Energy Storage Systems Market Size, Share, and Trends 2025 to 2034

Energy Storage Systems Market Size and Forecast 2025 to 2034

The global energy storage systems market size was valued at USD 266.82 billion in 2024 and is expected to hit USD 569.39 billion by 2034 and is poised to grow at a CAGR of 7.87% from 2025 to 2034. The growing energy consumption, technological advancements, and the rising demand for renewable energy sources augment the energy storage systems market

Energy Storage Systems Market Key Takeaways

• The Asia Pacific has held the highest revenue share of 48% in 2024.
• By technology, the pumped hydro technology segment accounted for 95.4% of the total market share in 2024.
• The electrochemical storage segment is poised to grow at a registered CAGR of 14.2% from 2025 to 2034.

Impact of AI on the Energy Storage Systems

The future of energy storage systems is promising by integrating artificial intelligence (AI). AI optimizes the energy storage in batteries, offering numerous advantages such as smart energy use as well as cost and resource savings. AI and machine learning (ML) collect vast amounts of data and help in predictive analysis. AI and ML can monitor weather forecasts and store energy based on the needs. AI-enabled predictive analytics detects potential defects, enabling operators to act immediately. AI and ML can aid in enhancing machine performance, battery life, and return on investment. Thus, AI algorithms have a significant impact on the market by streamlining the modelling, sizing, control, and estimation of renewable energy.

Asia Pacific Energy Storage Systems Market Size and Growth 2025 to 2034

The Asia Pacific energy storage systems market size was estimated at USD 128.07 billion in 2024 and is projected to surpass around USD 276.15 billion by 2033 at a CAGR of 7.99% from 2025 to 2034.

Asia Pacific dominated the global energy storage systems market in 2024 with a 48% revenue share. The favorable government policies and increased investments in the industrialization and urbanization of the region have fostered market growth. Moreover, the availability of cheap factors of production is attracting the FDIs in the region. Countries like China are the manufacturing hub of the world. The significantly growing economic activities in the region are exponentially fostering the demand for an efficient and regular energy supply. The rising investments in the electrification of the rural regions, increased government investments in the adoption of sustainable energy sources, and increased government initiatives to incentivize the corporate sector to adopt renewable energy sources are the major factors that drive the growth of the energy storage systems market in the Asia Pacific region. China is the leading manufacturer and the leading consumer of energy storage systems across the globe. Therefore, the growth of the Asia Pacific energy storage systems market is attributable to China’s huge contribution to the market.

China: 

• Suitable government initiatives to strengthen its position in the energy storage systems market. China State Council aims to boost its non-pumped hydro energy storage capacity to around 30GW by 2025 and 100GW by 2030.
• The increasing investments in the energy sector propel market growth. In 2023, approximately $11 billion was invested in China’s grid-connected batteries.

India:

• The burgeoning EV sector potentially contributes to the market. According to the Ministry of Road Transport and Highways, Government of India, the sales of EVs reached 1.94 million units, a 26.5% year-on-year increase.
• The Indian Government set a target to achieve 50% cumulative installed capacity from non-fossil fuel-based energy resources by 2030. 

North America is expected to grow at a considerable rate. The increased awareness regarding the benefits of renewable energy sources, rising initiatives to reduce carbon footprint, and burgeoning demand for regular and efficient power supply are expected to drive the market growth. The rising government initiatives to ensure an efficient and sustainable power supply are boosting market growth. Moreover, the increased adoption of electric vehicles in market like the US and the presence of EV manufacturers have positively impacted the market growth in the region.

United States:

• The U.S. Department of Agriculture announced $78.3 million in partially forgivable loans for clean energy projects. Out of these, $6 million will be used to develop small hydroelectric and solar facilities with a backup battery energy storage system.
• The U.S. government also releases guidelines and initiatives to promote renewable energy in the region. The Department of Energy estimates to increase domestic solar energy generation by 75% and wind by 11% by 2025.

Energy Storage Systems Market Growth Factors

The energy storage systems refer to the equipment that can store multiple forms of energy and can be utilized as per the needs. The technological advancements pertaining to the energy storage systems have significantly impacted the market growth in the recent years by ensuring the advantages of continuous energy supply. The rising adoption of the renewable energy sources is fostering the demand for the storage systems for renewable energy across the globe. The significant increase in the demand for the energy across the globe has led to the growth of the energy storage systems market. The surging government and private investments towards the production of the renewable energy is expected to drive the growth of the global energy storage systems market. The growing energy consumption across the globe, rising demand for efficient energy sources, growing demand for battery, and shifting focus towards the clean energy is boosting the growth of the market across the globe. The rapid growth in the demand for the efficient grid management, regular load management, and efficient and uninterrupted power supply are the prominent factors that impact the market growth.

The rapid industrialization and urbanization of the developing regions, rising air pollution, growing concerns regarding carbon emission, and rising investments towards sustainable energy sources are the major factors that are estimated to drive the growth of the energy storage systems market in the forthcoming years. Moreover, the surging economic activities, rising production facilities, and increasing adoption of the digital technologies is significantly boosting the demand for the efficient and uninterrupted power supply across various industries. The growing investments in the research and development of the infrastructure of the renewable energy sources across the government and the private sector is expected to impact the energy storage systems market positively during the forecast period. Moreover, the various government initiatives and subsidies provided by them for encouraging the adoption of the clean and green energy sources is surging the growth of the energy storage systems market.

Furthermore, the surging acceptance of hybrid and electric vehicles among the global consumers is another major factor behind the growth of the energy storage systems market. The surging penetration of the electric vehicles across the globe is driving the demand for the batteries. Moreover, the popular EV manufacturers like Tesla are manufacturing vehicles based on the sustainable energy. The government in countries like Canada and Japan are providing subsidies to the buyers of the electric and hybrid vehicles, to encourage the adoption of the EVs and promote sustainable transportation. These government initiatives to promote the green energy sources are expected to drive the growth of the energy storage systems across the globe.

Market Scope

Technology Insights

Based on the technology, the pumped hydro segment accounted for the largest market share 95.4% in 2024. The increased adoption of the pumped hydro technology across the globe is a major cause behind the dominance of this segment. Furthermore, the ongoing investments in research and development in upgrading the infrastructure and grid capacity in major markets like North America and the Asia Pacific are further expected to sustain the position of this segment throughout the forecast period.

On the other hand, the electrochemical storage is expected to grow at a considerable rate of 14.2% during the forecast period. The surging adoption of electrochemical storage systems in the regions like Middle East, the US, India, and the UK is driving the growth of this segment.

Application Insights

Depending on the application, the grid storage segment dominated the global energy storage systems market in 2024. Grid storage systems are extensively used for the storage of energy on a large scale. The demand for energy is high across the industrial sector which drives the growth of the segment. Moreover, the large-scale storage of energy facilitates uninterrupted and efficient power supply.

The transportation is expected to grow at the highest CAGR during the forecast period. The surging popularity of electric vehicles across the globe is significantly boosting the demand for the lithium-ion batteries. The rising investments in the development of EV charging infrastructure across the globe are further estimated to have a significant impact on the growth of the segment in the forthcoming years.

Energy Storage Systems Market Companies

• 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.

Latest Announcement by Industry Leaders

• Jorg Heinnermann, CEO of EnerVenue, commented in an interview that energy storage systems will be widely used in decarbonization in the future. The development of proven, cost-efficient, long-lasting, and durable energy storage system solutions is vital for industry acceleration.

Recent Developments

• In January 2025, IPP Ormat Technologies commenced commercial operations for its 20MW/20MWh battery energy storage system project in New Jersey. The facility will provide ancillary services on the merchant market to Pennsylvania-New Jersey-Maryland.
• In August 2024, Foxconn, a Taiwanese electronics manufacturing company, announced its plan to set up a battery energy storage system in India, owing to the rapidly expanding EV business. 

Segments Covered in the Report

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 Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa