The key technologies in the battery energy storage systems market are lithium-ion battery, lithium iron phosphate battery, sodium-based battery, others, lead-acid battery, flow battery, hybrid, and nickel-based battery.

Lithium-ion has eclipsed lead-acid as the primary technology for battery storage deployment. Lithium-ion’s cost and performance advantages, deep discharge cycle life, energy and power density, and other attributes proved more suitable for storage than those of other types of batteries. Li-ion technology prices are expected to decrease further due to technological improvements and growing market acceptance. Although flow batteries constitute a small portion of the market, they form a promising longer-term battery storage solution (4 hrs or more). This is due to the technology’s ability to handle large energy capacity and offer better cycle durability. Currently, several technologies are in development stage and could alter the market with the proliferation of technology types such as lithium-ion, beyond the forecast period. Over the forecast period, lithium-ion is expected to be the mainstay of the BESS market.