Battery Energy Storage System Market is expected to reach US$ 143.28 Billion by 2031

Growing Focus on Establishing Vigorous Storage Infrastructure Strengthens Battery Energy Storage System Market Growth 

According to our latest market study on "Global Battery Energy Storage System Market Analysis to 2031 – Global Analysis – by Type, Connection Type, and End User," the battery energy storage system market was valued at US$ 41.97 billion in 2024 and is expected to reach US$ 143.28 billion by 2031; it is anticipated to register a CAGR of 17.91% during 2025–2031. The report includes growth prospects in light of current battery energy storage system market trends and driving factors influencing the market growth.   

The changing energy circumstances across the world are generating a demand for energy, as well as energy storage systems. Storage systems allow the usage of stored energy as per the requirement. Developments in energy storage systems and an increase in research and development in energy management systems are bolstering the battery energy storage system market growth. For example, in the US, Stor4Build (an association on energy storage for buildings) is working to accelerate the optimization and deployment of storage technologies. The consortium is co-led by the National Renewable Energy Laboratory (NREL), US Department of Energy (DoE), Oak Ridge National Laboratory (ORNL), and Lawrence Berkeley National Laboratory (Berkeley Lab).

Battery Energy Storage System Market Share — by Geography, 2024

Source: The Insight Partners Analysis

In 2024, Enel Green Power had ~26 battery energy storage systems in Italy: 15 of them are in operation, with a total capacity of about 800 MW, while 11 are under construction, and their completion will bring the total capacity to about 1.8 GW. In 2024, TagEnergy, a renewable developer and independent power producer (IPP), announced the construction of its largest battery energy storage system project in France; this 240MW/480MWh project with Tesla is meant to provide battery energy storage systems and EPC services. In February 2025, Lithuania announced a US$ 106 million battery energy storage systems tender to install high-power electricity storage facilities to balance the electricity system.

The scope of the battery energy storage system market report focuses on North America, Europe, Asia Pacific, and the Rest of World. In terms of revenue, North America accounted for the largest battery energy storage system market share in 2024 and is anticipated to fuel the market growth during 2025–2031. China has been boosting its energy generation and storage capacities over the past few years. The country is engaged in the development and deployment of solar and wind farms to achieve its renewable capacity commitments. In 2024, China completed the installation of its renewable scheduled capacity, which was likely to be completed by the end of 2030. This remarkable achievement completed its renewable installation targets 6 years ahead of its schedule. As of 2023, the country had ~86 GW of energy storage, wherein 59.3% accounted for pumped storage and 40.6% for battery energy storage capacities. Moreover, declining costs of lithium iron phosphate (LFP) battery energy storage systems to a level of US$ 100/KWh drive the installation of battery energy storage systems across the country. Further, in 2023, a 100MW/200MWh project using a semi-solid battery energy storage system was connected to the grid in Zhejiang.

Battery energy storage system capacity has surged considerably in the world since 2021, owing to the rise in government initiatives and investments in renewable power generation, along with the expansion of microgrids and  battery energy storage system capacity across countries such as the US, Canada, France, the UK, Germany, China, India, Brazil, and Saudi Arabia. In 2023, the German Federal Government announced its plan to initiate a few major transportation infrastructure projects, including the Stuttgart 21 Railway Project, the Frankfurt Airport Terminal 3, Fehmarnbelt Fixed Link, and Energy Transition and Green Infrastructure. Fraport AG is expected to expand terminal 3 of the Frankfurt International Airport with an investment of US$ 5.7 billion and is expected to be in operation by 2026. The demand for electricity from these infrastructure developments will increase in the future, propelling the demand for battery energy storage systems. The rising demand for renewable energy generation capacities, surging investment by private sectors in power generation, growing inclination toward renewable energy sources from fossil fuels, increasing demand for smart grid installations and upgrades to the existing grid, and targets set for renewable installations by respective countries are boosting the battery energy storage system market size. A few of the major developments across the globe are mentioned below:

• In 2024, RelyEZ, a Chinese battery energy storage developer, introduced “GridUltra 5016” (a two-hour 5 MWh battery system) for utility-scale and commercial and industrial (C&I) applications. The containerized battery system consists of 12 RelyEZ battery racks connected in parallel, with each rack made of 52 battery packs connected in series. The company is using 52 lithium iron phosphate (LFP) cells rated for 314 Ah and 3.2 V.
• In 2024, China embarked on a pioneering large-scale energy storage project utilizing sodium-ion technology. The battery energy storage system initiative in Hubei province fuels a capacity of 50MW/100MWh. This project stands as a significant leap forward in the commercial application of sodium-ion batteries, diversifying energy storage solutions beyond the widely used lithium-ion systems.
• Sembcorp Industries announced a joint venture with PT PLN Nusantara Renewables for the development of a 50 MW solar power facility and a 14 MWh battery energy storage system in Nusantara, Indonesia. (Sembcorp, Press Release, June 2024)
• In November 2024, the government of Malaysia announced a new project for the installation of 400 MW battery energy storage systems. The project will be conducted in four phases, each with a capacity of 100MW/400MWh, and is expected to become commercially operational by Q1 2026.
• American Energy Storage Innovations Inc (AESI) announced plans for its new manufacturing facility in Malaysia along with new partnerships, inducing an expanded cell supply deal with a Chinese firm and a nearly 1.5 GW battery energy storage systems delivery pact in the UK. (AESI, Press Release, September 2024)

Existing battery energy storage system installations and installations expected in the coming years are anticipated to drive the growth of the battery energy storage system market during the forecast period.

Key stakeholders in the battery energy storage system market are raw material suppliers, manufacturers, suppliers/distributors, and end users. The demand for battery energy storage systems has been growing significantly in recent years, owing to rising infrastructure development initiatives taken by government entities and private/public companies. The anode, separator, and electrolyte are primary components in a lithium-ion battery cell. Cathode raw materials such as lithium, or nickel, cobalt, manganese, phosphorus, and iron (used in varying combinations) are obtained from mining operations, processed into chemical metal, and combined to generate the cathode active material.

On the other hand, anodes are primarily made from graphite, which is produced from naturally occurring mined graphite. Individual lithium-ion battery cells are combined to form a battery pack for usage in battery energy storage systems, EVs, and other battery applications. Battery suppliers play a crucial role in the battery energy storage system market in the world. A few of the lithium-ion battery providers in the market are BYD Company Ltd., LG Energy Solution, and Panasonic Corporation. End users of battery energy storage systems include power plants; commercial, residential, and commercial buildings; and utilities.

The battery energy storage system market size estimation is carried out by identifying and evaluating key players in the market. BYD Co. Ltd; Saft America Inc.; CATL; Tesla Inc.; Samsung SDI Co Ltd; Panasonic Holdings Corp; AES Corp; NextEra Energy, Inc.; Ameresco Inc.; ESS, Inc.; Siemens AG; EOS Energy Enterprises Inc.; KORE Power Inc.; General Electric Co; LG Chem Ltd.; SAFT Groupe SA; and ESS Inc. are among the key players profiled in global battery energy storage system market report.  

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