U.S. Energy Storage Market - By Technology, By Application and Forecast 2025 – 2034

U.S. Energy Storage Market Size

U.S. energy storage market was assessed at USD 78.9 billion in 2024 and is envisioned to witness a CAGR of 13.4% between 2025 and 2034.
 

The U.S. energy storage industry has experienced rapid growth, driven by increased renewable energy integration and grid modernization efforts. The surge in solar and wind projects has amplified the demand for storage solutions to address intermittency challenges. Federal incentives like the Investment Tax Credit (ITC) for standalone storage and state-level policies have further catalyzed adoption. Key markets such as California, Texas, and New York lead deployment, leveraging supportive regulatory frameworks.
 

Advancements in energy storage technologies, particularly lithium-ion batteries, dominate the U.S. market. These batteries offer high efficiency, scalability, and declining costs, making them the preferred choice for utility, residential, and commercial applications. Emerging technologies like solid-state batteries, flow batteries, and hydrogen-based systems are also gaining traction, promising enhanced performance and longer lifespans.
 

U.S. Energy Storage Market Trends

Utility-scale energy storage projects are pivotal in transforming the U.S. grid. Large-scale installations are increasingly deployed to provide grid stability, frequency regulation, and peak load management. These projects support renewable energy integration, allowing utilities to store excess power during off-peak hours and dispatch it during high demand. Developers are expanding multi-gigawatt-hour installations, driven by declining costs and regulatory mandates. States like California and Arizona are leading utility-scale deployments, with storage becoming an essential component of their clean energy strategies. Residential and commercial energy storage markets in the U.S. are gaining momentum, fueled by rising electricity costs, power outage concerns, and increasing consumer awareness.
 

U.S. Energy Storage Market Analysis

In the U.S. energy storage industry, which includes technology types such as pumped hydro, electro-chemical, electro-mechanical, and thermal storage, the electro-chemical segment is projected to surpass USD 231.4 billion by 2034. The U.S. electrochemical energy storage market is witnessing rapid growth, propelled by the increasing adoption of lithium-ion batteries for utility, residential, and commercial applications. Cost reductions, driven by advancements in manufacturing and economies of scale, have made these systems more accessible. Emerging technologies, such as solid-state batteries and flow batteries, are gaining traction due to their potential for improved safety, efficiency, and lifespan. Utility-scale projects dominate deployments, supporting renewable integration and grid stabilization.
 

The market is segmented by application into categories such as electric supply capacity, renewable capacity firming, black start, electric energy time shift, frequency regulation, and others. The electric energy time shift segment is anticipated to grow at a compound annual growth rate (CAGR) exceeding 7.5% till 2034. The growth of the electric energy time-shift segment in the U.S. energy storage market is driven by the increasing need to balance supply and demand in a grid integrating variable renewable energy sources like solar and wind. Utility-scale projects benefit from time-shift capabilities to store excess energy during off-peak periods and dispatch it during peak demand, enhancing grid reliability and efficiency. Declining costs of lithium-ion batteries and federal incentives, such as the Investment Tax Credit (ITC), further bolster adoption.
 

U.S. Energy Storage Market Share

ABB is a leading player in the U.S. energy storage industry, recognized for its deep expertise in developing and producing various energy storage technologies, including electromechanical and electrochemical systems. With a rich history in the industry, the company has provided a broad spectrum of tailored solutions designed to address diverse application requirements.
 

U.S. Energy Storage Market Companies

Some of the key market players operating across the U.S. energy storage industry are:

• ABB
• Abengoa
• BYD Company
• Burns & McDonnell
• CALMAC
• Exide Technologies
• General Electric
• Invinity Energy Systems
• Johnson Controls
• Lockheed Martin
• LG Energy Solution
• McDermott
• Panasonic
• SCHMID Group
• Samsung SDI
• Siemens
• Tesla
• Toshiba
• Voith
   

U.S. Energy Storage Industry News:

• In February 2024, LG Energy Storage has launched the Home 8 ESS, a next-generation all-in-one energy solution designed for homeowners. This system integrates an advanced inverter and battery into a single, compact unit with wall-mounting capabilities, offering a neat and efficient installation. It empowers users to manage energy effectively while providing backup power, reducing reliance on the electrical grid.
   

U.S. 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
• Others