PUBLISHER: Visiongain | PRODUCT CODE: 1742438
PUBLISHER: Visiongain | PRODUCT CODE: 1742438
The global Energy Storage Systems (ESS) market is projected to grow at a CAGR of 9.1% by 2035.
The Energy Storage Systems (ESS) Market Report 2025-2035 (Including Impact of U.S. Trade Tariffs): This report will prove invaluable to leading firms striving for new revenue pockets if they wish to better understand the industry and its underlying dynamics. It will be useful for companies that would like to expand into different industries or to expand their existing operations in a new region.
Accelerated Integration of Renewable Energy Sources
One of the most prominent drivers of the global ESS market is the widespread deployment of renewable energy sources such as solar and wind. These technologies are inherently variable, depending on weather and daylight conditions, which can lead to intermittency in power generation. Energy storage systems are essential for mitigating this variability by storing excess energy during peak production and discharging it when demand outpaces supply. This function stabilises the grid and maximises renewable utilisation.
Countries with high renewable penetration, such as Germany, Australia, and the United States, are experiencing a surge in utility-scale battery projects. For instance, in California, the Moss Landing Energy Storage Facility-a 730 MWh lithium-ion battery project developed by Vistra Energy-supports the integration of large-scale solar and wind energy into the grid. Similarly, Fluence, a joint venture between Siemens and AES, has established itself as a global leader in battery-based energy storage by delivering over 5 GW of energy storage projects across 30 markets. These developments illustrate how ESS is not just complementary but increasingly foundational to renewable deployment, ensuring stable energy delivery and reducing the need for fossil fuel-based peaking plants.
High Capital Costs and Uncertain Revenue Streams
One of the most persistent restraints on the global ESS market is the high upfront capital investment required for both residential and utility-scale energy storage projects. Despite significant cost reductions in battery technologies, particularly lithium-ion, the initial expense of installing storage systems-including hardware, software, permitting, and interconnection-remains a major barrier, especially in developing markets where financing mechanisms are less mature. Moreover, long-term revenue generation remains uncertain in many regions due to underdeveloped market structures for ancillary services and limited monetisation opportunities beyond time-shifting and peak shaving.
For example, in regions like Sub-Saharan Africa and Southeast Asia, the lack of predictable pricing mechanisms for grid services discourages large-scale investment in storage infrastructure. Even in more mature markets such as the United States, companies like Stem Inc. and Fluence face challenges in optimising returns due to inconsistent participation rules across different Independent System Operators (ISOs). While policy measures like the U.S. Investment Tax Credit (ITC) extension for standalone storage help mitigate financial risks, many investors remain cautious in the absence of stable revenue models. The capital-intensive nature of ESS, combined with an evolving regulatory framework, continues to pose a significant hurdle for widespread deployment, particularly in emerging economies.
What would be the Impact of US Trade Tariffs on the Global Energy Storage Systems (ESS) Market?
The global energy storage systems (ESS) market is pivotal in the transition to sustainable energy, facilitating grid stability and integration of renewable sources. However, recent U.S. trade policies, particularly tariffs on imported battery components, have introduced complexities that could influence market dynamics over the next decade. In 2025, the U.S. imposed significant tariffs on Chinese lithium-ion batteries and related components, citing national security and economic concerns. These measures have led to increased costs for ESS projects, prompting stakeholders to reassess supply chains and investment strategies. The market's response to these tariffs will shape its trajectory through 2035.
Tariff Impact: V-shaped Recovery
A V-shaped recovery scenario envisions a swift rebound following a short-term downturn caused by tariffs. In this case, the ESS market would experience a brief period of disruption, followed by rapid growth as supply chains adapt and demand resurges.
Tariff Impact: U-shaped Recovery
Under a U-shaped recovery, the market would endure a more prolonged period of stagnation before gradually returning to growth. Extended cost pressures and slower adaptation of supply chains could delay recovery, with growth resuming in the late 2020s.
Tariff Impact: L-shaped Recovery
An L-shaped recovery represents a worst-case scenario, where the market suffers a significant and prolonged decline with minimal recovery through 2035. Persistent trade barriers and structural challenges could lead to lasting disruptions in the ESS sector.
What Questions Should You Ask before Buying a Market Research Report?
You need to discover how this will impact the energy storage systems (ESS) market today, and over the next 10 years:
Segments Covered in the Report
In addition to the revenue predictions for the overall world market and segments, you will also find revenue forecasts for five regional and 25 leading national markets:
The report also includes profiles and for some of the leading companies in the Energy Storage Systems (ESS) Market, 2025 to 2035, with a focus on this segment of these companies'operations.
Overall world revenue for Energy Storage Systems (ESS) Market, 2025 to 2035 in terms of value the market will surpass US$29,041.8 million in 2025, our work calculates. We predict strong revenue growth through to 2035. Our work identifies which organisations hold the greatest potential. Discover their capabilities, progress, and commercial prospects, helping you stay ahead.