This report summarises Transforma Insights’ views on the ‘Connected Batteries’ IoT market, found in the Transforma Insights Connected Things IoT forecast.
The report covers details on the evolution of battery technology, beginning with traditional batteries with no communication technologies, up to current batteries with built-in connectivity. It covers different sizes of batteries, from large, grid-scale batteries to small portable batteries.
Mostly concentrated in developed regions such as North America and Europe, the market for batteries is typically triggered by local electricity utility providers in the case of grids and microgrids, and consumers in the case of in-building and portable batteries. The report also describes the reasons for the increasing adoption of batteries, such as increasing usage and cost of electricity, focus on renewable energy sources, as well as the war between Russia and Ukraine, and the resulting impact on natural gas use in European countries.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
This section first explains why remote monitoring of remaining battery capacity is becoming common for IoT hardware. It then describes the major types of connected batteries (based on their size) - grid-scale batteries; microgrid and in-building batteries; and portable batteries, and describes their function. For instance, microgrid and in-building batteries are smaller than grid-scale batteries and are used to power commercial facilities such as manufacturing plants and chemical factories, or smaller businesses and homes.
It then delves into the major factors that have significantly contributed towards their growing adoption. It also touches upon the global regional disparity in terms of the market for battery energy storage, and then examines key factors that are influencing the development of the market, including:
This section of the report discusses the usage of grid-scale batteries (such as allowing utilities and power system operators to store energy for later use) and their working mechanism. It then explains what BESS (Battery Energy Storage System) is, its benefits (like being one of the fastest sources which can provide additional power), and drawbacks (such as significant cost of constructing these systems). It then focuses on VPPs (or virtual power plants) as a viable alternative solution and charts their advantages, such as their ability to address grid challenges and manage flexible loads.
This sub-section of the report explains how rapid industrialisation in developing countries, coupled with the depletion of non-renewable energy sources and an innate desire to reduce harmful emissions will propel the market for connected batteries (rising from the increasing dependence on alternative renewable energy sources and subsequent need for energy storage).
It also explains how the introduction of a battery energy storage system (BESS) is encouraging initiatives by various governments for large-scale energy storage projects. For instance, such projects have also become critical for the UK to connect more renewable capacity onto its grid network and achieve its 2050 net-zero goals. It also takes into account the ongoing war between Ukraine and Russia, which has increased the dependence on renewable energy sources, indirectly increasing the adoption of connected batteries. It also mentions how the drastically changing weather patterns around the world are resulting in more cases of grid failures (like in Texas in 2021) and how it will increase the adoption of batteries and other smart grid technologies.
This sub-section of the report talks about how decreasing dependence on nuclear energy (by major economies such as Germany) will also accelerate the usage of renewable resources (such as connected batteries) and make load balancing even more critical. It then explains that currently, grid-scale batteries are mostly focused on advanced economies like the US, China, and South Korea, but this situation is changing, and in a tabular format, provides some government initiatives regarding grid-scale battery storage systems. To cite an example from the report, in December 2023, the Indian government launched two schemes (Viability Gap Funding and Production-Linked Incentive Scheme) worth INR181 billion (USD2.2 billion) to make battery storage more affordable.
It also mentions a few examples of relevant IoT deployments in this application, such as Tesla collaborating with Hawaiian Electric to deploy Megapacks.
This section of the report defines microgrid and their usage (such as energy generation and storage for a defined area or boundary). It also talks about the reasons behind their increased adoption in rapidly developing nations (including unreliable or underdeveloped national grids) and explains how they integrate distributed generation and energy storage units to fulfil local energy demands. It then explains that most microgrid deployments result from government funding or incentives and then, in a tabular format, lists some examples of microgrid grants and funds. For instance, New York has established a USD40 million grant for community microgrid projects.
It then discusses how the proliferation of microgrids has stimulated widespread deployment of BESS for a range of applications (like rapid spinning reserve) and how BESS can be deployed for short-term, mid-term, and long-term usage. It also mentions the connectivity technologies that they use to pass monitored data between the batteries and the communication gateways.
It also mentions a few relevant IoT deployments in this application, like Children’s Valley Hospital in California deploying Faraday Microgrids in collaboration with Redflow Australia.
This section of the report takes into account the working mechanism of in-building connected batteries and their usage (like storing generated energy to reduce reliance on grid electricity). It then charts the advantages of in-building batteries (like providing complete or partial backup, depending on the user’s choice).
It also talks about how combining microgenerators with a battery system can enable the microgenerator to operate during adverse situations like a grid outage. It also explains how electric vehicles also serve as a source of energy storage through Vehicle to Home (V2H) charging and how they can make in-building batteries redundant, as they can offer their own battery storage to homeowners without them spending extra money on batteries.
This section also has a few examples of relevant IoT products in this application, like the Tesla Powerwall, which is an integrated battery system that stores solar energy for backup protection during power outages. The system detects outages and automatically recharges with sunlight to keep the appliances running.
This section of the report begins with a short definition of portable batteries and their utilities (such as powering small electrical household equipment as well as charging AC inverters – if their capacity is up to 1,000Wh). It also talks about some of the battery companies that are operating in developing countries of Asia and Africa (since there is a lack of continuous electricity supply in such regions) and their business models. It also discusses the reasons behind the adoption of portable batteries in developed nations (including leisure activities such as camping).
A few examples of relevant IoT products in this application have also been included in this section. For instance, D. light works on a pay-as-you-go technology model and its products are GPS and Bluetooth-enabled and can be tracked by the organisation through the firm’s mobile application.
The key vendors section lists some of the main providers of products and services related to the market such as Tesla, Enel X, Alpha ESS, M-Kopa, LG Chem, and Generac PWRcell. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of connected devices which will grow from 15.8 million in 2024 to 213.4 million in 2034.
Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.
This section discusses which technologies will be used in the connected batteries application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the Connected Batteries Application Group will grow at a CAGR of 25%.
