500 MWh. Among these, the above 500 MWh segment is witnessing significant CAGR growth over the forecasted period. Their compatibility with utility-scale applications, capacity to maintain power system stability and dependability, and contribution to effectively incorporating and managing intermittent renewable energy sources all contribute to the current rise. These more complex structures can store and release massive amounts of energy, satisfying the needs of large-scale power networks while also allowing for the efficient use of green energy sources.
- In 2022, the utility-owned segment is witnessing a higher growth rate over the forecast period.
Based on the ownership, the Japan Battery Energy Storage Market is segmented into customer-owned, third-party owned, and utility-owned. Among these, the utility-owned segment is witnessing a higher growth rate over the forecast period. Utility battery energy storage systems are critical in responding to swift changes in energy supply by offering reliable power, frequency, and voltage management services. Grid operators can use these types of structures to store extra electrical power provided by renewable sources, providing effective use of energy. The growing requirement for dependable and efficient electricity supply in diverse locations, combined with the rising demand for energy from renewable sources, is supporting the strong consumer demand for battery energy storage systems in the utility industry.
- In 2022, The utility segment accounted for the largest revenue share of more than 41.8% over the forecast period.
On the basis of application, the Japan Battery Energy Storage Market is segmented into residential, non-residential, utility, and others. Among these, the utility segment is dominating the market with the largest revenue share of 41.8% over the forecast period. This segment's growth can be due to companies' projects to launch flow batteries in order to meet utilities' ecological, life expectancy, and compliance targets, as well as the expanding use of battery energy storage for peak shaving, load shifting, black start, microgrids, renewable integration, and grid service applications. Furthermore, the non-residential category is expected to rise gradually owing to the establishment of new innovative commercial and industrial infrastructures, as well as the rising need for reliable electricity across all industry sectors.
The report offers the appropriate analysis of the key organizations/companies involved within the Japan Battery Energy Storage Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.
List of Key Companies
- Panasonic Corporation
- Toshiba Corporation
- Nissan Motor Co., Ltd.
- Hitachi Chemical Co., Ltd.
- FDK Corporation
- NEC Corporation
- EV Energy
- Marubeni Corporation
- GS Yuasa International Ltd
Key Target Audience
- Market Players
- Government Authorities
- Consulting and Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
- On June 2023, Eurus Energy Holdings Corp, a Japanese wind project developer, announced the start of construction on the installation of a 1-MW/3-MWh pilot battery energy storage system at the 7.65-MW Eurus Tashirotai Wind Farm. The new technology is the outcome of a collaboration between Eurus and its Japanese counterpart, Toyota Tsusho Corp. Toyota Motor Corp and Tokyo Electric Power Company Holdings Inc are also participating in the development.
- On March 2023, Gotion High-tech and Edison Power Co., Ltd. signed a strategic collaboration agreement to jointly develop the Japanese large storage battery and recycling industry, promote the popularization of renewable energy, and introduce Gotion's batteries into the Japanese market. According to the agreement, the two firms will develop market strategies to respond to market demands over the partnership period, with a planned sales target of 1 GWh for the first year, rising to 2 GWh yearly from the second year forward.
This study forecasts revenue at global, regional, and country levels from 2021 to 2032. Spherical Insights has segmented the Japan Battery Energy Storage Market based on the below-mentioned segments:
Japan Battery Energy Storage Market, By Battery Type
- Lead Acid
- Flow Batteries
Japan Battery Energy Storage Market, By Connection Type
Japan Battery Energy Storage Market, By Energy Capacity
- Below 100 MWh
- Between 100 to 500 MWh
- Above 500 MWh
Japan Battery Energy Storage Market, By Ownership
- Third-Party Owned
Japan Battery Energy Storage Market, By Application
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