United States Energy Storage Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.45 Billion |
| Market Size (2029) | USD 5.67 Billion |
| CAGR (2024 - 2029) | 6.70 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United States Energy Storage Market Analysis
The United States Energy Storage Market size is estimated at USD 3.45 billion in 2024, and is expected to reach USD 5.67 billion by 2029, growing at a CAGR of 6.70% during the forecast period (2024-2029).
- In the long term, factors such as increasing installations of renewable energy and declining prices for lithium-ion batteries are expected to drive the market during the forecast period.
- The scarcity of raw materials used for battery manufacturing is likely to hinder the market's growth during the forecast period.
- Researchers in the United States have been at the forefront of researching and developing alternate battery chemistries, which are safer and more efficient than current battery chemistries, thus creating several opportunities for the market in the future.
United States Energy Storage Market Trends
The Residential Segment is Expected to Dominate the Market
- In the recent past, the energy storage system (ESS) in the United States experienced significant growth, especially in the residential sector, along with the rising investments in renewable energy infrastructure across the region. Electricity consumption in residential buildings is estimated to increase during the forecast period due to increasing annual disposable incomes and the rising work-from-home trend across the United States. Energy storage systems provide continuous power supply at homes during power outages at peak hours.
- Various incentive programs across the United States are in place to support the residential energy storage market. California's Self-Generation Incentive Program (SGIP) supports the residential storage sector and offers incentives for new and existing distributed energy resources. Moreover, the residential energy storage segment is likely to proliferate because of increasing technological advancements in energy storage technology, which is leading to a decline in battery prices and widespread deployment of renewable power sources.
- Residential solar installations in New Jersey are likely to witness significant growth due to favorable incentive programs like Solar Renewable Energy Credits (SREC) and the declining cost of solar panels, which was introduced by the government of New Jersey. The shifting trend toward solar enables homeowners to save money on electricity bills. This, in turn, is likely to increase the deployment of residential energy storage systems.
- Moreover, in February 2023, California’s net metering policy, also called NEM 3.0, incentivized residential consumers to sell the excess generated electricity from their rooftop power plants and store the electricity to use it at a time when prices of grid electricity become high. Similarly, commercial consumers are also expected to gain benefits from NEM 3.0.
- Furthermore, in May 2023, LG Energy Solution (LGES) launched a residential battery energy storage system in the United States to cater to the demand for electricity storage. The company’s backup solution, Prime, contains a battery, inverter, and an auto-backup device with a capacity of about 19.2 kWh to 32 kWh to store, use, and export electricity.
- Therefore, owing to such points, the residential segment is expected to dominate the US energy storage market during the forecast period.
Rising Renewable Energy Generation is Expected to Drive the Market
- In the last decade, the installed renewable energy capacity and generation have been rising steadily in the United States. Renewable resources, such as solar and wind, generate power intermittently and at various levels, and storing this energy to be used during high demand is of vital importance.
- Due to this, modern energy-storing systems (ESS) are becoming an indispensable part of renewable energy projects. The rapid growth in the renewable energy sector is expected to be one of the strongest drivers for the growth of the ESS market in the United States.
- As of 2023, the United States had approximately 387.54 GW of renewable installed capacity from 160 GW in 2012. The increasing usage of renewable energy has made it easy for the energy storage concept to penetrate the market at such a fast rate.
- Traditionally, the most widely-used energy storage technology utilized in the United States has been pumped storage systems. As of 2023, the United States had more than 24 GW of storage from pumped hydropower and another 1.5 GW in batteries in the residential, commercial, and utility sectors. However, due to their geographical limitations, large land footprint, and falling battery costs, this technology is expected to see limited growth in demand during the forecast period.
- Moreover, the future outlook for energy storage systems in the United States is promising, driven by the growing need for grid stability and energy security, particularly in the context of increasing renewable energy deployment. Also, with the development of new and affordable lithium-ion batteries, the number of residential, commercial, and industrial solar rooftop PV systems coupled with ESS has increased significantly.
- Owing to the above points, rising renewable energy generation is expected to drive the market in the near future.
United States Energy Storage Industry Overview
The US energy storage market is moderately fragmented. Some of the key players in the market are Tesla Inc., BYD Co. Ltd, LG Energy Solution Ltd, Enphase Energy, and Sungrow Power Supply Co. Ltd.
United States Energy Storage Market Leaders
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Tesla Inc
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BYD Co. Ltd
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LG Energy Solution Ltd
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Enphase Energy
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Sungrow Power Supply Co., Ltd
*Disclaimer: Major Players sorted in no particular order
United States Energy Storage Market News
- January 2024: Apex Clean Energy, a green energy supplier, entered a joint venture with Korean green energy developer SK D&D, which is expected to own energy storage projects in the United States. The new joint venture, funded 60% by SK and 40% by Apex, named SA Grid Solutions, operates a lithium-ion battery project that is expected to come online by the end of 2024.
- December 2023: LG Energy Solution Vertech, an energy equipment and solutions provider, lined up 10 GWh of grid-scale battery energy storage (ESS) projects in the United States for 2024. Also, these 10 GWh are comprised of 10 integrated battery energy storage systems (BESS) that will support the nation’s continued transition toward sustainable renewable energy.
US Energy Storage Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Energy Storage Systems Installed Capacity and Forecast in USD billion, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Increase in Adoption of Renewable Energy
4.5.1.2 Declining Cost of Lithium-ion Batteries
4.5.2 Restraints
4.5.2.1 Presence of Other Energy Storage Systems
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Technology
5.1.1 Batteries
5.1.2 Other Energy Storage System Technologies
5.2 Phase
5.2.1 Single Phase
5.2.2 Three Phase
5.3 End User
5.3.1 Residential
5.3.2 Commercial and Industrial
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Tesla Inc.
6.3.2 Sungrow Power Supply Co. Ltd
6.3.3 BYD Co. Ltd
6.3.4 Sonnen GmbH
6.3.5 LG Energy Solution Ltd
6.3.6 Enphase Energy
6.3.7 Voith GmbH & Co. KGaA
6.3.8 Andritz AG
6.3.9 Siemens Energy AG
6.3.10 Fluence Energy
- *List Not Exhaustive
6.4 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Technological Advancements in Lithium-ion Batteries
United States Energy Storage Industry Segmentation
Energy storage is the capture of energy produced at one time for use at a later time to reduce imbalances between energy demand and energy production. A device that stores energy is generally called an accumulator or battery.
The US energy storage market is segmented by technology, phase, and end user. By technology, the market is segmented by batteries and other energy storage system technologies. By type of phase, the market is segmented into single phase and three phase. By end user, the market is segmented into residential and commercial and industrial. For each segment, the market sizing and forecasts were made based on USD.
| Technology | |
| Batteries | |
| Other Energy Storage System Technologies |
| Phase | |
| Single Phase | |
| Three Phase |
| End User | |
| Residential | |
| Commercial and Industrial |
US Energy Storage Market Research FAQs
How big is the United States Energy Storage Market?
The United States Energy Storage Market size is expected to reach USD 3.45 billion in 2024 and grow at a CAGR of 6.70% to reach USD 5.67 billion by 2029.
What is the current United States Energy Storage Market size?
In 2024, the United States Energy Storage Market size is expected to reach USD 3.45 billion.
Who are the key players in United States Energy Storage Market?
Tesla Inc, BYD Co. Ltd, LG Energy Solution Ltd, Enphase Energy and Sungrow Power Supply Co., Ltd are the major companies operating in the United States Energy Storage Market.
What years does this United States Energy Storage Market cover, and what was the market size in 2023?
In 2023, the United States Energy Storage Market size was estimated at USD 3.22 billion. The report covers the United States Energy Storage Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Energy Storage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
How is the U.S. Energy Storage Market segmented?
The U.S. Energy Storage Market segmented by a) Technology: pumped hydro, electro-chemical, electro-mechanical, and thermal energy storage b) Application: electric time energy shift, electric supply capacity, black start, renewable capacity firming and frequency regulation
How is the U.S. Energy Storage Market segmented?
The U.S. Energy Storage Market segmented by a) Technology: pumped hydro, electro-chemical, electro-mechanical, and thermal energy storage b) Application: electric time energy shift, electric supply capacity, black start, renewable capacity firming and frequency regulation
US Energy Storage Industry Report
The U.S. energy storage market is poised for significant growth, driven by the demand for modernizing the existing grid network and integrating renewable energy sources. This expansion is bolstered by technological innovations that enhance energy efficiency, favorable regulatory frameworks, and increasing renewable storage capacities. Top battery storage companies and energy storage manufacturers are making substantial investments in pumped hydro storage and electric energy time shift applications.
The residential sector is anticipated to lead, fueled by growing renewable installations and advancements in energy storage technology. Overall, the focus is on boosting grid reliability and resilience, crucial for managing the variability of renewable sources like solar and wind.
For a detailed market forecast and historical overview, refer to industry reports by Mordor Intelligence™, which provide comprehensive market share, size, and revenue growth rate analysis. Download a free report PDF sample for more insights into the U.S. Energy Storage market, including the roles of leading battery storage companies and energy storage manufacturers.
The report covers US Energy Storage Companies and it is segmented by Technology (Batteries and Other Energy Storage System Technologies), Phase (Single Phase and Three Phase), and End-User (Residential and Commercial & Industrial). The U.S. energy storage market is poised for significant growth, driven by the demand for modernizing the existing grid network and integrating renewable energy sources. This expansion is bolstered by technological innovations that enhance energy efficiency, favorable regulatory frameworks, and increasing renewable storage capacities. Top battery storage companies and energy storage manufacturers are making substantial investments in pumped hydro storage and electric energy time shift applications.
The residential sector is anticipated to lead, fueled by growing renewable installations and advancements in energy storage technology. Overall, the focus is on boosting grid reliability and resilience, crucial for managing the variability of renewable sources like solar and wind.
For a detailed market forecast and historical overview, refer to industry reports by Mordor Intelligence™, which provide comprehensive market share, size, and revenue growth rate analysis. Download a free report PDF sample for more insights into the U.S. Energy Storage market, including the roles of leading battery storage companies and energy storage manufacturers.
