The Battery Energy Storage System Market report segments the industry into Type (Lithium-ion Batteries, Lead-acid Batteries, Nickel Metal Hydride, Other Types (Sodium-sulfur Batteries and Flow Batteries)), Application (Utility, Commercial and Industrial, Residential), and Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa). Get five years of historical data alongside five-year market forecasts.

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 battery energy storage system will be valued at USD 18.5 billion in 2025. As per FMI's analysis, the battery energy storage system will grow at a CAGR of 11.1% and reach USD 65.3 billion by 2035. The world battery energy storage system (BESS) industry experienced growth acceleration in 2024, fueled by growing grid instability, mounting renewable energy integration, and policy initiatives.

Key Metrics

Metrics	Values
Industry Size (2025E)	USD 18.5 billion
Industry Value (2035F)	USD 65.3 billion
Value-based CAGR (2025 to 2035)	11.1%

Country-wise Analysis

Countries	CAGR
USA	12.5%
UK	10.8%
France	9.5%
Germany	11.3%
Italy	10.0%
South Korea	9.0%
Japan	8.5%
China	13.0%

Worldwide sales of energy storage systems are projected to increase from US$ 50.3 billion in 2024 to US$ 87.6 billion by the end of 2034. The global energy storage system market has been analyzed to expand at a CAGR of 5.7% from 2024 to 2034.Increasing adoption of renewable energy, governmental support and incentives, decentralization tendencies, and a growing number of microgrids are key factors driving demand for energy storage systems.

Report Attribute	Detail
Energy Storage System Market Size (2024E)	US$ 50.3 Billion
Forecasted Market Value (2034F)	US$ 87.6 Billion
Global Market Growth Rate (2024 to 2034)	5.7% CAGR
Canada Market Growth Rate (2024 to 2034)	5.8% CAGR
China Market Value (2034F)	US$ 9 Billion
North America Market Share (2024E)	24.4%
East Asia Market Share (2034F)	22.5%
Key Companies Profiled	ABB Ltd.; BYD Company Limited; EOS Energy Storage; Evapco Inc.; Maxwell Technologies Inc.; General Electric Company; Hitachi Ltd.; LG Chem Ltd.; NEC Corporation; Panasonic Corporation; Schneider Electric SE; Siemens AG; Tesla.

Country-wise Insights

Attribute	Canada
Market Value (2024E)	US$ 1.2 Billion
Growth Rate (2024 to 2034)	5.8% CAGR
Projected Value (2034F)	US$ 2.1 Billion

Attribute	Japan
Market Value (2024E)	US$ 3 Billion
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 5.3 Billion

Category-wise Insights

Attribute	Electrochemical Storage
Segment Value (2024E)	US$ 34.4 Billion
Growth Rate (2024 to 2034)	5.7% CAGR
Projected Value (2034F)	US$ 60 Billion

Attribute	Grid Storage
Segment Value (2024E)	US$ 32.9 Billion
Growth Rate (2024 to 2034)	5.7% CAGR
Projected Value (2034F)	US$ 57.2 Billion

The North America Battery Energy Storage System Market report segments the industry into Technology Type (Lithium-ion Batteries, Lead-Acid Batteries, Other Technology Types), Application (Residential, Commercial & Industrial, Utility), and Geography (United States, Canada, Rest of North America). Get five years of historical data alongside five-year market forecasts.

The India Stationary Battery Energy Storage System Market is projected to reach a value of $365.8 Million by 2033, exhibiting a 13.87% CAGR during the forecast period 2025-2033. The growing demand for reliable and uninterrupted power supply, coupled with the government's push for renewable energy and energy storage solutions, is driving the market growth. Key factors driving the market include the increasing adoption of renewable energy sources such as solar and wind power, which require energy storage to manage intermittency and grid balancing. Furthermore, the rising demand for electricity in remote and island communities, as well as the need for backup power in critical infrastructure, are further fueling the market growth. Additionally, technological advancements in battery technology, such as improved power density and longer lifespans, are making stationary battery energy storage systems more cost-effective and efficient, contributing to the market's expansion. Recent developments include: June 2024: Bihar State Power Generation Company (BSPGCL) awarded an order to Larsen & Toubro (L&T) to construct a grid-connected 185 MW solar power project in the Lakhisarai district. This project is integrated with a 254 MWh stationary battery energy storage system. Approximately 80% of the generated power will be utilized, while the remaining 20% will charge the battery energy storage system.June 2024: JSW Energy commenced the construction of a 1,000 MWh battery energy storage system in Fatehgarh, Rajasthan, India. The project, awarded by the Solar Energy Corporation of India (SECI), will be executed in two phases, each featuring two units with a storage capacity of 500 MWh, allowing for two hours of storage per cycle. Tentatively, the project aims to be commissioned by 2025.May 2024: Statcon Energia launched a 3-kW single-phase grid-tie solar inverter designed specifically for residential and small office use. Further, the firm also introduced a 5 kW inverter. Key attributes of the inverter encompass a low current distortion factor, advanced MPPT for enhanced solar generation, support for a wide range of PV voltages, and an advanced phase-locked loop for a seamless grid-interactive mode.. Key drivers for this market are: 4., Increasing Adoption of Solar Energy4.; Declining Cost of Lithium-Ion Batteries. Potential restraints include: 4., Increasing Adoption of Solar Energy4.; Declining Cost of Lithium-Ion Batteries. Notable trends are: Lithium-ion Battery Expected to Grow Significantly.

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.

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.

The North America Battery Energy Storage System Market size was valued at USD 3.91 Million in 2023 and is projected to reach USD 26.28 Million by 2032, exhibiting a CAGR of 31.28 % during the forecasts periods.The North American battery energy storage system market is growing at a stupendous rate, driven by increasing adoption of renewable energy, grid modernization, and the resulting need for reliable energy storage solutions. The region includes the United States, Canada, and Mexico, all of which contribute to the market in their own unique ways with their own special drivers and opportunities. The pioneering states in the United States, like California, have demonstrated a myriad of applications for BESS, from managing intermittent solar and wind energies to reducing greenhouse gas emissions and enhancing grid reliability. The federal tax incentives and policies at the state level promoting the deployment of energy storage have further accelerated market growth across the country. Canada also emerges as one of the key markets where BESS will link renewable energy sources, such as hydroelectric power, with storage solutions. Ontario and Quebec are driving large-scale battery storage projects for a cleaner energy transition and to enhance energy efficiency. Mexico uses BESS to improve grid stability, while in areas far away from transmission infrastructure, it will be paramount to have reliable electricity access to support economic development. It is in the fast-changing technology of battery storage, seen through better energy density and falling costs, that one can find contributions to growth in the North American market. Recent developments include: July 2023: EVLO Energy, a provider of battery energy storage systems & solutions and a subsidiary of Hydro-Quebec, announced its inaugural utility-scale storage venture in the United States. Positioned in Troy, Vermont, the 3MW/12MWh battery energy storage system initiatives are set to enhance the assimilation of indigenous renewables generation into the New England grid. Slated for operation by the end of 2023, EVLO is expected to oversee and uphold the system’s functionality for 20 years., June 2023: a collaborative effort between Ameresco and Atura Power is set to construct a battery energy storage system with a capacity of 250 MW and an energy storage capacity of 1 giga-watt hour. This endeavor is in response to a partnership with Canada's Independent Electricity System Operator. The joint venture is expected to oversee the project’s completion. The initiative is bound by a 20-year capacity agreement with the Independent Electricity System operator, securing its role in delivering energy storage services. Moreover, the project will encompass awarded backlog work exceeding USD 40 million.. Key drivers for this market are: 4., INCREASE IN ADOPTION OF RENEWABLE ENERGY4.; DECLINING COST OF LITHIUM-ION BATTERIES. Potential restraints include: 4., PRESENCE OF OTHER ENERGY STORAGE SYSTEMS. Notable trends are: Lithium-Ion Battery Is Expected to Witness Significant Growth.

At 25% CAGR growth, worldwide battery energy storage system (BESS) market share projected to reach USD 120 Billion by 2035. The utility segment dominated the BESS market, driven by increasing electrification efforts in remote and off-grid areas.:

The Report Covers Global Residential Energy Storage System (ESS) Market Growth and 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).

Battery Energy Storage System (BESS) Market size was valued at USD 12.65 Billion in 2024 and is projected to reach USD 42.35 Billion by 2031, growing at a CAGR of 16.30% from 2024 to 2031.The Battery Energy Storage System (BESS) market is driven by the increasing demand for renewable energy integration, rising energy storage requirements for grid stabilization, and the global push toward decarbonization. Advancements in battery technologies, particularly lithium-ion, have reduced costs and enhanced efficiency, further spurring adoption. Supportive government policies, incentives, and investments in smart grid infrastructure also contribute significantly. Additionally, the growth of electric vehicles (EVs) has created synergies, leading to heightened demand for energy storage solutions. Increasing energy demand in residential, commercial, and industrial sectors, coupled with the need for energy security and resilience, further propels the market.

Global Battery Energy Storage System market size is expected to reach $20.76 billion by 2029 at 24.3%, segmented as by storage system, front-of-the-meter, behind-the-meter

The global distributed energy storage system market is projected to exhibit a rise in total revenue from US$ 5.16 billion in 2024 to US$ 12.92 billion by 2034. Sales of distributed energy storage systems are foreseen to increase at a CAGR of 9.6% over the next 10 years (2024 to 2034).

Report Attribute	Detail
Distributed Energy Storage System Market Size (2024E)	US$ 5.16 Billion
Forecasted Market Value (2034F)	US$ 12.92 Billion
Global Market Growth Rate (2024 to 2034)	9.6% CAGR
South Korea Market Value (2034F)	US$ 1.13 Billion
Renewable Power Source Demand Growth Rate (2024 to 2034)	9.8% CAGR
Key Companies Profiled	Fluence; Schneider Electric; Tesla; Toshiba Corporation; General Electric Company; Hitachi Energy Ltd.; Juniper Networks; Panasonic Corporation; Jabil Inc.; Johnson Controls; NextEra Energy Resources, LLC; Samsung SDI Co., Ltd.

Country-wise Analysis

Attribute	United States
Market Value (2024E)	US$ 1.13 Billion
Growth Rate (2024 to 2034)	9.5% CAGR
Projected Value (2034F)	US$ 2.81 Billion

Attribute	China
Market Value (2024E)	US$ 914.1 Million
Growth Rate (2024 to 2034)	9.6% CAGR
Projected Value (2034F)	US$ 2.27 Billion

Category-wise Analysis

Attribute	Lithium-ion Batteries
Segment Value (2024E)	US$ 2.83 Billion
Growth Rate (2024 to 2034)	9.7% CAGR
Projected Value (2034F)	US$ 7.13 Billion

Attribute	Electricity Grids
Segment Value (2024E)	US$ 3.71 Billion
Growth Rate (2024 to 2034)	9.5% CAGR
Projected Value (2034F)	US$ 9.22 Billion

Battery Energy Storage System Market size reached USD 5.1 billion in 2022 and is estimated to reach USD 28.0 billion in 2030 and the market is estimated to grow at a CAGR of 23.7% from 2023-2030.

• The industry was valued at US$ 3.1 Bn in 2023
• It is estimated to advance at a CAGR of 25.6% from 2024 to 2034 and reach US$ 38.9 Bn by the end of 2034

Market Introduction

Attribute	Detail
Drivers	Rise in Demand for Sufficient Energy at EV Charging Locations Increase in Preference for Sustainable and Cost-effective Modes of Transportation

Regional Outlook

Attribute	Detail
Leading Region	Asia Pacific

Battery Energy Storage System Market Snapshot for EVs

Attribute	Detail
Market Size in 2023	US$ 3.1 Bn
Market Forecast (Value) in 2034	US$ 38.9 Bn
Growth Rate (CAGR)	25.6%
Forecast Period	2024-2034
Historical Data Available for	2020-2022
Quantitative Units	US$ Bn for Value and Thousand Units for Volume
Market Analysis	It includes segment analysis as well as regional level analysis. Furthermore, qualitative analysis includes drivers, restraints, opportunities, key trends, Porter’s Five Forces Analysis, value chain analysis, and key trend analysis.
Competition Landscape	Market share analysis by company (2023) Company profiles section includes overview, product portfolio, sales footprint, key subsidiaries or distributors, strategy and recent developments, and key financials
Format	Electronic (PDF) + Excel
Market Segmentation	By Battery Type Lithium-ion Batteries Lead Acid Batteries Nickel Cadmium Batteries Others By Material Type Cobalt Lithium Natural Graphite Manganese Others By Battery Capacity 0 - 100 MWh 101 - 500 MWh Above 500 MWh By Connection Type Off-grid Systems Micro-grid Systems On-grid Systems By Power Source Power Grids Renewable Energy Solar Wind Others By Ownership Customer-owned Third-party Owned Utility-owned By Electric Vehicle Type Battery Electric Vehicles (BEVs) Hybrid/Plug-in Hybrid Vehicles (HEVs/PHEVs) Fuel Cell Electric Vehicles (FCEVs) By Application Public Private
Regions Covered	North America Europe Asia Pacific Middle East & Africa South America
Countries Covered	U.S. Canada Mexico Germany U.K. France Italy Spain Nordic Countries Russia & CIS Japan China India South Korea ASEAN Countries ANZ GCC South Africa Turkiye Brazil Argentina
Companies Profiled	ABB Ltd. AEG Power Solutions BYD Company Ltd. Delta Electronics, Inc. East Penn Manufacturing Company General Electric Company Hitachi, Ltd. Honeywell International Inc. LG Energy Solution. MTU Solutions NEC Corporation Panasonic Corporation Samsung SDI. Siemens Tesla TOSHIBA CORPORATION
Customization Scope	Available upon request
Pricing	Available upon request

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.

Global Hybrid Battery Energy Storage System Market was valued at USD 16.35 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 6.31% through 2029.

Pages	186
Market Size	2023: USD 16.35 billion
Forecast Market Size	2029: USD 23.74 billion
CAGR	2024-2029: 6.31%
Fastest Growing Segment	Automotive
Largest Market	North America
Key Players	1. Amphenol Corporation 2. Lockheed Martin Corporation 3. General Electric Company 4. Panasonic Corporation 5. AEG Power Solutions Ibrica S.A. 6. Hitachi Ltd 7. NEC Corporation 8. Samsung SDI Co., Ltd. 9. Siemens AG 10. BYD Australia Pty. Ltd.

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Off-Grid Energy Storage System Market Size 2024-2028

The off-grid energy storage system market size is forecast to increase by USD 6.1 billion at a CAGR of 6.9% between 2023 and 2028.

The market is experiencing significant growth due to several key factors. One of the primary drivers is the shift in energy mix towards renewable sources, which necessitates the use of energy storage systems to ensure a consistent power supply. Another trend is the increased adoption of microgrids, which require energy storage systems to operate efficiently and independently. Additionally, the widening demand-supply disparity in various regions, particularly concerning lithium-ion batteries, is fueling the market's growth. These factors are expected to continue driving the market's expansion In the coming years. The market is poised for strong growth due to the changing energy landscape, increasing adoption of microgrids, and the widening demand-supply gap for energy storage solutions, particularly lithium-ion batteries.

What will be the Size of the Off-Grid Energy Storage System Market During the Forecast Period?

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The market encompasses electrical energy solutions designed for independent power generation and consumption, primarily for off-grid living and remote locations. This market is driven by the increasing demand for reliable and sustainable energy sources, particularly in regions with limited access to traditional AC power grids. Key components of off-grid energy storage systems include batteries, such as lithium-ion and lead-acid, which store excess energy generated from DC loads like solar panels and wind turbines. Self-discharge rates and memory effect are critical factors in battery selection. Off-grid systems also include independent inverters for converting DC power to AC, solar controllers, and comprehensive development of solar battery packs and off-grid special inverters.
Environmental pollution concerns have further fueled the market's growth, as off-grid systems offer an alternative to traditional power sources that may contribute to pollution. The market's size is expanding as electricity demands continue to rise, with solar and wind power generation playing increasingly significant roles. Overall, the market is experiencing comprehensive development, driven by the need for sustainable, reliable, and eco-friendly energy solutions.

How is this Off-Grid Energy Storage System Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Battery Type

  Li-ion
  LAB
  Sodium based batteries
  Others


Geography

  North America

    US


  APAC

    China
    India


  Europe

    Germany
    France


  South America



  Middle East and Africa

By Battery Type Insights

The li-ion segment is estimated to witness significant growth during the forecast period. The market is primarily driven by the adoption of Li-ion batteries due to their high energy density and capacity to store large amounts of power for off-grid applications. These batteries, which include Li-ion, Li-ion titanate, lithium iron phosphate, lithium manganese oxide, lithium nickel cobalt aluminum, lithium nickel manganese cobalt, and lithium polymer types, accounted for a significant market share in 2021. Off-grid energy systems cater to various sectors such as solar, wind, and hydroelectric power generation, providing independent power supply and reducing reliance on traditional grid-connected power sources. Li-ion batteries offer advantages like longer cycle life, lower self-discharge rate, and higher efficiency compared to other battery technologies.

Incorporating these batteries into off-grid energy systems enhances their overall performance and sustainability, making them a preferred choice for off-grid living and renewable energy storage applications. The market for off-grid energy storage systems is expected to witness substantial growth due to increasing electricity demands, advancements in battery technology, and the comprehensive development of renewable energy sources.

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The Li-ion segment was valued at USD 4.80 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 33% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American region dominated The market in 2023, accounting for the largest sh

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 50.7 billion U.S. dollars in 2023. The figure was projected to reach over 86 billion U.S. dollars by 2031. More information on the global energy storage system market can be found here.