Mobile Energy Storage System Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global mobile energy storage system market size was worth around USD 5.87 billion in 2023 and is predicted to grow to around USD 14.54 billion by 2032, with a compound annual growth rate (CAGR) of roughly 10.60% between 2024 and 2032.

Market Overview

Mobile energy storage systems (MESS) are portable solutions that store electrical energy, which can be used later. These systems use batteries and can be simply transferred to diverse locations. Mobile energy storage systems are mostly adopted in places with a rising need for short-term energy storage and where power supply is inconsistent.

The global mobile energy storage system market is expected to progress remarkably, owing to factors like the increasing demand for renewable energy storage, rising adoption of EVs, and improvements in battery technology.

With the world inclining towards renewable sources like wind and solar, the need for effective energy storage technologies is also rising. MESS helps stock excess energy produced by renewable sources, thus increasing their significance for providing backup power and improving grid stability.

Also, the rising prominence of EVs is creating the demand for mobile energy storage technologies that can easily power and charge electric vehicles. MESS can be used as transportable charging points for electric cars, thus aiding their broad adoption.

Moreover, battery technology developments have fueled MESS's energy density, efficiency, and durability. This increases the cost-effectiveness and reliability of storage solutions, driving industry growth.

However, the global market is restrained by low energy capacity and poor battery performance. Despite MESS's flexibility, its energy storage potential is mostly lower than that of fixed large-scale storage technologies. This restricts their application in large-scale industrial areas.

Furthermore, the battery performance in MESS systems may worsen after a period, resulting in decreased storage capacity and efficiency. This is a key barrier to long-term consistency and may incur high maintenance costs.

Yet, the market is opportune for the expanding EV infrastructure and growing incorporation with renewable energy projects. The rising number of electric vehicles offers the MESS opportunities to deliver services as portable charging stations.

The increasing need for electric vehicle infrastructure in underserved locations further fuels this trend. In addition, the rising use of decentralized renewable energy systems like rooftop solar increases the need for adequate storage solutions. MESS is an ideal solution produced by these systems for use in non-windy and non-sunny times.

Key Insights:

• As per the analysis shared by our research analyst, the global mobile energy storage system market is estimated to grow annually at a CAGR of around 10.60% over the forecast period (2024-2032)
• In terms of revenue, the global mobile energy storage system market size was valued at around USD 5.87 billion in 2023 and is projected to reach USD 14.54 billion by 2032.
• The mobile energy storage system market is projected to grow significantly, owing to increasing demand for continuous power supply, incorporation with smart grid technology, and government backing and initiatives.
• Based on battery type, the lithium-ion segment is expected to lead the market, while the lead-acid segment is expected to grow considerably.
• Based on the system, the on-grid segment is the dominating segment among others, while the off-grid segment is projected to witness sizeable revenue over the forecast period.
• Based on capacity, the below 3,000 KWh segment is the leading segment, while the 3,000-10,000 KWh segment is expected to witness a notable growth over the forecast period.
• Based on classification, the towable systems segment is the ruling segment, while the float-in segment is anticipated to hold a sizeable revenue in the future.
• Based on the application, the industrial segment is expected to lead the market compared to the commercial segment.
• Based on region, North America is projected to dominate the global market during the estimated period, followed by Asia Pacific.

Growth Drivers

• Growing demand for consistent power in off-grid and remote areas propels the mobile energy storage system market growth

MESS is mainly used in off-grid and remote areas where conventional energy infrastructure is either inconsistent or unavailable.

As per the International Energy Agency (IEA), more than 700 million individuals on a global scale still face power outages, mainly in rural Asia and sub-Saharan Africa. Mobile energy storage systems can offer quick solutions by delivering electricity to remote locations. MESS has witnessed a developing role in disaster response initiatives.

For instance, in Texas, key companies like Base Power offer battery backup solutions to residences prone to electricity outages due to high weather incidences.

• Backup power requirements and emergency drives market growth

The rising frequency of power outages and natural disasters has fueled the demand for power backup solutions. This creates a substantial market for mobile energy storage systems.

As climate change is accelerating globally, there is a remarkable rise in the occurrence of natural disasters, including floods, hurricanes, and wildfires. This results in prolonged and frequent power outages.

After significant electricity outages in California, leading companies like Enphase and Tesla have adopted mobile storage systems that offer power backup to businesses and homes. The growth in DER further boosts the demand for portable energy technologies that can be used immediately during power disturbances.

Restraints

• Significant initial capital cost adversely affects the progress of the mobile energy storage system market

One key challenge to adopting mobile energy storage systems is the significant upfront cost of the technology, comprising the necessary infrastructure, storage systems, and batteries. Irrespective of the significant price reductions in the past years, the initial capital price is still a barrier, mainly for smaller businesses and residential consumers. This may significantly restrain the growth of the global mobile energy storage system market.

High upfront costs limit broader adoption, particularly in the developing market where consumers highlight affordability over future power savings.

For instance, in India, where power storage adoption is still nascent, the price of energy storage systems is a leading concern for businesses and consumers.

Opportunities

• The growth of renewable energy projects fuels the mobile energy storage system market growth

As nations struggle to comply with climate objectives and decrease carbon emissions, the rise of renewable energy projects will offer key opportunities for MESS to aid intermittent renewable energy production.

Renewable energy systems must be combined with energy storage technologies to promise a stable and reliable energy grid. Mobile energy storage can be essential by steadying grid operations from renewable sources during inconsistent energy production times.

• Developments in battery storage spur the mobile energy storage system market growth

Improvements in battery technology are offering fresh opportunities for MESS. These modernizations aim to improve mobile energy storage systems' performance, cost-efficiency, and safety, thus fueling their attraction in different industries.

The latest improvements in BMS or battery management systems and speedy charging solutions assure longer battery life and faster charging for MESS systems. This is essential for businesses like emergency backup and transportation, where reliability and quick turnaround times are vital.

Challenges

• Limited storage capacity and energy density limit the growth of the mobile energy storage system market

The present energy density of batteries, mainly lithium-ion, is still lower than that of other sources. MESS should store excessive energy in lighter and smaller units to become more efficient and practical. The global mobile energy storage system industry is also fueled by the energy density of lithium-ion batteries and their effect on applications.

Most lithium-ion batteries used in MESS hold an energy density of 150-250 Wh/kg. Though this is enough for many applications, it is still below the energy density of conventional fuels like gasoline, which has nearly 12,000 Wh/kg energy density.

Furthermore, low energy density may restrict the practical applications of MESS, mainly in locations where weight and space are premium, such as drones, EVs, and mobile power backup units. This is a leading concern in prolonged energy storage needs.

Report Scope

Segmentation Analysis

The global mobile energy storage system market is segmented based on battery type, system, capacity, classification, application, and region.

The global mobile energy storage system industry is divided into lithium-ion, lead-acid, nickel-cadmium, and others based on battery type. The lithium-ion segment held a notable market share in 2023 and will continue to dominate. These batteries are the most commonly used form of battery in MESS owing to their long lifespan, energy density, and low weight compared to other forms.

Though lithium-ion batteries hold significant initial costs, their better performance and long lifespan make them cost-efficient in the later period. These batteries are widely preferred for renewable energy storage systems and electric vehicles, both propelling the industry's growth.

Based on application, the global mobile energy storage system industry is segmented as commercial, industrial, and residential. The industrial sector is the largest segment in the market, owing to cost savings and energy efficiency, grid stability, and incorporation with renewable energy. Industrial operations, mainly in large-scale manufacturing facilities, depend on energy storage solutions to decrease operational costs by managing demand during heavy demand and enhancing energy usage. Industrial businesses frequently use mobile energy storage to offer power backup during grid outages and promise grid stability, which is essential for continuous operations.

Several industrial companies are adopting renewable energy sources like wind and solar, thus fueling industry growth.

Regional Analysis

• North America to witness significant growth over the forecast period

North America is the leading region in the global mobile energy storage system market, among others, owing to supportive government policies and incentives, technological improvements, and rising adoption of EVs. Subsidies and incentives in the region, mainly in the United States, have fueled the adoption of energy storage technologies.

Also, North America holds a maximum number of producers like LG Chem, Fluence, and Tesla, which are fueling innovations in mobile energy storage solutions.

For example, Powerpack and Powerwall by Tesla have been broadly used in commercial and residential applications, supporting industry dominance. Furthermore, the region's speedily growing electric vehicle market is fueling the demand for mobile energy storage technologies.

Asia Pacific is projected to progress as the second-leading region over the estimated period owing to factors like the speedy adoption of renewable energy, growing industrial demand for energy storage, enhancing manufacturing capacity, and technological improvements. The region actively invests in renewable energy sources like wind and solar energy.

For instance, China alone registered for over 32% of the global solar capacity the previous year, fueling the need for energy storage technologies to enhance grid stability and manage intermittency. Asia Pacific also brags about the significant presence of industrial and manufacturing sectors that need cost-efficient and reliable energy storage technologies.

The region is also home to the leading battery producers, CATL and BYD, from China, which are major players in the market. These players are propelling the scalability and innovation of MESS in the Asia Pacific.

Competitive Analysis

The global mobile energy storage system market is led by players like:

• Tesla
• Fluence
• BYD
• LG Energy Solution
• Eaton
• Samsung SDI
• SunPower
• AES Energy Storage
• Pylon Technologies
• Soluna Technologies
• Powercell Sweden AB
• Simpliphi Power
• Generac
• Kokam
• Bluebird International

Key Market Trends

• Rising use in residential applications:

Residential energy storage systems are gaining popularity, particularly with the emergence of solar energy. Homeowners actively use MESS to preserve surplus solar power, offer backup power during outages, and reduce energy prices. Powerwall by Tesla and other related projects are appealing and preferred in this domain.

• Sustainability focus and battery recycling:

As demand for energy storage is rising globally, the focus on enhancing the sustainability of MESS and battery recycling is also increasing. Businesses are increasingly investing in solutions to decrease the ecological impact of recycling lithium-ion batteries, supporting worldwide sustainability objectives.

The global mobile energy storage system market is segmented as follows:

By Battery Type Segment Analysis

• Lithium-ion
• Lead-acid
• Nickel-cadmium
• Others

By SystemSegment Analysis

• Off-Grid
• On-Grid

By Capacity Segment Analysis

• Below 3,000 KWh
• 3,000-10,000 KWh
• Above 10,000 KWh

By Classification Segment Analysis

• Towable Systems
• Float-in
• Others

By Application Segment Analysis

• Commercial
• Industrial
• Residential

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America