Global Grid-scale Battery Storage Market Size, Share Analysis By Battery Type (Lithium-ion Batteries, Flow Batteries, Zinc-hybrid Batteries, Sodium-based Batteries), By Deployment Network (Transmission Network, Distribution Network, Renewable Energy Generators), By Application (Renewable Load Sharing, Peak Shaving, Load Shifting, Backup Power, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Grid-scale Battery Storage Market size is expected to be worth around USD 132.2 Billion by 2034, from USD 12.9 Billion in 2024, growing at a CAGR of 26.2% during the forecast period from 2025 to 2034. In 2024, Asia-Pacific (APAC) held a dominant market position, capturing more than a 48.30% share, holding USD 6.2 Billion revenue.

Grid-scale battery energy storage systems (BESS) are pivotal to India’s transition towards a resilient and sustainable energy future. These systems facilitate the integration of variable renewable energy (VRE) sources like solar and wind into the national grid by providing essential services such as load balancing, frequency regulation, and peak shaving.

According to the Energy Storage System (ESS) Roadmap for India 2019–2032, developed by NITI Aayog and the India Smart Grid Forum, the total energy storage demand is projected to reach 1,710 GWh by 2027 and 2,416 GWh by 2032, encompassing applications across grid support, electric mobility, data centers, and telecom infrastructure.

The Indian government has recognized the strategic importance of energy storage in achieving its renewable energy targets and ensuring grid stability. In line with this, the Ministry of Power has launched the Viability Gap Funding (VGF) scheme to support the development of BESS projects. Under this initiative, Rajasthan has been allocated a 4,000 MWh BESS capacity, with central assistance of ₹720 crore at the rate of ₹18 lakh per MWh. This funding aims to enhance the state’s capacity to store renewable energy, thereby improving grid reliability and supporting the state’s ambition to become a green energy hub.

The driving factors behind the adoption of grid-scale BESS in India include the declining costs of battery technologies, the need for flexible grid operations to accommodate increasing renewable energy penetration, and the government’s supportive policies.

The National Mission on Transformative Mobility and Battery Storage, established in 2019, outlines a comprehensive framework for battery storage development, focusing on manufacturing, deployment, and integration with renewable energy sources. Additionally, the Central Electricity Authority (CEA) projects a requirement of 136 GWh of storage in the grid at various levels by 2030, underscoring the critical role of energy storage in future grid operations.

Global investment requirements are substantial: Wood Mackenzie estimates that US $1.2 trillion in BESS investment will be needed by 2034 to support deployment of over 5,900 GW of new wind and solar capacity. This underscores the vital role of battery storage in enabling renewable scale‑up. In Australia, recent commissioning of the Waratah Super Battery has added 350 MW, with capacity expected to reach 850 MW by end‑2025. The facility operates as part of a system integrity protection scheme, reinforcing grid resilience during extreme events.

Key Takeaways

• Grid-scale Battery Storage Market size is expected to be worth around USD 132.2 Billion by 2034, from USD 12.9 Billion in 2024, growing at a CAGR of 26.2%.
• Lithium-ion Batteries held a dominant market position, capturing more than a 69.2% share of the global grid-scale battery storage market.
• Distribution Network held a dominant market position, capturing more than a 43.6% share in the grid-scale battery storage market.
• Renewable Load Sharing held a dominant market position, capturing more than a 31.7% share in the grid-scale battery storage market.
• Asia‑Pacific region stood as the leading area in the global grid‑scale battery storage sector, accounting for a commanding 48.30% share, corresponding to USD 6.2 billion.

By Battery Type Analysis

Lithium-ion Batteries dominate with 69.2% share due to high efficiency and long cycle life.

In 2024, Lithium-ion Batteries held a dominant market position, capturing more than a 69.2% share of the global grid-scale battery storage market. This strong lead was driven by their proven performance in large-scale energy storage applications, high energy density, and declining manufacturing costs. Their ability to handle frequent charge-discharge cycles with minimal degradation has made them the preferred choice for utilities and grid operators.

By 2025, the dominance of lithium-ion technology is expected to continue, as countries expand their renewable energy installations and require flexible storage systems to stabilize intermittent supply. The consistent investment in lithium-based chemistries, including LFP (lithium iron phosphate), supports their large-scale deployment in grid environments. The combination of maturity, scalability, and falling prices has solidified lithium-ion batteries as the cornerstone of battery storage infrastructure worldwide.

By Deployment Network Analysis

Distribution Network leads with 43.6% share due to its role in local energy balancing.

In 2024, Distribution Network held a dominant market position, capturing more than a 43.6% share in the grid-scale battery storage market. This segment has gained traction as utilities and energy providers increasingly rely on distributed energy resources to support local grids. Distribution-level storage plays a crucial role in managing peak demand, preventing outages, and integrating solar and wind energy at the community level.

The flexibility and responsiveness of batteries installed within the distribution network allow for faster load balancing and voltage control, especially in urban and semi-urban areas. By 2025, continued grid modernization and policy support for decentralized energy systems are expected to drive further adoption of storage at the distribution level. The growing need for local reliability and smoother renewable integration has made distribution network deployments a key area of investment across advanced energy markets.

By Application Analysis

Renewable Load Sharing leads with 31.7% share as clean energy needs stable support.

In 2024, Renewable Load Sharing held a dominant market position, capturing more than a 31.7% share in the grid-scale battery storage market. This application segment has become essential as countries expand their wind and solar power capacity, which often fluctuates based on weather and time of day. Batteries used for renewable load sharing help balance the supply by storing excess energy and releasing it during low-generation periods.

This stabilizes the grid and ensures continuous electricity flow from green sources. By 2025, as more renewable projects come online and governments push for net-zero targets, the role of battery storage in load sharing is expected to grow. The focus on reducing curtailment and maximizing the use of clean energy has made this application central to long-term grid planning and energy transition strategies.

Key Market Segments

By Battery Type

• Lithium-ion Batteries
• Flow Batteries
• Zinc-hybrid Batteries
• Sodium-based Batteries

By Deployment Network

• Transmission Network
• Distribution Network
• Renewable Energy Generators

By Application

• Renewable Load Sharing
• Peak Shaving
• Load Shifting
• Backup Power
• Others

Emerging Trends

Surge in Standalone Battery Energy Storage Systems (BESS)

A significant trend shaping the future of grid-scale battery storage in India is the rapid rise of standalone Battery Energy Storage Systems (BESS). In the first quarter of 2025 alone, Indian agencies issued tenders for 6.1 gigawatts (GW) of standalone ESS capacity, accounting for 64% of all utility-scale energy storage tenders during that period.

Standalone ESS projects focus solely on energy storage, without being coupled with renewable energy sources like solar or wind. This approach offers flexibility in grid management, allowing for energy storage and dispatch independent of generation sources. The Indian government’s Viability Gap Funding (VGF) scheme has been instrumental in supporting these projects, offering up to 30% capital cost subsidies. Notably, tenders backed by VGF have demonstrated significantly improved viability, with tariffs approximately 40% lower than non-VGF projects for two-hour storage durations.

The increasing adoption of standalone ESS is driven by several factors. Firstly, the declining cost of battery storage technology has made these systems more economically viable. Battery pack prices have fallen to approximately $55 per kilowatt-hour (kWh) as of May 2025, making energy storage more affordable. Secondly, the need for grid stability and reliability, especially with the growing integration of renewable energy sources, has highlighted the importance of energy storage solutions.

Furthermore, standalone ESS projects offer benefits such as black start capability, which allows the grid to recover quickly from total blackouts by supplying essential power to critical infrastructure. Additionally, storing and releasing energy strategically mitigates grid congestion, enhances transmission efficiency, and reduces strain on power lines. These applications underscore the expanding role of standalone ESS in ensuring a resilient and efficient electricity grid.

Drivers

Integration of Renewable Energy

One of the primary drivers for the adoption of grid-scale battery energy storage systems (BESS) in India is the need to integrate renewable energy sources—particularly solar and wind—into the national grid. These renewable sources are intermittent by nature; solar power generation peaks during the day, while wind energy is often more abundant at night. This variability can lead to grid instability if not managed effectively. Battery storage systems provide a solution by storing excess energy generated during periods of high production and discharging it during times of low generation, thereby ensuring a consistent and reliable power supply.

The Indian government has recognized this challenge and is actively promoting the deployment of energy storage systems. Under the Viability Gap Funding (VGF) scheme, the Ministry of Power has allocated ₹720 crore to Rajasthan for the development of battery storage plants, aiming to store energy generated from renewable sources and ensure uninterrupted power supply during non-solar hours and peak demand times.

Furthermore, the Energy Storage System (ESS) Roadmap for India, developed by NITI Aayog, projects a significant increase in the demand for energy storage. The roadmap estimates that by 2032, the total energy storage demand in India will reach 2,416 GWh, with stationary applications accounting for 1,002 GWh. This projection underscores the critical role of energy storage in accommodating the growing share of renewable energy in the national grid.

Restraints

High Capital Costs and Financial Viability

A significant challenge hindering the widespread adoption of grid-scale Battery Energy Storage Systems (BESS) in India is the high capital expenditure required for their deployment. While the costs of battery packs have been decreasing—falling to approximately $55 per kWh in May 2025 —the overall investment for large-scale projects remains substantial. For instance, the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) is planning a ₹20,000 crore project to establish storage units for 16,000 MW of solar power.

To alleviate the financial burden, the Indian government has introduced the Viability Gap Funding (VGF) scheme, which provides subsidies to make projects financially viable. Under this scheme, the central government has approved subsidies for BESS projects, such as the ₹135 crore funding for a 125 MW/500 MWh project in Kerala. Additionally, the government has extended a 100% waiver of inter-state transmission system (ISTS) charges for energy storage projects until June 30, 2028, to support clean energy goals.

Despite these initiatives, the high upfront costs and the need for substantial financial support pose challenges to the scalability of BESS projects. The government’s efforts to reduce costs and provide financial incentives are crucial steps toward overcoming these barriers and promoting the adoption of grid-scale battery storage in India.

Opportunity

Integration of Renewable Energy and Battery Storage

One of the most promising growth opportunities for grid-scale battery energy storage systems (BESS) in India lies in their integration with renewable energy sources, particularly solar and wind power. As the country strives to meet its ambitious renewable energy targets, the role of energy storage becomes increasingly vital.

India has set a goal to achieve 500 GW of renewable energy capacity by 2030, with solar and wind power accounting for 280 GW and 140 GW, respectively. This massive expansion necessitates the deployment of energy storage solutions to address the intermittent nature of renewable energy generation. Battery storage systems can store excess energy produced during periods of high generation and release it during times of low generation, ensuring a stable and reliable power supply.

The Ministry of New and Renewable Energy (MNRE) has recognized the importance of energy storage in achieving these targets. In its Optimal Power Generation Report, the MNRE emphasizes the need for flexible resources, such as battery storage, to balance the grid and meet peak demand. This aligns with the Central Electricity Authority’s projection of a requirement for 136 GWh of storage in the grid by 2030.

The India Energy Storage Alliance (IESA) estimates the stationary energy storage market potential in India to be around 230 GWh during the period 2020–2027, with grid-scale applications contributing 15% of this share. The integration of renewable energy sources is expected to drive the majority of this demand.

Furthermore, advancements in battery technology have led to a significant reduction in costs. As of May 2025, battery pack prices have fallen to approximately $55 per kWh, making battery storage more economically viable. This cost reduction, coupled with supportive government policies, creates a conducive environment for the growth of grid-scale battery storage.

Regional Insights

Asia‑Pacific dominates with 48.30% share, contributing USD 6.2 billion to the grid‑scale battery storage market.

In 2024, the Asia‑Pacific region stood as the leading area in the global grid‑scale battery storage sector, accounting for a commanding 48.30% share, corresponding to USD 6.2 billion in market value. This dominance reflects the region’s rapid renewable energy growth—particularly in solar and wind—combined with strong policy impetus to modernise grid infrastructure and enhance energy resilience.

In parallel, India’s efforts are underscored by record energy storage tenders—states collectively auctioned 8.1 GWh of capacity in July 2025—demonstrating accelerated momentum toward large‑scale storage adoption. Australia similarly recorded a surge in investment: in early 2025, approximately USD 2.4 billion was committed to battery storage, with multiple projects achieving financial close, signaling robust demand for grid integrations.

Key Regions and Countries Insights

• 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

NGK Insulators, a Japanese ceramics specialist, is recognised for its sodium–sulfur (NaS) battery systems, which are tailored for grid-scale energy storage. These NaS systems typically span from 1.5 to 34 MW and are utilised in peak shaving, load-leveling, emergency backup, and renewable integration. Notable projects include a 230 MWh supply to a green hydrogen plant in Germany and demonstration installations in Taiwan and Hungary.

Sumitomo Electric Industries, a diversified Japanese manufacturer, has advanced into grid-scale storage via vanadium redox flow battery (VRFB) solutions. A notable application includes the first METI-subsidised VRFB facility in Kumamoto (8 MWh), anticipated for completion in 2026. The company also introduced modular flow batteries offering up to 30-year lifespan, 15 % greater energy density, and ~30 % lower lifecycle costs—reflecting its focus on long-duration, stable storage.

Samsung SDI, a global manufacturer headquartered in South Korea, produces energy storage systems for IT, automotive, and grid applications. As of early 2022, it held about 5 % of the global EV and energy storage market. The company has initiated pilot production of solid-state batteries in Suwon, with first units emerging from the line in 2023—indicating a technology-driven approach to future energy storage solutions.

Top Key Players Outlook

• NGK Insulators Ltd.
• BYD Co. Ltd.
• Sumitomo Electric Industries, Ltd.
• Samsung SDI Co. Ltd.
• General Electric
• GS Yuasa Corp.
• LG Chem Ltd.
• Mitsubishi Electric Corp.
• Panasonic Corp.
• ABB Group
• Hitachi Ltd.
• Fluence Energy

Recent Industry Developments

In 2024, NGK Insulators continued to strengthen its position in grid-scale battery storage through its world‑leading sodium–sulfur (NAS) technologies, achieving an order for systems with a total 18 MW output and 104.4 MWh capacity to support green hydrogen production in Germany.

In 2024, General Electric—through its GE Vernova division—delivered a major boost to grid‑scale battery storage with a 250 MW / 1,000 MWh system for Stage 2 of the Supernode project in Queensland, Australia, following an earlier delivery of 250 MW / 500 MWh.

Report Scope