The Europe energy storage market size reached around USD 43.08 Billion in 2025. The market is projected to grow at a CAGR of 9.40% between 2026 and 2035 to reach nearly USD 105.79 Billion by 2035. This can be attributed to the rising adoption of wind and solar energy for electricity generation and the increasing cost-effectiveness of battery energy storage systems. Moreover, increasing government support for clean energy companies is expediting the rate of the market expansion.
Base Year
Historical Period
Forecast Period
The increasing shift towards renewable energy sources such as wind and solar amid depleting fossil fuels and the growing focus on sustainability is fuelling the demand for large-scale energy storage systems to ensure a stable supply. Reportedly, by 2030, the European Union can potentially avoid EUR 9 billion of expenditure on gas by shifting towards renewable energy storage systems for wind and solar power. In the forecast period, the introduction of favourable government initiatives aimed at supporting renewable energy generation is expected to create lucrative Europe energy storage market opportunities.
With countries in Europe increasing their reliance on renewables for district heating, the demand for grid-balancing solutions, including battery storage systems, to balance supply and demand for district heating systems is increasing. In 2023, Finland produced 37.3 TWh of district heat, 14% of which was generated from waste heat sources and 53% from renewable sources. The surging investments in renewable and waste heat sources are expected to boost the demand for thermal energy storage (TES) to enhance the efficiency of district cooling systems and reduce energy losses.
The growing adoption of EVs and the rise of fast-charging stations necessitate the use of battery storage systems to ensure grid stability and facilitate smart charging systems. In 2023, 2.4 million new electric cars were registered in the European Union, a surge from 2 million in 2022. With the increasing adoption of EVs, homeowners are actively investing in home battery storage systems to store renewable energy for their electric vehicles to reduce the reliance on grids and charge EVs with clean energy.
Compound Annual Growth Rate
9.4%
Value in USD Billion
2026-2035
*this image is indicative*
|
Europe Energy Storage Market Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
43.08 |
|
Market Size 2035 |
USD Billion |
105.79 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
9.40% |
|
CAGR 2026-2035 - Market by Country |
United Kingdom |
13.1% |
|
CAGR 2026-2035 - Market by Country |
Germany |
8.9% |
|
CAGR 2026-2035 - Market by Type |
Batteries |
10.6% |
|
CAGR 2026-2035 - Market by Application |
Commercial and Industrial |
10.3% |
|
Market Share by Country 2025 |
Italy |
10.2% |
According to the EU’s Draft National Energy and Climate Plans (NECPs), the region is expected to increase its solar and wind power capacity by 3x and 2x by 2030, when renewable energy sources are expected to account for 66% of its electricity generation. In H1 of 2024, the share of fossil fuels in Europe’s energy mix declined year-on-year by 17% while solar and wind generated 30% of energy. These clean energy sources also covered 6% of Europe’s electricity demand across all hours. The rise of solar power has been extremely significant, with its capacity expanding by over 40% during 2021-23. This has led to an increased demand for batteries, which has emerged as one of the key Europe energy storage market trends.
Battery storage is an extremely reliable intervention designed to smoothen mismatches in power supply by effectively redistributing solar power. They can either be deployed on a small scale in residential/commercial buildings or at a grid scale. Based on industry analysis, battery performance has been improving steadily across Europe, with 8-hour duration projects expected to be launched soon. This is expected to propel the Europe energy storage market development over the forecast period. Furthermore, the flexibility of batteries and their reduced costs of production are expected to make them the most popular type of energy storage systems in the coming years, thereby leading to the market growth.
Expansion of solar and wind power projects; rise of hybrid energy storage systems (HESS); growth of energy storage-as-a-service (ESaaS); and ethical sourcing of batteries are the major factors driving the Europe energy storage market development.
In July 2024, the share of wind and solar power supply across Germany reached 36%, thereby recording a year-on-year growth of 10%. This trend was also noticeable in countries like Greece (38%), Netherlands (44%), and Hungary (16%), where the share rose y-o-y by 12%, 13%, and 9% respectively. Based on industry analysis, wind and solar produced over 50% of the EU’s power supply in 7% of hours. Hence, the growing appeal of wind and solar energy is expected to favourably shape the Europe energy storage market dynamics.
A HESS comprises different energy storage systems such as flywheels, supercapacitors, batteries, and fuel cells. It is poised to emerge as a sustainable medium for energy production in standalone applications due to its flexibility and cost-effectiveness. Some examples of HESS include- power-to-heat/battery, battery/battery, and ultracapacitor/battery.
ESaaS is a combination of a service contract, an energy management system, and an advanced energy storage system that can ensure a reliable supply of power to businesses at economical rates. The increasing corporate interest in this model can lead to significant investments, thereby favouring the market growth.
Lithium-ion batteries containing cobalt have become a significant concern among energy producers due to their toxicity. They are often mined in war zones, which has alleviated concerns surrounding their usage and extraction. This has prompted battery makers to look for alternative suppliers and solutions.
Establishment of the UK’s largest battery energy storage system
By 2029, the National Grid is expected to connect its 400kV substation facility with Lakeside Energy Park to supply clean energy to the Eastern Green Link 2 electrical superhighway via which it can import clean energy from Scotland. To establish this connection, it is undertaking numerous works for substation upgradation, such as the extension of busbars and improvements in substation control systems and busbar protection. This is creating a favourable Europe energy storage market outlook.
Development of the world’s largest thermal energy storage project in Finland
Summertime heat consumption in Finland is just one-tenth of the peak energy demands during the winter season. Its new thermal energy storage facility (currently under construction) can potentially power a medium-sized city for 1 year and is as powerful as 1.3 million electric vehicle batteries. Finland’s Ministry of Economic Affairs and Employment has already approved EUR 19 million grant for this project, which is expected to be worth EUR 200 million. This is expected to boost the Europe energy storage market revenue.
The EMR’s report titled “Europe Energy Storage Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Breakup by Type
Breakup by Application
Breakup by Country
Based on application, the market is segmented into commercial and industrial and residential. As per the Europe energy storage market analysis, the commercial and industrial segment is projected to grow at a CAGR of 10.3% between 2026 and 2035 amid the growing need for efficient energy management among businesses, coupled with the rising cost-effectiveness of energy storage technologies. Meanwhile, energy storage solutions are used in residential applications amid the growing investments in storage systems such as batteries by homeowners.
|
CAGR 2026-2035 - Market by |
Application |
|
Commercial and Industrial |
10.3% |
|
Residential |
XX% |
Major market players are strengthening their CSR strategies to drive greater project acceptance and community engagement across Europe. For instance, companies like Eco Star are advocating for 90% of their trade tax revenue payments to reach local municipalities for driving regional economic development in Germany. This has improved their brand image among locals and is creating a favourable Europe energy storage market outlook.
Contemporary Amperex Technology Co. Limited was founded in 2011 and is headquartered in Fujian, China. In 2023, it held 36.8% of the EV battery market share and was the largest producer of energy-producing battery cells in H1, 2023. It has opened different subsidiaries in France, Germany, and the USA, among other nations.
Clarios, LLC was founded in 1885 and is headquartered in Wisconsin, United States. It produces over 150 million batteries annually, which corresponds to over 30% of the industrial output. Its batteries power 1 of every 3 electric vehicles worldwide.
GS Yuasa Corp was founded in 1918 and is headquartered in Kyoto, Japan. It is engaged in manufacturing and distributing power supply systems, industrial and automotive batteries, switchgear, and other electrical equipment.
CIDETEC was founded in 1997 and is headquartered in Gipuzkoa, Spain. It specialises in the development of new battery technologies and offers pilot manufacture, material validation, pack engineering, and battery testing services.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players included in the Europe energy storage market report are BYD Co. Ltd., LG Energy Solution Ltd., Iberdrola España, S.A.U, Gransolar Group Company (E22 Energy Storage Solutions), Panasonic Corporation, and Varta AG, among others.
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In 2025, the market reached an approximate value of USD 43.08 Billion.
The market is projected to grow at a CAGR of 9.40% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 105.79 Billion by 2035.
The different countries considered in the market report include Germany, the United Kingdom, France, and Italy, among others.
The different types of energy storage systems are batteries, pumped-storage hydroelectricity, thermal energy storage, and flywheel energy storage, among others.
The different applications of energy storage systems are residential, commercial and industrial.
The major market trends are an expansion of solar and wind power projects, the rise of hybrid energy storage systems (HESS), the growth of energy storage-as-a-service (ESaaS), and increasing emphasis on ethical sourcing of batteries.
Key players in the market are BYD Co. Ltd., LG Energy Solution Ltd., Iberdrola España, S.A.U, Gransolar Group Company (E22 Energy Storage Solutions), Panasonic Corporation, Contemporary Amperex Technology Co. Limited, Varta AG, Clarios, LLC, GS Yuasa Corp, and CIDETEC, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Type |
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| Breakup by Application |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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