Energy Storage System Market Size To Worth USD 86.76 Bn By 2032, Driven By Renewable Energy Boom

(MENAFN- EIN Presswire) Burlingame, CA, May 10, 2025 (GLOBE NEWSWIRE) -- According to Coherent Market Insights, the global energy storage system market size was evaluated at USD 52.95 Bn in 2025 and is estimated to attain USD 86.76 Bn by 2032, growing at a CAGR of 7.3% during the forecast period from 2025 to 2032. The growing focus on renewable energy adoption, coupled with the need to efficiently manage the intermittent nature of renewable power generation, is driving the accelerated deployment of energy storage systems.

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Global Energy Storage System Market Key Takeaways

. The global energy storage system market size is expected to be valued at USD 52.95 Bn in 2025 and USD 86.76 Bn by 2032.

. Global demand for energy storage systems will likely increase at a CAGR of 7.3% throughout the assessment period.

. Based on technology type, pumped storage segment is projected to account for USD 18.95 Bn in 2025.

. By end user, grid storage segment is anticipated to account for more than one-third of the global energy storage system market share in 2025.

. As per Coherent Market Insights' latest energy storage system market research, Asia Pacific will likely retain its dominance, accounting for nearly half of the global market share in 2025. This is attributable to increasing investments in renewable energy projects and favorable government support.

. North America is expected to witness strong growth during the assessment period, owing to rising demand for clean energy and advancements in energy storage systems.

Rapid Transition Towards Renewable Energy Fueling Market Growth

Coherent Market Insights' latest energy storage system market analysis outlines key factors driving the industry's growth. One such factor is high adoption of renewable energy sources across nations like China and the United States.

Many nations are increasingly embracing renewable energy sources like solar and wind due to growing environmental concerns and depletion of fossil fuels. This is expected to drive demand for energy storage systems (ESSs) as they hold the key to renewable transition.

Global renewable energy capacity is projected to grow by 2.7 times by 2030, according to the International Energy Agency (IEA). This, in turn, will drive energy storage system market demand during the forecast period.

Also Read: How Renewable Energy Adoption is Impacting Thermal Energy Storage Market Size, Share, and Growth Trajectory

High Costs and Environmental Concerns Restraining Market Growth

The future energy storage system market outlook looks promising. However, factors like high initial investment costs and growing environmental concerns are limiting energy storage system market growth to some extent.

Battery technologies like lithium-ion batteries are expensive. This deters some end users from adopting these energy storage solutions. Moreover, disposal and recycling of battery components pose health and environmental risks due to presence of hazardous materials.

Government Initiatives and Declining Cost of Batteries Creating Growth Opportunities

Governments across the world are increasingly encouraging adoption of energy storage through supportive regulations and financial incentives. These initiatives are expected to create lucrative growth opportunities for energy storage system providers.

Leading energy storage system companies are striving to reduce the cost of battery technologies like lithium-ion batteries. Similarly, they are launching new safe and affordable batteries like sodium-ion flow batteries and lithium-iron-phosphate (LFP) to make ESS more economically feasible for diverse applications.

For instance, in April 2025, Chinese battery powerhouse CATL introduced a new sodium-ion battery under the brand 'Naxtra'. This marks a significant advancement in battery technology, offering a safer and more cost-effective alternative to traditional lithium-ion batteries.

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Emerging Energy Storage System Market Trends

. Expansion of smart grid infrastructure across the world is acting as a catalyst triggering energy storage system demand. Energy storage plays a crucial role in smart grid functionality by enabling load balancing, frequency regulation, and voltage control. This makes it an essential component for building efficient and resilient smart grids. Therefore, rising need for more resilient grids will eventually drive investments in ESS.

. Shift towards electric and hybrid vehicles is expected to fuel sales of energy storage systems. Consumers and governments worldwide prioritize sustainable transportation solutions. This creates a need for efficient, high-performance energy storage technologies.

. Electric and hybrid vehicles rely heavily on advanced battery systems to deliver optimal performance, longer driving ranges, and reduced environmental impact. Thus, rapid growth of the EV industry will directly impact the energy storage system market value in the coming years.

. There is a growing trend of developing hybrid energy storage systems in the industry. Energy storage system manufacturers are combining technologies like supercapacitors to optimize performance, enhance energy density, and extend system lifespan. Rising adoption of these hybrid energy storage solutions is expected to further drive growth of energy storage system market.

Read Also: Global Energy Harvesting Systems Market Size, Share & Trends (2025-2032)

Analyst's View

“ The global energy storage system market is poised to record robust growth, driven primarily by its expanding renewable energy sector, favorable government support, and advancements in battery technologies,” said senior analyst Yash Doshi.

Current Events and Their Impact on the Energy Storage System Market

Event	Description and Impact
Rising Adoption of Renewable Energy Sources	Description : The world is witnessing a rapid shift toward clean energy sources like solar and wind. Impact: Increased adoption of renewable energy sources will drive demand for energy storage systems to balance intermittent power generation. Description: Governments worldwide are introducing incentives and regulations to support renewable energy adoption. Impact: Favorable government support will encourage investments in energy storage technologies.
Advancements in Battery Technology	Description: Cost of lithium-ion batteries is steadily declining due to technological improvements. Impact: Lower battery costs will make energy storage more affordable and accessible, thereby increasing their adoption rate and demand. Description: Industry players are focusing on developing novel battery technologies, including flow batteries as well as solid-state batteries, which offer improved performance and safety. Impact: Availability of batteries with improved properties will positively impact sales of energy storage systems.
Booming Electric Vehicle (EV) Industry	Description : Electric and hybrid vehicles are becoming highly popular amid rising environmental concerns. Impact : Increasing adoption of EVs is expected to drive demand for high-capacity energy storage solutions.

Competitor Insights

Key companies in the energy storage system market report include:

• LG Chem Ltd.
• Tesla, Inc.
• Samsung SDI Co., Ltd.
• Siemens AG
• Panasonic Corporation
• Saft Groupe S.A.
• Schneider Electric SE
• Varta AG
• BYD Company Limited
• Enphase Energy, Inc.
• ABB Ltd.
• Fluence Energy, Inc.
• Eos Energy Enterprises, Inc.
• Kokam Co., Ltd
• AES Corporation
  

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Key Developments

• In March 2025, TotalEnergies announced the launch of six new battery storage projects in Germany. This aligns with the company's strategy to develop an integrated portfolio in the electricity sector. The projects are being developed by Kyon Energy, a German battery storage developer acquired by TotalEnergies in 2024. The battery systems will be supplied by Saft, another TotalEnergies affiliate specializing in advanced battery technology.
• In March 2025, BYD Energy Storage unveils its new Power-Box inverters and Battey-Box HVE energy storage system to meet evolving needs of end users.
• In September 2024, Samsung SDI launched its next-generation battery solutions, including lithium iron phosphate and SAMSUNG Battery Box 1.5 for energy storage system (ESS) at Renewable Energy Plus.
  

Market Segmentation

Technology Insights (Revenue, USD Bn, 2020 - 2032)

• Pumped Storage
• Electrochemical Storage
• Electromechanical Storage
• Thermal Storage

End User Insights (Revenue, USD Bn, 2020 - 2032)

• Grid Storage
• Residential
• Commercial
• Industrial

Regional Insights (Revenue, USD Bn, 2020 - 2032)

• North America
  • U.S.
  • Canada
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of Latin America
• Europe
  • Germany
  • U.K.
  • Spain
  • France
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East
  • GCC Countries
  • Israel
  • Rest of Middle East
• Africa
  • South Africa
  • North Africa
  • Central Africa

Also Read: Energy Storage As A Services Market Size, Share & Trend Analysis Report (2025-2032)

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