Battery energy storage market size with Forecast and Trends in 2025

Q: What are the key applications driving the battery energy storage market?

Primary applications include renewable energy integration, grid balancing, peak shaving, and backup power for residential and industrial users.

Q: What are the main challenges in the battery energy storage industry?

Major challenges include high initial capital investment, supply chain constraints for raw materials like lithium and recycling of used batteries.

Q: Which regions are leading the battery energy storage market growth?

Asia-Pacific is leading due to massive renewable energy installations, while North America and Europe follow with strong government support and technological advancements.

Q: What role does battery energy storage play in decarbonization?

Battery storage enables higher penetration of renewables by storing surplus energy during low generation periods, thus supporting global decarbonization goals.

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Battery energy storage market size | Manufacturers & Suppliers 2025

Code: MTA4090

Publication Date: Jun 2025

What is the battery energy storage market size?

According to 绿帽社 internal database and industry insights, Global battery energy storage market was valued at approximately USD 14.2 billion in 2024 and is projected to surpass a valuation of USD 35.5 billion by 2031, growing at a CAGR of 8.5%.

This growth is driven by rapid integration of renewable energy sources, increasing grid modernization projects, and growing adoption of electric vehicles which demand efficient energy storage solutions.

Key Growth Factors

Rising deployment of renewable energy projects
Government incentives and supportive policies for clean energy storage
Growing need for grid stability and peak load management
Increasing demand from residential and commercial sectors for backup power
Technological advancements enhancing battery performance and lifespan
Falling battery prices making storage more cost-effective

Market Trends

The battery energy storage industry is anticipated to witness robust growth between 2025–2031. This surge is driven by innovations in solid-state batteries, growing investments in smart grids and expansion of microgrid networks. Additionally, increasing focus on sustainable energy transition in Asia-Pacific and Europe significantly contributes to the market’s expansion.