Distributed Energy Storage Systems Market Report (2028) | UnivDatos

DOE Microgrid Research and Development (R&D) Program aims is to facilitate the United States’ transition to a more resilient and reliable, decarbonized electricity infrastructure, in which microgrids have a reduced cost.

univdatos

Jul 16, 2025 - 12:22

A microgrid is a small power system that has the ability to operate connected to the larger grid, or by itself in stand-alone mode.It can connect and disconnect from the grid to operate in grid-connected or island mode. Microgrids can improve customer reliability and resilience to grid disturbances. The recent development in micro-grids enables local power generation assets such as traditional generators, renewables, and storage to keep the local grid running even when the larger grid experiences interruptions or, for remote areas, where there is no connection to the larger grid.

Moreover, the United States electricity sector is moving towards distributed future owing to the rising need to reduce carbon emissions while bolstering the resilience of the regions electricity system.The DOE Microgrid Research and Development (R&D) Program aims is to facilitate the United States transition to a more resilient and reliable, decarbonized electricity infrastructure, in which microgrids have a reduced cost.

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Further,the North AmericaDistributed energy storage systems Marketis expected to grow at a strong CAGR of 5.58% during the forecast period (2022-2028).Factors such as the integration of various renewable energy sources comprising wind, solar, and hydro, these grids have been lowering greenhouse gas emissions to a great extent. Hence, the surge in the deployment of microgrids is anticipated to spur market growth in the coming years.For instance, the installation count of operational microgrids in the United States has extended to around 465 that generate nearly 3.5 gigawatts of reliable electricity.

Based on the energy source, the market is bifurcated into the electricity grid, and renewable power sources. Amongst these, the electricity grid segment catered for a significant share of the market. Energy storage technologies are a key enabler of grid modernization, addressing the electric grids needs by improving its stability and resiliency. In addition, the growing demand for electricity across the globe is escalating the need to invest in cost-effective distributed energy storage systems to improve flexibility in the electricity grid and respond to fluctuating and escalating electricity demands, ensuring that electricity is available when and where it is needed.

Based on battery, the market is segmented into lithium-ion, nickel-cadmium, lead acid, and others. Among these, lithium-ion batteries captured a significant share of the distributed energy storage (DES) systems. It is mainly due to the lithium-ion batteries (LIBs) exhibiting high energy efficiency, long cycle life, and relatively high energy density. Further, batteries have considerable potential for application to grid-level energy storage systems due to their rapid response, modularization, and flexible installation, which resulted in accelerating the adoption of lithium-ion batteries in distributed energy storage (DES) systems.

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Global Distributed Energy Storage Systems Market Segmentation

Market Insight, by Energy Source

Electricity Grid

Renewable Power Sources

Market Insights, by Battery

Lithium-Ion

Nickel-cadmium

Lead Acid

Others

Market Insights, by Capacity

Single Phase