India Lithium-ion Energy Storage Solution Market is Expected to Register a 8.18% CAGR Through 2031

India Lithium-ion Energy Storage Solution Market is expected to grow owing to reducing energy costs, ensuring uninterrupted power supply and improving energy efficiency throughout the forecast period.

According to TechSci Research report, “India Lithium-ion Energy Storage Solution Market – By Region, Competition, Forecast and Opportunities, 2021-2031F”, India Lithium-ion Energy Storage Solution Market was valued at USD 611 Million in 2025 and is expected to reach USD 988 Million by 2031 with a CAGR of 8.18% during the forecast period. 

India's ambitious renewable energy targets are a major driver of the lithium-ion energy storage solution market. With the country aiming to achieve 500 GW of non-fossil fuel energy capacity by 2030, a significant portion of that coming from solar and wind sources, the need for efficient energy storage systems has become essential. Renewable sources like solar and wind are inherently intermittent, producing energy only when sunlight or wind is available. This creates a mismatch between energy generation and consumption, which can destabilize the power grid if not properly managed. Lithium-ion energy storage systems (ESS) help resolve this challenge by storing surplus energy when generation is high and releasing it during peak demand or low-generation periods. This ensures a consistent and reliable power supply, improving grid stability and optimizing renewable energy use.

Moreover, lithium-ion batteries are favored over traditional storage technologies due to their high round-trip efficiency (up to 90–95%), long cycle life, fast response time, and compact design. These attributes make them ideal for renewable energy applications, particularly in solar farms, wind power projects, and hybrid systems. Government support further fuels this trend. Various policies, including the National Energy Storage Mission and incentives for battery storage integration in renewable projects, have accelerated adoption. States like Rajasthan, Gujarat, and Tamil Nadu, which lead in solar and wind generation, are also piloting large-scale storage projects to balance their grids. Private sector involvement is also growing, with power producers and independent energy companies increasingly investing in battery-backed solar installations. These systems not only offer energy resilience but also help reduce dependency on fossil fuels. As India continues to expand its renewable energy base, lithium-ion storage will remain a critical enabler, making this a foundational driver of market growth.

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Based on end user, The power plants segment dominated the India Lithium-ion Energy Storage Solution market due to its crucial role in enhancing grid stability, managing peak loads, and integrating renewable energy sources. As India continues to expand its renewable energy capacity—especially solar and wind—the demand for reliable and efficient energy storage systems has surged. Power plants are central to this shift, as they require advanced storage solutions to balance intermittent generation and ensure a consistent power supply. Lithium-ion batteries are preferred for power plant applications because of their high energy density, fast response time, and long cycle life. These features make them ideal for grid-scale energy storage, where rapid charging and discharging capabilities are essential. Power plants utilize lithium-ion energy storage to store excess energy during low-demand periods and discharge it during peak hours, thereby reducing strain on the grid and improving overall efficiency.

Another factor driving dominance is India’s push towards clean energy targets, including 500 GW of non-fossil fuel capacity by 2030. To achieve this, integrating energy storage with renewable energy plants becomes essential. Lithium-ion solutions help address the variability and unpredictability of solar and wind energy, enabling smoother grid operations. Moreover, government incentives and policy support, such as the Production Linked Incentive (PLI) scheme for advanced battery manufacturing and plans for large-scale grid storage tenders, are fueling investment in this segment. Public sector undertakings (PSUs) and private energy companies are increasingly deploying lithium-ion systems in thermal, hydro, and renewable power plants to enhance reliability and reduce carbon emissions.

Based on Region, North India is emerging as the fastest growing region in the Indian lithium-ion energy storage solution market due to a combination of infrastructure expansion, renewable energy adoption, and policy support. States like Delhi, Uttar Pradesh, Haryana, Punjab, and Rajasthan are at the forefront of driving demand for energy storage, particularly through utility-scale, industrial, and commercial applications. One of the key drivers is the rapid growth in renewable energy capacity, especially solar power. Rajasthan and Uttar Pradesh are among the top states contributing to India's solar energy generation. However, since solar power is intermittent, there is a growing need for efficient energy storage systems to stabilize the grid and ensure a continuous power supply. Lithium-ion batteries, known for their high efficiency and fast response time, are the preferred choice in these projects.

Urbanization and industrial growth in cities like Delhi NCR, Lucknow, and Jaipur are increasing electricity demand, putting pressure on the grid. Energy storage systems help manage peak loads, provide backup power, and improve energy reliability in both commercial and residential sectors. Government policies and incentives have also contributed to this growth. Initiatives such as the National Energy Storage Mission and state-level renewable energy targets are encouraging private and public investments in battery storage technologies. Moreover, the presence of major infrastructure projects, including smart cities and metro expansions, has created new demand for backup and grid-support solutions.

Key market players in the India Lithium-ion Energy Storage Solution Market are:-

• Tata Power Solar Systems Ltd
• Exide Industries Ltd.
• Luminous Power Technologies Pvt. Ltd.
• Sterling and Wilson
• Waaree Energies Ltd.
• Delta Electronics India
• SUN Mobility
• Coslight India Telecom Pvt. Ltd..

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“The India Lithium-ion Energy Storage Solution market presents substantial growth opportunities, driven by the country’s expanding renewable energy capacity, increasing adoption of electric vehicles, and rising demand for grid stability and reliable power backup. With supportive government policies such as the National Energy Storage Mission and Production-Linked Incentive (PLI) scheme, domestic manufacturing is expected to accelerate. The push for smart grids, decentralized energy systems, and rural electrification further enhances market potential. As industries, utilities, and residential consumers shift toward sustainable energy solutions, lithium-ion storage systems are poised to become a critical enabler of India’s clean energy transition.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“India Lithium-ion Energy Storage Solution Market, By Type (On-Grid and Off-Grid), By End User (Solar, Power Plants, Stationary, Wind, Industrial and Others) By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Lithium-ion Energy Storage Solution Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Lithium-ion Energy Storage Solution Market.

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