Global Energy Storage As a Service Market Size, Trend & Opportunity Analysis Report, by Service (Bulk Energy Services, Transmission Infrastructure Services), End Use (Utility, Industrial, Residential & Commercial), and Forecast, 2024–2035

Market Definition and Introduction

The global Energy Storage as a Service (ESaaS) market was valued at USD 1.79 billion in 2024 and is anticipated to reach USD 5.75 billion by 2035, expanding at a CAGR of 11.2% during the forecast period (2024–2035). With the future structural transformation of the energy landscape now underway, the Energy Storage as a Service model is becoming the corner concern in addressing emerging issues of intermittency, grid resilience, and clean energy adoption as conditions for decarbonisation, decentralisation, and digitalisation evolve. Against the decline of fossil fuel centralised systems towards renewables, the critical need for scalable, flexible, affordable storage options that can be offered by end users has been rightly highlighted. Herein, therefore, ESaaS is increasingly seen as a link between the financial accessibility to cutting-edge technology with storage capacity delivered as a subscription or performance-based service rather than capital assets.

The momentum gained behind renewable penetration, particularly of wind and solar, has caused more pressure on grid operators to compensate for the stability of supply-demand dynamics, mitigate curtailment, and buffer peak load stress. By using ESaaS frameworks, utilities and industrial players outsource operational risks and capital intensity, instead paying for reliable energy storage capacity to support demand response, frequency regulation, and backup power. Examples of how industrial end users can achieve such control over cost fluctuations through ESaaS are found in decoupling from volatile energy costs and ensuring operational continuity, while residential and commercial adopters benefit from optimised energy bills, improved resiliency, and enhanced sustainability credentials.

On the supply side, ESaaS providers are reinventing the typical business model of energy storage deployment by integrating with digital platforms, AI analytics, and predictive optimisation services, thus elevating the value proposition beyond mere storage. Cloud-based interfaces, blockchain-enabled billing, and real-time data insights come together to add transparency, scalability, and adaptability to the ESaaS ecosystem. This service-based model is also aligned with regulatory goals to diversify demand-side flexibility incentives, cut carbon footprints, and fast-track clean energy targets; thus, the ESaaS market will soon become a disruptor, technologically as well as economically the global egg transition scenario.

Recent Developments in the Industry

Stem Inc. expands AI-driven platform for utility-scale energy storage optimisation.

In March 2024, the Athena™ platform of Stem Inc. was upgraded with advanced AI algorithms meant to enhance real-time grid operator decision-making. The upgrade allows utilities to increase revenues through better energy market participation while providing more stability for renewable integration.

Honeywell launches subscription-based storage services for industrial clients.

Honeywell International rolled out a subscription ESaaS service in January 2025 that focuses on providing industrial clients with predictable energy costs and security backup. The model provides battery storage systems as a turnkey solution with no upfront capital expenditure, thus speeding up the adoption of ESaaS in the manufacturing sector.

EDF Renewables joins forces with Microsoft for clean energy and storage solutions.

In July 2024, EDF Renewables announced a partnership with Microsoft to provide energy storage solutions enabling corporate decarbonisation strategies. The partnership combines cloud-based predictive analytics to improve the energy efficiency of Microsoft facilities with an uninterrupted supply of renewable energy.

Fluence Energy has launched a modular storage-as-a-service platform for commercial clients.

In September 2023, Fluence Energy released its Gridstack-as-a-Service, a modular storage solution for small-to-medium commercial facilities. The innovation enables clients to scale energy storage according to their changing needs, thus saving costs otherwise incurred on investing in overcapacity.

Siemens Energy develops investments in Asia-Pacific with an aim to expand services for transmission infrastructure and storage.

In October 2024, Siemens Energy announced an investment of USD 200 million to establish aESaaS in the Asia-Pacific region, focusing on grid stabilisation and transmission optimisation. The expansion targets countries with fast-tracked renewable adoption, where grid bottlenecks question power reliability.

Market Dynamics

The rising renewable integration globally demands scalable energy storage services.

Designed to offer utilities, industries, and commercial users flexible storage capacities to balance grid stability, curtailment, and renewable adoption rates, ESaaS meets the demand for its services.

Capital-intensive infrastructure is driving service-based models of energy storage adoption.

A notable constraint to the adoption of large-scale energy storage systems is the huge capital outlay involved. The ESaaS model bridges this imposing barrier by shifting the financial burden from capital to operational expenditure, thus enabling end-users to avail themselves of state-of-the-art storage systems without significant investments. This gives the best option to the eyes of industrial and residential players requiring predictable pricing.

Technological advancements help in driving smarter, data-centric energy storage as a service solution.

Digitalisation and AI-based forecasting and blockchain-enabled billing are all taking ESaaS beyond storing things for a price into a value proposition with several technology changes, allowing real-time monitoring, dynamic pricing, predictive maintenance, and enhanced participation in ancillary service markets, thus increasing the operational effectiveness and attractiveness of ESaaS.

Regulatory support and decarbonisation policies stimulate the global adoption of ESaaS.

Governments and regulators are creating more incentives for demand response and grid-felicity mechanisms in which the seeds for ESaaS models can be sown. Very stringent targets for carbon neutrality in regions pertaining to Europe, the USA, and Asia-Pacific are basically moving ESAA to act as the bridge for renewable integration, with eco-certification and policy-driven subsidies further acting as accelerators for deployment.

Supply chain constraints and battery raw material price volatility bring long-term uncertainty.

While ESaaS offer significant operational flexibility, the industry is still subject to upstream challenges regarding lithium, cobalt, and nickel supply shortages. Price volatility due to geopolitical disruptions might increase service providers' costs and force them into strategies for sourcing raw materials through recycling and pursuing alternative chemistries such as sodium-ion or solid-state batteries.

Attractive Opportunities in the Market

Green Grid Modernisation – Service-driven storage enhances flexibility, reducing grid congestion and enabling higher renewable penetration.
Industrial Cost Optimisation – Energy-intensive industries adopt ESaaS to mitigate energy volatility and stabilise operating expenditure.
Residential Resilience Demand – Growing reliance on distributed storage drives residential ESaaS for backup and peak shaving.
Digital Innovation Surge – AI, blockchain, and cloud-based monitoring improve ESaaS operational efficiency and customer engagement.
Asia-Pacific Growth Boom – Expanding renewable infrastructure and urbanisation catalyse ESaaS adoption in emerging economies.
Policy-Backed Expansion – Carbon-neutrality targets and subsidy frameworks support large-scale ESaaS deployments worldwide.
Flexible Business Models – Subscription, pay-per-use, and hybrid financing schemes widen ESaaS accessibility across user groups.
Energy Security Priorities – Storage services provide critical backup and reliability for regions vulnerable to outages and grid stress.
Eco-Certification Incentives – Services aligned with sustainability certifications improve marketability in ESG-conscious economies.
Next-Gen Battery Chemistries – Advancements in solid-state and sodium-ion technologies create scalable opportunities for ESaaS providers.

Report Segmentation

By Service: Bulk Energy Services, Transmission Infrastructure Services

By End Use: Utility, Industrial, Residential & Commercial

By Region: North America (U.S., Canada, Mexico), Europe (UK, Germany, France, Spain, Italy, Spain, Rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, Rest of Asia-Pacific), LAMEA (Brazil, Argentina, UAE, Saudi Arabia (KSA), Africa Rest of Latin America)

Key Market Players

Stem Inc., Honeywell International Inc., Engie SA, EDF Renewables, NextEra Energy Resources, AMS (Advanced Microgrid Solutions), Hitachi Energy, Siemens Energy, Tesla Inc., and Fluence Energy.

Report Aspects

Base Year: 2024
Historic Years: 2022, 2023, 2024
Forecast Period: 2024-2035
Report Pages: 293

Dominating Segments

The largest segment of the ESaaS market is in bulk energy services, owing to the possibilities offered for scalable deployment in utility-scale applications.

Bulk energy services form the largest percentage of the ESaaS market because they stabilise grid operations and manage renewable intermittency at utility scale. With associated investment and cost implications, these services allow utilities to defer large capital upgrades even while improving reliability, thereby becoming even more essential with deeper penetration of renewables. These peak shaving, arbitrage, and frequency regulation functions reinforce their dominance globally.

Developing transmission infrastructure services as global grid modernisation accelerates.

Banner: Transmission infrastructure services are fast becoming a key portfolio as they are popular in regions battling old grids and the integration of renewables. Flexible deployments of storage along the transmission corridors reduce congestion, curtailment and enable national-to-national power exchange. Growth of this segment may become more evident given the modernisation thrust, government assignments are putting through investments and international interconnections.

It is the utility sector leading the market in terms of application at scale in future overhauls of ESaaS frameworks.

Utilities remain the foremost end-use segment because they play a determining role in ensuring the reliability of energy and balancing demand variability in the sector as a whole. On the one hand, ESaaS adoption will enable utilities to improve and expand access to advanced storage without an upfront capital burden. On the other hand, ESaaS strengthens the presence of utilities in ancillary markets and in demand-side management, which further solidifies the argument above.

The industrial segment is now increasingly active as clients push for cost certainty and independence in energy sourcing.

Industrials increasingly turn to ESaaS to manage peak demand charges, improve resiliency, and adhere to sustainability mandates. Heavy energy users such as manufacturing and chemical plants will profit from subscription-based storage that smoothens power fluctuations and reduces exposure to volatile tariffs. The growing obligations regarding ESG have also been accelerating the adoption dynamic in this sector.

Residential and commercial segments are emerging via distributed storage-as-a-service adoption. Inspired by this growth, the residential and commercial segment has a smaller share of users, but continues to grow rapidly as prosumers demand affordable access to storage solutions.

Rooftop solar coupled with ESaaS models allows households and businesses to optimise consumption, participate in demand response markets, and strengthen backup capacity. This segment is expected to grow significantly as battery costs decline and demand for decentralised power increases.

Key Takeaways

Utility Dominance Evident – Utilities drive market growth by leveraging ESaaS for grid stability and renewable balancing.
Bulk Services Lead – Large-scale deployment underpins bulk energy services as the backbone of ESaaS adoption.
Industrial Adoption Rising – Energy-intensive industries embrace ESaaS for cost management and operational resilience.
Residential Growth Promising – Distributed adoption among households strengthens with falling costs and ESG awareness.
Digital Platforms Central – AI-driven forecasting and blockchain-enabled billing redefine ESaaS operational frameworks.
Policy Momentum Strong – Global carbon-neutral commitments continue to accelerate ESaaS adoption across markets.
Battery Supply Risks – Dependence on critical raw materials challenges the scalability and cost-effectiveness of ESaaS.
Regional Growth Shift – Asia-Pacific leads expansion, while North America and Europe dominate innovation ecosystems.
Next-Gen Chemistry Push – Solid-state and sodium-ion advancements redefine scalability and performance of ESaaS.
Business Models Diversified – Subscription, hybrid, and outcome-based contracts expand service accessibility worldwide.

Regional Insights

Utilities lead the deployment of ESaaS initiatives in North America.

Noesis Capital mentions that the increasing market visibility of ESaaS is a growth strategy across the North American continent. Consequently, the utility-scale is driving a different region. Few complete markets across the continent support ESaaS, such as Canada and Mexico. The establishment of ESaaS by several major players in energy storage has resulted in free trial attempts. A majority of the load of large, industrial ESaaS Long Tail is stored in America, leaving others trailing behind. Quantum cape, Heliogen, and 24M Technologies, for example, freely support energy storage.

The European nuclear league reduces global warming and increases ESaaS.

Different nuclear ESaaS revenue models across Europe have emerged, which require the Government, through the European Investment Bank, to give loans along with more incentives for preferential credits. Solar power starts to jumpstart its business and provide energy storage in Europe. What we see as the burgeoning fuel cell in Europe is the work of AFC Energy's H-Power brand, which has been granted ESaaS services with PEMs' fuel cell varieties. EPS has become a dark horse of the tri-level partnership that now bridges grid operators.

The Asia-Pacific has converted to being recognised as ESaaS with increasing industrialisation.

Some regions have accumulated more numbers in ESaaS adoption in Asia: in essence, fast renewables and industry make Telangana stand ahead, along with some other hot areas. Especially, some typical projects like the teachings of capital cities, protected forests, or industries' green pulse create a lot of opportunities for energy storage. ESaaS becomes the stage of climate-altering responses, bringing the activities of these regions to sustainable adaptation.

LAMEA consolidates ESaaS as a strategy for more stable grids and less dependence on fossil fuels.

The benefits of the Storage-as-a-Service system are noteworthy when reducing startup costs. The linkage of the financial resources with the notion of the ESaaS is now perceived as a tool that carries the vision of sustainability into beneficial action by NA and SA nations. In Brazil, the ESaaS operates from reserve banks with a backdrop of landfills; also, in Cape Verde, the system is deployed to break dependency on fuels without giving any regard to the sets of government reform. Moreover, the UAE is moving ahead with the clean energy plan, and the Abu Dhabi sector is a huge reactor to the ESaaS in storing significant benefits. The geographical area for the usefulness of ESaaS is very small. The situation, however, is better in the market, more so with a few new installations adorning the region.

Core Strategic Questions Answered in This Report

What is the expected growth trajectory of the energy storage as a service market from 2024 to 2035?

The global energy storage as a service market is projected to grow from USD 1.79 billion in 2024 to USD 5.75 billion by 2035, registering a CAGR of 11.2%. This expansion is primarily fuelled by renewable integration, grid modernisation needs, and the shift toward service-based models that reduce capital burdens.

Q. Which key factors are fuelling the growth of the energy storage as a service market?

Several key factors are propelling market growth:

Rising demand for renewable integration and grid stabilisation services
Capital expenditure avoidance through subscription-based models
Digital innovations enhancing service efficiency and customer value
Stringent decarbonisation policies stimulating adoption across regions
Growing resilience needs among industrial, residential, and utility sectors

Q. What are the primary challenges hindering the growth of the energy storage as a service market?

Major challenges include:

Dependence on critical minerals like lithium and cobalt
Price volatility and supply chain disruptions in raw materials
Regulatory uncertainties in emerging markets are delaying adoption
High upfront infrastructure investments required by ESaaS providers
Competition from alternative flexibility solutions, such as demand response

Q. Which regions currently lead the energy storage as a service market in terms of market share?

North America currently leads the ESaaS market, driven by large-scale utility deployments and strong regulatory incentives, followed by Europe, which leads in policy innovation and green financing mechanisms. Asia-Pacific, however, is expected to surpass in growth rate due to rapid renewable adoption and industrial expansion.

Q. What emerging opportunities are anticipated in the energy storage as a service market?

The market is ripe with new opportunities, including:

Expansion of distributed residential and commercial ESaaS solutions
Development of flexible business models and hybrid financing schemes
Advancements in solid-state and sodium-ion battery technologies
Policy-backed growth across carbon-neutral economies
Partnerships driving digitalisation and advanced analytics integration

Key Benefits for Stakeholders

The report offers a quantitative assessment of market segments, emerging trends, projections, and market dynamics for the period 2024 to 2035.
The report presents comprehensive market research, including insights into key growth drivers, challenges, and potential opportunities.
Porter's Five Forces analysis evaluates the influence of buyers and suppliers, helping stakeholders make strategic, profit-driven decisions and strengthen their supplier-buyer relationships.
A detailed examination of market segmentation helps identify existing and emerging opportunities.
Key countries within each region are analysed based on their revenue contributions to the overall market.
The positioning of market players enables effective benchmarking and provides clarity on their current standing within the industry.
The report covers regional and global market trends, major players, key segments, application areas, and strategies for market expansion. Show more