Europe Energy Storage Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

The Europe energy storage market size reached around USD 39.38 Billion in 2024. The market is projected to grow at a CAGR of 9.40% between 2025 and 2034 to reach nearly USD 96.71 Billion by 2034. This can be attributed to the rising adoption of wind and solar energy for electricity generation and the increasing cost-effectiveness of battery energy storage systems. Moreover, increasing government support for clean energy companies is expediting the rate of the market expansion.

Europe Energy Storage Market Summary

Market Size 2024

• USD Billion 39.38

Market Size 2034

• USD Billion 96.71
• CAGR 2025-2034
• 9.40%

CAGR 2025-2034 - Market by Country

• United Kingdom
• 13.1%

CAGR 2025-2034 - Market by Country

• Germany
• 8.9%

CAGR 2025-2034 - Market by Type

• Batteries
• 10.6%

CAGR 2025-2034 - Market by Application

Commercial and Industrial

• 10.3%

Market Share by Country 2024

• Italy
• 10.2%

Europe Energy Storage Market Growth

According to the EU’s Draft National Energy and Climate Plans (NECPs), the region is expected to increase its solar and wind power capacity by 3x and 2x by 2030, when renewable energy sources are expected to account for 66% of its electricity generation. In H1 of 2024, the share of fossil fuels in Europe’s energy mix declined year-on-year by 17% while solar and wind generated 30% of energy. These clean energy sources also covered 6% of Europe’s electricity demand across all hours. The rise of solar power has been extremely significant, with its capacity expanding by over 40% during 2021-23. This has led to an increased demand for batteries, which has emerged as one of the key Europe energy storage market trends.

Battery storage is an extremely reliable intervention designed to smoothen mismatches in power supply by effectively redistributing solar power. They can either be deployed on a small scale in residential/commercial buildings or at a grid scale. Based on industry analysis, battery performance has been improving steadily across Europe, with 8-hour duration projects expected to be launched soon. This is expected to propel the Europe energy storage market development over the forecast period. Furthermore, the flexibility of batteries and their reduced costs of production are expected to make them the most popular type of energy storage systems in the coming years, thereby leading to the market growth.

Key Trends and Developments

Expansion of solar and wind power projects; rise of hybrid energy storage systems (HESS); growth of energy storage-as-a-service (ESaaS); and ethical sourcing of batteries are the major factors driving the Europe energy storage market development.

November 2024

ACL Energy and BW ESS announced the expansion of their existing battery energy storage system project pipeline in Italy to 2.9 GW. The Italian Ministry of Environment and Energy Security is reviewing 7 projects totalling over 1GW, the approval of which is expected to further increase the Europe energy storage market size.

October 2024

Lakeside Energy Park (Drax) was plugged into a 132kV electricity transmission substation in North Yorkshire. It is believed to be the United Kingdom’s largest battery energy storage system capable of powering nearly 30,000 households daily. To establish a safe connection, the UK’s National Grid upgraded its substation in collaboration with its contractor Omexom to accommodate the integration of clean power.

October 2024

Eco Star announced its decision to develop a 300 MW/716 MWh standalone battery storage project in Trossingen (a municipality located in southwestern Germany) from mid-2027. This is expected to be its largest battery energy storage system by capacity to date and increases its existing project pipeline to 2,392 MWh.

April 2024

Vantaa Energy announced the construction of a seasonal thermal energy storage facility in Vantaa (Finland), which is expected to become operational in 2028. With a total capacity of 90GWh and a volume of 1,100,000 m3, the facility is expected to play a crucial role in supplying cheap and eco-friendly energy to the nation’s heat distribution networks, thereby meeting peak season energy demands during the winter season in a sustainable manner.

Expansion of solar and wind power projects

In July 2024, the share of wind and solar power supply across Germany reached 36%, thereby recording a year-on-year growth of 10%. This trend was also noticeable in countries like Greece (38%), Netherlands (44%), and Hungary (16%), where the share rose y-o-y by 12%, 13%, and 9% respectively. Based on industry analysis, wind and solar produced over 50% of the EU’s power supply in 7% of hours. Hence, the growing appeal of wind and solar energy is expected to favourably shape the Europe energy storage market dynamics.

Rise of hybrid energy storage systems (HESS)

A HESS comprises different energy storage systems such as flywheels, supercapacitors, batteries, and fuel cells. It is poised to emerge as a sustainable medium for energy production in standalone applications due to its flexibility and cost-effectiveness. Some examples of HESS include- power-to-heat/battery, battery/battery, and ultracapacitor/battery.

Growth of energy storage-as-a-service (ESaaS)

ESaaS is a combination of a service contract, an energy management system, and an advanced energy storage system that can ensure a reliable supply of power to businesses at economical rates. The increasing corporate interest in this model can lead to significant investments, thereby favouring the market growth.

Ethical sourcing of batteries

Lithium-ion batteries containing cobalt have become a significant concern among energy producers due to their toxicity. They are often mined in war zones, which has alleviated concerns surrounding their usage and extraction. This has prompted battery makers to look for alternative suppliers and solutions.

Europe Energy Storage Market Trends

Establishment of the UK’s largest battery energy storage system

By 2029, the National Grid is expected to connect its 400kV substation facility with Lakeside Energy Park to supply clean energy to the Eastern Green Link 2 electrical superhighway via which it can import clean energy from Scotland. To establish this connection, it is undertaking numerous works for substation upgradation, such as the extension of busbars and improvements in substation control systems and busbar protection. This is creating a favourable Europe energy storage market outlook.

Development of the world’s largest thermal energy storage project in Finland

Summertime heat consumption in Finland is just one-tenth of the peak energy demands during the winter season. Its new thermal energy storage facility (currently under construction) can potentially power a medium-sized city for 1 year and is as powerful as 1.3 million electric vehicle batteries. Finland’s Ministry of Economic Affairs and Employment has already approved EUR 19 million grant for this project, which is expected to be worth EUR 200 million. This is expected to boost the Europe energy storage market revenue.

Europe Energy Storage Industry Segmentation

The report titled “Europe Energy Storage Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Type

• Batteries
• Pumped-storage Hydroelectricity (PSH)
• Thermal Energy Storage (TES)
• Flywheel Energy Storage (FES)
• Others

Breakup by Application

• Residential
• Commercial and Industrial

Breakup by Country

• Germany
• United Kingdom
• France
• Italy
• Others

Europe Energy Storage Market Share

Based on application, the market is segmented into commercial and industrial and residential. As per the Europe energy storage market analysis, the commercial and industrial segment is projected to grow at a CAGR of 10.3% between 2025 and 2034 amid the growing need for efficient energy management among businesses, coupled with the rising cost-effectiveness of energy storage technologies. Meanwhile, energy storage solutions are used in residential applications amid the growing investments in storage systems such as batteries by homeowners.

CAGR 2025-2034 - Market by

• Application

Commercial and Industrial

• 10.3%
• Residential

Leading Companies in the Europe Energy Storage Market

Major market players are strengthening their CSR strategies to drive greater project acceptance and community engagement across Europe. For instance, companies like Eco Star are advocating for 90% of their trade tax revenue payments to reach local municipalities for driving regional economic development in Germany. This has improved their brand image among locals and is creating a favourable Europe energy storage market outlook.

Contemporary Amperex Technology Co. Limited

Contemporary Amperex Technology Co. Limited was founded in 2011 and is headquartered in Fujian, China. In 2023, it held 36.8% of the EV battery market share and was the largest producer of energy-producing battery cells in H1, 2023. It has opened different subsidiaries in France, Germany, and the USA, among other nations.

Clarios, LLC

Clarios, LLC was founded in 1885 and is headquartered in Wisconsin, United States. It produces over 150 million batteries annually, which corresponds to over 30% of the industrial output. Its batteries power 1 of every 3 electric vehicles worldwide.

GS Yuasa Corp

GS Yuasa Corp was founded in 1918 and is headquartered in Kyoto, Japan. It is engaged in manufacturing and distributing power supply systems, industrial and automotive batteries, switchgear, and other electrical equipment.

CIDETEC

CIDETEC was founded in 1997 and is headquartered in Gipuzkoa, Spain. It specialises in the development of new battery technologies and offers pilot manufacture, material validation, pack engineering, and battery testing services.

Other players included in the Europe energy storage market report are BYD Co. Ltd., LG Energy Solution Ltd., Iberdrola España, S.A.U, Gransolar Group Company (E22 Energy Storage Solutions), Panasonic Corporation, and Varta AG, among others.