Grid-scale Battery Storage Market Report 2026

The grid-scale battery storage market size has grown exponentially in recent years. It will grow from $9.8 billion in 2025 to $12.83 billion in 2026 at a compound annual growth rate (CAGR) of 30.9%. The growth in the historic period can be attributed to rising demand for renewable energy integration, increasing electricity demand, government incentives for energy storage, early deployment of lithium-ion and lead-acid batteries, grid stability challenges due to peak load variations.

The grid-scale battery storage market size is expected to see exponential growth in the next few years. It will grow to $37.55 billion in 2030 at a compound annual growth rate (CAGR) of 30.8%. The growth in the forecast period can be attributed to advancements in solid-state and next-generation batteries, increasing adoption of microgrids, growing utility-scale battery installations, rising investments in energy storage infrastructure, integration with electric vehicle charging and distributed energy resources. Major trends in the forecast period include deployment of large-scale lithium-ion and flow battery systems, integration of battery energy storage with renewable energy sources, implementation of grid services such as frequency regulation and peak shaving, adoption of advanced battery management systems (bms), expansion of utility-scale and microgrid energy storage solutions.

The rising demand for renewable energy is expected to drive the growth of the grid-scale battery storage market in the coming years. Renewable energy refers to power generated from naturally replenished sources such as sunlight, wind, and geothermal heat. This growing demand is fueled by efforts to address climate change, reduce environmental impact, and strengthen energy security and sustainability. Grid-scale battery storage supports renewable energy deployment by storing excess electricity generated from sources such as solar and wind, ensuring a reliable power supply during periods of low generation or peak demand. For example, in March 2025, Eurostat, a Luxembourg-based government statistics agency, reported that in 2024, renewable energy sources accounted for 46.9% of net electricity generation in the European Union, representing an increase of 2.6 percentage points compared with 2023. As a result, the growing demand for renewable energy is a key factor driving the expansion of the grid-scale battery storage market.

Prominent companies in the grid-scale battery storage market are concentrating on developing innovative solutions, such as energy storage systems, aimed at enhancing energy density and efficiency while ensuring zero degradation for both power and capacity. Energy storage systems are technologies designed to capture and store energy for later use, effectively balancing supply and demand to improve efficiency and reliability. For example, in April 2024, Contemporary Amperex Technology Co. (CATL), a China-based battery manufacturer, launched the TENER energy storage product. TENER is tailored for large-scale applications and features high energy density along with an extended cycle life. By utilizing advanced lithium-ion technology, it ensures enhanced safety and efficiency, while its modular design allows for flexible scalability to meet varying grid demands. Additionally, TENER is engineered to deliver strong performance in extreme temperatures, ensuring reliable operation under diverse environmental conditions.

In October 2023, Hitachi Energy Ltd., a Switzerland-based technology company, acquired a controlling stake in eks Energy for an undisclosed amount. Through this acquisition, Hitachi Energy aims to strengthen its grid-scale battery storage capabilities by integrating eks Energy’s advanced power electronics and energy management solutions, thereby enhancing renewable energy integration and overall energy storage system performance. Eks Energy is a Spain-based company specializing in power electronics and control systems that are critical for grid-scale battery storage applications.

Major companies operating in the grid-scale battery storage market are AES Corporation, NextEra Energy, BYD Company Ltd., Contemporary Amperex Technology Co Limited, LG Energy Solution, Samsung SDI Co Ltd, Northvolt AB, Saft Groupe SA, ABB Ltd, The General Electric Company, Fluence Energy Inc, EnerSys, Eos Energy Enterprises, ESS Inc, Sungrow Power Supply Co Ltd, Mitsubishi Electric Corporation, NEC Corporation, Narada Power Source Co Ltd, Siemens Energy AG, Tesla Inc, Enel SpA, Iberdrola SA.

North America was the largest region in the grid-scale battery storage market in 2025. The regions covered in the grid-scale battery storage market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the grid-scale battery storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The grid-scale battery storage market consists of sales of metal-air batteries, thermal energy storage, and supercapacitors. 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.

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