China Energy Storage Market - By Technology, By Application and Forecast 2025 – 2034

China Energy Storage Market Size

China energy storage market was assessed at USD 144.9 billion in 2024 and is envisioned to witness a CAGR of 18.9% between 2025 and 2034.
 

China’s energy storage market is expanding rapidly, 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.
 

Technological innovation is a key factor in China's energy storage growth. Lithium-ion batteries, known for their high efficiency and cost-effectiveness, are the dominant technology in the market. However, China is also investing heavily in the development of next-generation storage technologies such as solid-state batteries, flow batteries, and sodium-ion batteries. These innovations are aimed at improving energy density, cycle life, and safety.
 

China Energy Storage Market Trends

Utility-scale energy storage is a major driver in China’s energy transition. Large-scale storage systems are being deployed to enhance grid stability, support renewable integration, and provide backup power. In addition to balancing supply and demand, these systems are used for frequency regulation, peak shaving, and load levelling. Regions with high renewable energy penetration, such as Inner Mongolia and Xinjiang, are seeing significant utility-scale storage projects. With energy storage playing a critical role in China’s renewable energy strategy, the government has set ambitious targets for storage capacity in the coming years. The Chinese government has been encouraging research and development through funding programs, which are pushing the industry toward more sustainable and scalable solutions to meet future energy demands.
 

China Energy Storage Market Analysis

In the China energy storage industry, which encompasses technologies like pumped hydro, electro-chemical, electro-mechanical, and thermal storage, the electro-chemical segment is expected to exceed USD 231.4 billion by 2034. The electro-chemical energy storage market is expanding rapidly, driven by advancements in lithium-ion battery technology, which dominates applications across residential, commercial, and utility-scale sectors. As renewable energy adoption grows, the demand for energy storage solutions to manage grid stability and intermittency is increasing. Innovations in battery chemistry, such as solid-state, flow, and sodium-ion batteries, are promising enhanced performance and safety.
 

The China energy storage market is categorized by application into segments including electric supply capacity, renewable capacity firming, black start, electric energy time shift, frequency regulation, and more. Among these, the electric energy time shift segment is projected to achieve a compound annual growth rate (CAGR) of over 7.5% till 2034. The growth of electric energy time shift applications in China’s energy storage market is driven by the increasing integration of renewable energy sources like solar and wind, which require storage solutions to manage variability in power generation. As electricity demand peaks during certain hours, energy storage systems allow for the shifting of surplus energy to off-peak periods. Government policies supporting grid modernization, renewable energy adoption, and carbon neutrality further boost this segment.
 

China Energy Storage Market Share

ABB is a prominent leader in China’s energy storage market, renowned for its extensive experience in developing and manufacturing a wide range of energy storage technologies, including electromechanical and electrochemical systems. With a strong industry presence, the company offers a diverse array of customized solutions to meet various application needs effectively.
 

China Energy Storage Market Companies

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

• ABB
• Burns & McDonnell
• BYD Company
• 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 Industry News:

• In February 2024, LG Energy Storage introduced the Home 8 ESS, an innovative all-in-one energy solution tailored for homeowners. This advanced system combines a high-performance inverter and battery into a compact, wall-mountable unit, ensuring a streamlined and efficient installation. It enables users to optimize energy usage while offering reliable backup power, minimizing dependence on the traditional power grid.
   

China energy storage market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume & revenue in MW & USD Million 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 energy storage
  • Water
  • Molten salt
  • Pcm
  • Others

Market, By Application

• Electric time energy shift
• Electric supply capacity
• Black start
• Renewable capacity firming
• Frequency regulation
• Otherss