|
Forecast Period
|
2027-2031
|
|
Market Size (2025)
|
USD 36.46 Million
|
|
Market Size (2031)
|
USD 1776.13 Million
|
|
CAGR (2026-2031)
|
99.22%
|
|
Fastest Growing Segment
|
Behind the Meter
|
|
Largest Market
|
South India
|
Market Overview
India Battery
Energy Storage Systems Market was valued at USD 36.46 Million in 2025 and is expected to reach USD 1776.13 Million by 2031 with a
CAGR of 99.22% during the forecast period.
Battery Energy Storage Systems (BESS) are technologies
used to store electrical energy in batteries for later use. These systems are
crucial for enhancing the efficiency and reliability of power grids, as they
can store excess energy generated during periods of low demand and release it
when demand is high or when renewable energy sources like solar or wind are not
producing power. BESS typically consist of rechargeable battery units, power
conversion systems, and control systems that manage energy flow.
The primary function of BESS is to provide energy
storage solutions that can balance supply and demand, support grid stability,
and improve the integration of renewable energy sources. BESS are also used in
backup power applications, ensuring continuous power supply during outages.
Additionally, they help in reducing the reliance on fossil-fuel-based
generation by storing clean energy.
BESS technologies include lithium-ion batteries, flow
batteries, and sodium-sulfur batteries, each with specific advantages regarding
capacity, efficiency, and lifespan. These systems are increasingly being
deployed in residential, commercial, and industrial applications, and they play
a pivotal role in the transition towards a more sustainable and flexible energy
grid. As renewable energy adoption grows, BESS will continue to be an essential
part of modern energy infrastructure.
Key Market Drivers
Growth of
Renewable Energy Sources in India
One of the most significant drivers of the Battery
Energy Storage Systems (BESS) market in India is the rapid growth and adoption
of renewable energy sources, particularly solar and wind power. India is one of
the largest producers of solar energy in the world, with ambitious goals to
achieve 500 GW of non-fossil fuel-based energy by 2030. The increasing share of
renewable energy in India's energy mix has created a need for reliable energy
storage solutions. Solar and wind energy are intermittent, meaning they do not
produce power consistently, especially when demand is high or when weather
conditions are unfavorable. This variability presents a challenge to grid
stability and reliability.
Battery energy storage systems can bridge this gap by
storing excess energy generated during periods of high production and releasing
it during low production or high demand. By integrating BESS with renewable
energy projects, India can enhance the efficiency of its solar and wind
installations, reduce curtailment, and improve grid resilience. This creates a
more stable and reliable power supply, ensuring the consistent availability of
electricity even when renewable sources are not generating power.
As renewable energy technologies become more
cost-competitive, the demand for storage solutions is expected to increase,
creating a growing market for BESS. The Indian government has recognized the
importance of BESS in supporting its renewable energy goals and has initiated
policies that encourage investment in energy storage technologies. These
efforts include grants, incentives, and regulatory frameworks aimed at
facilitating the widespread adoption of BESS in conjunction with renewable
energy projects.
The renewable energy sector’s rapid expansion in India
is thus a key driver of the BESS market, as it creates a demand for efficient
energy storage solutions that ensure a seamless transition to a more
sustainable and low-carbon energy system. As of March 2024, India’s total
installed renewable energy capacity (excluding large hydro) reached
approximately 133 GW, comprising solar (72 GW), wind (44 GW), bio-power (10
GW), and small hydro (5 GW).
Government
Support and Policy Initiatives
Government support and favorable policy initiatives
have been pivotal in driving the growth of the Battery Energy Storage Systems
(BESS) market in India. The Indian government has recognized the strategic
importance of energy storage technologies in achieving energy security,
stabilizing the grid, and reducing the country's dependence on fossil fuels. In
line with this vision, several policy measures and incentives have been
introduced to encourage the development and deployment of BESS.
India’s National Mission on Electric Mobility and the
National Energy Storage Mission, which is part of the government's broader
energy strategy, provides a comprehensive framework for the promotion of energy
storage technologies, including BESS. The National Energy Storage Mission, in
particular, focuses on encouraging local manufacturing of energy storage
systems, addressing the challenges associated with the high import dependence
of battery components, and creating a sustainable supply chain for storage
technologies. Additionally, India’s push to electrify transportation is another
key factor that complements the BESS market. The Faster Adoption and
Manufacturing of Hybrid and Electric Vehicles (FAME) scheme has incentivized
electric vehicle (EV) adoption. As the EV market grows, there will be an
increasing demand for BESS for vehicle charging stations and grid-level storage
to support this new infrastructure.
The government has also initiated financial incentives
and subsidies, including the provision of grants for pilot projects and
research in energy storage. Policies such as the 'Atmanirbhar Bharat'
(Self-Reliant India) initiative encourage domestic manufacturing of batteries
and energy storage systems, aiming to reduce the reliance on imports,
particularly from countries like China. This has further fueled innovation and
competition in the Indian BESS market.
By providing a favorable regulatory environment,
financial incentives, and infrastructure support, the Indian government plays a
crucial role in stimulating the growth of the BESS market, helping India
transition to a cleaner, more sustainable energy future. The Ministry of
Power introduced Energy Storage Obligation as part of Renewable Purchase
Obligation (RPO) guidelines. Target: 4% ESO by FY 2030, ensuring utilities
include energy storage in their power procurement.
Rising Demand for Reliable Power Supply
The rising demand for a reliable and uninterrupted
power supply is another significant driver of the Battery Energy Storage
Systems (BESS) market in India. Over the past few decades, India has
experienced substantial economic growth, urbanization, and industrialization,
all of which have led to an increased demand for electricity. With a growing
population and expanding consumer base, the pressure on the country’s power
grid has intensified, making it more challenging to maintain a consistent and
reliable supply of electricity.
India’s power infrastructure is often faced with
challenges such as load shedding, power outages, and voltage fluctuations,
particularly in rural and remote areas. These issues not only disrupt everyday
life but also affect industrial productivity and the overall economy. To
address these challenges, there is a strong need for energy storage systems
that can enhance grid reliability and help utilities manage fluctuations in
power supply and demand.
Battery Energy Storage Systems provide a practical
solution to this problem by offering backup power during grid failures,
reducing the risk of blackouts, and ensuring that critical infrastructure and
services continue to function smoothly. By storing excess energy during
off-peak hours and discharging it during peak demand or grid disruptions, BESS
can help alleviate the pressure on existing grid infrastructure and prevent
service interruptions. Additionally, with more industries and commercial
establishments relying on uninterrupted power for their operations, the demand
for backup solutions such as BESS is rising. This is especially important in
sectors such as healthcare, data centers, and telecommunications, where even
short power outages can result in significant financial losses and operational
disruptions.
As the demand for a reliable power supply continues to
grow, particularly in urban and industrial centers, the BESS market is poised
to expand significantly. These systems will become essential in providing not
only backup power but also enhancing grid stability, making them an
indispensable part of India’s energy infrastructure. India’s peak
power demand reached an all-time high of 243 GW in September 2023, and is
projected to exceed 280 GW by the end of 2025, reflecting the country’s growing need for
stable and uninterrupted electricity supply.
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Key Market Challenges
High Initial Capital Costs
One of the primary
challenges facing the Battery Energy Storage Systems (BESS) market in India is
the high initial capital cost associated with the installation and deployment
of energy storage systems. Despite a significant reduction in battery costs
over the last decade, energy storage systems still represent a substantial
upfront investment, which can be a barrier for many stakeholders, including
utilities, commercial enterprises, and residential consumers.
For large-scale
applications, such as grid-level storage or renewable energy integration, the
capital expenditure for BESS can run into millions of dollars. The high cost of
procurement, installation, and commissioning makes it difficult for many
organizations, particularly smaller businesses and utilities in rural or
underserved areas, to invest in such technologies. While the long-term benefits
of energy storage, such as improved grid reliability, reduced electricity
costs, and greater energy independence, can offset these initial costs, the
payback period may still be seen as too long for some investors.
For residential and
commercial consumers, the cost of a BESS that can provide meaningful backup
power or energy independence can be prohibitively high. Although financial
incentives, subsidies, and tax rebates provided by the government can help
alleviate some of these costs, they may not be sufficient to make BESS a widely
accessible solution for all segments of society. Additionally, there are other
costs involved in the deployment of BESS, including infrastructure upgrades,
operational and maintenance expenses, and costs related to the integration of
BESS with the existing power grid. These hidden costs further raise the total
cost of ownership for energy storage systems, making it a more complex and
expensive investment compared to traditional energy solutions.
As battery technologies
continue to evolve and the costs of manufacturing decrease, the capital cost
barrier may diminish over time. However, for now, the high initial capital
expenditure remains a significant challenge in the adoption of BESS in India, especially
in price-sensitive markets where the value proposition may not be immediately
evident.
Limited Domestic Manufacturing and Supply Chain
Constraints
Another key challenge
hindering the growth of the Battery Energy Storage Systems (BESS) market in
India is the country’s limited domestic manufacturing capacity for batteries
and related components. Despite India’s growing demand for energy storage solutions,
the supply chain for batteries—particularly the critical raw materials, such as
lithium, cobalt, and nickel—remains heavily dependent on imports. This reliance
on foreign suppliers creates a number of issues, including price volatility,
supply chain disruptions, and long-term sustainability concerns.
India’s lack of domestic
manufacturing capabilities for battery technologies, particularly lithium-ion
batteries, presents a major obstacle. The country imports the majority of its
batteries and raw materials from countries like China, South Korea, and Japan,
which puts pressure on India’s energy storage market by making it susceptible
to global price fluctuations and geopolitical risks. Any disruption in the
supply of key components or raw materials could lead to delays in BESS
projects, increased costs, and potentially create bottlenecks in the market. Moreover,
the import reliance on critical minerals such as lithium and cobalt, which are
essential for lithium-ion batteries, presents another challenge. These
materials are mostly sourced from countries like Chile, Australia, and the
Democratic Republic of Congo, and their availability is limited by geopolitical
and environmental factors. Price fluctuations of these raw materials can
significantly impact the cost structure of battery storage systems, making the
technology more expensive and less accessible for widespread adoption in India.
To address this issue, India
is making efforts to build a domestic supply chain for batteries. Initiatives
like the "Atmanirbhar Bharat" (Self-Reliant India) campaign aim to
boost domestic manufacturing of battery cells, modules, and components. The
Indian government is also investing in establishing lithium and cobalt
refineries within the country and exploring alternatives to current battery
chemistries to reduce dependency on imports.
Building a robust domestic
manufacturing ecosystem takes time, and in the short term, the reliance on
imports continues to pose a challenge. Until India achieves a more
self-sufficient and resilient supply chain for battery production, the market
for BESS will remain vulnerable to external factors, which could hinder its
full potential.
Key Market Trends
Increased Focus on Grid-Scale Energy Storage
One of the most notable trends in the Indian Battery
Energy Storage Systems (BESS) market is the growing emphasis on grid-scale
energy storage solutions. With the Indian power grid grappling with issues such
as load shedding, frequent outages, and the increasing integration of
intermittent renewable energy sources like solar and wind, grid-scale storage
has become an essential solution for ensuring grid stability and reliability.
Grid-scale BESS installations allow for the
large-scale storage of electricity generated from renewable sources during
periods of excess generation and its release during times of high demand or
when renewable generation is low. This trend is particularly important as India
seeks to expand its renewable energy capacity, which is expected to make up 50%
of the country's total energy mix by 2030. The ability to store excess energy
produced during sunny or windy days and discharge it during peak demand hours
or on cloudy, windless days helps mitigate the challenges posed by renewable
intermittency.
In addition to improving grid stability, grid-scale
energy storage provides benefits such as frequency regulation, voltage control,
and reducing the need for peaking power plants, which are typically fueled by
fossil fuels. By reducing reliance on fossil fuel-based generation, India can
reduce its carbon footprint and move towards a more sustainable energy future.
India’s Energy Ministry has recognized the potential
of grid-scale BESS in enhancing grid resilience and supporting the country’s
renewable energy ambitions. As a result, there have been increasing investments
and pilot projects for large-scale energy storage solutions, supported by
government incentives and regulatory frameworks aimed at fostering BESS
deployment. This shift towards grid-scale energy storage is expected to
accelerate as both the demand for renewable energy and the need for grid
reliability continue to rise.
Integration with Electric Vehicles (EVs)
The increasing adoption of Electric Vehicles (EVs) in
India is another significant trend influencing the Battery Energy Storage
Systems (BESS) market. As the government pushes for the electrification of the
transportation sector through policies such as the Faster Adoption and
Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, the demand for
EVs—and consequently, energy storage solutions—has skyrocketed. This trend
presents new opportunities for integrating BESS with EV infrastructure.
One of the most promising applications of BESS in the
context of EVs is the development of Vehicle-to-Grid (V2G) technology. V2G
systems allow electric vehicles to not only charge from the grid but also
discharge power back into the grid when required, effectively turning EVs into
mobile energy storage units. This integration can provide substantial benefits
to both EV owners and the grid. EVs equipped with V2G technology can store
excess energy during off-peak hours and supply it back to the grid during peak
demand, helping reduce strain on the grid while also earning owners incentives
for participating in grid services. Moreover, the growth of the EV market has
led to the establishment of dedicated charging stations, many of which are now
being integrated with Battery Energy Storage Systems to smoothen the charging
process. These BESS-enabled charging stations can store energy during off-peak
hours and provide fast-charging capabilities during peak hours, addressing
issues such as grid congestion and offering more sustainable, reliable charging
options.
The increased adoption of EVs, coupled with
innovations in battery technologies and V2G systems, is driving the growth of
BESS in India. This trend reflects a shift towards a more interconnected,
sustainable energy ecosystem where electric vehicles play a crucial role in
balancing energy demand and supply.
Segmental Insights
Battery Type Insights
The Lithium-ion held the largest market share
in 2025. Lithium-ion batteries dominate the
India Battery Energy Storage Systems (BESS) market due to several key
advantages that make them the most suitable choice for a wide range of
applications, including grid-scale storage, renewable energy integration, and
electric vehicle (EV) infrastructure.
High energy density is one of the main reasons for
lithium-ion's dominance. These batteries can store more energy in a smaller,
lighter package compared to other technologies, such as lead-acid batteries.
This makes them ideal for both residential and commercial storage applications
where space is often limited. The high energy density also translates to better
performance in terms of energy storage, which is critical for both short-term
and long-term power backup solutions.
Declining costs have made lithium-ion batteries more
affordable over time. Technological advancements, economies of scale, and
improvements in manufacturing processes have significantly reduced the cost of
lithium-ion batteries, making them economically viable for large-scale
deployment. As a result, they have become the preferred choice for both public
and private sector investments, especially in projects involving renewable
energy integration like solar or wind power.
Longevity and efficiency further contribute to
lithium-ion's market dominance. These batteries typically have a longer cycle
life compared to alternatives like lead-acid batteries, reducing the need for
frequent replacements and maintenance costs. In addition, their high charge and
discharge efficiency help maximize energy use, making them more reliable for
both grid stability and backup power.
The growing demand for electric vehicles (EVs) in
India has accelerated the development and adoption of lithium-ion battery
technology. As the EV market expands, the demand for charging infrastructure
and energy storage solutions is increasing, further cementing lithium-ion's
position in the BESS market.
Connection Type Insights
The On-Grid held the largest market
share in 2025. On-Grid Battery
Energy Storage Systems (BESS) dominate the Indian market primarily due to their
ability to enhance the stability and efficiency of the existing power grid
while supporting India’s renewable energy goals. The increasing penetration of
renewable energy sources, such as solar and wind, presents challenges due to
their intermittency. On-grid BESS play a critical role in mitigating these
issues by storing excess energy generated during periods of low demand or when
renewable sources produce more energy than the grid can absorb. This stored
energy can then be fed back into the grid during peak demand hours or when
renewable generation is low, ensuring a continuous, reliable power supply.
One of the key advantages of on-grid BESS is their
ability to integrate seamlessly with the grid, providing services like peak
shaving, frequency regulation, and voltage control. These features help improve
grid stability, reduce the need for peaking power plants (often fueled by
fossil fuels), and decrease transmission and distribution losses. This is
particularly important in a country like India, where power shortages and grid
instability are common issues, especially in rural and underserved areas.
The government’s push for renewable energy adoption
has also made on-grid BESS an attractive solution. India aims to achieve 500 GW
of renewable energy capacity by 2030, and as renewable energy installations
increase, on-grid BESS become essential to store and manage the variable output
of solar and wind power. Furthermore, the government has introduced several
policies and incentives to encourage grid-scale energy storage, making on-grid
BESS a more viable investment option.
Regional Insights
South India held the largest market
share in 2025. South India was dominating the Battery Energy Storage Systems (BESS)
market due to a combination of favorable factors including its significant
renewable energy capacity, proactive government policies, and strong industrial
base. The region has emerged as a leader in India’s renewable energy sector,
particularly in solar and wind power, both of which require efficient energy
storage solutions to manage their intermittent nature.
South India, especially states like Tamil Nadu,
Karnataka, and Andhra Pradesh, has been at the forefront of renewable energy
adoption. Tamil Nadu, for example, is one of the largest producers of wind
energy in India, while Karnataka is a leader in solar energy generation. These
states have been able to generate large amounts of renewable energy, and BESS
is essential for storing this excess energy during periods of low demand and
releasing it during peak demand or when renewable generation is low. This demand
for energy storage to balance supply and demand has made South India a critical
market for BESS adoption.
The region's government policies are strongly
supportive of renewable energy and energy storage. Several states in South
India offer incentives, subsidies, and a favorable regulatory environment to
encourage the deployment of BESS. For instance, Tamil Nadu and Andhra Pradesh
have introduced state-level policies to promote energy storage as part of their
renewable energy integration strategies.
In addition to the renewable energy push, South India
has a robust industrial infrastructure with large manufacturing sectors and
technology hubs, especially in cities like Bengaluru and Chennai. These
industries require reliable power supply, making them early adopters of energy
storage technologies. The availability of skilled labor, technical expertise,
and an increasing focus on sustainability further accelerate BESS adoption in
the region.
Recent Developments
- On 8th May 2025, Contemporary Amperex Technology Co. Limited (CATL) has unveiled its
latest energy storage innovation, the Tener Stack system, boasting an
impressive 9 MWh capacity. Designed for large-scale applications, the Tener
Stack sets a new benchmark in battery energy storage by offering higher energy
density, improved efficiency, and enhanced safety features. This launch
reinforces CATL’s leadership in the global energy storage market and supports
the growing demand for scalable, long-duration energy storage solutions to
integrate renewable power into the grid.
- In April 2025, Sungrow has launched a new Commercial
and Industrial (C&I) energy storage system, designed to enhance energy
efficiency and reliability for businesses. The system offers advanced features
such as high energy density, smart energy management, and modular scalability,
making it suitable for a wide range of commercial applications. With this
latest innovation, Sungrow aims to support the growing demand for clean,
reliable power in the C&I sector, while helping businesses reduce energy
costs and improve sustainability through efficient energy storage solutions.
Key Market Players
- LG
Energy Solution Ltd.
- Samsung
SDI Co., Ltd.
- Contemporary
Amperex Technology Co., Limited (CATL)
- BYD
Company Limited
- Panasonic
Corporation
- Hitachi
Energy Ltd.
- Siemens
Energy AG
- ABB
Ltd.
|
By Battery Type
|
By Connection Type
|
By Application
|
By End User
|
By Region
|
- Lithium-ion
- Advanced Lead Acid
- low Batteries
- Others
|
|
- Front of the Meter
- Behind the Meter
|
- Commercial
- Industrial
- Residential
|
- South India
- North India
- West India
- East India
|
Report Scope:
In this report, the India Battery
Energy Storage Systems Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- India
Battery
Energy Storage Systems Market, By Battery
Type:
o Lithium-ion
o Advanced Lead Acid
o low Batteries
o Others
- India
Battery
Energy Storage Systems Market, By Connection
Type:
o On-Grid
o Off-grid
- India
Battery Energy Storage Systems Market, By Application:
o Front of the Meter
o Behind the Meter
- India
Battery Energy Storage Systems Market, By End User:
o Commercial
o Industrial
o Residential
- India
Battery Energy Storage Systems Market, By Region:
o South India
o North India
o West India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the India Battery Energy Storage Systems Market.
Available Customizations:
India Battery Energy Storage Systems 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).
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