Energy Storage Systems Global Market Report 2026

Energy Storage Systems (ESS) are designed to capture electrical energy from power systems, facilitating its conversion and storage for efficient management and utilization. These systems play a vital role in storing energy generated from renewable sources and releasing it when there's a demand for power.

The primary technologies employed in energy storage systems encompass pumped hydro storage, battery energy storage, compressed air energy storage, and flywheel energy storage. Pumped hydro storage, for instance, involves two reservoirs at different elevations that enable power generation as water moves between them, passing through a turbine. Energy storage systems find application across various sectors, including stationary and transportation domains. They are utilized by a range of end-user industries, spanning residential, non-residential, and utility sectors, contributing significantly to efficient energy utilization and management.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have affected the energy storage system (ESS) market by raising costs for imported battery cells, inverters, power electronics, and raw materials such as lithium, nickel, and cobalt. Utilities, residential, and commercial storage projects in North America, Europe, and Asia-Pacific face higher system costs and extended delivery cycles due to cross-border supply dependencies. However, tariffs are driving regional battery manufacturing expansion, localization of component production, and accelerated innovation in alternative chemistries, strengthening long-term supply chain stability and reducing reliance on imported materials.

The energy storage systems market research report is one of a series of new reports from The Business Research Company that provides energy storage systems market statistics, including energy storage systems industry global market size, regional shares, competitors with a energy storage systems market share, detailed energy storage systems market segments, market trends and opportunities, and any further data you may need to thrive in the energy storage systems industry. This energy storage systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The energy storage systems market size has grown strongly in recent years. It will grow from $266.84 billion in 2025 to $287.83 billion in 2026 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to growth in renewable energy deployment, early adoption of pumped hydro storage, expansion in backup power applications, reliance on traditional grid stabilization methods, increased investment in lithium-ion technologies.

The energy storage systems market size is expected to see strong growth in the next few years. It will grow to $391.56 billion in 2030 at a compound annual growth rate (CAGR) of 8.0%. The growth in the forecast period can be attributed to increasing demand for distributed energy storage, rising adoption of utility-scale battery systems, expansion of residential energy storage solutions, growth in electric vehicle charging integration, development of long-duration storage technologies. Major trends in the forecast period include adoption of grid-integrated smart storage solutions, expansion of electric mobility energy storage platforms, development of IoT-connected distributed storage networks, advancement of intelligent manufacturing for battery systems, integration of cloud-based energy analytics.

The growing adoption of renewable energy sources is anticipated to fuel the growth of the energy storage systems market in the coming years. Renewable energy sources are natural resources that are replenished sustainably and naturally. Energy Storage Systems in renewable energy sources aid in capturing and efficiently utilizing intermittent energy, ensuring a reliable power supply. For example, in January 2024, the International Energy Agency (IEA), an autonomous intergovernmental organization based in France, reported that global renewable energy capacity rose by 50% in 2023, reaching nearly 510 gigawatts (GW), with solar photovoltaic (PV) contributing to three-quarters of this growth. In 2023, China alone added as much solar PV as the entire world did in 2022, while its wind power additions increased by 66% year-on-year. Thus, the rising adoption of renewable energy is propelling the energy storage systems market.

Leading players in the energy storage systems market are focusing on developing innovative technologies such as advanced battery energy storage systems (BESS) to meet the rising demand for renewable energy integration, grid stabilization, and peak-shaving applications. A BESS is a stationary energy storage technology that stores electrical energy-typically using lithium-ion or lithium ferrophosphate (LFP) battery chemistry-and discharges it when required. Compared to traditional solutions such as diesel generators or pumped hydro storage, BESS offers faster response times, modular scalability, lower emissions, and improved compatibility with intermittent renewable sources. For instance, in June 2025, Cummins India Limited, an India-based power solutions provider, launched its Battery Energy Storage Systems, a modular and scalable solution available in 10 ft and 20 ft containerized units with energy outputs ranging from 200 kWh to 2 MWh. The system features LFP battery cells, an integrated liquid-cooling thermal management system, plug-and-play installation, and full AC-output integration, enabling efficient renewable energy integration, peak-shaving, and energy-shifting for commercial, industrial, and mining applications.

In October 2023, Hitachi Energy, a Switzerland-based provider of power-grid technologies, power conversion systems, and energy management solutions, acquired a controlling stake in Eks Energy for an undisclosed amount. This acquisition enhances Hitachi Energy's capabilities in battery energy storage systems and renewable energy integration, expands its portfolio with advanced power conversion and control technologies, and strengthens its position as a leading provider of grid-interactive energy storage solutions. Eks Energy is a Spain-based provider of power conversion systems, inverters, and energy management solutions for battery energy storage systems and renewable energy applications.

Major companies operating in the energy storage systems market are Schneider Electric SE, SMA Solar Technology AG, Exide Industries Limited, SK energy Co. Ltd., Enerbrax Acumuladores Ltd., Eguana Technologies, Tata Power Company Limited, BYD Company Ltd., ABB Limited, Beacon Power LLC, Convergent Energy + Power, S&C Electric Company, General Electric Company, LG Chem Ltd., Samsung Electronics Co. Ltd., Panasonic Corporation, Tesla Inc., Hitachi Chemical, GS Yuasa Corporation, Toshiba Corporation, Voith GmbH, Genex Power Limited, Alstom SA, Schluchseewerk AG, East Penn Manufacturing Inc., Showa Denko Materials Co. Ltd.

Asia-Pacific was the largest region in the energy storage systems market share in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the energy storage systems market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the energy storage systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The energy storage system (ESS)market consists of sales of electro chemical, thermal storage and mechanical energy storage systems. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Energy Storage Systems Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses energy storage systems market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

Reasons to Purchase

• Gain a truly global perspective with the most comprehensive report available on this market covering 16 geographies.
• Assess the impact of key macro factors such as geopolitical conflicts, trade policies and tariffs, inflation and interest rate fluctuations, and evolving regulatory landscapes.
• Create regional and country strategies on the basis of local data and analysis.
• Identify growth segments for investment.
• Outperform competitors using forecast data and the drivers and trends shaping the market.
• Understand customers based on end user analysis.
• Benchmark performance against key competitors based on market share, innovation, and brand strength.
• Evaluate the total addressable market (TAM) and market attractiveness scoring to measure market potential.
• Suitable for supporting your internal and external presentations with reliable high-quality data and analysis
• Report will be updated with the latest data and delivered to you within 2-3 working days of order along with an Excel data sheet for easy data extraction and analysis.
• All data from the report will also be delivered in an excel dashboard format.

Where is the largest and fastest growing market for energy storage systems ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The energy storage systems market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Technology: Pumped Hydro Storage; Battery Energy Storage; Compressed Air Energy Storage; Flywheel Energy Storage
• 2) By Application: Stationary; Transportation
• 3) By End User: Residential; Non-Residential; Utilities
• Subsegments:
• 1) By Pumped Hydro Storage: Conventional Pumped Hydro Storage; Advanced Pumped Hydro Storage
• 2) By Battery Energy Storage: Lithium-Ion Batteries; Lead-Acid Batteries; Flow Batteries; Sodium-Sulfur Batteries
• 3) By Compressed Air Energy Storage (CAES): Above Ground CAES; Underground CAES
• 4) By Flywheel Energy Storage: Mechanical Flywheels; Magnetic Bearings Flywheels
• Companies Mentioned: Schneider Electric SE; SMA Solar Technology AG; Exide Industries Limited; SK energy Co. Ltd.; Enerbrax Acumuladores Ltd.; Eguana Technologies; Tata Power Company Limited; BYD Company Ltd.; ABB Limited; Beacon Power LLC; Convergent Energy + Power; S&C Electric Company; General Electric Company; LG Chem Ltd.; Samsung Electronics Co. Ltd.; Panasonic Corporation; Tesla Inc.; Hitachi Chemical; GS Yuasa Corporation; Toshiba Corporation; Voith GmbH; Genex Power Limited; Alstom SA; Schluchseewerk AG; East Penn Manufacturing Inc.; Showa Denko Materials Co. Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: Word, PDF or Interactive Report
• + Excel Dashboard
• Added Benefits
• Bi-Annual Data Update
• Customisation
• Expert Consultant Support

Added Benefits available all on all list-price licence purchases, to be claimed at time of purchase. Customisations within report scope and limited to 20% of content and consultant support time limited to 8 hours.