Energy Storage Systems Market Size is Expanding US$ 569.39 Billion by 2034
The global energy storage systems market size is calculated at USD 288.97 billion in 2025 and is expanding around USD 569.39 billion by 2034, with an impressive CAGR of 7.87% from 2025 to 2034.
/EIN News/ -- Ottawa, April 07, 2025 (GLOBE NEWSWIRE) -- According to Precedence Research, in 2024, the energy storage systems market size was valued at approximately USD 266.82 billion and is anticipated to reach around USD 569.39 billion by 2034, reflecting a compound annual growth rate (CAGR) of 7.87% from 2025 to 2034.
The increased need for energy storage systems is accelerated by the rising decarbonisation efforts, increased electricity demand, and the shift towards achieving grid stability and backup power.
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The energy storage systems refer to the advanced solutions utilizing solar thermal energy storage or electricity to charge energy storage devices during peak demands for power supply. The flexibility and adaptability of these systems to work with other power generation resources improve the economic efficiency of several systems. They work on the basis of the maximum amount of power capacity generation and the total amount of energy storage capacity. The various types of utility-scale energy storage systems for electricity generation include pumped storage hydro, batteries, solar-thermal, compressed-air, and flywheels.
In February 2025, the Ministry of Economy of Argentina announced the launch of a 500 MW battery energy storage tender with $500 million of the estimated value of the project to improve the overall efficiency of the electricity supply in metropolitan areas. However, in December 2024, the Kerala State Electricity Board Ltd (KSEBL) announced the launch of a 125 MW/500 MW battery energy storage tender through the Solar Energy Corp. of India (SECI).
Read Also: Global Energy Storage Market Opportunities and Growth Drivers
Recent Advancements in Energy Storage Systems
| Sr. No. | 2024 Breakthroughs in Energy Storage Solutions | Categories |
|
1. |
Advancements in Lithium-Ion Technology |
Solid-State Batteries |
| Recycling and Sustainability | ||
|
2. |
Next-Generation Flow Batteries |
Vanadium Flow Batteries |
| Organic Flow Batteries | ||
|
3. |
Innovations in Compressed-Air Energy Storage |
Advanced CAES Systems |
| Hybrid Systems | ||
|
4. |
Thermal Energy Storage Solutions |
Molten Salt Storage |
| Phase Change Materials |
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Major Key Trends in the Energy Storage Systems Market
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Storage Techniques: The various types of storage techniques include electrochemical, such as Li-ion batteries, flow batteries, and solid-state batteries, electrical, such as supercapacitors and superconducting magnetic; and chemical, including power to gas. Moreover, mechanical techniques include pumped hydro and compressed air storage.
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Storage Assets: They are used to store energy for a long duration during a period of high energy production in summer, which allows the utilization of electricity during a period of peak demand in winter.
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Frequency and Balancing Services: There is an increased need for electricity networks to maintain a certain frequency of 50Hz to ensure their efficient operations.
Limitations & Challenges in the Energy Storage Systems Market
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Backup Power: There can be a transport of electricity from storage assets to the grid in certain situations when the grid is required to shut down. In this case, challenges related to grid stability may arise.
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Renewable Energy production: It is challenging to ensure the availability of electricity produced from wind, solar, and tidal sources for use when needed. These challenges arise due to weather and seasonal interruptions.
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National Electricity Grid: The limitations are caused due to high levels of renewable energy production in the energy mix, and the power generation supply remains far away from large demand sources.
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Development of Energy Storage Systems Platforms: Market’s Largest Potential
The major investments are expected to increase in the electricity grid portfolio. The opportunities for smaller-scale energy storage projects are rising through offering local supply needs and flexible off-grid solutions. In case of issues related to the accessibility to the grid, storage assets can meet the needs of industries and community consumers.
The transportable storage assets can be used at construction sites or festivals instead of diesel generators. A shift of the world from fossil fuel based energy systems to renewable energy resources supports a green and sustainable economy.
- According to the survey conducted by the market participants of Deloitte in Q1 2023, 93% of congestion management and 93% of frequency and balancing services were considered to be the most prominent areas requiring energy storage assets at the current time. This highlights the major role of storage assets in ensuring grid stability.
Energy Storage Systems Market Report Coverage
| Report Attribute | Key Statistics | |
| Base Year | 2024 | |
| Forecast Period | 2025 to 2034 | |
| Historic Period | 2020 to 2023 | |
| CAGR | 7.87 | % |
| Market Size in 2024 | USD 266.82 Billion | |
| Market Size in 2025 | USD 288.97 Billion | |
| Market Size by 2034 | USD 569.39 Billion | |
| Dominated Region | Asia Pacific | |
| Segments Covered | Technology, Application, End User, and Regions | |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa | |
| Key Players Covered | LG Chem., Convergent Energy and Power Inc., Eos Energy Storage, Beacon Power, LLC, BYD Company Ltd., ABB Ltd., Greensmith Energy Management Systems, Seeo, Inc., S&C Electric Company, Scheider Electric, SMA Solar Technology AG, Exide Industries Ltd. | |
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Energy Storage Systems Market Regional Analysis:
What to Expect from Asian Countries till 2034?
In 2024, Asia Pacific held the largest share of the energy storage systems market. This regional growth is driven by an increased shift towards variable renewable energy sources such as wind and solar energy. Moreover, the rising efforts for energy storage deployment in countries such as South Korea, Singapore, Thailand, etc., accelerate the shift towards transformational energy transition. The market is characterized by a diverse range of battery technologies and energy storage solutions, expanding the competitive landscape among potential manufacturers and leading businesses.
Read Also: Hydrogen Power Unleashed: The Next Frontier in Energy Storage
How big is the Asia Pacific Energy Storage System Market?
The Asia Pacific energy storage systems market size was valued at USD 128.07 billion in 2024 and is estimated to grow from USD 138.71 billion in 2025 to USD 276.15 billion by 2034 at a CAGR of 7.99% from 2025 to 2034.
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Top Asian Countries for Energy Storage Systems’ Production
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China: China is leading as the World’s largest market for energy storage, followed by the U.S. and Europe. The massive installations of 301 gigawatts (GW) of renewable capacity in addition to solar, hydro, and wind in China are expanding the total renewable energy generation capacity. The large-scale storage projects, such as gigawatt-level battery energy storage systems in Inner Mongolia and hydropower with reservoirs on the Yangtze River, are also upholding the majority of the storage capacity of China.
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India: India set a target to achieve 50% cumulative installed capacity from non-fossil fuel-based energy resources by 2030. According to the National Electricity Plan (NEP) 2023 of the Central Electricity Authority (CEA), the requirement for energy storage capacity is expected to be 82.37 GWh in the year 2026-27, and it will increase to 411.4 GWh in 2031-32. It is also projected to exceed to 2380 GWh by the year 2047. The adoption of a large number of renewable energy sources to achieve a target of net zero emissions by 2070 fosters the market’s growth in India.
The National Energy Administration (NEA) and the National Development and Reform Commission of China set a goal under the 14th “five-year plan” to surpass a target of reaching 30GW of the “new type” energy storage by 2025. The availability of several energy storage technologies along with mechanical, chemical, electrochemical, thermal, and electrical systems raises the growth of the market in the Asia Pacific region.
North America to Boom Rapidly: Product Innovation to Support the Growth
North America is expected to witness the fastest rate of growth in the energy storage systems market during the predicted timeframe. In February 2025, the U.S. Energy Information Administration (EIA) reported that the U.S. planned to establish 63 gigawatts (GW) of utility-scale electric-generating capacity in the U.S. power grid in 2025. The developers planned to establish a new natural gas-fired capacity, wind capacity, and battery storage capacity in 2025.
Major Factors for the Market’s Expansion in North America:
- The considerable increase in utility-scale deployments in the U.S. in 2024 showcases a significant phase of growth.
- A record-breaking surge in the energy storage system installations by residential, commercial, industrial, and community-scale sectors drives a progressive deployment in the U.S. and North America.
- Remarkable research and development in energy storage technologies and the rapid operational validation initiative by the U.S. Department of Energy (DOE) focus on the rapid commercial deployment of technologies to improve grid-scale energy storage and meet future demands for grids.
The various energy storage facilities, such as the grid storage launchpad, present a world-class research center to test next-generation materials and 100 kWh early-stage demonstrations for emerging technologies under the U.S. Department of Energy (DOE). Moreover, the strategic efforts, including storage innovations and an energy storage safety strategic plan, support the significant growth of the market.
Read Also: Advanced Energy Storage Systems Market Size, Share, and Trends 2025 to 2034
Energy Storage Systems Market Segment Outlook
Technology Outlook
The pumped hydro segment dominated the energy storage systems market in 2024. The pumped hydro technology serves as a clean energy storage solution, which is ideal for enhancing the reliability and stability of the electric grid. The availability of open-loop pumped storage and closed-loop pumped storage systems accelerates the significance of battery technology.
The presence of the Fengning Pumped Storage Power Station as the world’s largest power station encompasses 40-60 GWh of energy storage, twelve 300 MW reversible turbines, and 11 hours of energy storage. The accessibility to the pumped storage hydropower as the world’s largest battery technology, showcasing global installed capacity of nearly 200 GW, and serves the world’s long-duration energy storage capacity, drives the segment’s growth.
The rapid progress in variable renewable energy (VRE) sources, such as wind and solar, boosts the need for stable, reliable, and flexible energy storage solutions. A wide range of services, such as frequency control, voltage regulation, system inertia, storage, and reserve power with rapid mode changes offered by pumped storage hydropower, enhance their adoption in the global market.
The electrochemical segment is anticipated to witness lucrative growth in the energy storage systems market during the forecast period. The availability of different forms of electrochemical energy storage systems, such as batteries, electrochemical capacitors, and fuel cells, drives the expansive reach of electrochemical energy storage devices. The wide applications of battery energy storage systems and rechargeable batteries in numerous industrial purposes propel the demand for electrochemical batteries.
The vast advantages of different types of rechargeable batteries, such as lead-acid (PbA) batteries, lithium-ion (Li-ion) batteries, nickel-cadmium (Ni-Cd) batteries, nickel–metal–hydride (Ni–MH) batteries, and sodium-sulfur (Na-S) batteries uphold the significance of electrochemical energy storage. The ideal nature of flow-batteries technology in delivering long-duration energy output with very little degradation of components surges the need for these energy storage devices. The benefits served by fuel cell energy storage and different types of fuel cells help to expand the power capacity.
Application Outlook
The grid management segment dominated the energy storage systems market in 2024. A crucial role of energy storage systems in stabilizing electrical grids by managing the demand and supply of electricity drives the importance of grid management. The excess storage of energy during the time of low demand helps to deliver that stored energy during high demand, which reduces the force on the grid and avoids blackouts.
The increased need to achieve grid reliability and optimize energy distribution fosters the shift towards grid management. The additional power served by energy storage systems during high demand for electricity, especially on hot summer days, helps to reduce stress on the grid. The reduced need for expensive infrastructure upgrades due to a reliable grid management boosts efforts for grid stability.
The transportation segment is expected to witness the fastest rate of growth in the energy storage systems market during the predicted timeframe. A high surge in the number of millions of electric vehicles connected to the grid to recharge increases the need for energy storage systems. The significant efforts of storing excess renewable energy to balance the demand for electricity in peak times raise the importance of advanced energy storage systems in the transportation sector.
The initiatives taken by the European Union to accelerate decarbonisation of the transport sector uplift segmental growth in the market. A wide utilization of renewable energy sources through fuel cell electric vehicles and battery electric vehicles showcases their major roles in the automotive and heavy-duty transport sectors.
End User Outlook
The utilities segment held a significant share in the energy storage systems market in 2024. The vital roles in reducing carbon emissions, integrating renewable energy, and improving reliability played by energy storage for utilities showcase its primary benefits. Furthermore, the other benefits of cost savings, sustainability, and reliability offered by energy storage systems to utilities drive their expansion. The utilities are enabled to serve pollution-free operations, instantaneous response, and added power capacity during grid peaks.
“According to the American Clean Power Association (ACP), there is a rise in the utility-scale battery energy storage system (BESS) installations in the U.S., which raises the growth of the utilities segment. The growing shift of utilities towards reducing capacity and transmission costs drives the need for energy storage as an optimal solution.”
The non-residential segment is observed to be the fastest-growing in the energy storage systems market during the forecast period. The huge applications of energy storage systems in non-residential buildings such as hotels, offices, fire stations, and sports centers raise their expansive reach in the market.
The high adoption of battery energy storage systems along with photovoltaic systems helps to reduce electricity costs and the essential storage capacity. The enhancement of the grid support characteristics of the buildings is favored by the adoption of battery energy storage systems. The preference for these energy storage solutions by the industrial sector for large and power-intensive consumers allows for a reduction in the consumer’s network charges.
Browse More Insights:
- The global energy storage as a service market size accounted for USD 1.85 billion in 2024 and is predicted to reach around USD 5.17 billion by 2034, expanding at a CAGR of 10.82% from 2025 to 2034.
- The global flywheel energy storage market size was estimated at USD 1.43 billion in 2024 and is predicted to increase from USD 1.46 billion in 2025 to approximately USD 1.81 billion by 2034, expanding at a CAGR of 2.38% from 2025 to 2034.
- The global batteries for stationary energy storage market is experiencing strong growth, driven by eco-friendly innovations, increasing demands, and industry-wide sustainability efforts.
- The global molten salt thermal energy storage market size was estimated for USD 4.17 billion in 2024 and is anticipated to reach around USD 10.20 billion by 2034, growing at a CAGR of 9.35% from 2025 to 2034.
- The global distributed energy storage system market size is calculated at USD 5.89 billion in 2024 and is projected to surpass around USD 15.00 billion by 2034, growing at a CAGR of 9.8% from 2024 to 2034.
- The global stationary energy storage market size was calculated at USD 53.84 billion in 2024 and is predicted to reach around USD 450.52 billion by 2034, expanding at a CAGR of 23.67% from 2025 to 2034.
- The global solar energy storage battery market size is projected to be worth around USD 48.14 billion by 2034 from USD 4.43 billion in 2024, at a CAGR of 24.22% from 2024 to 2034.
- The global flywheel energy storage market size was estimated at USD 1.43 billion in 2024 and is predicted to increase from USD 1.46 billion in 2025 to approximately USD 1.81 billion by 2034, expanding at a CAGR of 2.38% from 2025 to 2034.
- The global renewable energy certificate market size was valued at USD 16.19 billion in 2024 and is expected to reach USD 158.71 billion by 2034, poised to grow at a CAGR of 25.64% during the forecast period 2025 to 2034.
- The global energy efficient lighting technology market size was accounted for USD 238.14 billion in 2024 and is anticipated to reach around USD 510.33 billion by 2034, growing at a CAGR of 7.92% from 2025 to 2034.
Energy Storage Systems Market Major Leaders
- LG Chem.
- Convergent Energy and Power Inc.
- Eos Energy Storage
- Beacon Power, LLC
- BYD Company Ltd.
- ABB Ltd.
- Greensmith Energy Management Systems
- Seeo, Inc.
- S&C Electric Company
- Scheider Electric
- SMA Solar Technology AG
- Exide Industries Ltd.
Recent Breakthroughs in the Energy Storage Systems Market
- In November 2024, Eaton, the intelligent power management company, announced the launch of a battery energy storage system (BESS) named xStorageTM to accelerate decarbonisation projects and enhance the impact of onsite renewables. The communities and businesses are enabled to dispatch stored energy and operate it independently and strategically. This advancement also enabled them to reduce carbon emissions and sustain power during utility outages.
- In November 2024, the Government of Malawi in East Africa and the Global Energy Alliance for People and Planet (GEAPP) announced the launch of a 20 MW battery energy storage system (BESS) in Lilongwe. For this first-ever project of BESS in Africa, the GEAPP provided grant funding of up to $20 million to the Electricity Supply Corporation of Malawi (ESCOM) to encourage the design, installation, procurement, and operation of the BESS site.
The research report categorizes the Energy Storage Systems Market into the following segments and subsegments:
By Technology
- Pumped Hydro
- Electro-Chemical
- Lithium Ion Battery
- Sodium Sulfur Battery
- Lead Acid Battery
- Flow Battery
- Others
- Electro-Mechanical
- Flywheel
- Compressed Air Energy Storage
- Thermal
- Water
- Molten Salt
- Phase Change Material
- Others
By Application
- Transportation
- Grid Management
By End User
- Residential
- Non-Residential
- Utilities
By Region
- North America
- Asia Pacific
- Europe
- Latin America
- Middle East and Africa
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