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.

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

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 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.

Energy Storage As a Service Market is projected to reach USD 8.6 Billion by 2033, with a 13.6% CAGR from 2024 to 2033.

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:

Global Energy Storage market size 2021 was recorded $34.555 Billion whereas by the end of 2025 it will reach $59.6 Billion. According to the author, by 2033 Energy Storage market size will become $177.306. Energy Storage market will be growing at a CAGR of 14.6% during 2025 to 2033.

Energy Storage Market size is expected to be worth around USD 712.7 Billion by 2034, from USD 267.4 Billion in 2024, at a CAGR of 10.3%

The global energy storage market is forecast to grow at an average compound annual growth rate of **** percent between 2020 and 2027. The size of the sector, estimated at **** billion U.S. dollars in 2021, is projected to surpass ** billion U.S. dollars in 2025.

The Battery Energy Storage System (BESS) market is experiencing robust growth, projected to reach a substantial size driven by the increasing adoption of renewable energy sources and the need for grid stabilization. The market's Compound Annual Growth Rate (CAGR) of 8.72% from 2019 to 2024 indicates a significant upward trajectory. This growth is fueled by several key factors. The rising demand for reliable and efficient energy storage solutions, particularly in the utility and commercial & industrial sectors, is a primary driver. Government initiatives promoting renewable energy integration and energy independence further stimulate market expansion. Lithium-ion batteries currently dominate the market, owing to their high energy density and relatively long lifespan, though lead-acid batteries retain a significant share, particularly in applications requiring lower cost solutions. Technological advancements, such as improved battery chemistries and enhanced energy management systems, are continuously improving the efficiency and cost-effectiveness of BESS, broadening their appeal across diverse applications. Geographical distribution reflects a strong presence in North America, Europe, and Asia-Pacific, with China and the United States representing major markets. However, growth opportunities exist in emerging economies, where increasing electrification and infrastructure development create substantial demand. Competitive landscape is characterized by major players such as BYD, Panasonic, LG Energy Solution, and CATL, constantly innovating and expanding their product portfolios to cater to evolving market needs. The market segmentation reveals key trends. The utility sector is a major consumer, requiring large-scale energy storage solutions for grid management and peak demand shaving. The residential segment is also witnessing significant growth, driven by increasing adoption of home solar systems and backup power solutions. While lithium-ion batteries are dominant, nickel metal hydride and other battery technologies are finding niche applications. The forecast period (2025-2033) anticipates continued growth, driven by ongoing technological advancements, favorable government policies, and an expanding global energy storage market. Challenges remain, including the cost of battery materials, recycling infrastructure development, and safety concerns related to large-scale battery deployments. However, ongoing research and development efforts are actively addressing these challenges, paving the way for continued market expansion in the coming decade. Recent developments include: February 2024: Chhattisgarh successfully inaugurated one of the biggest solar facilities in India with a battery energy storage system located in the Rajnandgaon district. The solar power plant, established by the Solar Corporation of India (SECI) and Chhattisgarh Power Distribution Company, provides a capacity of 100 MW, ensures electricity even during the night, and generates more than five lakh units daily., February 2024: GFCL EV Products Ltd. (GFCL EV), a subsidiary of Gujarat Fluorochemicals Ltd (GFL), plans to invest INR 6000 crore (USD 720 million) to supply 200GWh EV and battery energy storage system (BESS) solutions globally in the next 4-5 years. GFL has already committed INR 650 crore (USD 78 million) of the entire investment till December 31, 2023, with GFCL EV set to join EV and ESS battery markets in the United States, Europe, and India., December 2023: Namibia Power Corporation (NamPower) inked significant EPC contracts with Shandong Electrical, Engineering, and Equipment Group (SDEE) and Narada Power for a grid-scale battery energy storage project. The joint venture between the two Chinese enterprises is expected to deliver the 54MW/54MWh battery energy storage system (BESS) to Namibia's Omburu substation in the Erongo region.. Key drivers for this market are: 4., Increased Demand of Renewable Energy4.; Reducing Prices of Lithium-ion Batteries. Potential restraints include: 4., Increased Demand of Renewable Energy4.; Reducing Prices of Lithium-ion Batteries. Notable trends are: Residential Expected to be the Fastest-growing Segment.

The global battery energy storage system market is anticipated to report a valuation of USD 74.8 billion in 2025 and is projected to reach USD 178.7 billion by 2035, expanding at a compound annual growth rate (CAGR) of 9.1% during the forecast period.

Country-wise Analysis

The size of the Energy Storage Market in Europe Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 18.00">> 18.00% during the forecast period. Recent developments include: In November 2022, Harmony Energy Income Trust, an investment firm, announced that its Pillswoodproject in Yorkshire, UK, had gone live four months earlier than planned. According to Harmony, the 98MW/196MWh facility is Europe's largest BESS project by MWh. This is enough to power approximately 300,000 UK homes for two hours. The project will provide balancing services to the UK electricity grid network using a Tesla two-hour Megapack. Harmony Energy developed the project, with Tesla overseeing construction. Autobidder, Tesla's algorithmic trading platform, will manage the project., In September 2022, Global energy company RWE announced they would bring a 72MW battery energy storage system (BESS) online by the end of 2022 in Werne, Germany. The two BESS units are made up of 420 lithium-ion batteries having a combined output of 117 MW., In June 2022, Warstillaannounced to partner with SSE Plc to deliver 50 MW/ 100 MWh of battery energy storage system in Salisbury, United Kingdom, for the SSE solar power plant, and the battery energy storage system is expected to be commissioned in September 2023.. Key drivers for this market are: Rising Supporting Government Policies for Solar Energy in South Africa4., Increasing Investment in Renewable Energy Such as Solar, Wind, and Others. Potential restraints include: Increasing Adoption of Alternate Renewable Technologies Such as Wind. Notable trends are: Batteries Segment to Dominate the Market.

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 2032, growing at a CAGR of 16.30% from 2026 to 2032.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 Advanced Batteries for Utility Scale Energy Storage market size 2021 was recorded $2950.96 Million whereas by the end of 2025 it will reach $5878 Million. According to the author, by 2033 Advanced Batteries for Utility Scale Energy Storage market size will become $23321.7. Advanced Batteries for Utility Scale Energy Storage market will be growing at a CAGR of 18.8% during 2025 to 2033.

Snapshot img

Battery For Energy Storage Systems (ESS) Market Size 2025-2029

The battery for energy storage systems market size is forecast to increase by USD 22.18 billion, at a CAGR of 23.8% between 2024 and 2029. As governments and businesses invest heavily in solar, wind, and other clean power systems, the need for reliable and renewable energy storage solutions has become critical to ensure power consistency and grid stability. One of the most significant trends in this space is the expanding adoption of microgrids, especially in remote or off-grid areas, which rely on energy storage to balance energy generation and consumption.

Market Dynamics

Rising global investments in renewable energy sources to ensure stable and clean energy supply
Widening adoption of microgrids, driving demand for efficient energy storage systems
Increasing reliance on lithium-ion batteries segment was valued at USD 6.82 billion in 2019, with steady growth during the forecast period
North America emerged as the second-largest regional market, contributing USD 2.90 billion in 2023
Growing use of energy storage for grid stability, peak shaving, and load balancing
Government initiatives promoting energy transition and sustainability

However, the market also faces notable challenges. The widening demand-supply gap for lithium driven by surging battery demand in both renewable and electric vehicle sectors is leading to supply chain strain and price volatility. This dynamic threatens to slow market momentum unless companies diversify material sourcing and explore alternatives to lithium-based technologies. Addressing this challenge will require increased R&D in battery innovation, cost reduction strategies, and sustainable sourcing. To stay competitive, industry players are focusing on improving battery efficiency, exploring advanced chemistries, and establishing circular material recovery systems. With continued innovation and supportive regulation, the clean energy technologies and storage market is positioned to play a crucial role in the global transition to low-carbon energy.

What will be the Size of the Battery For Energy Storage Systems (ESS) Market during the forecast period?

Request Free Sample

The battery market for energy storage systems (ESS) continues to evolve, driven by the increasing integration of renewable energy sources and the need for voltage support, carbon emission reduction, climate change mitigation, and fire suppression systems. The market dynamics are shaped by various factors, including environmental regulations, round-trip efficiency, frequency regulation, power electronics, peak shaving, electrochemical performance, and energy management software. Project financing, energy efficiency, battery management systems, and system design are crucial elements in the ESS market. Sodium-sulfur batteries and flow batteries are gaining popularity in commercial storage applications, while utility-scale storage and grid-scale storage are becoming increasingly important for renewable energy integration.

Thermal management, microgrid applications, and grid interconnection are also key areas of focus, as ESS becomes more integral to the smart grid. Demand response, cost of storage, data analytics, and second-life applications are other emerging trends in the market. Electrochemical performance, depth of discharge, and cycle life are critical factors in the selection of batteries for various applications, including wind energy, solar energy, and electric buses. Energy arbitrage, electric vehicles, and operational costs are also important considerations. Safety standards, discharge rate, and remote monitoring are essential aspects of ESS, ensuring reliable and efficient energy storage solutions. The market is continually unfolding, with new developments and innovations shaping the landscape.

How is this Battery For Energy Storage Systems (ESS) Industry segmented?

The battery for energy storage systems (ess) 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

  Lithium-ion batteries
  Flow batteries
  Others


Connectivity

  On-grid
  Off-grid


Battery

  Lithium-ion batteries
  Advanced lead-acid batteries
  Flow batteries
  Others
  Lithium-ion batteries
  Advanced lead-acid batteries
  Flow batteries
  Others


Ownership

  Customer owned
  Third-party owned
  Utility owned
  Customer owned
  Third-party owned
  Utility owned


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    Australia
    China
    Japan
    South Korea


  Rest of World (ROW)

.

By Technology Insights

The lithium-ion batteries segment is estimated to witness significant growth during the forecast period.

The

The global energy storage market is projected to reach 39411.29 million by 2033, exhibiting a robust CAGR of 25.46% during the forecast period. The surging demand for reliable and sustainable energy sources, coupled with the growing adoption of renewable energy technologies, is driving market growth. Government initiatives and incentives aimed at promoting clean energy transition are further fueling the adoption of energy storage systems. The market is segmented into various technologies, types, and end-users. Among technologies, battery energy storage holds a significant market share due to its cost-effectiveness, high efficiency, and scalability. The mechanical segment dominates the type segment, owing to the wide-scale deployment of pumped hydro storage systems. Utility-scale applications account for a major share in the end-user segment, driven by the need for grid stability, peak load management, and integration of renewable energy. North America and Europe are the leading regional markets, with China emerging as a key growth market due to its ambitious renewable energy targets and increasing investments in energy storage technologies. Key market players include Tesla Inc., AES Corporation, General Electric Company, Sulzer Ltd., and Voith GmbH. Recent developments include: February 2023:Gore Street Capital acquires 200MW battery storage project in California, UK-listed Gore Street Energy Storage Fund has acquired its first asset in California, a 200MW/400MWh battery energy storage system project from developer Avantus.The two-hour duration project, called Big Rock, is in Imperial County which borders Mexico and will provide power on the electricity market operated the California ISO, or CAISO. The construction-ready project is scheduled to get a grid connection in the second half of 2024 and will start commercial operations shortly after. Battery cell supply agreements and engineering, procurement and construction (EPC) contracts have been secured., February 2023:India’s Ministry of Power issues guidelines for pumped hydro energy storage, Recognising that pumped hydro energy storage (PHES) could be a key foundation technology for India’s renewable energy ambitions, the government Ministry of Power has issued guidelines for its adoption.Pumped hydro can be deployed at large-scale as a key aspect of India’s transition to increased shares of renewable energy and is a domestically available, proven and safe technology, the Ministry of Power wrote in its guidelines, published last week.With the country shifting to deploy 450GW of new solar PV and wind capacity by 2030 under its policy targets – and around a third of the way there today – PHES could supply long-duration energy storage (LDES) to India’s grid network, the ministry said., February 2023:UK’s Zenobē Energy gets US$285 million financing, starts 300MW BESS project in Scotland, The announcement comes shortly after the UK energy storage and e-mobility specialist secured a £235 million (US$284.8 million) long-term debt facility from five banks.The project, which will be situated between the cities of Aberdeen and Inverness, will be the first in the world to deliver stability services using a transmission connected battery, the firm said. , This is a key milestone in the company’s ambition to deliver 1GW of battery energy storage in Scotland. Once fully operational, the battery asset will have a capacity of 300MW/600MWh. The first phase will see 200MW developed and is set to go live in the summer of 2024. The second phase will develop an additional 100MW and is scheduled to go live in 2026.The project will enable further uptake of renewable power in the region and facilitate offshore wind farms at Viking and Beatrice. Wärtsilä, H&MV, SMA Solar Technology AG and GE Grid Solutions have been selected as key suppliers for the project., October 2021:the Central Government of India has given the go-ahead to invite the expression of interest (EOI) for installing a 1000 MWh Battery Energy Storage System as a pilot project. This is the joint effort of the Ministry of New and Renewable energy storage and the Ministry of Power, who has been working on this to provide a road map for the installation of the energy storage system in the country., August 2020:Greenko Energies Pvt Ltd. has signed an MOU with NTPC Limited for various renewable energy projects. Greenko is setting up 40 GWh of hydro-storage projects in six Indian States.. Notable trends are: Rapidly rising energy consumption to boost the market growth.