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Battery Energy Storage Market

Battery Energy Storage Market

Battery Energy Storage Market - Global Industry Assessment & Forecast

Number Of Pages # Pages:


Base Year:



May - 2024



Report Code:


Segments Covered
  • By Element By Element Battery, Others
  • By Battery Type By Battery Type Lithium-Ion Batteries, Advanced Lead Acid Batteries, Flow Batteries, Others
  • By Connection Type By Connection Type On-grid, Off-grid
  • By Ownership By Ownership Customer-Owned, Third-Party Owned, Utility-Owned
  • By Energy Capacity By Energy Capacity Below 100 MWh, Between 100 to 500 MWh, Above 500 MWh
  • By Application By Application Residential, Commercial, Utility
  • By Region By Region North America, Europe, Asia Pacific, Latin America, MIddle East & Africa
Base YearBase Year: 2023
Forecast YearsForecast Years: 2024 - 2032
Historical YearsHistorical Years: 2018 - 2022
Revenue 2023Revenue 2023: USD 5.94 Billion
Revenue 2032Revenue 2032: USD 50.5l Billion
Revenue CAGRRevenue CAGR (2024 - 2032): 26.9%
Fastest Growing Region Fastest Growing Region (2024 - 2032) North America
Largest Region Largest Region (2023): Asia Pacific
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost) Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries) Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report Country/Region-specific Report
  • Go To Market Strategy Go To Market Strategy
  • Region Specific Market Dynamics Region Specific Market Dynamics
  • Region Level Market Share Region Level Market Share
  • Import Export Analysis Import Export Analysis
  • Production Analysis Production Analysis
  • Other Others Request Customization Speak To Analyst
Battery Energy Storage Market Share

The global Battery Energy Storage Market is valued at USD 5.94 Billion in 2023 and is projected to reach a value of USD 50.5l Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 26.9% between 2024 and 2032.

Key Highlights of Battery Energy Storage Market

  • Aisa Pacific led the Battery Energy Storage market in 2023, with 45.5% of the total market share
  • North America is projected to remain the fastest-growing region during the forecast period
  • In 2023, the Lithium-Ion Batteries segment took the lead in the market, contributing 58.3% of revenue share
  • The On-grid segment significantly contributed to the market’s expansion, constituting over 63.2% of the overall revenue share in 2023
  • Based on Energy Capacity, above 500 MWh category dominated the market in 2023, accounting for a significant 56.5% of the total revenue

Battery Energy Storage Market Size, 2023 To 2032 (USD Billion)

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Battery Energy Storage Market: Regional Overview

  • In 2023, Asia Pacific Battery Energy Storage market held a significant dominance with 45.5% of the total revenue.
  • India's energy landscape took a momentous leap as the Delhi Electricity Regulatory Commission (DERC) granted regulatory sanction to the country's inaugural commercial standalone Battery Energy Storage (BESS) project. Spearheaded by the Global Energy Alliance for People and Planet (GEAPP), this landmark initiative secured 70% of its funding through a concessional loan.
  • Through the establishment of a strong responsible sourcing policy and supply chain management framework, LG Energy Solution has reinforced its commitment to ethical practice and sustainability. Adhering to stringent global standards set by organizations like the UN, OECD, and ILO, LG Energy Solution ensures ethical conduct throughout its supply chain. With the implementation of a supplier code of conduct and regular ESG assessment, companies and their suppliers can reduce risks associated with sustainability issues while encouraging continuous improvement in areas such as workers' rights, labor standards, ethics, environment conservation or mineral sourcing.
  • Korea's ascendancy in the battery storage industry is emblematic of its strategic government support & innovative industrial ecosystem. With two Korean enterprises commanding over 80% of the global lithium-ion battery (LiB) Energy Storage System (ESS) market, Korea's growth trajectory is indisputable. Government initiatives, including long-term development plans and substantial investments in R&D, have propelled the country's transition towards green growth since 2009.

China Battery Energy Storage Market Overview

  • China's Battery Energy Storage market surged to a valuation of USD 2.038 Billion in 2023, with forecasts indicating a meteoric rise to approximately USD 6.1 Billion by 2032. A significant Compound Annual Growth Rate (CAGR) of 13% from 2024 to 2032 is projected in this forecast.
  • China has embarked on a transformative journey towards new types of energy storage technologies, and in doing so is heralding the "golden circuit" of innovation throughout its provinces. This strategic shift, aimed at accelerating the green energy transition, witnessed new-type energy storage development prominently featured in the Government Work Report for the first time in 2024.
  • In Rudong, Jiangsu Province, China's foray into large-scale gravity energy storage is exemplified by the construction of a pioneering 100-megawatt-hour project. This endeavor, which is set to start operations in the near future and promises enhanced grid stability and resilience as energy demand continues to increase, represents a major step towards China's quest for innovation of energy storage solutions. In addition, a new era of grid level frequency regulation is being ushered in by the groundbreaking 30 MW flywheel energy storage project of Dinglun Technology in Shanxi Province.

U.S. Battery Energy Storage Market

The global Battery Energy Storage market can be categorized as Battery Type, Connection Type, Energy Capacity, and Region.

Parameter Details
Segments Covered

By Element

  • Battery
  • Others

By Battery Type

  • Lithium-Ion Batteries
  • Advanced Lead Acid Batteries
  • Flow Batteries
  • Others

By Connection Type

  • On-grid
  • Off-grid

By Ownership

  • Customer-Owned
  • Third-Party Owned
  • Utility-Owned

By Energy Capacity

  • Below 100 MWh
  • Between 100 to 500 MWh
  • Above 500 MWh

By Application

  • Residential
  • Commercial
  • Utility

By Region

  • North America
  • Europe
  • Asia Pacific
    • China
  • Latin America
  • MIddle East & Africa

Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • BYD Company Limited
  • LG Energy Solution
  • Samsung SDI Co. Ltd.
  • Siemens Energy
  • Panasonic Corporation
  • General Electric
  • ABB Ltd.
  • Hitachi Energy Ltd.
  • Siemens Energy
  • and TotalEnergies.
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis
Pricing and purchase options Avail of customized purchase options to meet your exact research needs. Explore purchase options

Battery Energy Storage Market: Battery Type Overview

  • In 2023, lithium-ion batteries dominated the Global Battery Energy Storage market with a 58.3% revenue share.
  • In the global lithium-ion energy storage market, Samsung SDI is at the forefront, pioneering a paradigm shift in the future of the energy industry. Leveraging its unparalleled expertise in small-sized lithium-ion rechargeable batteries, Samsung SDI ventured into lithium Battery Energy Storage (ESS) in 2010, building upon its legacy of delivering world-class technology. The ESS and large-size battery systems offered by Samsung SDI inherit the impeccable stability of their rechargeable batteries, acclaimed for powering cutting-edge mobile devices and electric vehicles.
  • With a strong presence in Korea, Europe, North America and Southeast Asia, Samsung SDI has established itself as the preferred choice of ESS solutions for diverse customers. The company has continued to dominate the Japanese market for Li-ion batteries in households, serving a number of multinational firms since 2012.
  • A testament to China's progress in the field of sustainable energy infrastructure in Foshan, South China's Guangdong Province, is the Baotang Energy Storage Facility. As the largest independent lithium battery energy storage facility in the country, it boasts the capacity to supply 430 million kilowatt hours (kWh) of clean electricity annually to the region, significantly mitigating carbon dioxide emissions by 300,000 tons.

Key Trends

  1. As renewable energy sources like wind and solar become increasingly prevalent, the need for efficient energy storage solutions rises. In order to stabilize the intermittency of wind power generation, Battery Energy Storage are crucial. The Hornsdale Power Reserve in South Australia, where Tesla's Megapack batteries are installed, is a prominent example of how battery storage can improve grid stability and promote renewables integration.
  2. The ongoing research & development efforts are driving advancements in battery technology, leading to higher energy density, improved safety, and longer lifespan. Such advancements are making Battery Energy Storage more cost-effective and efficient. Lithium-ion batteries, particularly those using advanced chemistries like lithium iron phosphate (LiFePO4) or lithium nickel manganese cobalt oxide (NMC), are gaining popularity in BESS deployments due to their high energy density, long cycle life, and relatively low maintenance requirements.
  3. Due to grid stability, peak demand management, and integration of renewables, utility scale battery energy storage projects are increasingly taking off in the world. The energy landscape is being reshaped by these large scale deployment, enabling the transition to a more sustainable mix of energies. The Moss Landing Energy Storage Facility in California, USA, developed by Vistra Corporation, is one of the largest battery energy storage projects in the world.
  4. Governments & utilities invest in grid modernization initiatives to enhance grid flexibility, reliability, and resilience. By providing ancillary services, frequency regulation, and backup power in the event of an outage, Battery Energy Storage play an important role in this effort. The UK's National Grid ESO (Electricity System Operator) is implementing various grid modernization projects, including the use of Battery Energy Storage for frequency response services. Such projects help maintain grid stability by rapidly adjusting power output to match fluctuations in demand and supply.
  5. It is becoming more and more common to build "Virtual Power Plants" that consist of decentralized energy sources like solar panels, wind turbines or battery storage systems. For grid operators to manage energy better and cheaper, these VPPs combine and optimize the performance of a variety of energy assets. Sonnen, a German-based energy storage company operates one of the largest virtual power plants in the world. To contribute to grid stability and integration of renewable energy, Sonnen's VPP provides grid services such as peak shaving, demand response or frequency regulation through its residential battery system network.

Battery Energy Storage Market - Government Initiatives:

  • UK Energy Act 2023 and Battery Strategy: Enacted on October 26, 2023, the UK's Energy Act 2023 signifies a landmark in energy legislation, followed by the publication of a comprehensive battery strategy on November 26, 2023. This strategy outlines a vision to establish a globally competitive battery supply chain, supporting economic prosperity and the net zero transition. With an investment exceeding £2 billion over five years (through 2030), it focuses on bolstering zero-emission vehicles, batteries, and their supply chains.
  • India's Energy Storage Initiatives: India's proactive approach to fulfilling Energy Storage Obligations includes regulatory frameworks like CERC (Ancillary Services) Regulations, enabling Energy Storage Systems (ESS) to provide essential services. Additionally, the Viability Gap Funding (VGF) scheme, spearheaded by the Ministry of Power, aims to develop 4,000 MWh of Battery Energy Storage (BESS) projects by 2030-31, with up to 40% financial support for capital costs.
  • EU State Aid Scheme for Italy: The European Union has greenlit a €17.7 billion state aid scheme to facilitate the deployment of over 9GW/71GWh of energy storage in Italy. This initiative provides annual payments covering investment and operating costs, fostering a competitive bidding process where developers with the most cost-effective offers secure funding.
  • U.S. Investment in Long-Duration Energy Storage: The Biden-Harris Administration's commitment to bolstering grid resilience and community energy systems is evident in its allocation of $325 million for long-duration energy storage projects across 17 states and one tribal nation. Supported by the Bipartisan Infrastructure Law, these projects aim to empower communities, mitigate grid disruptions, and foster reliable & affordable energy systems.
  • China's Growth in Energy Storage: China's robust initiatives during the 14th Five-Year Plan period have resulted in significant investments, exceeding 100 billion yuan, driving the expansion of energy storage capacities. By end-2023, China boasted 31.39 gigawatts of installed new-type energy storage capacity, a figure propelled by a 260% year-on-year growth. China's commitment to the development of energy storage technologies is further highlighted by the support from the National Energy Administration for 56 pilot demonstration projects.
  • Guangdong's New Energy Storage Policies: A comprehensive package of measures to promote the development of new energy storage installations has been adopted by the Guangdong Provincial Development and Reform Commission in conjunction with the Energy Bureau. Emphasizing diversified applications and policy support, these measures aim to standardize project construction management while ensuring the integration of new energy generation with storage facilities.
  • Innovative Energy Storage Project in Gansu Province: China's progress in the field of energy storage has been illustrated by an innovation project in Gansu Province integrating compressed air and lithium ion battery technologies for shared energy storage. With an investment surpassing 812 million yuan, this endeavor introduces a hybrid energy storage system with a capacity of 50 MW/200 MWh, representing a notable advancement in energy storage capabilities.
  • Largest Battery Storage System in Europe: It is a significant step forward in strengthening energy security and supporting the UK's transition to net zero economy by unveiling Europe's largest battery storage facility located in East Yorkshire. Given that it is capable of providing power to some 300,000 households for two hours, this initiative highlights the critical importance of energy storage in reducing reliance on fuels and advancing towards climate targets.
  • Rapid Expansion of U.S. Battery Storage Capacity: The United States is witnessing a substantial surge in battery storage capacity, poised for an 89% increase by the end of 2024. With planned expansions totaling over 30 gigawatts, battery storage is set to surpass traditional energy sources in several states, driven by the escalating demand for renewable energy integration & grid stability measures.

Premium Insights

The Global Battery Energy Storage Market is witnessing rapid growth fueled by escalating demand driven by their pivotal role in facilitating the integration of renewable energy sources into energy systems. Additionally, batteries are increasingly recognized for their ability to promote sustainability in industries & transportation sectors, thereby catalyzing the electrification of various segments. The EU's adoption of a comprehensive governance framework, along with strategic initiatives like the action plan on batteries outlined in the Communication on sustainable mobility for Europe (COM/2018/293), has been instrumental in nurturing a globally integrated, sustainable, and competitive battery industry. This progress is meticulously evaluated and summarized in the Commission report on the Implementation of the Strategic Action Plan on Batteries (COM/2019/176), underscoring the market's evolution towards sustainability and competitiveness.

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Market Dynamics

  • With over 11 GWh of integrated energy storage projects installed in construction, and in contracting, and boasting a global deployment of 30 GWh of energy storage batteries, LG Energy Solution Vertech Inc. stands as a testament to LG's 15 years of operational excellence, underscoring their commitment to innovative energy solutions.
  • A significant milestone in the energy storage sector is Grenergy's strategic agreement with BYD for the supply of 1.1 GWh of energy storage systems. As they close the purchase of the Oasis de Atacama storage project, which is expected to be the world's largest energy storage installation with a capacity of 4.1 GWh and an investment of USD 1.4 billion, this collaboration will reinforce Grenergy's commitment to Energy Storage business.
  • Samsung SDI's inaugural participation at the Korea Smart Grid Expo 2024 signifies a bold step towards securing a dominant position in the global ESS market. In order to increase its customer base while prioritizing safety features to grow the industry sustainably, Samsung SDI is unveiling a range of ESS battery products which include world's largest capacities SBB and high output UPS batteries.
  • LG Energy Solution's groundbreaking investment of KRW 7.2 trillion to establish a battery manufacturing complex in Arizona marks a historic milestone in North America's energy landscape. The complex will be able to meet the growing demand for electric vehicles and energy storage systems with an annual production capacity of 43 gigawatts, strengthen local manufacturing in order to respond to a rise in market needs as well as take advantage of IRA tax credits while fostering collaborative partnerships towards accelerated clean energy transition.

Competitive Landscape

  • The Competitive Landscape of the Battery Energy Storage market is dynamically shaped by strategic acquisitions, partnerships, and collaborative initiatives aimed at securing market leadership and advancing sustainable energy solutions.
  • In October 2023, Hitachi Energy, a global leader in sustainable energy solutions, made a significant move in the Battery Energy Storage market by acquiring a controlling stake in eks Energy. This strategic acquisition, based in Seville, Spain, positions Hitachi Energy to leverage eks Energy's expertise in power electronics and energy management solutions for storage and renewables integration.
  • January 2023 witnessed LG Energy Solution forging an extensive cooperation agreement with Hanwha Group, marking a pivotal moment in the competitive landscape of the Battery Energy Storage market. Through a Memorandum of Understanding (MoU), LG Energy Solution committed to collaborative endeavors with three Hanwha Group companies, focusing on joint investment and technology development initiatives. This strategic alliance aims to solidify LG Energy Solution's position as a market leader in the rapidly expanding U.S. energy storage systems market, with collaborative efforts extending to battery manufacturing equipment and specialized battery technologies.

Recent Market Developments

  • By April 2024, LG Energy Solution's $5.5 Billion independent Battery Manufacturing Complex Project in Arizona was well underway, with significant progress made. The company extended invitations to Arizona state government officials and local community representatives for a construction update on their second stand-alone facility in the U.S. Completion and commencement of production were anticipated within approximately two years, with substantial hiring for thousands of new positions slated to commence in the latter half of 2025. This initiative aimed to bolster the company's market competitiveness in the U.S. through its commitment to product and technological excellence.
  • In November 2023, GE Vernova and Our Next Energy Inc. (ONE) inked a term sheet agreement to collaborate on advancing battery energy storage solutions within the United States using domestically produced batteries. The collaboration encompassed the supply of ONE's battery modules containing domestically manufactured lithium iron phosphate (LFP) cells for GE Vernova's Solar & Storage Solutions projects nationwide. Integration of locally manufactured LFP batteries enabled GE Vernova and its clientele to leverage incentives provided by the Inflation Reduction Act (IRA) and Investment Tax Credits (ITC), enhancing the economic viability of their ventures.
  • June 2023 saw Panasonic Corporation of North America introduce the latest iteration of the EVERVOLT® Home Battery System: a modular residential storage solution supporting both DC and AC coupling. This versatile system accommodated both new and existing solar installations, combining a hybrid inverter, lithium-ion battery, and the innovative EVERVOLT® SmartBox—a comprehensive home energy management device.
  • ABB achieved a significant milestone in June 2023 by energizing one of the world's largest Battery Energy Storage. As the Philippines transitioned towards renewable energy sources, the nation bolstered grid reliability with the deployment of its largest integrated grid-scale Battery Energy Storage (BESS) at Limay in Bataan Province. Supplied by ABB for Universal Power Solutions Inc. (UPSI), a subsidiary of San Miguel Corporation Global Power Holdings Corp, this initiative aimed to enhance grid stability without divulging financial specifics.

Frequently Asked Question
  • The global Battery Energy Storage valued at USD 5.94 Billion in 2023 and is expected to reach USD 50.5l Billion in 2032 growing at a CAGR of 26.9%.

  • The prominent players in the market are BYD Company Limited, LG Energy Solution, Samsung SDI Co. Ltd., Siemens Energy, Panasonic Corporation, General Electric, ABB Ltd., Hitachi Energy Ltd., Siemens Energy, and TotalEnergies..

  • The market is project to grow at a CAGR of 26.9% between 2024 and 2032.

  • The driving factors of the Battery Energy Storage include

  • Asia Pacific was the leading regional segment of the Battery Energy Storage in 2023.