Emerging Energy Storage Technologies

Global power systems are entering a new phase of transformation as electricity demand growth accelerates alongside rapid renewable deployment. Electrification across transport and industry is increasing pressure on grids, while the rapid expansion of AI infrastructure and hyperscale data centers is emerging as a new source of structural electricity demand. For example, data center power demand is expected to reach almost 1,500TWh by 2030.

At the same time, the continued build-out of wind and solar is reshaping the global power generation mix, as renewables are expected to overtake thermal generation by 2034. These structural shifts are accelerating the role of energy storage as a core component of modern power systems, capable of balancing intermittent renewable generation and supporting grid stability. As a result, the global pipeline of storage projects continues to expand, set to reach a capacity of ~1,683GW by 2030.

Energy storage deployment is becoming increasingly geographically concentrated, with Asia-Pacific emerging as the primary center of global capacity growth and set to account for ~62% of global storage capacity by the end of the decade. Strong renewable expansion, rapid power demand growth, and supportive policy frameworks have accelerated storage deployment across the region, with China playing a particularly significant role in driving the region's project activity.

Within this landscape, battery energy storage systems (BESS) have emerged as the dominant technology for new deployments due to their scalability, declining costs, and ability to respond rapidly to fluctuations in supply and demand. For this reason, battery energy storage is set to account for ~77% of the global total energy storage capacity by 2030. However, reliance on lithium-ion technologies also raises challenges related to storage duration, material supply chains, and lifecycle performance.

To provide alternative solutions, innovation across the sector is expanding beyond lithium-ion technologies. Developers and system operators are increasingly exploring electromechanical, electrochemical, and thermal storage pathways, particularly long-duration storage solutions capable of supporting deeper renewable integration and improving overall grid resilience. Alongside established industry players, a growing number of innovative start-ups are developing alternative storage technologies aimed at improving storage duration, lowering costs, improving safety, and reducing reliance on critical minerals.

Key Highlights

• Between 2025 and 2035, global power demand is projected to grow at a CAGR of ~4%, with data centers emerging as an increasingly significant source of additional demand.

A rapid pace of renewable installations continues to bolster the contribution of renewables to the overall power mix. Solar PV and onshore wind continue to represent the key drivers of this growth, with the two technologies accounting for 20% and 15%, respectively, of total power generation by 2035.

• However, despite the increasingly global uptake of renewables, energy storage capacity remains regionally uneven, with Asia-Pacific dominating the market, and set to account for ~62% of global storage capacity by the end of the decade.
• According to current project announcements, global energy storage capacity could reach approximately ~1,683GW by 2030, exceeding the IEA's 1,500GW target by over 180GW. Although currently on track, this projection assumes a high level of project execution and therefore leaves limited room for project delays or cancellations.

Scope

• Snapshot of the global power mix
• Energy storage capacity outlook
• Regional distribution of energy storage capacity
• Emerging energy storage framework
• Challenges of scaling energy storage capacity
• Case studies of innovative energy storage technologies

Reasons to Buy

• Gain insight into the energy storage capacity outlook.
• Identify the key trends that are driving energy storage project activity.
• Understand both the established and emerging technology trends that are influencing the energy storage market.
• Understand how and where the market is growing as it is rapidly scales to become a key technology for the global energy transition.
• Learn about the key companies that are developing energy storage technologies across electromechanical, electrochemical, and thermal energy storage.