Advanced Energy Storage Systems Market Report and Forecast 2025-2034

The global advanced energy storage systems market attained a value of nearly USD 20.60 Billion in 2024. The market is further expected to grow at a CAGR of 8.30% during the forecast period of 2025-2034 to reach a value of USD 45.72 Billion by 2034.

Asia Pacific to be a Significant Regional Market for Advanced Energy Storage Systems

The market in the Asia Pacific region is estimated to be the leading region for advanced energy storage systems in the forecast period. The increasing use of renewable energy resources for power generation, especially in China, South Korea, and India and the increase in the number of electric vehicles are driving the demand for advanced energy storage systems in this region. The increased demand for energy reliability and efficiency is also predicted to drive market expansion, representing a lucrative potential for major advanced energy storage system providers. In 2021, the People's Republic of China led the global increase in electric car markets, nearly tripling sales to 3.4 million. In other words, in 2021, China alone sold more electric vehicles than the rest of the world combined.

In addition, rising infrastructural spending from residential, industrial, and commercial sectors among developing nations, including China and Indonesia, will encourage advanced energy storage systems in the coming years. Due to increased energy demand, significant capacity additions are anticipated to impact the advanced energy storage systems market positively.

Transportation Segment Expected to Dominate the Market Growth

The transportation segment is expected to hold the largest market share in the forecast period. The increased deployment of lithium-ion batteries in the electric vehicle market is driving the growth in this segment. Further, grid expansion and investment in modern infrastructure in developing countries present lucrative opportunities to the market.

Market Segmentation: Advanced Energy Storage System (ESS)

An advanced energy storage system (ESS) is a device or collection of appliances that convert electrical energy from power systems and store it to supply electrical energy when needed later. The AES system is a vital upgrade technology for expanding the energy sector in the twenty-first century. The energy can be used to produce semiconductors, data storage devices, solar cells, and power.

Market Breakup by Technology

• Electrochemical
• Lead Acid Battery
• Flow Battery
• Nickel Metal Hydride (NiMH) and Nickel Metal Cadmium (NiCd)
• Lithium-ion Battery
• Sodium Sulphur (NaS) Battery
• Mechanical
• Flywheel
• Pumped Hydro
• Compressed Air Energy Storage (CAES) and Liquid Air Energy Storage (LAES)
• Thermal Storage
• Sensible
• Thermo Chemical
• Latent

Market Breakup by End User

• Residential
• Non-Residential

Market Breakup by Application

• Grid Storage
• Transportation

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Increasing Renewable Energy Investments Propelling the Market Growth

Increasing investments in renewable energy, the global rise in the electric vehicles market and regulatory changes demanding energy efficiency are expected to drive the advanced energy storage systems market. Increased implementation of energy efficiency measures, combined with rising energy demand, will increase the market demand. Secondly, a greater emphasis on improving the cost competitiveness of the power grid by maintaining high stability, and the widespread adoption of clean energy sources, will further accelerate the market growth. The product's use is predicted to increase in the coming years due to the constant increase in electricity usage and the widening of the energy demand-supply gap. Moreover, increased concerns about energy conservation and the transition from fossil fuels to alternate sources are likely to drive up the demand for advanced storage systems during the forecast period. The global market is anticipated to witness an increase in utilisation over the coming years due to rising concerns associated with CO2 and greenhouse gas emissions. The increasing research and development activities are further propelling the market growth.

In June 2023, Sweden's Volvo Energy announced an investment of around SEK 50 million for a 10% stake in the UK-based, second-life battery energy storage expert Connected Energy to enhance the battery business and sustainability potential.

Key Players in the Global Market for Advanced Energy Storage Systems

The report gives a detailed analysis of the following key players in the global advanced energy storage systems market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• ABB Ltd.
• LG Chem
• Samsung SDI Co., Ltd.
• General Electric Company
• Tesla, Inc.
• Others

The comprehensive report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.