Battery Energy Storage System Market Size, Share Analysis, 2025
Battery Energy Storage System (BESS) Market by Type (Lithium-ion Battery, Advanced Lead Acid Battery, Flow Battery, Sodium-ion Battery), Capacity (Below 30 kWh, 30 kWh to 10 MWh, Above 10 MWh), Connection Type (On-Grid, Off-Grid) - Global Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The global battery energy storage system market is projected to grow from USD 50.81 billion in 2025 to USD 105.96 billion by 2030, at a CAGR of 15.8%. This accelerated growth is driven by the rapid deployment of renewable energy, increasing grid modernization initiatives, and the rising need for peak load management and frequency regulation. As governments and utilities intensify efforts toward decarbonization and energy transition, BESS is becoming a cornerstone technology for ensuring reliability, flexibility, and efficiency in power systems. Favorable regulatory frameworks, advancements in lithium-ion and emerging chemistries, and expanding investment in utility-scale and distributed storage projects are expected to further propel market expansion through 2030.
KEY TAKEAWAYS
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BY BATTERY TYPELithium-ion batteries continue to dominate BESS deployments, supported by high efficiency, scalability, and declining costs.
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BY CONNECTION TYPEOn-grid connected systems are witnessing rapid uptake for grid balancing, renewable integration, and frequency regulation
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BY OWNERSHIPThird-party owned BESS models are expanding, driven by energy-as-a-service offerings and flexible financing structures.
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BY ENERGY CAPACITYLarge-scale systems above 10 MWh are gaining prominence in utility projects for bulk energy storage and peak load management.
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BY APPLICATIONUtility-scale applications lead the market, enabling grid stability, renewable integration, and large-capacity energy shifting.
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BY REGIONAsia Pacific is the fastest-growing region, supported by industrialization, government incentives, and extensive renewable energy investments.
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COMPETITIVE LANDSCAPELeading players such as BYD, Samsung, LG Energy Solution, Panasonic and Tesla are adopting both organic and inorganic growth strategies, including product innovation, strategic partnerships, and capacity expansion.
The battery energy storage system (BESS) market is set for significant expansion, driven by the accelerating integration of renewables, growing demand for grid stability, and the rising need for efficient energy management across utility, commercial, and residential sectors. Lithium-ion technology continues to lead, while emerging chemistries such as flow and sodium-based batteries are gaining traction for long-duration applications. Asia Pacific remains the fastest-growing market, supported by government incentives, large-scale renewable projects, and rapid industrialization. Falling battery prices, advancements in system design, and an increasing emphasis on decarbonization and energy resilience are further propelling widespread adoption.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
Increasing demand for grid energy storage systems owing to ongoing grid modernization, growing penetration of lithium-ion batteries in the renewable energy sector, the prevailing trend of adopting low-carbon and less fossil fuel-based economy, the ongoing renewable energy revolution, and the continued development of smart devices and other industrial goods, are factors driving the growth of the battery energy storage system market
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Expansion of grid energy storage in modernization projects
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Rising adoption of lithium-ion batteries in renewable energy
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High installation costs of battery energy storage systems
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Growing adoption of BESS in global rural electrification initiatives
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Increasing demand for uninterrupted power in data centers
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Installation complexities in remote locations
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Expansion of grid energy storage in modernization projects
Grid modernization initiatives often involve the integration of renewable energy, such as solar and wind power, into the grid. However, renewable sources are intermittent, which can lead to fluctuations in power supply. Battery energy storage systems help address this challenge by storing excess energy during periods of high generation and releasing it during times of high demand or when renewable sources are not actively generating electricity. This helps stabilize the grid and ensure reliable power supply. These systems help grid operators save electricity when the electricity generated exceeds demand
Restraint:High installation costs of battery energy storage systems
Battery energy storage technologies, including lithium-ion batteries, flow batteries, and lead-acid batteries, require increased installation investments owing to the high energy density and improved performance offered. Lithium-ion batteries are costly but offer high energy density, have low rate of self-discharge, and require less maintenance. However, the costs of lithium-ion batteries are expected to decline in the future. These batteries are also used in electric vehicles (EVs) as they are lightweight, compact, and offer large capacities. Besides, the high initial investments required for the establishment of manufacturing facilities for flow batteries can also act as a major restraint for the growth of the market
Opportunity: Increasing demand for uninterrupted power in data centers
Data centers use an uninterrupted power supply (UPS) to provide power in emergencies when the main power supply fails. In recent years, energy storage systems in data centers are primarily used as a backup to handle power outages when diesel power generators stop working. Battery energy storage systems play an important role in eliminating electricity fluctuations in data centers. The combination of battery energy storage systems and UPS ensures continuous power supply to the designated critical loads when utility disturbances or outages are detected. This leads to a rise in the demand for UPS from large data centers.
Challenge: Installation complexities in remote locations
Battery energy storage systems are mainly deployed on islands or in remote areas. The installation of these systems in remote locations is difficult as they are difficult to reach. The remote locations usually include islands and off-grid remote locations which face various challenges owing to variable generation and power supply from renewable energy sources. The challenges are related to ambient conditions such as temperature variations during day and night, high maintenance costs owing to commuting difficulties in reaching these locations, and the lack of equipment installation infrastructure.
Battery Energy Storage System Market: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Blade battery and LFP-based BESS for commercial, industrial, and utility-scale energy management | Superior safety| Long lifecycle| High thermal stability| Reliable power delivery |
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Lithium-ion BESS solutions for grid-scale, C&I, and renewable integration projects | High energy density| Strong performance in harsh conditions| Advanced safety systems| Optimized cost-efficiency |
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Utility-scale and C&I BESS with advanced lithium-ion chemistries for renewable integration and backup | High efficiency| Advanced safety features| Customizable modular design| Cost-effective large-scale deployment |
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Scalable lithium-ion BESS for renewable energy projects, microgrids, and backup power solutions | Proven technology reliability| Long cycle life| Integration with solar/wind| Efficient energy management |
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Megapack and Powerpack BESS for utility-scale renewable integration, grid balancing, and commercial applications | High-capacity storage| Rapid deployment| Modular scalability| Enhanced grid stability |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
High power and energy density requirements have led to a rise in demand for reliable and safe batteries for use in different industries. The advent of electric vehicles, renewable energy storage systems, and consumer electronics has been driving increased investments in the field of batteries, from the aspects of both, incumbents and new players. Due to the rise in the adoption of electronic devices, the demand for battery energy storage systems has also grown significantly. There are several participants in the ecosystem of batteries, and each participant, from raw material suppliers to end users, has a specific and important role to play
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Battery Energy Storage System Market, By Battery Type
Lithium-ion batteries are expected to retain the largest market share in BESS due to their superior energy density, high round-trip efficiency, and declining cost trajectory. Their versatility across utility, commercial, and residential applications, coupled with proven performance in renewable integration and grid balancing, makes them the preferred storage technology globally.
Battery Energy Storage System Market, By Connection Type
On-grid connected BESS installations are expanding rapidly as utilities and grid operators seek to enhance renewable energy penetration, stabilize voltage and frequency, and reduce reliance on fossil-fuel-based peaker plants. Increasing policy support and grid modernization initiatives are further propelling adoption in this segment.
Battery Energy Storage System Market, By Ownership
Third-party owned BESS models are gaining traction as energy-as-a-service solutions reduce upfront capital barriers for end-users. Flexible financing structures, long-term service contracts, and revenue opportunities from ancillary services make this ownership model attractive for both commercial and utility-scale projects
Battery Energy Storage System Market, By Energy Capacity
Systems above 10 MWh are driving large-scale deployments in utility projects, offering bulk energy storage, renewable firming, and peak load management. Growing investments in grid-scale renewable projects, coupled with demand for long-duration energy storage, are accelerating adoption of high-capacity systems worldwide.
Battery Energy Storage System Market, By Application
Utility-scale BESS is emerging as the dominant application segment, driven by the urgent need for grid flexibility, renewable integration, and large-capacity energy shifting. Government-backed projects and investments by transmission operators are further supporting deployment in this space.
REGION
During the forecast period, Asia is expected to be the fastest-growing region in the global Battery Energy Storage System market
Asia Pacific is projected to be the fastest-growing region, underpinned by strong government incentives, ambitious renewable energy targets, and rapid industrialization. Large-scale solar and wind projects, particularly in China, India, South Korea, and Australia, are fueling robust demand for advanced storage solutions across the region.
Battery Energy Storage System Market: COMPANY EVALUATION MATRIX
In the battery energy storage system market matrix, BYD (Star) leads with a strong global presence and a comprehensive portfolio of BESS spanning various applications, including commercial, industrial, and utilities. LG Energy Solution (Star) is gaining momentum with its new and improved BESS solutions
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 37.23 Billion |
| Market Forecast in 2030 (Value) | USD 105.96 Billion |
| Growth Rate | CAGR of 15.8% from 2025–2030 |
| Years Considered | 2021–2030 |
| Base Year | 2024 |
| Forecast Period | 2025–2030 |
| Units Considered | Value (USD Million/Billion), Volume (In GWh) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Regional Scope | North America, Europe, Asia Pacific, and RoW |
WHAT IS IN IT FOR YOU: Battery Energy Storage System Market REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Technology Roadmap Development | • Benchmarking of BESS chemistries (Li-ion, flow, sodium-sulfur, solid-state) • Cost and performance trends across technologies • Lifecycle analysis and recycling potential | • Identify the most commercially viable technologies • Support R&D prioritization and product strategy • Enable long-term technology planning |
| Market Entry & Expansion Strategy | • Country-level regulatory analysis and incentives • Competitive landscape mapping of BESS providers • Demand forecasting by region and application | • Support geographic expansion decisions • Optimize go-to-market strategy • Reduce market entry risks with regulatory and demand clarity |
| Project Feasibility & Financial Modeling | • CAPEX/OPEX benchmarks for utility and C&I projects • Revenue stacking opportunities (frequency regulation, peak shaving, capacity markets) • Sensitivity analysis on battery cost decline scenarios | • Strengthen business case development • Improve investment confidence and project bankability • Optimize financial returns for stakeholders |
| Procurement & Supply Chain Assessment | • Supply chain analysis of BESS components (cells, packs, inverters, control systems) • Vendor benchmarking and sourcing strategies • Risk assessment of raw materials (lithium, cobalt, nickel) | • Enhance procurement efficiency • Mitigate supply chain risks • Support strategic sourcing and partnership decisions |
RECENT DEVELOPMENTS
- May 2025 : Contemporary Amperex Technology Co., Limited (CATL) launched the TENER Stack, the world’s first 9 MWh ultra-large capacity energy storage system, at Entry/Exit System (EES) Europe 2025. The product was introduced to meet rising global demand for high-density, flexible, and transportable energy storage solutions. Targeted at utilities, developers, and industrial users, the TENER Stack delivers significant advancements in space utilization, energy efficiency, and cost performance. It supports various applications, including AI data centers and industrial electrification
- April 2025 : Honeywell commissioned a 1.4?MWh microgrid BESS for SECI’s Lakshadweep Islands project, India’s first on-grid solar-plus-storage system, integrating its Energy Management and microgrid control systems to decarbonize the remote Kavaratti microgrid
- September 2024 : GE?Vernova was selected by Quinbrook Infrastructure Partners to serve as the integration provider for stages 1 and 2 (totaling 500?MW/1,500?MWh) of the Supernode BESS project in Queensland, Australia. The deal aims to enable large-scale wind and solar energy storage, supporting one of Australia’s biggest grid-connected BESS installations and advancing renewable energy integration
- June 2024 : NGK?Insulators secured a contract to supply containerized NAS batteries for a grid-storage demonstration project at Hungary’s state-owned MVM Balance power station. The project aims to stabilize the electric grid by storing surplus energy and providing adjustment capacity.
Table of Contents
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Methodology
The study involved four major activities in estimating the current size of the battery energy storage system market. Exhaustive secondary research has been conducted to gather information on the market, adjacent markets, and the overall BESS landscape. These findings, along with assumptions and projections, were validated through primary research involving interviews with industry experts and key stakeholders across the value chain. Both top-down and bottom-up approaches were utilized to estimate the overall market size. Subsequently, market breakdown and data triangulation techniques were applied to determine the sizes of various segments and subsegments. Two key sources, secondary and primary, were leveraged to conduct a comprehensive technical and commercial assessment of the battery energy storage system (BESS) market.
Secondary Research
Various secondary sources were consulted during the secondary research process to identify and collect relevant information for this study. The secondary sources include annual reports, press releases, and investor presentations of companies; white papers; journals and certified publications; and articles from recognized authors, websites, directories, and databases. Secondary research has been conducted to obtain key information about the industry’s supply chain, the market’s value chain, the total pool of key players, market segmentation according to the industry trends (to the bottom-most level), regional markets, and key developments from market- and technology-oriented perspectives. The secondary data has been collected and analyzed to determine the overall market size, further validated by primary research.
Primary Research
Extensive primary research was conducted after gaining knowledge about the current scenario of the battery energy storage system (BESS) market through secondary research. Several primary interviews were conducted with experts from the demand and supply sides across four major regions: North America, Europe, Asia Pacific, and RoW. This primary data was collected through questionnaires, emails, and telephone interviews.
Note: Three tiers of companies are defined based on their total revenue as of 2024: tier 3 = revenue less than USD 500 million; tier 2 = revenue between USD 500 million and USD 5 billion; and tier 1 = revenue more than USD 5 billion. Other designations include sales managers, marketing managers, and product managers.
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Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the total size of the battery energy storage system market. These methods have also been used extensively to estimate the size of various subsegments in the market. The following research methodology has been used to estimate the market size:
- Major players in the industry and markets have been identified through extensive secondary research.
- The industry’s value chain and market size (in terms of value) have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Battery Energy Storage System (BESS) Market: Top-Down and Bottom-Up Approach
Data Triangulation
After arriving at the overall size of the battery energy storage system (BESS) market from the market size estimation process explained above, the total market has been split into several segments and subsegments. Data triangulation and market breakdown procedures have been employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments of the market. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated using both top-down and bottom-up approaches.
Market Definition
A battery energy storage system is embedded with a rechargeable battery in the form of battery packs and modules. The system stores energy from solar arrays, wind, or the electric grid and then discharges that energy later to provide electricity or other grid services when needed. Rechargeable batteries are typically more expensive but have a lower environmental impact compared to non-rechargeable (disposable) batteries. Rechargeable batteries incur high upfront costs but can be charged several times after the initial purchase. Battery energy storage systems are used during low-peak periods to store surplus energy and provide it to end users during periods of high peak demand for electricity.
Key Stakeholders
- Battery Energy Storage System Manufacturers
- Technology Providers
- Material Providers
- Government Bodies and Industry Associations
- Research Institutes and Organizations
- Battery Cell and Battery Pack Manufacturers
- Equipment Suppliers
- System Integrators
- Energy Storage Solution and Service Providers
- Energy Storage Research Institutions
- Government and Research Organizations
- Grid Operators
- Retail Service Providers
- Lithium-ion Batteries, Electrochemical Capacitors, and Other Energy Storage Product Manufacturers
- Utility Providers
- Power Distribution and IT Consultants
Report Objectives
- To define, describe, and forecast the battery energy storage system (BESS) market in terms of battery type, energy capacity, ownership, connection type, application, and region.
- To describe and forecast the market, in terms of value, with regard to four main regions: North America, Europe, Asia Pacific, and RoW, along with their respective countries
- To provide detailed information regarding major factors influencing the market growth (drivers, restraints, opportunities, and challenges)
- To offer a detailed overview of the value chain of the battery energy storage system market.
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the battery energy storage system market
- To study opportunities in the market for stakeholders by identifying high-growth segments of the battery energy storage system market.
- To strategically profile key players and comprehensively analyze their market position in terms of ranking and core competencies, along with detailing the competitive landscape for market leaders
- To analyze competitive strategies, such as product launches, expansions, mergers, and acquisitions, adopted by key market players in the battery energy storage system market.
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User
Sep, 2019
The increasing use of grid flexibility and grid connected solutions due to fluctuations of renewable energy sources such as solar & wind is expected to boost the battery energy system. Can you provide detailed information on this?.
User
Sep, 2019
Increasing adoption of electric vehicles and fast-growing battery energy storage manufacturing capacity are driving innovations and growth of the market. I would like to get some more insights on the influence of electric vehicles on the BESS market..
User
Sep, 2019
The market for lithium-ion technology is expected to grow rapidly; this is likely to be used for storage solutions in various residential and non-residential applications. The declining prices of lithium-ion batteries are also propelling the adoption of this technology, thus supporting the growth of battery energy storage systems. Could you mention any other battery technology which would affect the battery energy storage system market in the near future?.
User
Sep, 2019
APAC is on the track to become the world leader in energy storage, since China is leading in usage of renewable energy such as solar which requires battery energy storage systems , what could be an opportunity in the next 5-10 years for same..
User
May, 2019
Energy Storage-as-a-Service (ESaaS) is becoming a key service model, which is a combination of an advanced energy storage system, an energy management system, and a service contract delivering reliable power economically to a business. Can you provide the global numbers for the service segment?.