Global Battery Energy Storage Market Trends, Forecast Report 2025-2037
Battery Energy Storage Market size was over USD 20.36 billion in 2024 and is anticipated to exceed USD 90.93 billion by the end of 2037, growing at over 12.2% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of battery energy storage is assessed at USD 22.35 billion. Asia Pacific is anticipated to record USD 34.55 billion by 2037, fueled by electrification targets and renewable energy production.
The global battery energy storage is driven by the global shift towards renewable energy and the increasing need for grid stability. Increasing investments in solar and wind power, creating intermittent energy generation patterns, and a considerable transition towards low-carbon energy generation solutions are expected to contribute to a substantial expansion of industry size. According to the IEA, in 2022, global investment in battery storage was over USD 20 billion, with most investments concentrated on grid-wide deployment, representing almost 65% of overall expenditure.
Government policies supporting clean energy transitions, along with advancements in battery technologies, particularly in lithium-ion, are further propelling market demand. According to the OEC, the global trade of lithium-ion batteries was registered at USD 125 billion, marking a 27.3% increase from 2022. Additionally, energy storage systems are being increasingly adopted by utilities and industries to enhance energy efficiency and reduce dependency on fossil fuels. In September 2023, the Union Cabinet of India approved the Viability Gap Funding Scheme for Battery Energy Storage Systems (BESS) with a budgetary provision of USD 96 million, made for 1000 MWh BESS in 2024-25.
Battery Energy Storage Sector: Growth Drivers and Challenges
Growth Drivers
- Reduced emissions: The push to reduce greenhouse gas emissions is a major driver of battery energy storage market growth, as countries and industries seek leaner alternatives to fossil fuel-based power. Stated by the European Commission, in March 2021, batteries are the fastest-growing storage technology, which is anticipated to play a key role in meeting the EU goal of cutting greenhouse gas emissions by 55% by 2030. This aligns with global climate goals and net-zero targets, encouraging widespread adoption of battery solutions across power grids, businesses, and homes.
- Technological advancements: The developments in battery technology are leading to improvements in energy density, cycle life, security, and cost-effectiveness. As batteries become more efficient and affordable, adopting energy storage systems is likely to accelerate the market for battery energy storage. In April 2024, TotalEnergies announced the launch of a new battery-based project in the country in Feluy that is projected to have a power rating of 25 MW and capacity of 75 MWh with the help of forty Intensium Max High Energy lithium-ion containers supplied by Saft.
Challenges
- High Cost of Integration -Battery energy storage systems are expensive to install, with the cost of batteries being a significant portion of the overall system cost. While costs have been decreasing over the years, further reductions are needed to make these systems more economically viable, especially for large-scale applications, which so far pose a challenge to the battery energy storage market expansion.
Battery Energy Storage Market: Key Insights
| Report Attribute | Details |
|---|---|
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
12.2% |
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Base Year Market Size (2024) |
USD 20.36 billion |
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Forecast Year Market Size (2037) |
USD 90.93 billion |
|
Regional Scope |
|
Battery Energy Storage Segmentation
Battery Type (Lithium-Ion Battery, Lead-Acid Battery, Flow Battery)
The lithium-ion battery segment share in the battery energy storage market is poised to cross 58% by 2037. The increasing deployment of new high-capacity grid infrastructure, as well as continual developments in Li-ion BESS devices, fuels the market expansion. The Department of Science and Technology, India, in 2024, launched the project Design and Development of Lithium-Ion Batteries and Demonstration of 1.5 KWh battery pack for EV Application in a time period of 2024-2037, with an investment of USD 217261.50. Furthermore, multiple companies are investing in developing operational capabilities of various types, such as vanadium redox (VRB) flow batteries, to meet the growing demand across a wide range of applications.
Application (Commercial, Residential, Utility)
Utility segment is anticipated to have the largest share of the battery energy storage market through 2037, due to its critical role in stabilizing large-scale power grids and supporting renewable integration. Utilities rely on storage systems to manage peak demand, balance load fluctuations, and provide backup during outages, while also enhancing grid flexibility and reliability. Their large-scale deployment capacity and access to infrastructure make them key drivers of storage adoption, especially as they transition toward cleaner, more efficient energy systems.
Our in-depth analysis of the global battery energy storage market includes the following segments:
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Battery Type |
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Connection |
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Application |
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Vishnu Nair
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Battery Energy Storage Industry - Regional Synopsis
APAC Market Forecast
The Asia Pacific battery energy storage market is predicted to account for the largest share of 38% by 2037. The region is driven by rapid urbanization, rising energy demand, and strong government initiatives supporting renewable integration. Countries including China, South Korea, and Japan are investing heavily in large-scale storage to back their aggressive clean energy targets. The region also benefits from a strong manufacturing base, especially in battery production, which accelerates innovation and cost reduction across storage solutions.
India battery energy storage market is driven by frequent power outages, a growing EV ecosystem, and the need to support remote and rural electrification. Policy reforms, including battery storage tenders and incentives for hybrid renewable-storage systems, are encouraging both public and private investment in the sector. In January 2025, NTPC announced the launch of CO2 battery energy storage technology in the Long Duration Energy Storage (LDES) domain.
North American Market Analysis
The market in North America is anticipated to witness considerable expansion over the forecast period. The availability of supportive governmental policies, tax benefits for the deployment of renewable energy sources, and rising investments by public and private firms are some of the key elements supporting the growth of the regional market. The shift toward decarbonization and the adoption of smart grid technologies are key trends witnessed by the region’s market.
The U.S. battery energy storage market is at the forefront of innovation, propelled by grid regulations. States such as California and Texas are leading deployments to address energy resiliency, wildfire risks, and peak load management. Furthermore, the presence of major tech companies and energy innovators also fosters rapid advancement in software-driven energy storage and grid services.
Companies Dominating the Battery Energy Storage Landscape
- ABB
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Delta Electronics, Inc
- Hitachi, Ltd
- General Electric
- SAMSUNG SDI CO., LTD.
- Siemens
- Panasonic Holdings Corporation
- NEC Corporation
- AEG Power Solutions
- Toshiba International Corporation
Companies in the battery energy storage market are adopting strategies including vertical integration, strategic partnerships, and global expansion to strengthen their market position. Several players are investing in R&D to develop advanced battery chemistries and extend lifecycle performance, while others are focusing on software-driven energy management solutions. Some of the prominent players in the market are:
Recent Developments
- In September 2024, HiTHIUM deployed the largest battery energy storage system (BESS) project in Eastern Europe to date, with a capacity of 55 MWh, using HiTHIUM’s 16 energy storage containers, each with a capacity of 3.44 MWh, in Razlog, Southwestern Bulgaria.
- In May 2023, Delta introduced a portable skid-mounted energy storage system for industrial and commercial premises, as well as EV recharging stations, that can deliver runtimes ranging from 2.5 to 8 hours.
Author Credits: Ipseeta Dash
- Report ID: 3048
- Published Date: May 05, 2025
- Report Format: PDF, PPT
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