North America Battery Energy Storage System (BESS) Market

The report "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" is projected to reach USD 19.87 billion by 2030 from USD 10.03 billion in 2025, at a CAGR of 14.6% during the forecast period.The North American BESS market continues to experience strong momentum, supported by accelerating renewable energy deployment, rapidly growing data center power requirements, and active policy support for grid modernization. The region is witnessing a significant rise in utility-scale storage installations, particularly in the US, where states such as California, Texas, Arizona, and New York are leading with large solar-plus-storage and standalone storage projects. Federal incentives under the Inflation Reduction Act (IRA), together with state-level targets and procurement programs, are creating a favorable investment landscape and encouraging widespread adoption across utilities, commercial facilities, and industrial sites. Increasing emphasis on grid resilience, peak-load management, and frequency stabilization further reinforces the need for energy storage assets.

Browse 119 market data Tables and 60 Figures spread through 250 Pages and in-depth TOC on "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"
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However, the market continues to face safety-related challenges, primarily associated with the risk of overheating in lithium-ion batteries deployed in large-scale applications. The high energy density and thermal characteristics of lithium-ion systems require robust thermal management, monitoring, and fire suppression solutions to reduce the likelihood of thermal runaway and ensure safe operation. Despite this constraint, declining battery prices, increasing manufacturing capacity, and ongoing upgrades to aging grid infrastructure are expected to drive sustained deployment across the region. Supportive decarbonization commitments, expansion of electrification, and rising demand for uninterrupted power supply, particularly from hyperscale data centers, will continue to generate substantial opportunities for the North American BESS market in the coming years.

The off-grid connection type segment is estimated to hold a larger market share during the forecast period.

The off-grid connection type segment is gaining strong traction in North America as energy users seek reliable and cost-effective power solutions in remote and underserved locations. Off-grid systems provide continuous electricity without dependence on centralized grid infrastructure, which is particularly beneficial for isolated communities, mining operations, oil and gas facilities, telecommunications towers, and residential properties located far from utility networks. These solutions also enhance resilience during increasingly frequent power disruptions caused by wildfires, hurricanes, winter storms, and aging grid assets, ensuring that critical operations remain functional when the main grid fails. Off-grid systems in North America commonly integrate renewable energy sources, such as solar, wind, and small hydro, which helps reduce diesel consumption and associated emissions, while lowering long-term energy costs. Technological advancements in battery storage, power electronics, and hybrid system controls have further improved reliability, scalability, and affordability, encouraging rapid adoption across the region.

The flow battery segment is expected to grow at the highest CAGR during the forecast period.

The flow battery segment is expected to experience significant growth in North America during the forecast period, driven by rising demand for long-duration energy storage and enhanced grid flexibility. Flow batteries store energy in liquid electrolytes held in external tanks, allowing energy capacity to be scaled simply by increasing tank volume, which makes them ideal for utility-scale projects and extended discharge durations. This design also enables replacement and replenishment of electrolytes without major system downtime, reducing maintenance challenges and extending operational life. In North America, the increasing integration of renewable energy resources, particularly solar and wind, has accelerated interest in energy storage solutions that can balance fluctuating supply and maintain grid stability over longer periods. Flow batteries offer strong advantages in this context, including high cycle life, minimal degradation, and improved safety compared to lithium-ion systems, as they operate at a lower risk of overheating. Additionally, ongoing regional investments in grid modernization, microgrids, and resilient energy infrastructure, particularly in remote communities and industrial sites, are expanding the application opportunities for flow batteries.

The US is expected to be the fastest-growing country in the North American BESS market during the forecast period.

The US represents the largest market for battery energy storage systems in North America, driven by robust deployment of renewable energy, strong policy support, and increasing demand for grid resilience. Utility-scale projects are expanding rapidly across key states, including California, Texas, Arizona, New York, and Nevada, where solar-plus-storage and standalone storage installations are being deployed to address peak demand, frequency regulation, and power reliability requirements. The growing electrification of the industrial, commercial, and residential sectors, combined with aging grid infrastructure and rising outage risks from extreme weather events, further highlights the need for energy storage. Additionally, the rapid expansion of hyperscale data centers and computing facilities is driving demand for uninterrupted power supply and long-duration storage solutions. Advancements in lithium-ion technology, competitive battery pricing, and growth in domestic manufacturing are strengthening project economics. As utilities, independent power producers, and commercial users prioritize grid stability and decarbonization, the US is expected to lead ongoing capacity additions, making it the most influential and dynamic market for energy storage solutions in the region.

Major companies operating in the North American BESS market include Tesla (US), GE Vernova (US), Honeywell International Inc. (US), LG Energy Solution (South Korea), and BYD Company Ltd. (China).

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