Energy Storage Market Report 2026

The energy storage market size has grown rapidly in recent years. It will grow from $107.6 billion in 2025 to $123.9 billion in 2026 at a compound annual growth rate (CAGR) of 15.1%. The growth in the historic period can be attributed to rising adoption of renewable energy sources, increasing electricity demand from urbanization, early deployment of pumped hydro storage systems, government incentives for clean energy adoption, development of basic grid stabilization technologies.

The energy storage market size is expected to see rapid growth in the next few years. It will grow to $219.63 billion by 2030 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to rapid expansion of solar and wind energy capacity, increasing need for grid flexibility and reliability, declining battery storage costs, growth of electric vehicle charging infrastructure, integration of smart grid technologies. Major trends in the forecast period include rising deployment of grid scale battery energy storage systems for renewable integration, increasing adoption of lithium ion based storage technologies for utility and industrial applications, growth of hybrid energy storage systems combining multiple storage technologies, expansion of behind the meter energy storage for residential and commercial users, development of long duration energy storage solutions for grid stability.

The fast-growing expansion of electric vehicle charging infrastructure is expected to drive the growth of the energy storage market going forward. Electric vehicle charging infrastructure refers to the network of charging stations and associated systems that supply electricity to recharge electric vehicles across residential, commercial, and public locations. Electric vehicle charging stations are increasing mainly because governments are offering strong support through incentives and funding, making it easier and more cost-effective for companies to deploy more charging points across cities and highways. Energy storage supports electric vehicle charging infrastructure by enabling peak load management, reducing grid congestion, and ensuring reliable power delivery during periods of high charging demand. For instance, in March 2025, according to the International Energy Agency, a France-based intergovernmental organization, more than 1.3 million public charging points were added globally in 2024, representing a rise of over 30% compared to 2023. Therefore, the rapid expansion of electric vehicle charging infrastructure is driving the growth of the energy storage market.

Key companies operating in the energy storage market are focusing on developing advanced solutions, such as lithium-ion grid storage platforms, to reduce peak electricity costs and improve grid flexibility. Lithium-ion grid storage platforms refer to high-capacity battery systems designed for large-scale electricity storage, which enable utilities to store surplus power during low-demand periods and discharge it during peak hours to stabilize supply and pricing. As an example, in October 2023, Fluence Energy Inc., a US-based energy storage technology company, introduced Gridstack Pro to deliver a high-performance, modular energy storage solution designed to enhance grid reliability, enable faster deployment, and support large-scale renewable energy integration. The platform delivers a modular architecture for flexible deployment, incorporates enhanced safety features with advanced fire protection systems, and uses AI-driven optimization software to improve performance and extend battery life.

In January 2024, TotalEnergies SE, a France-based energy company, acquired Kyon Energy GmbH for an undisclosed value. With this acquisition, TotalEnergies SE aimed to fast-track its expansion within the European battery energy storage market and reinforce its position in grid-scale flexibility solutions, supporting the wider shift toward renewable energy adoption. Kyon Energy GmbH is a Germany-based energy storage development company focused on the development, planning, and operation of large-scale battery energy storage systems.

Major companies operating in the energy storage market are EVE Energy Co. Ltd., EnerSys, Fluence Energy Inc., Exide Industries Limited, Northvolt AB, Luminous Power Technologies Private Limited, Amara Raja Energy & Mobility Limited, Narada Power Source Co. Ltd., Waaree Energies Limited, QuantumScape Corporation, Stem Inc., Powin LLC, Okaya Power Private Limited, Form Energy Inc., HBL Power Systems Limited, Rays Power Infra Limited, Eos Energy Enterprises Inc., ESS Tech Inc., Invinity Energy Systems plc, Sterling and Wilson Renewable Energy Limited, Pylon Technologies Co. Ltd., Livguard Energy Technologies Private Limited.

Asia-Pacific was the largest region in the energy storage market in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the energy 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 energy storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The energy storage market consists of revenues earned by entities by providing services such as energy storage system integration, installation, operation and maintenance, grid balancing services, energy management, and storage optimization services. The market value includes the value of related goods sold by the service provider or included within the service offering. The energy storage market also includes sales of power conversion systems, energy storage inverters, containerized energy storage systems, modular battery racks and cabinets, thermal management systems, and battery enclosures. 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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