The global energy storage system market is forecast to grow steadily between 2024 and 2031 with a compound annual growth rate of approximately **** percent. Energy storage systems worldwide accounted for a market worth *** billion U.S. dollars in 2023. The figure was projected to reach over ***** 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 Energy Storage Market Report is Segmented by Technology (Batteries, Pumped-Storage Hydroelectricity, Thermal Energy Storage, Compressed Air Energy Storage, Liquid Air/Cryogenic Storage, Flywheel Energy Storage, and Others), Connectivity (On-Grid and Off-Grid), Application (Grid-Scale Utility, Residential Behind-The-Meter, and Others), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa)

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

Energy Storage Market size is valued at nearly USD 58.41 Billion in 2024 & is predicted to reach about USD 114.01 Billion by 2030, at 14.31% CAGR.

The United States Energy Storage Market Report is Segmented by Technology (Batteries, Pumped Hydro Storage, Compressed Air Energy Storage, and Others), Capacity Ratings (Below 1 MWh, 1 To 10 MWh, 10 To 100 MWh, and Above 100 MWh), Installation (Front-Of-The-Meter, Behind-The-Meter), Application (Renewable Integration, Frequency Regulation, and More), and End-User (Residential, Utility, and Commercial and Industrial).

The size of the global energy storage system market is forecast to surpass *** 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 ** percent. More information on the global energy storage system market can be found here.

The North America Battery Energy Storage System (BESS) Market Report is Segmented by Battery Type (Lithium-Ion, and More), Connection Type (On-Grid and Off-Grid), Component (Battery Pack and Racks, Energy Management Software, and More), Energy Capacity Range (10 To 100 MWh, Above 500 MWh, and More), End-User Application (Utility, Commercial and Industrial, and Residential), and Geography (United States, Canada, and Mexico).

The global energy storage systems market size was USD 380.97 billion in 2024 & is projected to grow from USD 416.02 billion in 2025 to USD 841.19 billion by 2033.
Report Scope:

The Residential Energy Storage Systems Market Report is Segmented by Technology Type (Lithium-Ion Batteries, Lead-Acid Batteries, and Other Technology Types) and Geography (North America, Asia-Pacific, Europe, Middle East and Africa, and South America).

The market size of energy storage systems in North America is forecast to grow steadily between 2024 and 2031 with a compound annual growth rate of approximately seven percent. Energy storage systems in the region accounted for a market worth **** billion U.S. dollars in 2023. The figure was projected to reach over ** billion U.S. dollars by 2031. More information on the global energy storage system market can be found here.

The global energy storage system market size was valued at over USD 241.47 billion in 2025 and is expected to expand at a CAGR of around 12.2%, surpassing USD 763.47 billion revenue by 2035, driven by an upsurge in investments in renewable energy.

The United Kingdom Energy Storage Systems Market Report is Segmented by Type (batteries, Pumped-Storage Hydroelectricity (PSH), and Other Types) and Application (Residential, Commercial, and Industrial (C&I)).

The distributed energy storage system market size was over USD 5.95 billion in 2024 and is poised to exceed USD 17.81 billion by 2037, witnessing over 8.8% CAGR during the forecast period i.e., between 2025-2037. Asia Pacific industry is estimated to account for largest revenue share of 36% by 2037, attributed to increasing demand and consumption of electricity in countries such as China, India, Japan, and so on, coupled with massive surge in investments in renewable energy in the region.

The report covers Energy Storage Companies in Germany and is Segmented by Type (Batteries, Pumped-storage Hydroelectricity (PSH), Thermal Energy Storage (TES), and Other Types) and Application (Residential and Commercial and Industrial). The report offers the market size and forecasts in revenue (USD billion) for the above segments.

The market size of energy storage systems in Europe is forecast to grow by ** billion U.S. dollars between 2023 and 2031. In 2023, the market was valued at approximately ** billion U.S. dollars. Energy storage systems included pumped hydro, battery, compressed air, and thermal storage. More information on the global energy storage system market can be found here.

The U.S. residential energy storage market size will be around USD 137.2 million in 2024, which is set to reach USD 603.6 million, advancing at a CAGR of 28.0% by 2030.

Snapshot img

Decentralized Energy Storage Market Size 2025-2029

The decentralized energy storage market size is forecast to increase by USD 25.1 billion, at a CAGR of 16.4% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the increasing adoption of renewable energy sources. With the global shift towards sustainable energy solutions, the demand for decentralized energy storage systems is surging. These systems enable the efficient storage and distribution of renewable energy, addressing the intermittency challenges associated with solar and wind power systems. Supply chain constraints pose a significant hurdle, as the production and distribution of advanced battery technologies required for decentralized energy storage are complex and resource-intensive. Moreover, the high upfront costs of these systems can be a barrier to entry for some potential customers.
Additionally, regulatory frameworks and infrastructure development vary significantly across regions, creating complexities in market penetration and expansion. Companies seeking to capitalize on the opportunities presented by the market must navigate these challenges effectively, focusing on optimizing supply chain management, reducing production costs, advanced energy and engaging with policymakers to facilitate regulatory compliance and infrastructure development.

What will be the Size of the Decentralized Energy Storage Market during the forecast period?

Request Free Sample

The energy storage industry is experiencing significant growth, driven by the increasing integration of renewable energy sources and the need for grid stability and reliability. Energy storage investment is on the rise, with players in the market seeking to expand capacity and improve performance to meet the demands of the grid. Energy storage control systems are becoming more sophisticated, enabling providers to optimize energy usage and respond to grid conditions in real-time.
Innovations in energy storage technologies, such as lithium-ion batteries and flow batteries, are driving down costs and increasing capacity. Energy storage forecasting is essential for energy providers to plan for future needs and investments. Trends include the use of energy storage for peak shaving, frequency regulation, and grid support. Energy storage services, such as maintenance and monitoring, are becoming increasingly important to ensure reliability and sustainability.
The benefits of energy storage are clear, with improvements in sustainability, grid stability, and cost savings. Standards and certification are crucial for ensuring energy storage solutions meet safety and performance requirements. Energy storage providers are focusing on automation and optimization to reduce costs and improve efficiency. Regulations continue to evolve, with a focus on safety, security, and interoperability. Energy storage solutions are being developed to address various challenges, including cost, efficiency, and durability.

How is this Decentralized Energy Storage Industry segmented?

The decentralized energy storage industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Technology

  Battery energy storage
  Thermal energy storage
  Others


End-user

  Residential
  Commercial
  Industrial


Type

  Renewable-based systems
  Non-renewable based systems


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Technology Insights

The battery energy storage segment is estimated to witness significant growth during the forecast period. Decentralized energy storage systems have gained significant traction in the global market, driven by the increasing demand for emergency power, grid-scale energy storage, and renewable energy integration. The Internet of Things (IoT) and advanced optimization algorithms facilitate the efficient management of distributed generation and energy storage controllers. Hydrogen storage and hybrid energy systems offer complementary solutions to battery energy storage systems (BESS), which dominate the market with their versatility and scalability. Lithium-ion batteries, known for their high energy density, efficiency, and long cycle life, lead the BESS segment. Their declining costs and proven performance make them suitable for residential, commercial, and grid-level applications.

Power electronics, thermal energy storage, and artificial intelligence enable the efficient integration of these systems into the smart grid and enable advanced features like black start capability and energy storage policy optimization. The future of decentralized energy storage lies in the

Snapshot img

The energy storage market share is expected to increase by 50013.15-megawatt units from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 61.52%.

This energy storage market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers energy storage market segmentation by the following:

Type - Utility-scale and behind the meter
Geography - APAC, North America, Europe, MEA, and South America

The energy storage market report also offers information on several market vendors, including ABB Ltd., Amsted Industries Inc., EVAPCO Inc., General Electric Co., GS Yuasa Corp., Ingersoll Rand Inc., LG Electronics Inc., Panasonic Corp., Samsung SDI Co. Ltd., and Tesla Inc. among others.

What will the Energy Storage Market Size be During the Forecast Period?

Download the Free Report Sample to Unlock the Energy Storage Market Size for the Forecast Period and Other Important Statistics

Which are the Key Regions for Energy Storage Market?

For more insights on the market share of various regions Request for a FREE sample now!

58% of the market’s growth will originate from APAC during the forecast period. China and South Korea (Republic of Korea) are the key markets for energy storage in APAC. Market growth in this region will be faster than the growth of the market in North America and Europe.

The significant increase in the demand for energy due to the rapid growth in population and improvements in the standard of living will facilitate the energy storage market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the outbreak of COVID-19 led to a disrupted supply chain and the delay in new capacity installations, which hindered the growth of the regional market. However, in the first half of 2021, the resumption of operations in manufacturing hubs with the lifting of lockdown measures and the increased preference for sustainable power sources proliferated the growth of the regional market. Such factors are expected to fuel the regional market's growth during the forecast period.

What are the Revenue-generating Type Segments in the Energy Storage Market?

To gain further insights on the market contribution of various segments Request for a FREE sample

The energy storage market share growth by the utility-scale segment will be significant during the forecast period. The growth of renewable energy generation and distribution will drive the growth of the segment owing to their role in integrating a greater share of variable renewable energy (VRE) in the system by providing the flexibility needed during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the energy storage market size and actionable market insights on post COVID-19 impact on each segment.

Energy Storage Market: Key Drivers, Trends, and Challenges

The growing energy storage requirement is notably driving the energy storage market growth, although factors such as high upfront costs may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the energy storage industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Energy Storage Market Driver

One of the key factors driving the global energy storage market growth is the growing energy storage requirement as companies incur heavy losses if there is a power outage for even a minute. For critical operations such as hospitals and nursing facilities, power outages can put lives at risk. Similarly, if a large manufacturing plant has to suspend operations due to revenue losses from outages, they would be millions as product deliveries get delayed. For example, on November 1, 2012, Hurricane Sandy decimated most areas on the east coast of the US, and millions of people had no electricity supply. The hurricane caused billions of dollars in losses to businesses and properties. Thus, power backup is imperative to run operations smoothly in every sector. Therefore, the greater need for energy storage will strongly support the growth of the global energy storage market during the forecast period.

Key Energy Storage Market Challenge

One of the key challenges to the global energy storage market growth is the high upfront costs for subsystem components, installation, and integration. High costs increase cost competitiveness with non-storage options for electric utilities. For instance, despite liquid air energy

The size of the ASEAN Energy Storage Market was valued at USD 3.32 Million in 2023 and is projected to reach USD 5.25 Million by 2032, with an expected CAGR of 6.78% during the forecast period. Recent developments include: In March 2022, the Indonesian government launched a 5MW battery energy storage system (BESS) pilot project as it aims to move away from diesel-generated power. Perusahaan Listrik Negara (PLN) 'de-dieselization' program will involve 5,200 units of new renewable energy generation with a total power of 2GW by 2024 and is a potential application for battery storage., In May 2022, Vietnam's government published plans to double its stationed power generation capacity to 146 gigawatts (GW) by 2030, and for the same, Vietnam calls for up to USD 14 billion annual power investment.. Key drivers for this market are: Growth in Power Demand from Residential, Commercial and Industrial Consumers4., Unscheduled Power Outages and Grid Instability would Demand Energy Storage Solutions. Potential restraints include: Lack of Investments could Hamper the Growth of Energy Storage Market. Notable trends are: Battery Energy Storage Segment Expected to Witness Significant Growth.

Residential Energy Storage Market is expected to develop at a 9.5% CAGR to reach USD 7.56 Billion by 2035 during the forecast period