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Energy Storage Market Size (2024 - 2029)

The energy storage market is poised for significant growth, driven by the expansion of the renewable energy sector, supportive government policies, and enhanced energy storage economics. Despite challenges such as raw material supply mismatches, the market is expected to thrive, particularly as the commercial and industrial sectors increasingly adopt energy storage systems to optimize renewable energy use. The Asia-Pacific region, with its substantial demand from countries like China, South Korea, and India, currently leads in market size.

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Market Size of Energy Storage Industry

Energy Storage Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 51.10 Billion
Market Size (2029) USD 99.72 Billion
CAGR (2024 - 2029) 14.31 %
Fastest Growing Market Asia-Pacific
Largest Market Asia Pacific
Market Concentration Low

Major Players

Energy Storage Market Major Players

*Disclaimer: Major Players sorted in no particular order

Energy Storage Market Analysis

The Energy Storage Market size is estimated at USD 51.10 billion in 2024, and is expected to reach USD 99.72 billion by 2029, growing at a CAGR of 14.31% during the forecast period (2024-2029).

The outbreak of COVID-19 had a negative effect on the market. Currently, the market has reached pre-pandemic levels.

  • The development of the renewable energy sector, favorable government policies and programs for energy storage systems (ESS), and improved energy storage economics are all likely to have an impact on the energy storage market in the upcoming years.
  • But a mismatch between the demand and supply of raw materials like cobalt, lithium, and graphite is likely to slow market growth over the next few years.
  • The commercial and industrial (C&I) sector is using renewable energy sources like solar and wind power more and more to power their own buildings. But renewable energy isn't always a reliable source of power, and the C&I sector isn't making the most of these resources. So, the C&I sector is likely to use energy storage systems more and more to increase the amount of renewable energy it uses. This will create big opportunities for ESS providers in the future.
  • Asia-Pacific was the largest market in the world in 2021. This was because countries like China, South Korea, and India needed more energy storage systems.

Energy Storage Industry Segmentation

Energy storage is a key part of the switch from making power with fossil fuels to making power with renewable energy sources. Several developed nations across the globe are shifting from an energy system dominated by centralized fossil fuel generation that can always be dispatched to match energy consumption to one with more renewables. The energy storage market is segmented by type, application, and geography. By application, the market is segmented into residential, commercial, and industrial. By type, the market is segmented into batteries, pumped-storage hydroelectricity (PSH), thermal energy storage (TES), flywheel energy storage (FES), and others. The report also covers the size and forecasts of the energy storage market across major regions. For each segment, market sizing and forecasts have been done based on revenue (USD billion).

Type
Batteries
Pumped-storage Hydroelectricity (PSH)
Thermal Energy Storage (TES)
Flywheel Energy Storage (FES)
Other Types
Application
Residential
Commercial and Industrial
Geography
North America
United States
Canada
Rest of North America
Asia-Pacific
India
China
Australia
Rest of Asia-Pacific
Europe
Germany
United Kingdom
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
Iraq
Jordan
Rest of Middle-East and Africa
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Energy Storage Market Size Summary

The energy storage market is poised for significant growth, driven by the expansion of the renewable energy sector, supportive government policies, and advancements in energy storage economics. The market has rebounded to pre-pandemic levels after the negative impact of COVID-19. However, challenges such as the mismatch in the supply and demand of essential raw materials like cobalt, lithium, and graphite may hinder growth. The commercial and industrial sectors are increasingly adopting energy storage systems to enhance the utilization of renewable energy sources like solar and wind power, presenting substantial opportunities for energy storage system providers. Asia-Pacific emerged as the largest market due to the high demand for energy storage systems in countries like China, South Korea, and India, which are rapidly expanding their renewable energy capacities.

Battery energy storage systems are crucial for transitioning to a sustainable energy system, offering benefits such as voltage and frequency regulation, peak demand charge reduction, and renewable source integration. Lithium-ion batteries, in particular, are experiencing a surge in demand due to their declining costs and advantages like low maintenance, lightweight, and high energy density. The market is characterized by a variety of battery types, with lithium-ion batteries expected to dominate due to their cost-effectiveness and efficiency. Utilities remain the largest segment, with increasing integration of storage in solar projects. The Asia-Pacific region is anticipated to maintain its leadership in the energy storage market, driven by rapid urbanization, growing electricity demand, and government initiatives to enhance renewable energy adoption and reduce emissions. The market is fragmented, with key players including GS Yuasa Corporation, Contemporary Amperex Technology Co. Limited, UniEnergy Technologies, LLC, BYD Co. Ltd, and Clarios, actively engaging in partnerships and innovations to strengthen their market positions.

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Energy Storage Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast, in USD billion, till 2028

    3. 1.3 Global Annual Energy Storage Deployments (in MW), till 2028

    4. 1.4 Energy Storage Price Trends and Forecast, by Technology, in USD/kW, till 2028

    5. 1.5 Recent Trends and Developments

    6. 1.6 Government Policies and Regulations

    7. 1.7 Market Dynamics

      1. 1.7.1 Drivers

      2. 1.7.2 Restraints

    8. 1.8 Supply Chain Analysis

    9. 1.9 Porter's Five Forces Analysis

      1. 1.9.1 Bargaining Power of Suppliers

      2. 1.9.2 Bargaining Power of Consumers

      3. 1.9.3 Threat of New Entrants

      4. 1.9.4 Threat of Substitute Products and Services

      5. 1.9.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Batteries

      2. 2.1.2 Pumped-storage Hydroelectricity (PSH)

      3. 2.1.3 Thermal Energy Storage (TES)

      4. 2.1.4 Flywheel Energy Storage (FES)

      5. 2.1.5 Other Types

    2. 2.2 Application

      1. 2.2.1 Residential

      2. 2.2.2 Commercial and Industrial

    3. 2.3 Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Rest of North America

      2. 2.3.2 Asia-Pacific

        1. 2.3.2.1 India

        2. 2.3.2.2 China

        3. 2.3.2.3 Australia

        4. 2.3.2.4 Rest of Asia-Pacific

      3. 2.3.3 Europe

        1. 2.3.3.1 Germany

        2. 2.3.3.2 United Kingdom

        3. 2.3.3.3 Rest of Europe

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of South America

      5. 2.3.5 Middle-East and Africa

        1. 2.3.5.1 Saudi Arabia

        2. 2.3.5.2 Iraq

        3. 2.3.5.3 Jordan

        4. 2.3.5.4 Rest of Middle-East and Africa

Energy Storage Market Size FAQs

The Energy Storage Market size is expected to reach USD 51.10 billion in 2024 and grow at a CAGR of 14.31% to reach USD 99.72 billion by 2029.

In 2024, the Energy Storage Market size is expected to reach USD 51.10 billion.

Energy Storage Market Report Snapshots

Energy Storage Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)