The global market for grid-scale electricity storage technologies is estimated to grow from $40.7 billion in 2024 to reach $151.2 billion by the end of 2029, at a compound annual growth rate (CAGR) of 30% from 2024 through 2029.
Grid-scale electricity storage technologies are grid-connected systems that can store energy and then return it to the grid at a more convenient time, such as at night when solar power is unavailable or during a weather event that interferes with electricity production. Energy storage technologies help integrate renewable energy sources, deliver ancillary services and enhance grid resilience to maintain the balance between supply and demand. Historically, pumped-storage hydropower was the most used method, but it can cause challenges in certain geographic conditions. Batteries play a crucial role in gridscale storage because different chemistries can be deployed anywhere in a wide range of capacities.
Battery energy storage systems (BESS), including lithium-ion and sodium-based batteries, are vital in today’s energy systems, enabling efficient storage and dispatch of electricity to meet fluctuating demand. They provide scalable solutions for utility projects, and industrial and commercial applications.
Energy storage systems are critical for integrating renewable energy sources, ensuring grid reliability and optimizing energy use. They offer benefits such as efficiency, density, faster response, frequency regulation, grid stability and peak demand management.
Electricity networks can benefit from utility-scale and behind-the-meter (BTM) battery storage services. Utility-scale battery storage can support grid stability and security of supply by offering ancillary services such as inertia, voltage control and frequency regulation, grid forming, fast-starting reserves and energy shifting, which helps balance supply and demand for electricity. However, growth in BTM is concentrated geographically and driven by high electricity prices and support measures. BTM can help reduce electricity costs and offer backup power by using variable electricity tariffs or less electricity during peak periods from the grid, enabling customers to use more self-generated electricity.
Governments worldwide are investing in grid-scale electricity storage technologies to support the global shift toward clean and more resilient energy systems. By 2030, BESS will be pivotal in decarbonizing the energy mix and achieving net-zero goals. According to the International Energy Agency (IEA), the global investment in battery energy storage increased by more than $35 billion in 2023, primarily in grid-scale deployment. G7 countries have set a target of 1,500 GW of new global energy storage by 2030, a six-fold increase from current levels. Demand for integrating renewable energy sources backed by grid modernization initiatives is leading to the increased installation of long-duration energy storage systems. The increasing focus on grid modernization, charging infrastructure and initiatives for developing more efficient, sustainable batteries are the main drivers of the growth of the market for grid-scale electricity storage technologies.
The report focuses on battery energy storage technologies; other storage technologies, such as pumped hydro, compressed air energy, flywheel and thermal energy are outside the scope of the report. When estimating the grid-scale electricity storage technologies market, transportation and residential sectors/deployments have also been excluded. The major focus segments are utility-scale and behind-the-meter. Energy shifting and capacity provision is a broader categorization that includes load shifting, energy arbitrage, peak demand management, uninterrupted supply of power and microgrid support. Commercial applications include retail stores, office buildings, schools, hospitals, data centers and hotels. Industrial applications include factories, warehouses, large-scale manufacturing plants and chemical plants. Manufacturing and heavy industry is a broader categorization of iron, steel, cement, chemical and petrochemical, auto, aluminum and non-ferrous metals. Where available, global capacities are presented to characterize the annual installation in the dominant locations.
Market estimates are valued in U.S. dollars (millions). Electricity storage system cost is in $/KWh, from sources such as the U.S. Department of Energy (DOE) and the National Renewable Energy Laboratory (NREL). Weighted average was used to balance the price variation in different regions. Forecast growth rates are based on expected capacity additions across the industry, feedback received from key industry players, revenue reported by major companies and anticipated regulatory updates. The report concentrates on grid-scale electricity storage technologies currently in commercial use; other promising technologies that are not likely to make it out of the laboratory are not covered. The values of the system in GWh were further converted into revenue in order to determine the market size. The grid-scale electricity storage technologies include batteries, energy management systems, power conversion systems, and safety mechanisms.
Grid-scale electricity storage technologies are grid-connected systems that can store energy and then return it to the grid at a more convenient time, such as at night when solar power is unavailable or during a weather event that interferes with electricity production. Energy storage technologies help integrate renewable energy sources, deliver ancillary services and enhance grid resilience to maintain the balance between supply and demand. Historically, pumped-storage hydropower was the most used method, but it can cause challenges in certain geographic conditions. Batteries play a crucial role in gridscale storage because different chemistries can be deployed anywhere in a wide range of capacities.
Battery energy storage systems (BESS), including lithium-ion and sodium-based batteries, are vital in today’s energy systems, enabling efficient storage and dispatch of electricity to meet fluctuating demand. They provide scalable solutions for utility projects, and industrial and commercial applications.
Energy storage systems are critical for integrating renewable energy sources, ensuring grid reliability and optimizing energy use. They offer benefits such as efficiency, density, faster response, frequency regulation, grid stability and peak demand management.
Electricity networks can benefit from utility-scale and behind-the-meter (BTM) battery storage services. Utility-scale battery storage can support grid stability and security of supply by offering ancillary services such as inertia, voltage control and frequency regulation, grid forming, fast-starting reserves and energy shifting, which helps balance supply and demand for electricity. However, growth in BTM is concentrated geographically and driven by high electricity prices and support measures. BTM can help reduce electricity costs and offer backup power by using variable electricity tariffs or less electricity during peak periods from the grid, enabling customers to use more self-generated electricity.
Governments worldwide are investing in grid-scale electricity storage technologies to support the global shift toward clean and more resilient energy systems. By 2030, BESS will be pivotal in decarbonizing the energy mix and achieving net-zero goals. According to the International Energy Agency (IEA), the global investment in battery energy storage increased by more than $35 billion in 2023, primarily in grid-scale deployment. G7 countries have set a target of 1,500 GW of new global energy storage by 2030, a six-fold increase from current levels. Demand for integrating renewable energy sources backed by grid modernization initiatives is leading to the increased installation of long-duration energy storage systems. The increasing focus on grid modernization, charging infrastructure and initiatives for developing more efficient, sustainable batteries are the main drivers of the growth of the market for grid-scale electricity storage technologies.
Report Scope
This report provides an analysis of the global market for grid-scale electricity storage technologies, reflecting the latest data, trends and market projections. The global market for grid-scale electricity storage technologies is segmented by technology (lithium-ion batteries, lead-acid batteries, flow batteries, sodium-ion batteries and others, which include nickel-based, solid state and zinc batteries); type (utility scale, behind-the-meter); application (utility scale, energy shifting and capacity provision, ancillary services and congestion management, behind-the-meter (commercial, industrial (manufacturing and heavy industry, mining, data centers, agriculture and others; and region (North America, Europe, Asia-Pacific and Rest of the World. The base year for the study is 2023 with estimates and forecasts for 2024 to 2029.The report focuses on battery energy storage technologies; other storage technologies, such as pumped hydro, compressed air energy, flywheel and thermal energy are outside the scope of the report. When estimating the grid-scale electricity storage technologies market, transportation and residential sectors/deployments have also been excluded. The major focus segments are utility-scale and behind-the-meter. Energy shifting and capacity provision is a broader categorization that includes load shifting, energy arbitrage, peak demand management, uninterrupted supply of power and microgrid support. Commercial applications include retail stores, office buildings, schools, hospitals, data centers and hotels. Industrial applications include factories, warehouses, large-scale manufacturing plants and chemical plants. Manufacturing and heavy industry is a broader categorization of iron, steel, cement, chemical and petrochemical, auto, aluminum and non-ferrous metals. Where available, global capacities are presented to characterize the annual installation in the dominant locations.
Market estimates are valued in U.S. dollars (millions). Electricity storage system cost is in $/KWh, from sources such as the U.S. Department of Energy (DOE) and the National Renewable Energy Laboratory (NREL). Weighted average was used to balance the price variation in different regions. Forecast growth rates are based on expected capacity additions across the industry, feedback received from key industry players, revenue reported by major companies and anticipated regulatory updates. The report concentrates on grid-scale electricity storage technologies currently in commercial use; other promising technologies that are not likely to make it out of the laboratory are not covered. The values of the system in GWh were further converted into revenue in order to determine the market size. The grid-scale electricity storage technologies include batteries, energy management systems, power conversion systems, and safety mechanisms.
The report includes:
- 57 data tables and 56 additional tables
- Analyses of trends in the global market for grid-scale electricity storage technologies, with revenue data for 2023, estimates for 2024, forecasts for 2028, and projected CAGRs through 2029
- Estimates of the size and growth forecasts of the global market, and a corresponding market share analysis by technology, application, service type, end-use vertical, and region
- Facts and figures pertaining to the global market dynamics, technological advances, regulations and standards, innovations, prospects, and the impact of macroeconomic factors
- Insights derived from the Porter’s Five Forces model, as well as global value/supply chain analysis
- Coverage of investments in research, development and demonstration projects, and smart grids and distributed power generation systems
- Patent analysis, emerging technologies/trends and new developments in the power generation industry
- Analysis of the industry structure, including companies’ market shares and global rankings, strategic alliances, M&A activity and a venture funding outlook
- Overview of sustainability trends and ESG developments, with emphasis on consumer attitudes, and the ESG scores and practices of leading companies
- Profiles of leading companies, including Tesla, SUNGROW, CRRC, Fluence Energy, and Beijing HyperStrong Technology Co. Ltd.
Table of Contents
Chapter 1 Executive Summary
Chapter 2 Market Overview
Chapter 3 Market Dynamics
Chapter 4 Emerging Technologies and Developments
Chapter 5 Market Segmentation Analysis
Chapter 6 Competitive Intelligence
Chapter 7 Sustainability in the Grid-Scale Electricity Storage Technologies Market: An ESG Perspective
Chapter 8 Appendix
List of Tables
List of Figures
Companies Mentioned
- Beijing Hyperstrong Technology Co. Ltd.
- BYD Co. Ltd.
- CALB
- Contemporary Amperex Technology Co. Ltd.
- CRRC
- Envision Group
- Fluence
- Gotion
- LG Energy Solution
- Nidec Corp.
- Panasonic Energy Co. Ltd.
- Samsung SDI
- Sungrow
- Tesla
- XYZ Storage Technology Corp. Ltd.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 165 |
| Published | March 2025 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value ( USD | $ 40.7 Billion |
| Forecasted Market Value ( USD | $ 151.2 Billion |
| Compound Annual Growth Rate | 30.0% |
| Regions Covered | Global |
| No. of Companies Mentioned | 15 |
