US Battery Energy Storage Industry Report Forecasts Investment Growth From $23.24 Billion (2025) To $45.42 Billion By 2035, Profiling Tesla, Generac, Wärtsilä, Ameresco & Schneider Electric
Dublin, Nov. 03, 2026 (GLOBE NEWSWIRE) -- "Growth Opportunities in the US Battery Energy Storage Industry, 2025-2035" has been added to ResearchAndMarkets.com's offering.
The US battery energy storage system market is becoming a critical component of the energy transition as utilities, independent power producers, businesses, and households invest in storage capacity. Growth is being supported by renewable-energy deployment, higher electricity prices, grid reliability requirements, and rising demand for energy security and resilience.
According to the report, total Battery Energy Storage Systems (BESS) capex revenue is forecast to increase from $23.24 billion in 2025 to $45.42 billion by 2035. Following record deployment in 2025, investment is expected to reach another record level in 2026, demonstrating the resilience of the market despite federal policy uncertainty, permitting complexity, and supply-chain constraints.
Key US battery energy storage market findings
- Grid-scale storage will remain the largest market segment, with capex projected to rise from $17.50 billion in 2025 to approximately $30.99 billion by 2035, representing a 5.9% CAGR. Commercial and industrial (C&I) BESS will record the fastest growth, with capex increasing from $0.37 billion to $3.90 billion at a 26.5% CAGR during 2025-2035. Residential BESS capex is forecast to expand from $5.36 billion in 2025 to $10.53 billion by 2035, equivalent to a 7.0% CAGR. Annual grid-scale BESS additions are expected to increase from 17.2 GW in 2025 to 30.2 GW in 2035. Cumulative grid-scale capacity is projected to reach approximately 311.3 GW by 2035, compared with 45.5 GW in 2025. Longer-duration battery systems will become increasingly important across grid-scale, C&I, and residential applications.
Grid-scale BESS leads market investment
Grid-scale battery energy storage will continue to account for the majority of US market spending. Utilities and project developers are expanding large-scale storage capacity to support renewable integration, address transmission constraints, manage peak demand, reduce grid congestion, and provide electricity-market services.
California, Texas, Arizona, and the Northeast remain important markets for large-scale BESS projects. Investment in these regions is being driven by expanding solar PV capacity, growing power demand, grid reliability concerns, and the need to balance intermittent generation.
C&I and residential storage create additional opportunities
The C&I battery energy storage segment remains comparatively underdeveloped in the United States, but its projected 26.5% CAGR creates opportunities for equipment manufacturers, system integrators, installers, energy-service providers, and project developers. Businesses and institutional users are adopting storage to manage electricity costs, improve operational resilience, integrate distributed generation, and optimize energy consumption.
Residential battery storage is also expected to maintain steady growth as electricity prices rise and household solar PV installations expand. Demand for backup power and energy resilience will remain a significant adoption driver. Average residential system size is forecast to increase from 12 kWh in 2025 to 18 kWh by 2035.
Longer-duration systems and alternative chemistries gain attention
Average storage duration is expected to increase through 2035 as owners pursue a broader range of applications and revenue opportunities. Grid systems are forecast to reach an average duration of approximately 5 hours, compared with 4.5 hours for C&I systems and 4 hours for residential installations.
Lithium-ion will remain the dominant battery chemistry because of its established supply chain, commercial maturity, and performance. However, sodium-ion, flow batteries, iron-air, nickel-cadmium, and other technologies are attracting interest as developers evaluate lower-cost options, supply-chain diversification, and longer-duration applications.
Competitive landscape and market outlook
Competition in the US battery energy storage system market extends across equipment manufacturing, system integration, installation, energy services, and project development. Tesla is identified as the leading participant across BESS categories, while Generac, Wartsila, Ameresco, and Schneider Electric also maintain a market presence. Domestic companies are expected to remain influential as investment expands throughout the value chain.
Vasanth Krishnan, North American Energy Consultant, Battery Energy Storage Market, notes that the industry faced considerable uncertainty in early 2025 following changes in federal policy priorities. Nevertheless, favorable physical market conditions, state-level support, renewable deployment, and electricity-price trends continued to strengthen the economic case for storage.
The report assesses the US stationary battery energy storage market from 2023 through 2035, using 2025 as the base year and 2026-2035 as the forecast period. Its capex analysis covers battery cells and racks, balance-of-system components, power conversion systems, energy-management systems, assembly, shipping, installation, testing, and commissioning. Operating revenue from storage assets is excluded.
With investment expected to accelerate, the US BESS market is moving from an emerging energy-transition segment into essential power infrastructure. Grid-scale deployment will lead overall spending, while rapid C&I expansion, sustained residential demand, longer system durations, and technology diversification will shape market development through 2035.
Key Topics Covered:
Scope and Segmentation
- Scope of Analysis Battery Energy Storage End-User Segmentation & Definitions
Strategic Imperatives
- Why is it Increasingly Difficult to Grow? The Strategic Imperative 8 The Impact of the Top 3 Strategic Imperatives on the United States Battery Energy Storage Industry
Key Findings
- Grid, C&I, & Residential Capex Forecasts Grid, C&I, & Residential Capacity Additions (GW) Forecasts
Growth Opportunity Analysis: Trend Analysis
- Trend #1: Residential Storage Becomes a Grid Asset Through VPP Participation Trend #2: Commercial Storage Shifts from Peak Shaving to Multi-Management Energy Services Trend #3: Data Center Expansion Creates a New Growth Segment for BTM Storage Trend #4: Solar Export Compensation Reforms Drive Higher BTM Storage Attachment Rates Residential BESS Annual & Cumulative System Forecasts Residential BESS Battery Chemistry Forecasts Residential BESS Competitive Landscape
Growth Opportunity Analysis: Commercial & Industrial Battery Energy Storage
- C&I BESS: Key Enablers C&I BESS: Significance of the Key Enablers C+I BESS Annual & Cumulative GW Forecasts C+I BESS Annual & Cumulative GWh Forecasts C&I BESS Capex Forecasts C&I Battery Chemistry Forecasts C&I BESS Competitive Landscape
Growth Opportunity Universe
- Growth Opportunity 1: Flexibility Requirements from Data Centers Create a New Stream of Projects Growth Opportunity 2: Geographic Expansion into New Regions of the United States Growth Opportunity 3: Growth of Virtual Power Plants and Distributed Energy Networks
Appendix
- Grid-Scale Enabler Definitions: Market Design Grid-Scale Enabler Definitions: Physical Market Grid-Scale Enabler Definitions: Supportive Policies C&I Enabler Definitions: Market Design C&I Enabler Definitions: Physical Market C&I Enabler Definitions: Supportive Policies Residential Enabler Definitions: Market Design Residential Enabler Definitions: Physical Market Residential Enabler Definitions: Supportive Policies
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