Battery Energy Storage System Market Size

Study Period: | 2019 - 2028 |
Fastest Growing Market: | Asia Pacific |
Largest Market: | Asia Pacific |
CAGR: | > 16 % |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and it's growth?
Battery Energy Storage System Market Analysis
The battery energy storage systems market is expected to reach USD 50 billion by the end of this year and is projected to register a CAGR of over 16% during the forecast period. The market was negatively impacted by COVID-19 in 2020. Presently the market has reached pre-pandemic levels.
- Over the long term, factors such as declining prices of lithium-ion batteries and increased penetration of renewable energy are likely to drive the battery energy storage systems market in the forecast period.
- On the other hand, demand-supply mismatch of raw materials like cobalt, lithium, copper, etc, are likely to hinder the growth of the BESS market in the studied period.
- Nevertheless, technological advancements in new battery technologies to store energy are likely to create lucrative growth opportunities for the BESS market during the forecast period.
- Asia-Pacific is the fastest-growing market during the forecast period due to the rising energy demand. This growth is attributed to increasing investments, coupled with supportive government policies in the countries of this region, including India, China, and Australia
Battery Energy Storage System Industry Segmentation
Battery Energy Storage Systems (BESS), are devices that enable energy from renewables, like solar and wind, to be stored and then released when consumers need power most. The Battery Energy Storage System Market is segmented by type, by application and by geography. By type, the market is segmented as Lithium-Ion Batteries, Lead-Acid Batteries, Nickel Metal Hydride, and Other Types. By Application the market is segmented into Residential and Commercial & Industrial, and by Geography, the market is segmented into North America, Asia-Pacific, Europe, South America, and Middle-East and Africa. The report offers the market size and forecasts for hydrogen generation in revenue (USD Billion) for all the above segments.
Type | |
Lithium-ion Batteries | |
Lead-acid Batteries | |
Nickel Metal Hydride | |
Other Types (Sodium-sulfur Batteries and Flow Batteries) |
Application | |
Residential | |
Commercial and Industrial |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
South America | |
Middle-East and Africa |
Battery Energy Storage System Market Trends
This section covers the major market trends shaping the Battery Energy Storage System Market according to our research experts:
Residential Expected to be the Fastest-growing Segment
- In the recent past, the energy storage system (ESS) experienced significant growth, especially in the residential sector, along with the rising investments in renewable energy infrastructure across the regions.
- Electricity consumption in residential buildings is estimated to increase during the forecast period due to increasing annual disposable incomes and the rising work from home trend across the world. Energy storage systems are used for continuous power supply at homes during power outages at peak hours.
- Furthermore, various incentive programs initiated by several governments across the world are in place to support the residential energy storage market. For instance, California’s Self-Generation Incentive Program (SGIP) primarily supports the residential storage sector, and the program offers incentives to new and existing distributed energy resources.
- Moreover, the residential energy storage segment is likely to proliferate because of increasing technological advancements in energy storage technology, which is leading to a decline in battery prices and widespread deployment of renewable power sources.
- Also, governments across the globe are investing in grid supported battery storage systems. In 2021, global investments in grid battery storage were estimated at roughly 4.7 billion USD, an increase of 34% in comparison to the previous year.
- Market players like Harmony Energy Income Trust, an investment firm, announced in November 2022 that its Pillswood project in Yorkshire, UK, had gone live four months earlier than planned. According to Harmony, the 98MW/196MWh facility is Europe's largest BESS project by MWh. This is enough to power approximately 300,000 UK homes for two hours. The project will provide balancing services to the UK electricity grid network using a Tesla two-hour Megapack. Harmony Energy developed the project, with Tesla overseeing construction. Autobidder, Tesla's algorithmic trading platform, will manage the project.
- In June 2021, Q CELLS partnered with eStat Inc., a clean energy solutions provider in the residential energy sector, to expand its presence in the Hawaiian residential energy market. eStat’s cloud-based energy optimization and management technology allow homeowners to build a sustainable Zero Carbon Smart Home that achieves NEM-equivalent savings in Hawaii.
- Therefore, owing to the above points, the residential application is expected to create lucrative demand in the battery energy storage systems market during the forecast period.

To understand key trends, Download Sample Report
Asia-Pacific Expected to Dominate the Market
- The Asia-Pacific region consists of two main types of power grids, each with different characteristics and opportunities for energy storage systems. On the one side are highly developed countries, such as Japan and South Korea, with advanced grids that operate reliably and utilize advanced technologies. On the other side, there are nations that are still developing and have unreliable or limited power grids.
- The developing regions are also witnessing rapid population growth and urbanization, which is increasing the demand for electricity. Renewable energy is becoming increasingly cost-effective, and developing countries are expected to include huge amounts of renewable energy into their grid. Also, many areas are expected to adopt a more distributed approach to grid development, using more local power generation and microgrid systems and thereby creating a potential for growth of the battery energy storage system market in the region.
- China’s residential energy storage market is expected to grow on the back of government support and policies. It has shown its ability to stimulate high growth in domestic demand for solar-related equipment through subsidies and installation targets.
- Australia is undergoing an energy transformation, which is expected to intensify over the coming decades. The transformation includes a greater reliance on renewable energy in response to climate mitigation policies.
- In January 2022, Woodside Energy submitted a proposal for a 500 MW solar facility and a 400 MWh of battery storage to the Western Australian Environmental Protection Authority. The facility would cover approximately 975.6 hectares within a development envelope of 1,100.3 hectares. According to the proposal, the solar facility will see the installation of approximately 1 million solar panels, along with supporting infrastructures such as a battery energy storage system and an electrical substation.
- Renewable energy is becoming increasingly cost-effective, and developing countries are expected to include huge amounts of renewable energy into their grid. Also, many areas are expected to adopt a more distributed approach to grid development, using more local power generation and microgrid systems.
- Therefore, owing to the above points, Asia-Pacific is expected to dominate the market during the forecast period.

To understand geography trends, Download Sample Report
Battery Energy Storage System Industry Overview
The battery energy storage system market is fragmented. Some of the major players in the market (in no particular order) are BYD Company Limited, Panasonic Corporation, LG Energy Solution Ltd, and Contemporary Amperex Technology Co. Limited.
Battery Energy Storage System Market Leaders
BYD Company Limited
Contemporary Amperex Technology Co. Limited
Tesla Inc
Panasonic Corporation
LG Energy Solution, Ltd.
*Disclaimer: Major Players sorted in no particular order

Battery Energy Storage System Market News
- In February 2022, Battery manufacturer Saft announced that it had secured a contract from Neoen to deliver a turnkey 8MW/8 MWh battery energy storage system (BESS) in Antugnac, Southern France. The facility will be the first co-located BESS and solar farm connected to Réseau de Transport d'Électricité’s (RTE) high-voltage transmission grid in France. Saft is building the new ESS on an EPC basis, with completion scheduled for spring 2022, within ten months of contract signing.
- In October 2022, Fluence Energy GmbH and TransnetBW GmbH announced they would deploy the world’s largest battery-based energy storage-as-transmission project. The project will improve energy security and significantly support Germany’s energy transition pathway by increasing the efficiency of the existing grid infrastructure. The 250 MW battery-based energy storage system, supplied by Fluence, will be located at Kupferzell, a significant grid hub. It is planned for completion in 2025.
Battery Energy Storage System Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, until 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Lithium-ion Batteries
5.1.2 Lead-acid Batteries
5.1.3 Nickel Metal Hydride
5.1.4 Other Types (Sodium-sulfur Batteries and Flow Batteries)
5.2 Application
5.2.1 Residential
5.2.2 Commercial and Industrial
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 BYD Company Limited
6.4.2 Panasonic Corporation
6.4.3 LG Energy Solution Ltd
6.4.4 Contemporary Amperex Technology Co. Limited
6.4.5 Sony Corp.
6.4.6 Varta AG
6.4.7 Tesla Inc.
6.4.8 Samsung SDI Co. Ltd
6.4.9 Cellcube Energy Storage System Inc.
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Battery Energy Storage System Market Research FAQs
What is the study period of this market?
The Battery Energy Storage System Market is studied from 2019 - 2028.
What is the growth rate of Battery Energy Storage System Market?
The Battery Energy Storage System Market is growing at a CAGR of >16% over the next 5 years.
Which region has highest growth rate in Battery Energy Storage System Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Battery Energy Storage System Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Battery Energy Storage System Market?
BYD Company Limited, Contemporary Amperex Technology Co. Limited, Tesla Inc, Panasonic Corporation, LG Energy Solution, Ltd. are the major companies operating in Battery Energy Storage System Market.
Battery Energy Storage System Industry Report
Statistics for the 2023 Battery Energy Storage System market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Battery Energy Storage System analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.