Energy Storage Systems Market Size - By Chemistry, By Component, By Application, Analysis, Share, Growth Forecast, 2025 - 2034

Energy Storage Systems Market Size

The global energy storage systems market was estimated at USD 668.7 billion in 2024 and is expected to reach USD 5.12 trillion by 2034, growing at a CAGR of 21.7% from 2025 to 2034, driven by the increasing integration of renewable energy sources, advancements in battery technology, and the rising demand for grid stabilization and energy efficiency. ESS plays a crucial role in modernizing the power infrastructure, enhancing energy security, and supporting the transition to a sustainable energy future. Increasing transition towards green energy is driving the market growth. Global renewable energy generation capability is predicted to enhance by more than two times by 2030.
 

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 India and China. For instance, by the end of 2024, India witnessed 20% rise in sales of electric cars exceeding 80,000 volume sales of electric cars. 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, India is promoting more indigenous lithium battery development by their research and innovation facilities with the help of funds and technology transfer under the program ‘Mission LiFE’ launched in 2023. The government transferred value-effective technology of recycling lithium-ion to startups and recycling firms.
 

Additionally, the Department of Science and Technology started supporting 32 projects for battery storage under the NEST program in the same year. Likewise, the DOE in February 2025, announced funding of more than USD 4 million under Blue Sky Training Program to bolster workforce of especially grid scale ESS sector.
 

Energy Storage Systems Market Trends

The energy storage systems industry has been observing remarkable growth due to increasing demand for efficient battery storage from different sectors such as EV, renewable energy and many more. This is pushing numerous innovative initiations in the industry. Solid-state batteries, gravity-based ESS are some of the innovations in the field. SSB technology provide rapid charging times, higher energy density and improved safety to avoid risk of leaks and fire. Big companies such as CATL have introduced mass production of solid-state lithium-ion batteries to cater to future demands of advanced batteries.
 

Adoption of hi-tech such as AI and ML in ESS battery designs is another trend shaping the market in focus. These technologies help to improve the performance and safety of batteries. It offers real-time data on battery’s thermal management, charging and overcharging status, current status, shelf life of battery. Repurposed energy storage batteries is another trend stepping in to offer cost-effective ESS. Repurposed or second life batteries have significant amount of life efficiency left for energy storage. This reduces the cost of ESS. Various industry players in partnership with automakers are introducing effective solutions to capture the untapped energy storage systems market trends.
 

To mitigate their carbon footprints related to manufacturing batteries and ESS several companies are altering the design of batteries with sustainable materials or technology. These include, gravity-based energy storage systems. This technology uses excess electricity to lift heavy weights. To generate power, the system uses gravitational potential energy. This offers sustainable and cost-effective ESS than conventional ESS. Various companies are introducing gravity-based ESS to achieve the cutting edge benefits from cost-sensitive target. For instance, in April 2024, Indian startup Baud Resources launched a gravity energy storage by using easily available materials like sand and industrial waste. Such initiatives increases demand for cost-effective and sustainable ESS.
 

Energy Storage Systems Market Analysis

The energy storage systems industry by technology is segmented into pumped hydro, electro-chemical, electro-mechanical, and thermal. The energy storage systems reached USD 433 billion, USD 535.8 billion and USD 668.7 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 different countries are initiating positive strategies.
   
• For instance, in August 2024, Greenko formed an agreement to construct three hydro pumped energy storage Tamil Nadu with a total capacity of 3.3 GW. The project covers three areas including Salem, Tirupathur, and Tiruvannamalai districts. Such initiatives increases demand for pumped hydro.
   
• Rising sales of EV worldwide is rising demand for electro-chemical energy storage majorly lithium-ion. For instance, sales of EVs in European countries for the month of December 2024 registered 0.7% growth when compared to the sales of EVs for the month of December 2023. Thus reaching 310,000 units sales.
   
• 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, solar power is predicted to cross 2 TW by the end of 2025 from 1 TW solar power capacity in April 2022. The growing adoption of solar energy worldwide is expected to boost the demand for thermal energy storage systems.  
   

The energy storage systems 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 50.2% revenue share in 2024.
 

• The growing hurricane and other natural disasters leading to rising energy outage and cost of electricity units. For instance, Entergy the electric company in Louisiana increased energy unit rate by $8 a month after the destructive hurricanes in 2020 and 2021.
   
• In addition, this rate for the U.S. residential electricity bills was again increased by 2% in in 2023. 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 energy storage system market is expected to witness higher demand.
   
• For instance, more than 13.5 million electric cars were purchased across the world, i.e., more than 34% YoY growth was witnessed by the sector in 2023. Thus crossing 39.5 million total number of electric cars on road by end of 2023.
   

• The U.S. energy storage systems market reached USD 65 billion, USD 81.9 billion and USD 106.7 billion in 2022, 2023 and 2024 respectively. Favorable government initiatives to promote ESS in U.S. is likely to increase demand for ESS in future.
   
• For instance, Inflation Reduction Act (IRA) provides 30% credit on all residential ESS over 3 kWh in capacity until 2032. For standard household energy storage system IRA reduces cost of ESS by USD 3,000 to USD 5,000.
   
• Furthermore, increasing deployment of solar power and cost-effective ESS technologies in emerging countries such as China and India is likely to boost the demand for energy storage systems in APAC.
   
• For instance, in January 2025, Tata power received clearance and approvals from the Indian government for its 1,800 MW pumped hydro storage in Pune and 1,000 MW pumped hydro storage in Raigad. The company plans to initiate the project in the same month and complete it by 2028.
   

Energy Storage Systems Market Share

Top 5 companies including BYD, General Electric, LG Energy Solution, Siemens and Samsung held a market share of over 40% in 2024. Major key players 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 energy storage systems indusry. 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 energy storage systems market are:

• ABB
• Abengoa S.A.
• Burns & McDonnell
• BYD Company Ltd.
• CALMAC
• Durapower Group
• Exide Technologies
• General Electric
• Hitachi Energy Ltd.
• Johnson Controls
• LG Energy Solution
• McDermott
• Narada Power Source Co. Ltd
• Panasonic Corporation
• Samsung SDI Co., Ltd
• SCHMID Group
• Siemens
• Sinohydro Corporation
• Toshiba Corporation
• Voith GmbH & Co. KGaA
   

Energy Storage Systems 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.
   
• 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.
   
• LG Electronics a Japan based subsidiary of LG, operates in various electronics including ESS, which witnessed revenue of USD 60.7 billion in 2023. Their recent strategies of mass production of semi solid batteries and introducing new lithium batteries for new application range i.e., energy storage system to expand the clientele and reduce revenue dependence on EV. The company has also invested in US based startup manufacturing lithium batteries.
   
• 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.
   

Energy Storage Systems Industry News

• In February 2025, GridStor a utility-scale battery energy storage systems manufacturer acquired 150 MW battery storage project, Texas from Balanced Rock Power. The acquisition will help company to expand its presence in the state and is estimated to benefit off of upcoming increase in energy demand by 2030.
   
• In February 2025, Fluence Energy developed Smartstack a grid-scale battery energy storage system. The system offers 7.5 MWh of energy storage. The system is designed so that to avoid the hustle of large container instead is easy to move.
   
• In January 2025, Amazon invested USD 15 million fund in Moment Energy a Canada based second life battery storage company. The company repurposes EV batteries for the use of stationary battery ESS use.
   
• In November 2024, Element Energy a Menlo park based BMS company in partnership with LG energy announced the initiation of largest upcycle/second life grid-scale battery energy storage installation of 2 GWh capacity.
   

The energy storage systems market research report includes in-depth coverage of the industry with estimates & forecast in terms of USD Billion, 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

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Argentina