Energy Storage Systems Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global energy storage systems market attained a volume of 53.04 Gigawatt in 2024, fuelled by increasing renewable energy adoption, grid stability needs, and electric vehicle integration. The industry is expected to grow at a CAGR of 12.90% during the forecast period of 2025-2034, to reach 178.46 Gigawatt by 2034, driven by rising renewable energy capacity, increased electrification, and the transition to cleaner power sources.

Global Energy Storage Systems Market Report Summary

Description

Value

Base Year

Gigawatt

2024

Historical Period

Gigawatt

2018-2024

Forecast Period

Gigawatt

2025-2034

Market Size 2024

Gigawatt

53.04

Market Size 2034

Gigawatt

178.46

CAGR 2018-2024

Percentage

XX%

CAGR 2025-2034

Percentage

12.90%

CAGR 2025-2034- Market by Region

Europe

14.7%

CAGR 2025-2034 - Market by Country

UK

15.2%

CAGR 2025-2034 - Market by Country

Germany

14.9%

CAGR 2025-2034 - Market by Type

Batteries

14.9%

CAGR 2025-2034 - Market by End Use

Commercial

13.6%

Market Share by Country 2024

UK

3.6%

Energy Storage Systems Market Growth

Energy Storage Systems are Enabling Grid Stability and Renewable Integration

The energy storage systems market value plays a crucial role in supporting the global shift towards renewable energy by providing stability to power grids. With renewable sources like wind and solar being intermittent, ESS helps manage fluctuations in supply and demand, ensuring a continuous energy flow. Governments recognise the importance of energy storage, with the UK projecting demand to rise to 10 gigawatt hours (GWh) by 2030 and 20 GWh by 2035. This growth reflects the need for reliable, flexible energy storage solutions to facilitate the decarbonisation of the power grid, enhance energy security, and support the increasing share of renewable energy.

As renewable energy adoption continues to rise, energy storage systems have become integral in stabilising grids, storing excess energy, and providing continuous power during peak demand. The energy storage system industry reflects significant growth as governments implement new regulations and safety standards to ensure reliability. In California, battery storage capacity has expanded from 500 MW in 2019 to over 13,300 MW in 2024. With a projected need of 52,000 MW by 2045, this growth emphasises the critical role of energy storage in achieving clean energy goals and enhancing grid stability, marking a key development in the clean energy transition.

Key Trends and Recent Developments

The trend in the global energy storage systems market is influenced by innovations in battery energy storage solutions, increasing investment opportunities, advancements in microgrid energy storage systems, and technological progress.

April 2025

Eku Energy acquired Bluestone Energy’s portfolio of seven planned battery energy storage system (BESS) projects across the UK, totalling 1GW/2GWh capacity. Notable sites include Leatherhead, Dorset, East Sussex, and Kent. The transaction builds on their 2022 Joint Development Agreement and expands Eku’s UK footprint, complementing existing projects in Maldon, Basildon, and Loudwater under its clean energy transition strategy.

March 2025

Atlas Copco launched the ZBC 1000-1200, a 1 MW battery energy storage system using LiFePO4 batteries, designed for applications like mining. Scalable up to 16 MW, it offers hybrid and standalone use, fast energy transfer, and up to 90% emissions reduction. Features include plug-and-play setup, ECO Controller integration, FleetLink telematics, and operates in extreme temperatures and altitudes.

February 2025

Fluence Energy launched its Smartstack grid-scale battery energy storage system (BESS). The system offers up to 7.5 MWh of energy storage with a modular design, featuring Smart Skid and pods for easier transport and maintenance. It supports storage durations from two to eight hours, improving scalability, efficiency, and project economics for grid applications.

October 2024

Celsia SA launched Colombia’s first solar energy storage system at its 9.9 MW Celsia Solar Palmira 2 plant in Valle del Cauca. The 1 MW battery energy storage system will capture excess solar power, supporting energy availability during low generation periods. This project enhances renewable energy reliability and marks a breakthrough in Colombia’s energy transition efforts.

Innovations in Battery Energy Storage Solutions

The need for reliable grid management, particularly during peak demand periods, has driven innovations like the development of megawatt-scale battery energy storage systems (BESS), impacting the energy storage industry revenue. These systems are crucial for supporting grid stability, integrating renewable energy, and achieving climate and energy storage targets. In August 2024, Catalyze launched its first standalone BESS project in the Bronx, New York, featuring 4 Tesla MegaPacks with 4.29 MW / 8.58 MWh capacity.

Increasing Investment Opportunities

As renewable energy sources like wind and solar grow, efficient energy storage is key for grid stability, influencing the energy storage market dynamics and trends. The development of LDES technologies, such as pumped storage hydro and compressed air energy storage, supports energy independence and cost reduction. The UK government’s October 2024 scheme boosts investment in renewable storage, aiding climate goals, energy security, and the transition to net-zero emissions by 2050.

Enhancement in Microgrid Energy Storage Systems

The advancement of all-in-one Battery Energy Storage Systems (BESS) for microgrids is driving progress in energy storage. These systems capture and store energy from diverse sources, enhancing grid reliability, supporting sustainability, and enabling demand-charge reduction, driving the energy storage industry growth. Schneider Electric launched all-in-one Battery Energy Storage Systems (BESS) in April 2024. BESS provides up to 2 MW of power, improving energy security, decarbonisation, and grid stability.

Technological Advancements

Long Duration Electricity Storage (LDES) technologies like pumped storage hydro, liquid air, and compressed air energy storage are essential for grid stability, storing excess renewable energy for use during high demand, boosting the growth of the energy storage market. Ofgem’s April 2025 investment scheme will address cost barriers, support the UK’s clean energy goals, and enhance energy security, contributing to net-zero emissions by 2050.

Energy Storage Systems Market Trends

Surging Renewable Demand Fuels Energy Storage Market Growth

The growing demand for renewable energy is a driving force behind the energy storage systems market expansion. As renewable electricity generation is set to rise significantly, reaching over 17,000 TWh (60 EJ) by 2030, up from 8,900 TWh in 2023, energy storage solutions will be crucial to manage the fluctuations in power generation. This surge in renewable energy capacity is enough to meet the combined power demands of China and the United States in 2030, increasing the need for efficient storage systems to ensure grid stability, enhance energy security, and support the transition to clean, sustainable energy.

Energy Storage Systems Market Opportunities

Renewable Energy and V2G Technology Boost Market Growth

The integration of renewable energy sources and energy storage technologies is significantly influencing the growth of the energy storage systems market. As the demand for cleaner, more sustainable power increases, energy storage solutions like Vehicle-to-Grid (V2G) technology offer flexible energy storage and help balance grid supply and demand. The recent demonstration of V2G technology by CSIRO and Essential Energy in April 2025, where electric vehicles store and provide energy from rooftop solar to the grid, showcases how this innovation can drive further adoption of renewable energy. With growing EV adoption, the energy storage systems market will play a key role in enhancing grid resilience.

Energy Storage Systems Market Restraints

• Energy storage systems, particularly long-duration solutions, require significant upfront investments for technology development, infrastructure, and installation. The high cost of these systems can deter potential adopters, limiting market expansion and adoption in developing regions.
• Varying regulations and a lack of standardised policies for energy storage systems across different regions create obstacles for market expansion. These inconsistencies complicate large-scale deployment, slow down development, and hinder the seamless integration of energy storage with existing energy infrastructure.

Energy Storage Systems Industry Segmentation

“The EMR’s report titled “Global Energy Storage Systems Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Type

• Batteries
• Thermal Energy Storage
• Flywheel Energy Storage
• Pumped-storage Hydroelectricity
• Others

Breakup by End Use

• Residential
• Commercial
• Industrial

Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Energy Storage Systems Market Share

Rising Demand for Thermal Energy Storage in India’s Renewable Energy Transition

According to energy storage systems market analysis, the demand for thermal energy storage (TES) is increasing due to the need for reliable, dispatchable renewable energy. The partnership between L&T and John Cockerill in March 2025, focusing on concentrated solar power and TES, aims to provide 24/7 green power solutions to Indian businesses, supporting the country's low-carbon energy transition. Their collaboration will play a pivotal role in expanding thermal energy storage technologies in India.

Pumped-storage hydroelectricity is gaining momentum as a key energy storage solution, ensuring grid stability and supporting renewable energy integration. The collaboration between Central Slovakian Water Company and Vodohospodárská výstavba in April 2025 for the Málinec Látky pumped storage project reflects this growth. With pumped storage offering significant economic benefits, as seen in Austria, it highlights the increasing demand and market potential for this technology in balancing supply and demand across energy systems.

Residential Sector Leads Energy Storage Growth Amid Rising Power Demand

As per the energy storage systems market report, the market is led by the residential sector. The growth is driven by the need for efficient energy management, particularly in regions with rapidly rising electricity demand. In 2023, global electricity consumption increased by 2.6%, with significant surges in China, where it grew by 6.9%, India, at 6.7%, and Brazil, at 3.2%. These developments highlight the growing need for energy storage solutions in residential areas to handle peak loads and efficiently integrate renewable energy sources.

The commercial sector is a key driver of the energy storage systems market, propelled by the need for efficient energy management, reduced operational costs, and greater use of renewable sources. Businesses are increasingly adopting battery storage to ensure energy reliability, meet sustainability targets, and mitigate grid fluctuations. According to India’s National Electricity Plan (NEP) 2023, energy storage capacity is projected to reach 82.37 GWh by 2026-27, expanding to 411.4 GWh by 2031-32. By 2047, the demand is expected to soar to 2,380 GWh, largely due to the shift towards net-zero emissions and greater renewable energy integration.

Energy Storage Systems Market Regional Analysis

CAGR 2025-2034 - Market by

Country

UK

15.2%

Germany

14.9%

India

14.3%

Italy

13.7%

USA

13.2%

Canada

XX%

France

XX%

China

XX%

Japan

XX%

Australia

XX%

Saudi Arabia

XX%

Brazil

12.5%

Mexico

XX%

Surging Growth in Europe’s Energy Storage Market Driven by Solar Expansion

The Europe energy storage systems market occupies a large market share, fueled by the rise in renewable energy adoption, especially solar power, and the need for reliable energy storage. In 2023, Europe installed 17.2 GWh of battery energy storage systems (BESS), a 94% increase from 2022. Germany led the market with a 34% share. Although challenges like policy barriers and market inefficiencies exist, the European ESS market is expected to grow significantly. By 2030, the market aims for 200 GW of battery capacity to unlock Europe’s solar energy potential, reinforcing the need for advanced storage solutions in the region.

Rapid Expansion of Energy Storage Systems in North America's Clean Energy Transition

The energy storage systems industry in North America is experiencing rapid growth as the region continues to integrate renewable energy sources such as wind and solar. To support grid stability and energy reliability, the market is expanding with large-scale storage solutions. For instance, the U.S. battery storage capacity surged from 47 MW in 2010 to 17,380 MW in 2023. Looking forward, projections indicate that large-scale storage will increase from 1 GW in 2019 to 98 GW by 2030, highlighting the significant role ESS will play in North America's clean energy transition and future grid management.

Competitive Landscape

The energy storage systems market key players are focusing on innovations in battery technology, improving energy efficiency, and enhancing grid stability. They are investing in advanced storage solutions like lithium-ion batteries, long-duration storage, and microgrid systems to meet rising demand for renewable energy integration and ensure energy security.

General Electric Company

Founded in 1892 and headquartered in New York, United States, General Electric (GE) provides a wide range of services and products across various technological and industrial sectors. This includes hydroelectric power solutions like digital hydro plants, turbines, generators, and control systems. Additionally, GE is involved in gas power, finance, healthcare, energy, venture capital, software, and additive manufacturing, driving innovation in each field.

LG Energy Solution Ltd.

Founded in 2020 and headquartered in South Korea, LG Energy Solution Michigan manufactures and designs lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. The company offers integrated, reliable, and bankable energy storage solutions and services, prioritising customer satisfaction while contributing to a sustainable future.

GS Yuasa Corporation

Founded in 2004, with its headquarters in Kyoto, Japan, GS Yuasa manufactures and sells automotive batteries, industrial batteries, power supply systems, switchgear, and other electrical equipment. The company specialises in supplying batteries, power systems, lighting equipment, and speciality electrical products, contributing to various industries with reliable and advanced energy solutions.

Contemporary Amperex Technology Co., Limited.

Founded in 2011, with its headquarters in Ningde, China, Contemporary Amperex Technology Co., Ltd (CATL) is a manufacturer of lithium-ion batteries. The company specialises in the research, development, production, and sales of new energy vehicle power battery systems and energy storage solutions, contributing to the advancement of sustainable energy and electric vehicle technologies.

Other key players in the energy storage systems market report include UniEnergy Technologies Battery, BYD Energy APP, Clarios, LLC, NGK Insulators, Ltd., Maxwell Technologies, Inc., and The Furukawa Battery Co., Ltd., among others.