Energy Storage Systems Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2026-2035)

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

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

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.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Energy Storage Systems Market Regional Analysis

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

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.