China Energy Storage Market Size – By Technology, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

China Energy Storage Market Size

The China energy storage market was estimated at USD 223.3 billion in 2024 and is expected to reach USD 2.45 trillion by 2034, growing at a CAGR of 25.4% from 2025 to 2034, driven by the country’s aggressive push for renewable energy and carbon neutrality. With a growing share of wind and solar power, the need for efficient storage solutions to manage intermittency is becoming critical. Government policies, including subsidies and incentives, are accelerating the deployment of storage technologies across various sectors, including utility-scale, residential, and commercial applications. By 2034, China is projected to be a global leader in energy storage capacity, with electrochemical batteries, especially lithium-ion, expected to dominate the market.
 

Energy storage systems are widely used as EV battery storage systems such as lithium ion batteries. Additionally, EV sales is rising due to the price reduction in emerging economies such as China simultaneously increasing demand for energy storage systems. For instance, for the first two months of 2025 EV sales in China recorded more than 1% growth as compared to January to February of 2024. Owing to its high energy density, lightweight design and longer life-period of the battery makes lithium-ion battery an ideal choice for EVs. This in turn rises demand for ESS in EV sector.

 

As the batteries under electrochemical technology are widely adopted various government authorities have implied favorable policies to further raise the demand for energy storage systems. For instance, in February 2025, China's Ministry of Industry and Information Technology proposed plans to strengthen the exploration of domestic mineral resources such lithium, cobalt, and nickel which are essential for lithium-ion batteries. This initiation is expected to reduce dependence on imports while providing a reliable supply chain for the growing electric vehicle industry.
 

Additionally, in January of 2025, China’s commerce ministry suggested an export control for certain necessities in manufacturing parts of batteries and the processes of important minerals lithia and gallium. The control is intended for protecting domestic technological advancements from competition.
 

China Energy Storage Market Trends

Numerous sectors, including the EV and renewables industries, are fuelling remarkable growth in the China energy storage industry due to the increasing need for efficient battery storage. This is driving a multitude of innovative endeavors within the sector. Some of the innovations include solid-state batteries and gravity-based energy storage systems. Solid-state batteries provide rapid charging times, high energy density, and improved safety to avoid leakage fires. Industry leaders like CATL have begun the mass production of solid-state lithium-ion batteries in anticipation of future demand for advanced batteries.
 

The latest mark on the market is the adoption of cutting-edge AI and ML technologies in ESS batteries design. These technologies offer significant improvements in battery safety and performance. Additionally, it provides real time information on the thermal management of the battery, charging, overcharging, current status, and shelf life of the battery. Another emerging trend tackling cost efficient ESS are repurposed energy storage batteries. Repurposed or second-life batteries are cost effective because a large portion of energy storage life efficiency is used up. This lowers the costs of ESS. Along with automakers, various industry participants are developing competent strategies to address these neglected China energy storage market trends.
 

To reduce the carbon footprints associated with manufacturing batteries and energy storage systems (ESS), several companies are implementing sustainable designs using alternative materials or developing more advanced technologies such as gravity based energy storage systems. In this technology excess electricity is used to lift heavy weights for power generation. The system capitalizes on gravitational potential energy. This is more sustainable and cost-effective when compared to conventional ESS. Various companies are introducing gravity based ESS to achieve the cutting edge benefits from cost sensitive targets.
 

China Energy Storage Market Analysis

Based on technology, the market is segmented into pumped hydro, electro-chemical, electro-mechanical, and thermal. The China energy storage industry reached USD 99 billion, USD 155.3 billion and USD 223.3 billion in 2022, 2023 and 2024 respectively.   
 

• The pumped hydro technology battery uses excess electricity to pump water from lower to upper reservoir. The technology offers longer duration storage. Owing to this pumped hydro is majorly used in renewable energy integration and grid energy storage systems. Due to these factors government of China is initiating positive strategies.
   
• For instance, in June 2024, State Grid Corp in China announced the commencement of final stage of its Xiamen power project in the Fujian province of China. The project had successfully already installed 3 units in between October 2023 and March 2024. Now that all four units are operational, the Xiamen Pumped Storage Power Station has been fully constructed and its total capacity is 1.4 GW.
   
• Rising sales of EV worldwide is rising demand for electro-chemical energy storage majorly lithium-ion. For instance, in 2024 China sold more than 12.50 million passenger electric vehicles, of which battery electric vehicles (BEVs) were around 58%-62% of the sales while plug-in hybrid electric vehicles (PHEVs) accounted for the other 42%-38%.
   
• Owing to high demand for lithium-ion batteries from different users such as automakers, consumer electronics, various companies and researchers have initiated to invest prominently to develop new technologies such as sodium sulfur technology and are currently in early stages.
   
• Solar power is gradually capturing significant growth in the energy industry. For instance, in 2024, China added more than 350 GW of wind and solar power generation capacity. The growing adoption of solar energy in the nation is expected to boost the demand for thermal energy storage systems.  
   

The China energy storage market by application is segmented into electric energy time shift, electric supply capacity, black start, renewable capacity firming, frequency regulation and others. The electric energy time shift segment accounted for over 43.9% revenue share in 2024.
 

• The growing hurricane and other natural disasters leading to rising energy outage and cost of electricity units. For instance, the average cost of industrial electricity cost shifted from around USD 0.084/kWh in 2019 to USD 0.088/kWh in 2024, representing a slight rise in China.
   
• In addition, in 2023 total electricity consumption in China increased by around 6.7%. Such instances is likely to increase demand for energy time shift to off period and peak shaving of energy. This reduces the cost and increases the availability of energy which will increase demand for ESS majorly from electric energy time shift, electric supply capacity applications.
   
• Owing to rise in adoption of EV due to rising adoption of environmental friendly transportation and favorable government policies in the field, the China energy storage market is expected to witness higher demand.
   

• For instance, in 2024, one of the top Chinese manufacturer of electric vehicles, BYD, announced that its sale figures reached an all time high of 4.3 million units bringing the company one step closer to top rank in the electric vehicle industry.
   
• Favorable government initiatives to promote ESS in China is likely to increase demand for ESS in future. For instance, in March 2025, China’s state planner announced the creation of a national venture capital guidance fund of around USD 138 billion for renewable energy and energy storage technologies.
   
• Furthermore, increasing deployment of solar power and cost-effective ESS technologies in China is likely to boost the demand for energy storage systems in China. For instance, By July 2024, China had already surpassed its goals of 1,200 GW of installed solar and wind capacity.
   
• The country further plans to make USD 800 billion investments by 2030 to enhance the integration and effectiveness of energy storage systems. All these advancements assist the nation in achieving their primary goal of peak carbon emissions by 2030 and carbon neutrality by 2060.
   

China Energy Storage Market Share

Top 5 companies including BYD, General Electric, LG Energy Solution, Siemens and Samsung held a market share of over 40% in 2024. Many market players are are working to develop cost-effective and wide range of ESS.
 

Among these companies BYD is one of the largest share holding company in the China energy storage industy. Owing to its vast product offerings, widespread of geological clientele and strategic partnership with clients to offer customized energy storage systems along the side of typical products. The demand for energy storage systems is expected to boost as the renewable energy and electric vehicle industry constantly grow, especially in emerging countries such as China, and India.
 

Furthermore, supportive government regulations in the developing and developed countries and affordable labor cost further decreases prices of energy storage systems and aids strong uphold of market in the cost-sensitive group of consumers. Other major companies including General Electric, LG Energy Solution, Siemens and Samsung are also poised to target significant share of the market in focus, particularly in cost-sensitive electric vehicles target group and energy storage systems sectors.
 

Some of the key players operating across the China energy storage market are:

• ABB
• Burns & McDonnell
• BYD Company
• CATL
• Durapower Group
• Exide Technologies
• General Electric
• Hitachi Energy
• Johnson Controls
• LG Energy Solution
• McDermott
• Narada Power Source
• Panasonic Corporation
• Samsung SDI
• Schmid Group
• Siemens
• Sinohydro Corporation
• Toshiba Corporation
• Voith
   

China Energy Storage Market Companies

• BYD (Build Your Dreams) is a China based multinational company with global presence in both electric vehicles (EVs) and battery manufacturing. The company registered a revenue of USD 27.7 billion in Q3, 2024. In addition, recently BYD's next-generation Blade Battery is estimated to launch in 2025, featuring improvements that will boost its range and performance.
   
• CATL is a China based battery manufacturers. The company holds significant market share in lithium-ion battery market. The company registered around 20-23% revenue growth in 2023 reaching USD 53-57 billion. Their recent strategies such as battery swapping and subscription based price models will enhance their objective of circular economy and rise in EV adoption.
   
• General Electric is a U.S. based multinational company dealing in different business segment such as aviation, renewable energy and power. The company witnessed around 17% increase in revenue recording USD 68 billion in 2023. The company is engaging in partnership with several power grids to offer efficient utility scale ESS.
   
• Samsung is a South Korean multinational company that held around USD 54 billion in 2023. The company has recently introduced next generation SSB batteries. The company has also displayed its new batteries for UPS, ESS application range.
   
• Siemens a Germany headquartered multinational company with global footprint in energy, automation, and digitalization business segments. The company registered a revenue of USD 83 billion in 2023.
   

China Energy Storage Industry News

• In November 2024, one of the top Chinese EV manufacturer BYD announce the launch of its sodium-ion grid-scale battery energy storage system (BESS) product that claims to be world’s first high-performance sodium-ion grid scale BESS.
   
• In September 2024, GCL Group announced the commencement of a 2.4 GWh pumped hydro storage plant located in Jiande City, Zhejiang Province. The facility claims to be the largest single clean energy project constructed by the company and the biggest pumped storage project in Eastern China to date.
   
• In September 2024, RelyEZ a China based battery energy storage manufacturer announced the launch of its GridUltra 5016 system, which has a 5MWh battery system that could be fully charged in two hours for utility scale deployment and for commercial and industrial use.
   
• In April 2024, CATL announced launch of TENER, the first ever mass produced energy storage system that boasts zero degradation for the first five years of use in China. With all-round safety features, five year zero degradation, coupled with an impressive capacity of 6.25 MWh, TENER is set to fuel the large scale implementation of new energy storage technologies along with the high advancement of the industry.
   

This China energy storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of USD Million, MW from 2021 to 2034, for the following segments:

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Market, By Technology

• Pumped Hydro
• Electro-Chemical
  • Lithium-Ion
  • Sodium Sulphur
  • Lead Acid
  • Flow Battery
  • Others
• Electro-Mechanical
  • Flywheel
  • CAES
• Thermal
  • Water
  • Molten Salt
  • PCM
  • Others

Market, By Application

• Electric Energy Time Shift
• Electric Supply Capacity
• Black Start
• Renewable Capacity Firming
• Frequency Regulation
• Others