The factors driving the battery energy storage system market are the increasing demand for grid-connected solutions, growing electric vehicle market, high requirement of lithium-ion batteries in various applications, and government support are expected to boost the growth of the battery energy storage system market.

The residential and transportation application areas offer a huge growth potential for battery energy storage system. The electric vehicles are expected to gain traction as they are zero-emission vehicles and produce no direct emissions. The BEVs use no other fuel and widespread use of these vehicles could dramatically reduce the petroleum consumption.

These factors are expected to drive the high adoption of electric vehicles, thereby supporting the growth of the battery market. Major countries have defined their long-term targets for electric vehicles deployment.

It is estimated that around 20 million electric vehicles would be on road globally by 2020. Major countries contributing to the electric vehicle sales are China, the U.S., Japan, Spain, France, Germany, Portugal, the Netherlands, and India.

North America is estimated to hold the largest market share by 2022; however, APAC is expected to grow at a high CAGR between 2016 and 2022. The major factor driving the growth of the battery energy storage system market in APAC is the growing number of battery energy storage system installations and electric vehicle market.

According to USGS, the highest number of mine production of vanadium flow batteries was contributed by China in 2013 and 2014. These factors are expected to drive the growth of battery energy storage system in this region.