The global energy storage system market is forecast to grow steadily between 2024 and 2031 with a compound annual growth rate of approximately nine percent. Energy storage systems worldwide accounted for a market worth 256 billion U.S. dollars in 2023. The figure was projected to reach over 506.5 billion U.S. dollars by 2031.Energy storage systems include pumped hydropower, electrochemical batteries, electromechanical storage, and thermal storage. More information on the global energy storage system market can be found here.

The Report Covers Global Energy Storage Systems Market Growth & Analysis and it is Segmented by Type (Batteries, Pumped-storage Hydroelectricity (PSH), Thermal Energy Storage (TES), Flywheel Energy Storage (FES), and Others), Application (Residential, Commercial and Industrial), and Geography (North America (Untied States, Canada, and Rest of North America), Europe (United Kingdom, Germany, and Rest of Europe), Asia-Pacific (India, China, Australia, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America), and Middle-East and Africa(Saudi Arabia, Iraq, Jordon, and Rest of Middle-East and Africa)).

The estimated market size of the battery energy storage systems worldwide was between 44 and 55 billion U.S. dollars in 2023. This figure was forecast to increase to up to 150 billion U.S. dollars by 2030, with utility scale BESS constituting the largest share of the market in the period under consideration.

The size of the global energy storage system market is forecast to surpass 500 billion U.S. dollars by 2031. Throughout the period under consideration, the Asia-Pacific region will lead the ranking and experience a compound annual growth rate of 10 percent. More information on the global energy storage system market can be found here.

The US Energy Storage Market Report is Segmented by Technology (Batteries and Other Energy Storage System Technologies), Phase (Single Phase and Three Phase), and End User (Residential and Commercial and Industrial). The Report Offers the Market Sizes and Forecasts in Terms of USD.

Global Energy Storage Market is anticipated to hit US$221.5 billion by 2023 and is likely to grow at a CAGR of 9.12% over the forecast period 2024-2030.

The Report Covers Battery Energy Storage System Market Size & Share and It is Segmented by Type (Lithium-Ion Batteries, Lead-Acid Batteries, Nickel Metal Hydride, and Other Types (sodium-Sulfur Batteries and Flow Batteries)), Application (residential, Commercial, and Industrial (C&I), Utility-Scale), and Geography (North America, Asia-Pacific, Europe, South America, and Middle East and Africa). The Report Offers the Market Size and Forecasts for Battery Energy Storage System Market in Revenue (USD) for all the Above Segments.

According to Cognitive Market Research, the global Grid Scale Battery Storage market size will be USD 10251.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 34.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 4100.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 32.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 3075.36 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 2357.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 36.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 512.56 million in 2024 and will grow at a compound annual growth rate (CAGR) of 33.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 205.02 million in 2024 and will grow at a compound annual growth rate (CAGR) of 33.9% from 2024 to 2031.
The lithium-ion category is the fastest growing segment of the Grid Scale Battery Storage industry

Market Dynamics of Grid Scale Battery Storage Market

Key Drivers for Grid Scale Battery Storage Market

Growing Need for Integration of Renewable Energy to Boost Market Growth

The growing need for integration of renewable energy is mostly driving grid-scale battery storage market growth. The irregularity of renewable energy sources such as solar and wind adds variability as they gain popularity. Due to this, massive energy storage systems are required, ones that can hold onto extra energy at times of high production and release it during times of low energy production. Despite variations in the generation of renewable energy, grid-scale battery storage improves the stability and dependability of power systems by guaranteeing a steady supply of electricity. Grid-scale battery storage is likely to become more in demand as utilities and governments strive for higher renewable energy targets, thereby facilitating the global shift to clean energy.

The Growing Emphasis On Smart Grids and Grid Modernization Technologies to Drive Market Growth

The market for grid-scale battery storage is heavily influenced by smart grid adoption and grid upgrading. In order to balance supply and demand, energy storage is essential as power grids develop into more dependable, robust, and efficient systems. Intelligent energy management and real-time data analysis are made possible by smart grids, which are equipped with sophisticated communication and monitoring systems. Utilizing energy storage during off-peak times and peak energy release usage, grid-scale battery storage devices allow utilities to maximize energy efficiency. Additionally, as decentralized power generation and renewable energy are integrated into smart grids, the need for large-scale storage solutions grows. With the transition to a cleaner energy infrastructure, these innovations also aid in lowering grid instability.

Restraint Factor for the Grid Scale Battery Storage Market

High Price of the Initial Investment Will Limit Market Growth

The growth of the grid-scale battery storage market is severely limited by the high initial investment prices. Large-scale battery storage system development and implementation require significant funding, which covers the price of batteries as well as installation, maintenance, and infrastructure modifications. These expenses may hinder widespread adoption for independent power producers, smaller utilities, and emerging markets. Project costs as a whole are still high even if battery prices, particularly for lithium-ion technologies, are steadily dropping. What deters potential investors even more is the need for more confidence surrounding long-term returns on investment and the necessity of future technical breakthroughs. For businesses, justifying grid-scale battery projects is difficult due to these financial obstacles, especially in areas where policies and incentives supporting renewable energy storage technologies are few.

Impact of Covid-19 on the Grid Scale Battery Storage Market

The market for grid-scale battery storage was affected by the COVID-19 pandemic in different ways. At first, supply chain disruptions and worldwid...

The global energy storage system market is anticipated to increase from USD 252.1 billion in 2024 to USD 661.27 billion by 2037, registering a CAGR of around 7.7% during the forecast period, from 2025 through 2037. Key industry players include Altairnano, Ecoult, Electrovaya, GENERAL ELECTRIC, among others.

The Report Covers North America Battery Energy Storage System Market Report Size & Share and It is Segmented by Technology Type (lithium-Ion Batteries, Lead-Acid Batteries, and Others), Application (Residential, Commercial & Industrial, and Utility), and Geography (United States, Canada, and the Rest of North America). The Report Offers the Market Size and Demand Forecasts for the North America Battery Energy Storage System Market in USD for all the Above Segments.

The Renewable Energy Storage Market is projected to grow at 29.9% CAGR, reaching $481.86 Billion by 2029. Where is the industry heading next? Get the sample report now!

Japan energy storage systems market ​size reached 15.1 GW in 2024. Looking forward, IMARC Group expects the market to reach 29.4 GW by 2033, exhibiting a growth rate (CAGR) of 7.32% during 2025-2033. The market is being propelled by several significant factors, including the heightened need for electricity during emergency power outages, the growing adoption of renewable energy sources, and global efforts to mitigate harmful emissions.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on technology, application, and end user.

According to Cognitive Market Research, the global Residential Energy Storage market will be USD 1150.2 million in 2024 and expand at a compound annual growth rate (CAGR) of 19.50% from 2024 to 2031.

North America held the major market, accounting for more than 40% of global revenue. With a market size of USD 460.08million in 2024, it will grow at a compound annual growth rate (CAGR) of 17.7% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 345.06million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 264.55million in 2024 and will grow at a compound annual growth rate (CAGR) of 21.5% from 2024 to 2031.
The Latin American market will account for more than 5% of global revenue and have a market size of USD 57.51million in 2024. It will grow at a compound annual growth rate (CAGR) of 18.9% from 2024 to 2031.
The Middle East and Africa held the major markets, accounting for around 2% of the global revenue. The market was USD 23.00million in 2024 and will grow at a compound annual growth rate (CAGR) of 19.2% from 2024 to 2031.
The standalone system held the highest Residential Energy Storage market revenue share in 2024.

Market Dynamics of Residential Energy Storage Market

Key Drivers of Residential Energy Storage Market

Significant Demand for Electric Vehicles to Increase the Demand Globally

The residential energy storage market is poised for significant growth due to the increasing global demand for electric vehicles (EVs). As more consumers adopt EVs, there is a corresponding surge in the need for efficient home charging solutions. Residential energy storage systems offer a convenient and sustainable way to charge EVs, allowing homeowners to harness renewable energy sources like solar power for vehicle charging and household consumption. This dual-purpose functionality enhances energy independence and reduces reliance on traditional grid infrastructure. Additionally, with advancements in battery technology and declining costs, residential energy storage solutions are becoming increasingly affordable and accessible to a broader market. Consequently, the synergy between the rising demand for EVs and residential energy storage is expected to drive substantial growth in the market, fostering a more sustainable and decentralized energy ecosystem globally.

Technology Development to Propel Market Growth

The residential energy storage market is poised for significant growth driven by technological advancements. Innovations in battery storage, such as improved energy density, longer lifespan, and enhanced safety features, are key factors propelling market expansion. Additionally, integrating smart energy management systems enables efficient storage energy utilization, enhancing consumer appeal. The rising adoption of renewable energy sources like solar power further accelerates market growth as homeowners seek to maximize self-consumption and reduce reliance on the grid. Government incentives and favorable policies promoting clean energy initiatives also expand the market. Overall, with ongoing technological developments and increasing awareness of the benefits of energy storage solutions, the residential energy storage market is expected to experience robust growth in the foreseeable future.

Restraint Factors Of Residential Energy Storage Market

High Initial Investment to Limit the Sales

The residential energy storage market faces a significant hurdle due to high initial investment costs, hindering widespread adoption. Consumers are hesitant to invest in expensive energy storage systems upfront despite the potential long-term savings and environmental benefits. This limits sales as the market struggles to penetrate mainstream households. Additionally, limited awareness and understanding of the technology further dampen consumer enthusiasm. However, advancements in battery technology, coupled with government incentives and decreasing prices, are gradually mitigating this challenge. Companies in the residential energy storage sector must focus on innovative financing options, such as leasing or subscription models, to make their products more accessible to consumers. Moreover, effective marketing strategies emphasizing these systems' long-term benefits and reliability can help overcome consumer apprehension, driving sales and market growth.

Impact of Cov...

In 2020, the energy storage market in the United States surpassed 1.6 billion U.S. dollars, a year-over-year growth of roughly 2.5-fold. This market is expected to continue growing in the next five years, to reach 8.2 billion dollars in 2025.

Global battery energy storage system market anticipated to reach valued at USD 54,340.12 Million in 2032, estimated to grow at a CAGR 26.7%, According to Polaris Market research.

U.S. ENERGY STORAGE MARKET valued 48.3 GW in 2024 and is projected to surpass 120.3 GW through 2032

Pumped hydro systems dominate the global energy storage market. Their market size is forecast to increase from 233 billion U.S. dollars to over 450 billion U.S. dollars between 2023 and 2031. Electrochemical, thermal storage, and electromechanical energy storage systems account for the remaining share of the market. More information on the global energy storage system market can be found here.

Off-Grid Energy Storage Market size was valued at USD 46.82 Billion in 2024 and is projected to reach USD 72.72 Billion by 2031, growing at a CAGR of 7.5% from 2024 to 2031.

Off-Grid Energy Storage Market Drivers

Rise of Renewables and Grid Modernization: Renewable energy sources like solar and wind are becoming increasingly popular. However, their intermittent nature (sun doesn’t shine 24/7, wind isn’t constant) creates challenges for reliable energy supply. Off-grid storage systems like batteries bridge this gap, allowing for storing excess energy during peak production and using it when needed. This complements grid modernization efforts that aim for a more flexible energy infrastructure.

Expanding Off-Grid Communities: Many regions, particularly in developing countries, lack access to reliable grid-based electricity. Off-grid energy storage systems, coupled with solar panels or wind turbines, offer a viable solution for these communities. They provide access to clean and reliable power for lighting, appliances, and communication.

Falling Battery Costs: Advancements in battery technology, particularly Lithium-ion batteries, have led to significant cost reductions. This makes off-grid storage systems more affordable for individuals and businesses in remote areas, driving market growth.

The global battery energy storage market size is projected to increase from USD 20.36 billion to USD 83.36 billion, witnessing a CAGR of over 12.2% during the forecast period, from 2025 to 2037. North America industry is anticipated to have considerable expansion through 2037, backed by rising investments by public and private firms in the region.

The global battery energy storage market was estimated at roughly 5.4 billion U.S. dollars in 2022 and it was expected to surpass 17.5 billion U.S. dollars in 2028. The Asia-Pacific region is expected to boast the largest battery storage market in 2026.