Gravity Energy Storage Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Gravity Energy Storage Market Size

Gravity Energy Storage Market Trends & Drivers

The consumption of energy has been increasing forever, which has created a space for the gravitational energy storage market to grow at a rather high rate. There are various reasons behind the rising energy consumption, including population growth, advancements in technology, growing transportation needs, urbanization, and industrialization.

Gravity energy storage systems can be used in combination with other renewable energy sources, offering a reliable source of power in case the wind does not blow or the sun does not shine. The stored electricity is released when it is needed, such as in times of peak demand. In developing countries, the rapid industrialization and urbanization have enhanced the requirement for energy storage. These systems are long-lasting and low-cost, possess a high energy density, and present an effective solution for storing renewable energy.

These two requirements have become important amidst the rapidly increasing electricity demand. Moreover, by swiftly releasing energy when required, they can help the grid better withstand extreme weather events and mitigate blackouts and complete failures. The worth of such systems has started becoming even more evident since the world is now headed toward a sustainable future, where renewable power sources will take centerstage.

Electric vehicles also play an important role in driving the market forward. As people are much more aware of the environmental impact of fossil-fuel-powered vehicles, the demand for electric vehicles is increasing. Many recognized and emerging firms are spending a huge amount on EV production and research and development, with governments going all out on regulatory and financial support. Apart from being encouraged by government support, people are switching to them because it is cheaper to charge vehicle batteries than purchasing gasoline and diesel. Therefore, the market for charging infrastructure is growing rapidly due to the rising installation of charging stations to cater to the increasing number of electric vehicles.

However, the cost of electricity is high nowadays; so, it has become important to reduce the price. This can be done by storing energy during off-peak hours and then releasing it when required. Apart from helping in this aspect, gravity energy storage also helps in the prediction of energy costs and allows for the usage and storage of energy based on consumption patterns and price forecasts. Large energy consumers such as manufacturing companies, commercial entities, and transportation firms, often require a significant amount of energy. Therefore, they are now adopting this technology to manage their electricity budgets efficiently.

Gravity Energy Storage Market Analysis

Pumped Hydro Storage Expected To Be Fastest-Growing Market

The pumped hydro storage category is expected to witness a growth rate of 77.7% during 2024–2030. This approach is preferred due to its capability to store and release an enormous quantity of electricity efficiently. According to the International Hydropower Association (IHA), PHS accounts for 94% of the installed global energy storage capacity and these pumps store up to 9,000 GWh of electricity. This technology reliably balances the energy supply and demand and ensures the stability of the grid.

In case renewable sources, such as solar and wind, produce more electricity than required, water is pumped from a lower reservoir to an upper reservoir with the help of this additional energy. If there is a reduction in renewable generation or if electricity requirement increases, then electricity is generated through the stored water much like in a conventional dam. This helps in meeting the demand without siphoning from power plants that run on fossil fuels.

Whenever the power demand peaks, these installations prove efficient in providing energy. Since they can rapidly respond to the increased demand, they can reduce the dependence on Peaker plants and imported fuels to meet the energy requirements for electricity generation, heating, and industrial purposes. This ultimately helps in cost savings for consumers and utilities.

The key advantage with PHS is that it can store energy for a long time. This is important to maintain the stability of the grid and ensure a continuous supply of power, specifically in regions that witness variable energy generation. Batteries and other energy storage technologies are enhanced with the use of these systems, since their integration with batteries contributes to improving their scalability, efficiency, and grid stability. Thus, PHS has a huge role in assisting in the efficient storage, conversion, and utilization of energy.

Moreover, these installations have a minimal environmental impact, unlike power generation from fossil fuels, primarily due to the negligible greenhouse gas emissions. In many regions, incentives and regulatory policies boost the deployment of energy storage solutions, including PHS, by making them more economical to implement and operate.

Electricity Generation Is Largest Application

In the application segment, the electricity generation category is the largest, because PHS systems are widely used for electricity generation. This is itself due to their high energy storage capabilities and capacity to generate electricity when there is high demand or enough energy is not available from other sources.

These systems are highly efficient at balancing the electricity grid by providing rapid responses when the power demand surges. It is a proven and well-established technology for large-scale energy storage and electricity generation. Hence, its efficiency, reliability, and long operational history have made it a popular choice for electricity generation.

Geographical Analysis

North America Is Largest Market

Currently, North America is holding the largest gravity energy storage market share, followed by Europe and APAC, due to the initiation of numerous gravity energy storage projects, technological readiness, high demand, and supportive policies. Additionally, the adoption of these approaches is rising due to an increase in the number of electric vehicles and rise in the awareness of the benefits of renewable energy sources.

Further, both the U.S. and Canada have been making significant investments in energy storage projects. They are also implementing regulations to enhance the adoption of clean energy technologies, such as fossil fuel usage reduction mandates, research and development initiatives, and financial incentives. This region had, earlier, seen the extensive adoption of lithium-ion batteries both for behind-the-meter installations and grid-scale usage, since they provide fast responses. However, since they can hold the electrical charges for a short duration, gravity energy storage systems, especially pumped hydro, are being used to supplement Li-ion batteries.

Asia-Pacific Region Is Fastest-Growing Market

APAC is expected to grow at the highest CAGR, of 80.4%, from 2024 to 2030 because of a swiftly expanding renewable energy sector, especially in India, Japan, and China. This is itself because these countries have been significantly investing in renewable energy sources, such as solar and wind. A strong market potential has been created by the integration of these intermittent energy sources with storage solutions to ensure a reliable power supply and cope with the variability in generation.

Essentially, in the APAC region, many countries are going through an energy transition to eliminate the need for fossil fuels and use more of clean energy technologies. Storage technologies play a vital    role here by enabling the incorporation of renewable sources and improving the stability of the grid. Energy demand continues to skyrocket in the region due to economic growth, rapid electrification, and urbanization. Hence, gravity energy storage systems are being deployed to meet this rising demand economically and accurately.

Several governments in the APAC region have also introduced policies and attractive incentives, in the form of feed-in tariffs and subsidies, to boost the adoption of electricity storage technologies. Further, the region is a key manufacturer of energy storage systems and their components. Regional nations are also ahead in terms of innovation and research, with many companies and research institutions focused on the field of energy storage. This would lead to the emergence of more-efficient technologies to store electricity and release it swiftly to the grid, to meet the power demand surge and prevent grid failures.

Market Breakdown

This fully customizable report gives a detailed analysis of the gravity energy storage market, based on all the relevant segments and geographies.

Based on Type

• Hydroelectric Dams
• Pumped Hydro Storage

Based on Application

• Electricity Generation
• Grid Stabilization

Based on End Use

• Residential
• Commercial
• Industrial
• Utilities

Geographical Analysis

• North America
  • U.S
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Gravity Energy Storage Companies