Global Grid Energy Storage Market Size, Share And Growth Analysis By Battery Chemistry (Lead-acid, Sodium-based, Redox Flow, Lithium-ion, Others), By Ownership (Third-party Owned, Utility Owned), By Application (Renewables, Peak Shifting, Ancillary Services, Backup Power, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Grid Energy Storage Market size is expected to be worth around USD 115.3 Bn by 2034, from USD 13.1 Bn in 2024, growing at a CAGR of 24.3% during the forecast period from 2025 to 2034.

Grid energy storage involves using technology to store electricity for later use, supporting the integration of renewable energy sources like wind and solar into the power grid. With the growing demand for reliable, sustainable, and flexible energy solutions, these systems help stabilize the grid by storing surplus energy during periods of low demand and releasing it when demand is high.

Government initiatives, including tax credits, subsidies, and research funding, have spurred significant growth in energy storage. For example, the U.S. Department of Energy has provided financial support for new technologies, while Europe and China have introduced mandates to encourage investments from both public and private sectors.

Looking ahead, the market is expected to expand rapidly. Advancements in battery technologies, particularly solid-state batteries, offer higher energy density and improved safety compared to traditional lithium-ion batteries. Additionally, AI and machine learning innovations are making energy storage systems more efficient by optimizing power distribution and load management.

As the sector continues to evolve, it will benefit from next-generation battery materials that improve performance and longevity. Emerging markets will also play a key role in driving demand as they seek more renewable energy integration. By 2030, annual deployments of grid-scale storage systems are projected to exceed 100 gigawatt-hours, cementing their importance in the global energy transition.

Key Takeaways

• Grid Energy Storage Market size is expected to be worth around USD 115.3 Bn by 2034, from USD 13.1 Bn in 2024, growing at a CAGR of 24.3%.
• Lithium-ion held a dominant market position, capturing more than a 67.2% share.
• Third-party Owned held a dominant market position, capturing more than a 67.2% share.
• Renewables held a dominant market position, capturing more than a 37.4% share
• North America held a dominant position in the grid energy storage market, capturing a significant
• share of 35.9%, with a market value of approximately USD 4.7 billion.

By Battery Chemistry

In 2024, Lithium-ion held a dominant market position, capturing more than a 67.2% share of the grid energy storage market. The widespread adoption of Lithium-ion batteries in grid storage applications can be attributed to their high energy density, longer lifespan, and cost-effectiveness compared to other battery chemistries. These factors have made Lithium-ion the preferred choice for both large-scale and distributed energy storage systems.

The growing demand for renewable energy sources, such as solar and wind, has also fueled the need for efficient energy storage solutions to balance grid supply and demand. Lithium-ion batteries, known for their ability to provide fast charge and discharge cycles, are especially suited for this role. As a result, more and more utilities and energy providers have been investing in Lithium-ion battery technology to stabilize the grid and ensure a reliable power supply.

By Ownership

In 2024, Third-party Owned held a dominant market position, capturing more than a 67.2% share of the grid energy storage market. This ownership model has become increasingly popular, particularly for utilities and businesses looking to implement energy storage solutions without bearing the high upfront costs. Third-party ownership allows customers to access grid energy storage systems through agreements such as power purchase agreements (PPAs) or leasing contracts, often with little or no capital expenditure required at the start.

The growth of this segment is largely driven by the increasing demand for cost-effective energy storage options, as well as the financial flexibility it provides. In particular, it appeals to smaller businesses and communities that want to benefit from energy storage systems without having to manage the complexities of system installation, maintenance, and operation. Moreover, third-party ownership aligns well with the rise of renewable energy integration, where storage systems play a crucial role in stabilizing the grid by storing excess power during periods of high generation and discharging it during high demand.

By Application

In 2024, Renewables held a dominant market position, capturing more than a 37.4% share of the grid energy storage market. This growth is primarily driven by the increasing integration of renewable energy sources like solar and wind into the global power grid. As renewable energy production is intermittent and often depends on weather conditions, grid energy storage systems play a critical role in storing excess energy generated during peak production times and discharging it when demand is high or generation is low.

The adoption of grid energy storage for renewable energy applications is essential to address the challenges of balancing supply and demand. Energy storage systems, such as batteries, allow renewable energy to be stored during periods of high production and then released during periods of low production, ensuring a stable and reliable power supply. This capability is especially important as countries continue to push for cleaner energy and move away from fossil fuels.

Key Market Segments

By Battery Chemistry

• Lead-acid
• Sodium-based
• Redox Flow
• Lithium-ion
• Others

By Ownership

• Third-party Owned
• Utility Owned

By Application

• Renewables
• Peak Shifting
• Ancillary Services
• Backup Power
• Others

Drivers

Government Initiatives and Support for Grid Energy Storage

One of the major driving factors for the growth of the grid energy storage market is the increasing support and incentives provided by governments worldwide to promote clean energy adoption. As the world shifts towards a low-carbon economy, governments are offering a range of financial incentives, grants, and subsidies to support energy storage systems, particularly for renewable energy integration.

For example, in the United States, the federal government has introduced several key initiatives to drive the adoption of energy storage technologies. The U.S. Department of Energy (DOE) has set aside billions of dollars to fund energy storage research and development, including projects that aim to improve grid-scale storage solutions. In 2022, the DOE launched a $3.5 billion funding program for energy storage technology, which is expected to significantly improve grid reliability and resilience while supporting renewable energy sources like solar and wind.

Similarly, in Europe, the European Union’s Green Deal and Renewable Energy Directive (RED II) aim to increase the share of renewables in the energy mix to 32% by 2030, alongside creating an energy system that integrates efficient storage solutions. The European Investment Bank (EIB) also has been funding renewable energy and storage projects across member countries. In 2021, the EIB allocated €1.3 billion towards supporting energy storage projects and technologies across Europe, recognizing the importance of storage in maintaining grid stability as renewable sources grow.

Such government-backed initiatives are crucial because they help de-risk energy storage investments for private companies and lower the cost barrier for utilities and industries. According to the International Renewable Energy Agency (IRENA), grid-scale battery storage capacity worldwide is expected to increase from 7.5 GW in 2021 to 25 GW by 2025, largely driven by these types of government incentives.

Restraints

High Initial Investment and Capital Costs

One of the major restraining factors for the growth of the grid energy storage market is the high initial investment and capital costs associated with the installation of energy storage systems, particularly for large-scale grid applications. While the cost of storage technologies, such as lithium-ion batteries, has decreased in recent years, it remains a significant barrier for many utilities and private companies. The installation of grid-scale energy storage systems requires not only the cost of the batteries but also the associated infrastructure, including power conversion systems, installation labor, and ongoing maintenance.

For example, according to the International Energy Agency (IEA), the cost of lithium-ion batteries, which dominate the market for grid storage, is still around $130 per kWh as of 2023, despite a significant decrease from over $1,100 per kWh in 2010. However, for large-scale projects, the total cost still amounts to millions of dollars, which is a deterrent for many utilities, especially in emerging markets or areas with less access to funding.

The financial burden of these systems is compounded by the fact that, while they can help reduce energy costs in the long term, the payback period can stretch over 10 to 15 years. For industries such as food production, where energy costs are a significant part of operational expenses, the upfront costs of installing grid energy storage systems can be too high compared to the immediate benefits.

Additionally, some governments have been slow to offer financial incentives or subsidies for energy storage technologies, especially in developing countries. While nations like the U.S. and EU have committed to renewable energy and storage through initiatives, many developing countries are still in the early stages of adopting grid storage solutions due to financial limitations.

Opportunity

Integration of Energy Storage with Renewable Energy

A significant growth opportunity for the grid energy storage market lies in the increasing integration of energy storage systems with renewable energy sources, such as solar and wind. As countries continue to prioritize renewable energy in their energy mix, the need for efficient energy storage to manage the intermittency of these sources is growing. This offers a promising opportunity for grid storage solutions to play a pivotal role in ensuring a stable and reliable energy supply.

For instance, the International Renewable Energy Agency (IRENA) projects that renewable energy will account for 86% of global power demand by 2050. This means that more solar and wind power will need to be stored for use during periods when generation exceeds demand. Grid energy storage systems, like lithium-ion batteries, are essential for this, as they can store excess power during sunny or windy periods and release it when demand is higher or generation slows down. The global market for grid-connected storage systems is set to see strong growth, with IRENA estimating a rise from 7.5 GW of battery storage capacity in 2021 to 25 GW by 2025.

Governments worldwide are increasingly supporting this shift. For example, the U.S. Department of Energy has committed billions of dollars to renewable energy and storage development through initiatives like the Energy Storage Grand Challenge, which aims to accelerate innovation in energy storage technologies. Similarly, the European Union has integrated energy storage into its renewable energy strategies, offering financial incentives to projects that combine storage and renewable generation to enhance grid stability.

Trends

Rise of Long-duration Energy Storage (LDES)

A major trend shaping the grid energy storage market is the rise of long-duration energy storage (LDES) systems, which are becoming increasingly important as energy storage needs evolve. While traditional batteries like lithium-ion are widely used for short-duration storage (typically a few hours), there is a growing demand for storage solutions that can store energy for much longer periods, ranging from 10 to 100 hours. This trend is driven by the need to store renewable energy, especially from solar and wind, when it’s abundant and release it during periods of low generation, such as during cloudy days or calm nights.

Long-duration energy storage technologies, such as iron-air batteries, flow batteries, and pumped hydro storage, are gaining attention due to their ability to provide more extensive storage capabilities. These systems can store energy over much longer durations, making them a vital component for ensuring grid stability in regions with high renewable energy penetration. For example, in the U.S., the Department of Energy (DOE) has invested heavily in advancing LDES technologies, allocating more than $200 million to research and development projects focused on long-duration storage in 2023 alone.

The potential for LDES to transform the energy storage landscape is significant. According to a recent report from the National Renewable Energy Laboratory (NREL), long-duration storage could reduce the need for fossil-fuel backup plants, which are currently relied upon to stabilize grids during periods of high demand or low renewable generation. The DOE’s investment is aimed at reducing the cost of LDES technologies, which currently remain expensive compared to short-duration storage options.

Regional Analysis

In 2024, North America held a dominant position in the grid energy storage market, capturing a significant share of 35.9%, with a market value of approximately USD 4.7 billion. This region’s leadership is largely driven by strong government support, high investment in renewable energy projects, and the rapid adoption of energy storage technologies by utilities and private sector players. The U.S. continues to be the largest contributor to this growth, propelled by federal and state-level initiatives aimed at expanding clean energy infrastructure. The Energy Storage Grand Challenge, introduced by the U.S. Department of Energy, has allocated millions of dollars to support advanced storage technology development, providing a favorable environment for market expansion.

The rise in renewable energy adoption, particularly solar and wind, has led to an increased demand for efficient energy storage systems. As renewable energy sources are often intermittent, grid energy storage solutions are crucial for balancing supply and demand. North America’s emphasis on achieving carbon reduction goals is further encouraging investments in energy storage. For example, California, a leading state in the region, has committed to achieving 100% clean energy by 2045, significantly driving the demand for large-scale energy storage projects.

Additionally, the region is seeing a surge in private-sector investments. Companies like Tesla, which is leading in battery technology, are playing a pivotal role in the growing adoption of energy storage systems. As of 2025, North America’s market share is expected to grow, driven by continued innovation, regulatory support, and expanding renewable energy projects, solidifying its position as the largest market for grid energy storage.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

24M Technologies focuses on next-generation lithium-ion battery technologies aimed at reducing costs and improving performance for grid energy storage. Their innovative semi-solid battery technology is designed to enhance the scalability and energy density of batteries, offering a more cost-effective solution for large-scale energy storage projects. The company’s approach aims to drive down manufacturing costs while improving the sustainability of energy storage solutions.

ABB is a global leader in power and automation technologies, offering comprehensive grid energy storage solutions. Their portfolio includes energy management systems, advanced battery storage, and hybrid solutions that support renewable energy integration. ABB’s energy storage systems are designed to optimize grid stability, enhance energy reliability, and facilitate the transition to cleaner energy by reducing reliance on fossil-fuel-based power generation.

Ambri is pioneering the development of liquid metal batteries for grid energy storage. Their technology is designed to provide low-cost, long-duration energy storage, ideal for balancing intermittent renewable energy. Ambri’s batteries have a unique design that allows them to operate at high temperatures, offering increased efficiency and longer operational lifespans compared to traditional battery chemistries, making them suitable for large-scale, utility-level storage applications.

BYD Co. Ltd., a prominent player in the electric vehicle and renewable energy sectors, is a leading manufacturer of advanced battery technologies for grid energy storage. The company’s energy storage solutions are focused on enhancing grid reliability, integrating renewable energy, and providing backup power. BYD’s lithium iron phosphate (LFP) batteries are widely used in large-scale energy storage projects due to their safety, stability, and efficiency.

Top Key Players in the Market

• 24M Technologies, Inc.
• ABB Group
• Ambri Incorporated
• BYD Co. Ltd.
• BYD Company Ltd
• Fluence Energy
• FZSONICK SA
• General Electric
• GS Yuasa Corp.
• Hitachi Ltd.
• KORE Power, Inc.
• LG Chem Ltd.
• Lockheed Martin Corporation
• Mitsubishi Electric Corp.
• NGK Insulators Ltd.
• Panasonic Corp.
• Redflow Limited
• Samsung SDI Co. Ltd.
• Sumitomo Electric Industries, Ltd.
• VRB Energy

Recent Developments

In 2024, 24M raised $50 million in funding to accelerate the development of its next-generation battery technology.

In 2024, ABB’s energy storage systems were deployed in over 30 countries, helping utilities optimize grid operations and improve reliability. Additionally, ABB’s partnership with various utility companies and renewable energy firms has resulted in projects totaling more than 1,500 MW of installed storage capacity worldwide.

In 2024, Ambri is advancing its vision of revolutionizing grid storage with batteries that can last up to 30 years and handle large fluctuations in energy supply and demand.

Report Scope