North America BESS Market
North America 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) - Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The North American battery energy storage system (BESS) market is projected to grow from USD 10.03 billion in 2025 to USD 19.87 billion by 2030, at a CAGR of 14.6%. The North American BESS market is set for strong growth through 2030, driven by rising renewable energy installations, grid modernization efforts, and increasing demand for peak load management and frequency regulation. As utilities and policymakers accelerate decarbonization initiatives, storage systems are becoming essential for ensuring grid flexibility, reliability, and efficiency. Supportive incentives in the US and Canada, combined with declining battery costs and expanding domestic manufacturing capacity, are improving project viability across utility-scale and distributed applications. Ongoing investments in solar-plus-storage, microgrids, and backup systems are expected to further accelerate adoption, solidifying North America as a key market for energy storage expansion over the coming years.
KEY TAKEAWAYS
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BY COUNTRYThe US accounted for the largest share of 74.2% of the North American BESS market in 2024.
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BY BATTERY TYPEBy battery type, the flow battery segment is expected to grow at the highest CAGR of 22.8% during the forecast period.
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BY APPLICATIONUtility-scale applications to grow at the highest CAGR of 16.1% during the forecast period.
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COMPETITIVE LANDSCAPETesla and Honeywell International Inc. were identified as star players in the North American BESS market, as they have focused on innovation, have broad industry coverage, and strong operational & financial strength.
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COMPETITIVE LANDSCAPEEast Penn and Kore Power have distinguished themselves among startups and SMEs due to their strong product portfolio and business strategy.
The North American BESS market is expanding rapidly, driven by growing renewable deployment, increasing grid stability needs, and rising demand for efficient energy management across utilities, commercial facilities, and households. Lithium-ion remains the dominant technology due to proven performance and declining costs, while long-duration solutions such as flow and sodium-based batteries are gaining interest for resilience and grid support. Federal and state incentives, grid modernization efforts, and investments in large-scale and distributed storage are further accelerating adoption across the region.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
Increasing demand for grid energy storage systems in North America is being driven by ongoing grid modernization programs, rapid deployment of lithium-ion batteries in renewable energy projects, and the regional shift toward low-carbon and less fossil fuel-dependent power generation. The strong momentum behind solar and wind installations, along with growing requirements for peak load management and frequency stabilization, is further accelerating adoption of storage technologies. At the same time, advancements in smart energy devices, digital grid controls, and industrial electrification are expanding use cases for BESS across utilities, commercial facilities, and remote communities. Together, these trends are supporting sustained growth in the North American BESS market.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Increasing investments in renewable energy grid infrastructure
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Rising adoption of lithium-ion batteries for renewable energy storage in North America
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High installation costs of battery energy storage systems
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Rising need for uninterrupted power supply in data centers
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Decline in lithium-ion battery prices
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Overheating and deterioration issues related to Li-ion batteries
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Increasing investments in renewable energy grid infrastructure
Grid modernization programs in the US and Canada increasingly rely on battery energy storage to manage intermittent solar and wind generation and improve grid reliability. These systems store excess power and release it during peak demand, helping stabilize the network and reduce curtailment.
Restraint: High installation costs of battery energy storage systems
Battery storage projects require high upfront investment for equipment, installation, and grid integration, which can limit adoption, especially for smaller utilities and commercial users. Although costs are declining, capital requirements and permitting challenges remain key barriers to widespread deployment.
Opportunity: Rising need for uninterrupted power supply in data centers
The rapid growth of hyperscale data centers across the US and Canada is driving strong demand for uninterrupted power systems and battery storage. BESS provides a reliable backup source during grid outages, stabilizes power quality, and supports continuous operations for critical IT infrastructure, increasing adoption among major technology and cloud service providers.
Challenge: Overheating and deterioration issues related to Li-ion batteries
Large battery installations in North America face safety concerns related to overheating and thermal runaway, especially during high-load operation or extreme weather conditions. To address this, projects require advanced thermal management, monitoring, and fire-suppression systems, which increase complexity and overall installation costs.
North America Battery Energy Storage System Market: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Utility-scale and commercial energy storage systems (Powerpack, Megapack) for grid support, peak shaving, and renewable integration | High scalability, fast installation, strong software integration, and proven performance in large storage deployments |
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Grid-scale storage solutions and hybrid power systems integrated with renewable assets, supporting utilities and transmission operators | Enhanced grid stability, reliable integration of renewables, advanced control systems, and strong utility partnerships |
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Modular energy storage platforms with advanced controls, fire safety technologies, and industrial-grade applications | Improved safety and thermal management, flexible deployment for industrial and commercial facilities, and reliable long-term operation |
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Blade Battery and lithium-iron-phosphate solutions for electric buses, commercial fleets, stationary storage, and renewable integration | Enhanced safety with reduced thermal runaway risk, long service life, proven scalability, and cost-effective deployment across multiple applications |
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Lithium-ion batteries for utility-scale storage, C&I applications, electric vehicles, and consumer energy solutions | High energy efficiency, strong cycle life, advanced safety features, and extensive global manufacturing capacity |
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 across North America are driving strong demand for reliable and safe battery technologies in multiple sectors. The rapid expansion of electric vehicles, renewable energy storage projects, and digital infrastructure has accelerated investments in advanced battery solutions from both established manufacturers and new market entrants. As adoption of electrification increases, particularly in transportation, data centers, and industrial applications, the need for energy storage systems has grown significantly. The regional battery ecosystem includes a wide range of stakeholders, from raw material suppliers and cell manufacturers to integrators, utilities, and end users, each playing a critical role in ensuring technology development, deployment, and performance across the market.
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
North American BESS Market, by Battery Type
Lithium-ion batteries are expected to retain the largest market share in North America due to their high energy density, round-trip efficiency, and continued cost reductions. Their proven performance in solar-plus-storage projects, versatility across utility, commercial, and residential applications, and strong deployment in grid balancing and backup power make lithium-ion the dominant storage technology across the region.
North American BESS Market, by Application
Utility-scale BESS is emerging as the dominant application segment in North America, driven by the increasing need for grid flexibility, renewable integration, and large-capacity energy shifting. State-backed programs, federal incentives, and investments by utilities and transmission operators are accelerating deployment, making utility-scale storage the fastest-growing segment in the region.
REGION
The US is expected to be the fastest-growing country in the North America BESS market during the forecast period
The US is the largest market for battery energy storage, supported by strong federal incentives, expanding renewable energy targets, and a rapidly growing base of solar and wind projects. Large-scale storage deployments in states such as California, Texas, Arizona, and New York are driving substantial demand, with utilities and developers investing heavily in grid-scale and distributed storage solutions to enhance reliability, flexibility, and resilience across the power system.
North America Battery Energy Storage System Market: COMPANY EVALUATION MATRIX
In the North American BESS market matrix, Tesla (Star) leads with a strong global presence and a comprehensive portfolio of BESS spanning various applications, including commercial, industrial, and utilities.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Tesla (US)
- GE Vernova (US)
- Honeywell International Inc. (US)
- BYD Company Ltd. (China)
- LG Energy Solution (South Korea)
- Panasonic Corporation (Japan)
- Samsung SDI Co., Ltd. (South Korea)
- ABB (Switzerland)
- Delta Electronics, Inc. (Taiwan)
- Hitachi Energy Ltd. (Switzerland)
- NGK INSULATORS, LTD. (Japan)
- Siemens AG (Germany)
- Toshiba Corporation (Japan)
- Johnson Control (US)
- Volvo AB (Sweden)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 7.47 Billion |
| Market Forecast in 2030 (Value) | USD 19.87 Billion |
| Growth Rate | CAGR of 14.6% from 2025–2030 |
| Years Considered | 2021–2030 |
| Base Year | 2024 |
| Forecast Period | 2025–2030 |
| Units Considered | Value (USD Million/Billion), Volume (GWh) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Regional Scope | North America (US, Canada, & Mexico) |
WHAT IS IN IT FOR YOU: North America Battery Energy Storage System Market REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
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| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
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| Market Forecasting & Scenario Planning |
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| Business Models & Ownership Structures |
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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 North America BESS 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.
Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the total size of the North America BESS 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.
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 North America BESS Market.
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the North America BESS Market
- To study opportunities in the market for stakeholders by identifying high-growth segments of the North America BESS 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 North America BESS Market.
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Growth opportunities and latent adjacency in North America BESS Market