Latin America Battery Energy Storage System Market: Industry Analysis and Market Forecast (2023-2029)

Latin America Battery Energy Storage System Market size was valued at US$ 5.12 Bn. in 2022 and the total revenue is expected to grow at 32.9% through 2023 to 2029, reaching nearly US$ 37.50 Bn.
Latin America Battery Energy Storage System Market Overview:
BESS is an energy storage system (ESS) that absorbs energy from a variety of sources, keeps it in a rechargeable, and then utilizes something at a later stage. The battery's electrochemical energy can be released and transmitted as needed to houses, electric vehicles, industrial, and commercial facilities. Energy Storage System (ESS) is a subclass of Battery Energy Storage System (BESS). The capacity to process energy via thermal, electromagnetic, or electrolytic solutions is referred to as an energy storage system. Electrolytic solutions are commonly used by BESS.

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2022 is considered as a base year to forecast the market from 2023 to 2029. 2022 s market size is estimated on real numbers and outputs of the key players and major players across the globe. Past five years trends are considered while forecasting the market through 2029. 2020 is a year of exception and analysed specially with the impact of lockdown by region.
Latin America Battery Energy Storage System Market Dynamics:
Solar and wind energy are the most prominent types of renewable energy stored in the grid. However, clouds or fluctuating wind currents obscured the sun, causing changes in the energy production process. This fluctuation creates a demand for a flexible grid system for storing energy. When power generation exceeds power demand, battery energy storage systems can help grid operators save power. The adoption of these systems has improved the reliability and flexibility of the power supply system in terms of power generation, transmission and distribution. In the transmission and distribution process, the battery energy storage system can handle asset delays, ensure frequency adjustment, perform harmonic suppression, provide voltage support, and ensure power quality.

Large power networks benefit from battery energy storage systems because they increase transmission capacity and dependability while also improving safety, stability, and power quality. All of these elements contribute to the growth of the Latin American market, which also encourages the use of renewable energy on a large-scale grid. The battery energy storage system is one of the most important trends in the future power grid, as it leads the energy storage technology used in the grid.

Grid modernization activities, such as the move from traditional systems to new technologies like smart grids, are driving demand for battery energy storage systems. The full potential of smart technologies can be realised with the help of batteries. In Dubai (UAE), the Korean Electric Power Corporation launched a smart grid-based hybrid wind-solar project in January 2019 (KEPCO). A 500 kWh lithium-ion battery storage system with 2,000 IoT-connected sensors and smart metres is expected to be included in this project.

Due to the higher energy density and improved performance provided by battery energy storage technologies such as lithium ion batteries, energy storage, and lead-acid batteries, significant implementation cost is required. Lithium-ion batteries are more expensive due to their increased power density, low self-discharge rate, and low maintenance requirements. Lithium-ion batteries, on the other hand, are likely to become more affordable in the future. Because of their light weight, small size, and high capacity, these batteries are also employed in electric cars (EVs).
Latin America Battery Energy Storage System Market Segment Analysis:
Based on the Battery Type, the Latin America Battery Energy Storage System Market is sub-segmented into Sodium–Sulphur Batteries, Lithium-Ion Batteries, Flow Batteries and Advanced Lead-Acid Batteries. The Lithium-Ion Batteries segment held the largest market share of xx% in 2022. The great majority of utility-scale battery systems built in the United States in recent years have been lithium-ion, owing to cost and power density gains made possible by electric vehicle production. Li-ion systems are also popular because of the estimated application variety and operational adaptability. Li-ion batteries come in a variety of chemistries, making them appealing to electricity providers, particularly for applications requiring output durations of four hours or fewer. For stationary applications, lithium nickel manganese cobalt (NMC) batteries are the most extensively used li-ion chemistry. In terms of energy, power, cost, and cycle life, NMC chemistries provide a well-balanced performance profile. Lithium-iron-phosphate (LFP) batteries, on the other hand, are becoming more common. Higher cobalt costs are driving the shift to LFP.

Since 2015, the volume-weighted average price of a typical lithium-ion battery has dropped by almost $384, according to maximize research. The average price in 2020 will be around $137, down from $384 just 5 years ago. Between 2015 and 2020, the price plummeted dramatically, and then fell in lesser amounts for the next 5 years.

Based on the Application, the Latin America Battery Energy Storage System Market is sub-segmented into Utilities, Residential and Non-Residential. The Utilities segment held the largest market share of xx% in 2022. Peak demand scheduling is becoming more essential to utilities as a cost-cutting and operational-efficiency measure. Energy storage in the form of batteries is ideal for smoothing out load surges. When commodity prices are low, utility companies can conserve such energy but then distribute it when market prices are high. The Residential segment held the 2nd largest market share of xx% in 2022. For a variety of reasons, including resiliency, the ability to take advantage of new mortgage systems and DER supplemental material, and the ability to integrate residential batteries into a "virtual power plant" to conduct multiple grid services, residential battery storage is becoming more popular. For residential users, an increasing number of utilities are employing novel tariff structures such as time-of-use rates and demand charges.
Latin America Battery Energy Storage System Market Geographical Analysis:
Latin America held the largest market share of xx% in 2022. The number of manufacturing industries in Latin America has exploded in recent years, spanning a wide range of businesses. Latin America's market growth has been encouraged by factors such as rising electricity consumption and improved infrastructure. The two largest Latin American countries that have contributed to the increase in demand for Battery Energy Storage Systems are still Brazil and Mexico.

The objective of the report is to present a comprehensive analysis of the market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market has been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also helps in understanding the market dynamic, structure by analyzing the market segments and project the market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the market make the report investor’s guide.
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Latin America Battery Energy Storage System Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 5.12 Bn.


Forecast Period 2023 to 2029 CAGR:
32.9 %
Market Size in 2029:
US $ 37.50 Bn.


 Segments Covered:
by  Element
Hardware
Battery


by Battery Type
Sodium–Sulphur Batteries
Lithium-Ion Batteries
Flow Batteries
Advanced Lead-Acid Batteries


by Connection Type
Off-Grid Connection
On-Grid Connection


by Application
Utilities
Residential
Non-Residential



Latin America Battery Energy Storage System Market Key Players.
1. ABB Limited
2. LG Chem,
3. NEC Corporation
4. Panasonic
5. Samsung SDI Ltd.
6. AEG Power Solutions
7. General Electric,
8. Hitachi Chemical Co. Ltd.
9. Siemens AG,
10. Tesla Inc.
11. Toshiba,
12. AES Tietê
13. ENGIE,
14. LG Chem
15. Kinetech Power Systems,
16. Arenko.
17. BYD Company Ltd
18. EnerSys
19. A123 Systems LLC
20. Exide Technologies

Frequently Asked Questions:

1] What segments are covered in Latin America Battery Energy Storage System Market report?
Ans. The segments covered in Latin America Battery Energy Storage System Market report are based on Element, Battery Type, Connection Type and Application.

2] What is the market size of Latin America Battery Energy Storage System Market by 2029?
Ans. The market size of Latin America Battery Energy Storage System Market is expected to reach US $ 37.50 Bn. by 2029.

3] Who are the top key players in the Latin America Battery Energy Storage System Market?
Ans. ABB Limited, LG Chem, NEC Corporation, Panasonic, Samsung SDI Ltd. and AEG Power Solutions are the top key players in the Latin America Battery Energy Storage System Market.

4] What was the market size of Latin America Battery Energy Storage System Market in 2022?
Ans. The market size of Latin America Battery Energy Storage System Market in 2022 was US $ 5.12 Bn.