India Battery Energy Storage Systems Market is Expected to Register a 7.10% CAGR Through 2031
Growth of Renewable Energy Sources in India and Government
Support & Policy Initiatives are likely to propel the market during the
forecast period.
According to
TechSci Research report, “India Battery Energy Storage Systems Market
– By Region, Competition, Forecast and Opportunities, 2021-2031F”, India Battery Energy Storage Systems Market was
valued at USD 4.17 Billion in 2025 and is expected to reach USD 6.35 Billion by
2031 with a CAGR of 7.10% during the forecast period.
The declining costs of battery
technologies, particularly lithium-ion and other advanced battery chemistries,
are driving the adoption of Battery Energy Storage Systems (BESS) in India.
Over the past decade, advancements in battery technologies have significantly
reduced the cost of manufacturing batteries, making energy storage systems more
affordable and accessible. This cost reduction is crucial for enabling the
widespread deployment of BESS, as high upfront costs have historically been one
of the main barriers to adoption.
Lithium-ion batteries, which dominate
the energy storage market, have become significantly more cost-effective due to
improvements in manufacturing processes, economies of scale, and the
development of new materials. In India, the falling costs of these batteries
are making BESS more attractive to utilities, commercial enterprises, and
residential users. The decreasing price of battery storage systems means that
they are no longer limited to large-scale projects but are now viable for small
and medium-sized enterprises (SMEs) and individual consumers. Furthermore,
India’s growing interest in electric vehicles (EVs) and the government's push
for local manufacturing under the 'Make in India' initiative has contributed to
lower costs in battery production. As the EV market expands, economies of scale
are being realized, and the supply chain for batteries is becoming more
efficient. This has a ripple effect on the BESS market, as the availability of
cheaper batteries drives down the overall cost of energy storage systems.
The decline in battery prices is
expected to continue as research and development in energy storage technologies
progress. This will make BESS an increasingly attractive option for a wide
range of applications, from grid-scale energy storage to residential backup
solutions. As costs continue to fall, the adoption of BESS in India is likely
to accelerate, driving further growth in the market and contributing to the
country's transition to a more sustainable and resilient energy system.
Browse over XX Market
data Figures spread through XX Pages and an in-depth TOC on " India Battery Energy Storage Systems Market.”
Based
on End User, The commercial dominated the India Battery Energy Storage Systems
(BESS) market due to several key factors, including the rising need for energy
reliability, cost savings, and the increasing adoption of renewable energy
sources. Businesses in India, particularly those in industries such as
manufacturing, retail, and IT, require uninterrupted power to maintain
operations, reduce downtime, and protect against revenue losses. As the
national grid faces challenges such as frequent power outages, voltage
fluctuations, and limited grid infrastructure, commercial establishments are
turning to BESS as a viable solution to ensure consistent power supply.
One
of the primary reasons for the dominance of the commercial sector in the BESS
market is the cost-saving potential. With commercial operations consuming
significant amounts of electricity, BESS enables businesses to store energy
during off-peak hours when electricity rates are lower and discharge it during
peak hours when rates are high. This helps in reducing electricity costs and
improving the bottom line, especially for energy-intensive industries.
Additionally,
as more commercial entities move towards adopting renewable energy solutions
such as rooftop solar, energy storage becomes crucial for managing the
intermittent nature of solar power. BESS helps to store excess solar energy
generated during the day for use at night or during cloudy days, ensuring that
businesses can utilize renewable energy continuously without being reliant on
the grid. This further aligns with India’s sustainability goals and government
incentives for green energy solutions.
The
commercial sector’s adoption of BESS is also driven by regulatory frameworks
and financial incentives provided by the Indian government. The push towards
sustainability and reducing dependence on the grid is further incentivized by
policies that encourage energy efficiency and renewable energy adoption, making
BESS an attractive option for businesses aiming to comply with regulatory
standards and reduce their carbon footprint.
Based
on Region, North India is emerging as the fastest-growing region in the India
Battery Energy Storage Systems (BESS) market due to a combination of policy
support, rapid urbanization, infrastructure development, and increasing energy
demand. This region, which includes major states such as Delhi, Uttar Pradesh,
Haryana, Punjab, and Rajasthan, is witnessing significant investment in
renewable energy, particularly solar power, which directly boosts the demand
for energy storage solutions.
One
of the key drivers is the high level of industrial and commercial activity,
especially in urban centers like Delhi NCR. These sectors require reliable and
uninterrupted power supply, making battery energy storage systems a critical
solution to address power fluctuations and grid instability. Moreover, North
India experiences extreme weather conditions, including heatwaves and winter
fog, which can impact power generation and distribution. BESS helps in
maintaining grid stability during such periods by storing excess energy and
releasing it when needed.
The
region is also seeing strong government initiatives to promote clean energy
adoption. For example, states like Rajasthan and Uttar Pradesh have announced
ambitious solar energy targets and are actively encouraging hybrid renewable
projects with integrated storage. These initiatives attract public and private
investments in BESS infrastructure.
The
push for electric vehicles (EVs) in cities like Delhi, which has aggressive EV
adoption goals under its Electric Vehicle Policy, is creating demand for BESS
to support charging infrastructure. With a growing population and expanding
urban areas, there is also increased demand for distributed energy systems in
residential and semi-urban regions, further driving the need for reliable
battery storage.
Major companies
operating in the India Battery Energy Storage Systems Market are:
- LG Energy Solution Ltd.
- Samsung SDI Co., Ltd.
- Contemporary Amperex Technology Co., Limited
(CATL)
- BYD Company Limited
- Panasonic Corporation
- Hitachi Energy Ltd.
- Siemens Energy AG
- ABB Ltd.
Download Free Sample Report
Customers can
also request 10% free customization on this report.
“The India Battery Energy Storage Systems
(BESS) market presents significant growth opportunities driven by the country's
increasing demand for renewable energy integration, grid stability, and
reliable power supply. With ambitious renewable energy targets, a growing
electric vehicle (EV) market, and the government's focus on energy independence,
there is a strong demand for advanced energy storage solutions. The market is
further supported by favorable policies, technological advancements in battery
efficiency, and declining costs. These factors create a robust environment for
the expansion of BESS, offering opportunities for both domestic and
international players in residential, commercial, and industrial sectors.”
said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.
“India Battery Energy
Storage Systems Market, By Battery Type (Lithium-ion, Advanced
Lead Acid, Flow Batteries, Others), By Connection Type (On-Grid, Off-grid), By
Application (Front of the Meter, Behind the Meter), By End User (Commercial,
Industrial, Residential) By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth
potential of India Battery Energy Storage Systems Market and provides
statistics & information on Market size, structure and future Market
growth. The report intends to provide cutting-edge Market intelligence and help
decision-makers make sound investment decisions., The report also identifies
and analyzes the emerging trends along with essential drivers, challenges, and
opportunities in the India Battery Energy Storage Systems Market.
Contact
TechSci Research LLC
420 Lexington Avenue,
Suite 300, New York,
United States-
10170
Tel: +13322586602
Email: [email protected]
Website: www.techsciresearch.com