Energy Storage Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 28.94 Billion
CAGR (2026-2031)	12.74%
Fastest Growing Segment	Residential
Largest Market	North America
Market Size (2031)	USD 59.42 Billion

Market Overview

The Global Energy Storage Market will grow from USD 28.94 Billion in 2025 to USD 59.42 Billion by 2031 at a 12.74% CAGR. The Global Energy Storage Market comprises systems that capture electricity generated at one time for use during periods of high demand, utilizing technologies such as batteries, pumped hydro, and thermal storage. The primary drivers fueling this market are the critical necessity to integrate intermittent renewable energy sources into the power mix and the escalating requirement for grid stability to prevent outages. According to the International Renewable Energy Agency, in 2024, global investment in energy storage reached $54 billion, representing a 73% increase over the average investment levels of the previous two years.

Despite this robust growth, a significant challenge impeding broader market expansion is the high capital cost associated with deploying utility-scale storage solutions. Volatility in the prices of critical raw materials, such as lithium and cobalt, often leads to unpredictable project expenditures and financial risks for developers. This economic barrier limits the feasibility of large-scale installation projects in cost-sensitive regions, potentially slowing the pace of global adoption necessary to meet transition targets.

Key Market Drivers

The accelerated integration of variable renewable energy sources, particularly solar and wind, into power grids serves as the primary catalyst for the Global Energy Storage Market. As utilities systematically retire fossil fuel plants to meet decarbonization targets, the intermittent nature of renewables necessitates robust storage solutions to balance supply and demand discrepancies effectively. Energy storage systems are essential for stabilizing grid frequency and shifting energy generated during peak production hours to periods of high consumption, thereby ensuring reliability and continuity. This technical dependency is driving rapid deployment rates worldwide as infrastructure adapts to a cleaner generation mix. According to the International Energy Agency, April 2024, in the 'Batteries and Secure Energy Transitions' report, battery storage deployment in the power sector more than doubled in 2023, adding a total of 42 GW of capacity globally.

The implementation of supportive government incentives and decarbonization mandates is the second critical factor propelling market expansion. Legislative frameworks, such as investment tax credits and direct grant programs, significantly reduce the high initial capital barriers associated with storage technologies, making projects economically viable for developers and utilities. These policies not only subsidize installation costs but also encourage domestic manufacturing, further streamlining the supply chain and de-risking long-term investments. For instance, strong federal policy support has catalyzed activity in the United States. According to the American Clean Power Association, March 2024, in the 'Clean Power Annual Market Report 2023', the U.S. energy storage market connected 7.9 GW to the grid in 2023, nearly doubling its installed capacity due to favorable federal policies. Illustrating the scale of this global momentum, according to the China Energy Storage Alliance, in 2024, the cumulative installed capacity of electric energy storage projects in operation worldwide reached 289.2 GW by the end of 2023.

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Key Market Challenges

The high capital cost coupled with the volatility of critical raw material prices significantly hinders the growth of the Global Energy Storage Market. Utility-scale projects require substantial upfront investment, rendering them highly sensitive to financial risks. Unpredictable markets for essential inputs like lithium and cobalt create fluctuating cost structures, complicating budget forecasting for developers. When material prices swing drastically, stakeholders struggle to secure stable financing, as lenders often view these unpredictable expenditures as liabilities, resulting in frequent project delays or cancellations.

This economic barrier limits the feasibility of installations in cost-sensitive regions, restricting deployment primarily to wealthy nations with established support mechanisms. The inability to guarantee fixed project costs prevents the technology from reaching a broader customer base essential for scale, effectively locking out developing markets. According to the International Energy Agency, in 2024, emerging and developing economies accounted for less than 5% of global battery demand, largely due to the prohibitive upfront capital requirements and financing risks associated with these storage technologies. Consequently, this financial hurdle isolates vast potential markets, stalling the global momentum required for the energy transition.

Key Market Trends

The market is witnessing a decisive transition toward higher-density storage solutions, specifically the standardization of large-capacity containers exceeding 5 MWh. Manufacturers are prioritizing energy density to maximize output within a limited physical footprint, which directly reduces land acquisition costs and construction complexities for utility-scale developers. This shift allows for more efficient thermal management and reduced balance-of-system expenditures, effectively lowering the levelized cost of storage for project owners. Demonstrating this technological leap, according to Contemporary Amperex Technology Co., Limited, April 2024, in the 'CATL Unveils TENER' press release, the company introduced the world's first mass-producible energy storage system featuring a capacity of 6.25 MWh in a single container, achieving a 30% increase in energy density per unit area.

Concurrently, the commercialization of sodium-ion battery technology is emerging as a strategic trend to mitigate raw material volatility and supply chain bottlenecks associated with lithium-based chemistries. Industry players are actively deploying sodium-ion systems due to their superior low-temperature performance and the abundance of sodium resources, which offers a more stable long-term cost structure for grid-level applications. This diversification is moving beyond pilot phases into operational grid assets, validating the technology for wider adoption. For instance, according to China Southern Power Grid, May 2024, in the 'Guangxi Fulan Energy Storage Station' announcement, the utility successfully commissioned the first large-scale sodium-ion battery energy storage station in China with a total capacity of 10 MWh, signifying a pivotal step in scaling non-lithium storage alternatives.

Segmental Insights

The residential segment stands as the fastest-growing category within the global energy storage market, primarily fueled by the increasing integration of rooftop solar photovoltaic systems. Homeowners are prioritizing battery adoption to maximize self-consumption and secure reliable backup power against grid volatility. This trend is reinforced by utility strategies such as time-of-use billing, which incentivizes users to store electricity for application during peak pricing hours. Furthermore, policy initiatives supporting decentralized energy from organizations like the European Commission actively encourage this shift toward greater energy independence and grid resilience.

Regional Insights

North America leads the Global Energy Storage Market, primarily driven by a supportive regulatory framework and aggressive grid modernization initiatives. The Federal Energy Regulatory Commission (FERC) has played a pivotal role by implementing orders that allow energy storage resources to participate fairly in wholesale electric markets, removing historical barriers to entry. Furthermore, the Inflation Reduction Act strengthens this landscape by offering substantial investment tax credits, which significantly lower capital costs for developers. These strategic government interventions, combined with the urgent need to integrate renewable energy sources into the power grid, secure the region's dominant market position.

Recent Developments

In November 2025, Ingrid Capacity entered into a strategic cooperation agreement with the renewable energy developer Energiequelle to deploying 200 MW of battery energy storage systems across Germany. Under this collaboration, the developer will manage early-stage project requirements such as site identification and permitting, while the flexibility provider will handle financing, construction, and long-term operations. This partnership marks a significant expansion within the Global Energy Storage Market, specifically targeting connections at distribution grid nodes to alleviate local congestion and provide essential ancillary services for grid stability in the region.
In September 2025, e-Storage, the energy storage subsidiary of Canadian Solar, debuted its FlexBank 1.0 battery energy storage solution at a major industry event. This new product was engineered to support the Global Energy Storage Market by offering up to 8.36 MWh of capacity through a scalable design that stacks modular cabinets, making it highly adaptable for various utility-scale applications. The platform involves a proprietary integration of liquid-cooling technology and active balancing systems to optimize thermal management and system efficiency, providing grid operators with a flexible infrastructure option for integrating renewable energy sources.
In February 2025, Tesla announced plans to establish a third manufacturing facility dedicated to producing its utility-scale battery system, the Megapack, to meet surging demand in the Global Energy Storage Market. During the company’s fourth-quarter earnings call, it was revealed that this expansion follows the successful operational ramp-up of its second factory in Shanghai. The new facility is intended to support an annual production goal of 10,000 units, mirroring the capacity of the company’s existing plants, and aims to accelerate the deployment of grid-stabilization assets worldwide amidst record-breaking installation figures reported for the previous year.
In April 2024, Contemporary Amperex Technology Co. Limited (CATL) launched TENER, a new mass-producible energy storage system designed to achieve zero degradation in both power and capacity during the first five years of operation. Housed in a standard 20-foot container, the system delivers a capacity of 6.25 MWh, representing a significant advancement in the Global Energy Storage Market by increasing energy density per unit area by 30% compared to previous models. The company utilized biomimetic solid electrolyte interphase technologies and self-assembling electrolytes to ensure high safety standards and long-term stability, addressing critical lifespan challenges for utility-scale storage projects.

Key Market Players

ABB Limited
Siemens AG
Schneider Electric SE
Panasonic Corporation
Johnson Controls International plc
Tesla, Inc.
LG Energy Solution Ltd
Samsung SDI Co., Ltd.
ESS Tech, Inc.
Fluence Energy LLC

By Technology	By Type	By End-User	By Region
Pumped Hydro Storage Battery Energy Storage Compressed Air Energy Storage Flywheel Energy Storage	Mechanical Thermal Electro-Chemical Chemical	Utility Commercial & Industrial Residential	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Energy Storage Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Energy Storage Market, By Technology:

Pumped Hydro Storage
Battery Energy Storage
Compressed Air Energy Storage
Flywheel Energy Storage

Energy Storage Market, By Type:

Mechanical
Thermal
Electro-Chemical
Chemical

Energy Storage Market, By End-User:

Utility
Commercial & Industrial
Residential

Energy Storage Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Energy Storage Market.

Available Customizations:

Global Energy Storage Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Energy Storage Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Energy Storage Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Technology (Pumped Hydro Storage, Battery Energy Storage, Compressed Air Energy Storage, Flywheel Energy Storage)

5.2.2. By Type (Mechanical, Thermal, Electro-Chemical, Chemical)

5.2.3. By End-User (Utility, Commercial & Industrial, Residential)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Energy Storage Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Technology

6.2.2. By Type

6.2.3. By End-User

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Energy Storage Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Technology

6.3.1.2.2. By Type

6.3.1.2.3. By End-User

6.3.2. Canada Energy Storage Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Technology

6.3.2.2.2. By Type

6.3.2.2.3. By End-User

6.3.3. Mexico Energy Storage Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Technology

6.3.3.2.2. By Type

6.3.3.2.3. By End-User

7. Europe Energy Storage Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Technology

7.2.2. By Type

7.2.3. By End-User

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Energy Storage Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Technology

7.3.1.2.2. By Type

7.3.1.2.3. By End-User

7.3.2. France Energy Storage Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Technology

7.3.2.2.2. By Type

7.3.2.2.3. By End-User

7.3.3. United Kingdom Energy Storage Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Technology

7.3.3.2.2. By Type

7.3.3.2.3. By End-User

7.3.4. Italy Energy Storage Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Technology

7.3.4.2.2. By Type

7.3.4.2.3. By End-User

7.3.5. Spain Energy Storage Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Technology

7.3.5.2.2. By Type

7.3.5.2.3. By End-User

8. Asia Pacific Energy Storage Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Technology

8.2.2. By Type

8.2.3. By End-User

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Energy Storage Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Technology

8.3.1.2.2. By Type

8.3.1.2.3. By End-User

8.3.2. India Energy Storage Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Technology

8.3.2.2.2. By Type

8.3.2.2.3. By End-User

8.3.3. Japan Energy Storage Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Technology

8.3.3.2.2. By Type

8.3.3.2.3. By End-User

8.3.4. South Korea Energy Storage Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Technology

8.3.4.2.2. By Type

8.3.4.2.3. By End-User

8.3.5. Australia Energy Storage Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Technology

8.3.5.2.2. By Type

8.3.5.2.3. By End-User

9. Middle East & Africa Energy Storage Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Technology

9.2.2. By Type

9.2.3. By End-User

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Energy Storage Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Technology

9.3.1.2.2. By Type

9.3.1.2.3. By End-User

9.3.2. UAE Energy Storage Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Technology

9.3.2.2.2. By Type

9.3.2.2.3. By End-User

9.3.3. South Africa Energy Storage Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Technology

9.3.3.2.2. By Type

9.3.3.2.3. By End-User

10. South America Energy Storage Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Technology

10.2.2. By Type

10.2.3. By End-User

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Energy Storage Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Technology

10.3.1.2.2. By Type

10.3.1.2.3. By End-User

10.3.2. Colombia Energy Storage Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Technology

10.3.2.2.2. By Type

10.3.2.2.3. By End-User

10.3.3. Argentina Energy Storage Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Technology

10.3.3.2.2. By Type

10.3.3.2.3. By End-User

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Energy Storage Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. ABB Limited

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Siemens AG

15.3. Schneider Electric SE

15.4. Panasonic Corporation

15.5. Johnson Controls International plc

15.6. Tesla, Inc.

15.7. LG Energy Solution Ltd

15.8. Samsung SDI Co., Ltd.

15.9. ESS Tech, Inc.

15.10. Fluence Energy LLC

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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