Grid-scale Battery Storage Market Report 2025

This Grid-scale Battery Storage market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The grid-scale battery storage market size has grown exponentially in recent years. It will grow from $7.51 billion in 2024 to $9.87 billion in 2025 at a compound annual growth rate (CAGR) of 31.3%. The growth in the historic period can be attributed to growing energy consumption, fossil fuel plant retirement, increased focus on energy independence and resilience, corporate sustainability goals, regulatory support for ancillary services.

The grid-scale battery storage market size is expected to see exponential growth in the next few years. It will grow to $29.1 billion in 2029 at a compound annual growth rate (CAGR) of 31%. The growth in the forecast period can be attributed to development of hydrogen energy storage, advances in alternative battery technologies, electric vehicle integration, decarbonization policies, increased renewable energy penetration. Major trends in the forecast period include focus on sustainability and recycling, rising interest in virtual power plants, increased use of artificial intelligence, hybrid renewable energy systems, and growth in long-duration energy storage.

The growing demand for renewable energy is anticipated to drive the expansion of the grid-scale battery storage market in the coming years. Renewable energy encompasses energy derived from natural sources that are continuously replenished, such as sunlight, wind, and geothermal heat. This increase in demand is primarily fueled by the urgency to combat climate change, minimize environmental impact, and bolster energy security and sustainability. Grid-scale battery storage plays a crucial role in renewable energy by storing excess energy generated from sources such as solar and wind, ensuring a reliable power supply when production is low or demand is high. For instance, in March 2024, the European Environment Agency, a Denmark-based government agency, reported that renewable sources accounted for 23% of the energy consumed in the EU in 2022, up from 21.9% in 2021. Thus, the rising demand for renewable energy is significantly propelling the growth of the grid-scale battery storage market.

Prominent companies in the grid-scale battery storage market are concentrating on developing innovative solutions, such as energy storage systems, aimed at enhancing energy density and efficiency while ensuring zero degradation for both power and capacity. Energy storage systems are technologies designed to capture and store energy for later use, effectively balancing supply and demand to improve efficiency and reliability. For example, in April 2024, Contemporary Amperex Technology Co. (CATL), a China-based battery manufacturer, launched the TENER energy storage product. TENER is tailored for large-scale applications and features high energy density along with an extended cycle life. By utilizing advanced lithium-ion technology, it ensures enhanced safety and efficiency, while its modular design allows for flexible scalability to meet varying grid demands. Additionally, TENER is engineered to deliver strong performance in extreme temperatures, ensuring reliable operation under diverse environmental conditions.

In September 2022, Powin Energy Corporation, a US-based provider of energy storage systems, acquired EKS Energy for an undisclosed sum. This acquisition enhances Powin Energy Corporation's capabilities by providing improved control and optimization of energy storage systems. By integrating EKS Energy’s advanced power conversion technologies, Powin is positioned to offer more efficient and scalable energy storage solutions, thereby enhancing grid performance and facilitating the integration of renewable energy. EKS Energy is a Spain-based provider specializing in grid-scale battery storage.

Major companies operating in the grid-scale battery storage market are E.ON SE, The General Electric Company, BYD Company Ltd., Mitsubishi Electric, ABB Ltd., Johnson Controls International PLC, Pacific Gas and Electric, NextEra Energy, Samsung SDI Co. Ltd., Xcel Energy Inc., Sungrow Power Supply Co. Ltd., EnerSys, AES Corporation, Fluence Energy Inc., RES Group, Northvolt AB, EDP Renewables, Saft Groupe S.A., Stem Inc., NEC Energy Solutions, Contemporary Amperex Technology Co. Limited, Eos Energy Enterprises, LG Energy Solution, Narada Power Source Co. Ltd., ESS Inc.

North America was the largest region in the grid-scale battery storage market in 2023. The regions covered in the grid-scale battery storage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the grid-scale battery storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Grid-scale battery storage refers to large-scale energy storage systems designed for utility and grid management. These systems play a crucial role in balancing supply and demand, providing backup power, and enhancing the stability and reliability of the electricity grid. Typically deployed by utilities or energy providers, they support renewable energy integration, facilitate peak shaving, and offer grid services such as frequency regulation.

The primary types of grid-scale battery storage include lithium-ion batteries, sodium-based batteries, flow batteries, advanced lead-acid batteries, solid-state batteries, nickel-based batteries, fuel cells, and others. Lithium-ion batteries are defined as energy storage devices that operate by transferring lithium ions between positive and negative electrodes to store and release energy. They come in various capacities - small, medium, and large - and are available under both public and private ownership models. Their applications span across industrial, residential, commercial, utility, renewable integration, microgrids, and electric vehicles.

The grid-scale battery storage market research report is one of a series of new reports that provides grid-scale battery storage market statistics, including grid-scale battery storage industry global market size, regional shares, competitors with a grid-scale battery storage market share, detailed grid-scale battery storage market segments, market trends and opportunities, and any further data you may need to thrive in the grid-scale battery storage industry. This grid-scale battery storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The grid-scale battery storage market consists of sales of metal-air batteries, thermal energy storage, and supercapacitors. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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