Battery Energy Storage System Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Battery Energy Storage System (BESS) Market Report is Segmented Into Battery Type (Lithium-Ion, Lithium Iron Phosphate, and Others), Connection Type (On-Grid and Off-Grid), Components (Battery Pack and Racks, Power Conversion System, and Others), Energy Capacity Range (Below 100 MWh, and Others), End-User Application (Utility, Residential, and Others), and Geography (North America, Europe, Asia-Pacific, and Others).

UPTO 30% OFF

Battery Energy Storage System (BESS) Market Size and Share

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Compare market size and growth of Battery Energy Storage System (BESS) Market with other markets in Energy & Power Industry

Battery Energy Storage System (BESS) Market Analysis by Mordor Intelligence

The Battery Energy Storage System Market size is estimated at USD 76.69 billion in 2025, and is expected to reach USD 172.17 billion by 2030, at a CAGR of 17.56% during the forecast period (2025-2030).

Rapid cost declines in lithium-ion cells, supportive procurement mandates, and rising grid-modernization spending are turning large-scale storage from a niche reliability tool into mainstream infrastructure. Policy tailwinds such as the Inflation Reduction Act in the United States and the Net-Zero Industry Act in the European Union have anchored multi-gigawatt project pipelines, while grid-forming inverter requirements are expanding revenue streams beyond energy arbitrage. Simultaneously, price parity for solar-plus-storage power purchase agreements (PPAs) in Australia and Chile proves that four-hour batteries can offer firm, evening-peak supply at competitive rates. Growing data-center electricity demand and politically driven supply-chain reshoring further reinforce the sector’s momentum.

Key Report Takeaways

  • By battery type, lithium-ion commanded 88.6% of the battery energy storage system market share in 2024, while Lithium Iron Phosphate (LFP) is projected to expand at a 19% CAGR through 2030.
  • By connection type, on-grid installations held a 78% share of the battery energy storage system market in 2024; off-grid applications are the fastest-growing segment at 18.5% CAGR.
  • By component, battery packs, and racks represented 63% revenue share in 2024; energy-management software is advancing the fastest, at 20% CAGR.
  • By energy-capacity range, projects sized 101–500 MWh captured 46% of the battery energy storage system market size in 2024, yet installations above 500 MWh are forecast to lead growth at an 18.2% CAGR.
  • By end-user application, utility-scale systems accounted for 57% of the battery energy storage system market size in 2024, whereas residential deployments are expected to grow at 19.5% CAGR to 2030.
  • By region, Asia-Pacific held 50.4% of the battery energy storage system market share in 2024, while the Middle East and Africa region is projected to expand at a 19.5% CAGR through 2030.

Segment Analysis

By Battery Type: Market pivots toward safer chemistries

Lithium-ion maintained 88.6% battery energy storage system market share in 2024. Yet LFP’s cost and thermal-stability advantages drive its 19% CAGR, exemplified by BYD’s 40 GWh 2024 installations. NMC chemistries remain relevant where energy density matters, while vanadium flow and sodium-ion technologies attract niche interest for long-duration or high-cycle use. Lithium-ion variants' battery energy storage system market size is projected to widen as scaling lowers per-kilowatt-hour costs. Diversification across chemistries reduces supply-chain risk and opens project financing to asset-specific hedging structures.

Implementation tactics vary by region. Chinese players offer ultra-low-priced LFP racks, European utilities test sodium-ion for cold-weather resilience, and U.S. grid operators pilot zinc-bromine flow batteries for eight-hour services. These parallel pathways illustrate how chemistry choice is increasingly optimized for duty cycle rather than a one-size-fits-all paradigm.

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By Connection Type: Grid-tied dominance with microgrid acceleration

On-grid systems captured 78% of 2024 deployments, supported by standardized interconnection and robust merchant revenue opportunities. The off-grid segment, however, is accelerating at 18.5% CAGR owing to rural electrification and industrial resilience requirements(3)Institute for Energy Economics and Financial Analysis, “Pakistan storage import outlook,” ieefa.org. Pakistan’s import projection of 8.75 GWh by 2030 typifies emerging-market demand for microgrids that bypass weak national infrastructure.

Hybrid configurations that switch between grid and islanded mode are a rising subset, offering customers demand-charge reduction plus backup power. These flexible assets partake in wholesale markets through virtual-power-plant aggregation, a trend now codified in several U.S. independent system operators’ tariff updates.

By Component: Hardware scale, software value

Battery packs and racks accounted for 63% of 2024 revenue, reflecting raw-material intensity. Yet, energy-management software is the fastest-growing component at 20% CAGR as machine-learning algorithms unlock multi-service revenue stacking. The battery energy storage system market size allocated to EMS is forecast to expand as asset owners discover that dispatch optimization can raise net present value more than incremental hardware upgrades.

Integrators now bundle predictive maintenance, nodal-price forecasting, and state-of-health analytics, blurring the line between software and services. Vertical integration strategies—LG Energy Solution’s “cells-to-system” model or Tesla’s Autobidder platform—seek lifetime customer lock-in.

By Energy Capacity Range: Mid-scale sweet spot, gigawatt frontier

Installations sized 101–500 MWh held 46% of deployments in 2024. Utilities value this bracket for substation-level support and manageable construction timelines. Projects exceeding 500 MWh, though only 16% of 2024 capacity, are expanding at 18.2% CAGR based on procurement mandates and cost economies.

The battery energy storage system market share for the >500 MWh class is expected to accelerate as developers chase fewer, larger tenders to streamline permitting and financing. However, gigawatt-hour projects require sophisticated coordination with transmission operators and can strain local grid stability if control systems lag, reinforcing the importance of grid-forming functionality.

Battery Energy Storage System (BESS) Market: Market Share by Energy Capacity Range
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By End-User Application: Utility leadership amid residential surge

Utility-scale assets delivered 57% of 2024 revenue, but residential systems are set to grow at 19.5% CAGR through 2030, led by European markets where rooftop solar penetrations exceed 20%. Variability in feed-in tariffs and the quest for self-consumption drive household adoption. The battery energy storage system industry also sees commercial and industrial users leveraging storage for peak-shaving and power-quality assurance.

Incentive structures differ: Germany grants investment subsidies, Japan offers capacity-market payments, and several U.S. states allow demand-response enrollment. Product design likewise diverges, with stackable 5–15 kWh modules for homes and containerized 2–4 MWh units for distribution-level utility customers.

Geography Analysis

Asia-Pacific retained a 50.4% share in 2024, powered by China’s 70 million kW installed base that doubled yearly. India reached an inflection point with SECI’s 1 GW/2 GWh auction, and Japan’s 1.67 GW capacity-market awards validated storage’s role in capacity adequacy. South Korea advanced a 540 MW tender, and LG Energy Solution exported multi-GWh systems to Europe and Japan, underscoring the region’s manufacturing clout.

The Middle East and Africa are the fastest-growing regions at 19.5% CAGR. Saudi Arabia’s 7.8 GW partnership with Sungrow and Egypt’s 200 MWh AfDB-financed project illustrate large-scale commitments(4)African Development Bank Energy Division, “AfDB funds Egypt’s 200 MWh solar-battery hybrid,” afdb.org. South Africa’s 1 GW awards highlight how storage addresses chronic grid instability. Moreover, the United Arab Emirates integrates 19 GWh with a 5.2 GW solar plant, pioneering baseload renewables in desert climates.

North America and Europe continue to post high absolute volumes. The United States hosts USD 100 billion in announced investments but suffers four-year interconnection queues for 2,600 GW of projects. Europe’s Net-Zero Industry Act seeks to localize supply chains, yet over half of announced gigafactories face financing delays. Regional policy diversity—capacity markets in the United Kingdom, fleet mandates in Italy, and production credits in Canada—produces a mosaic of revenue models that sophisticated developers arbitrage.

Battery Energy Storage System (BESS) Market CAGR (%), Growth Rate by Region
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Competitive Landscape

The market is moderately fragmented. Fluence posted a USD 5.1 billion backlog in 2025, leveraging project execution credentials and proprietary bidding software. BYD’s cost-focused strategy floods Asian tenders with low-priced LFP racks, challenging Western integrators. Chinese state-owned conglomerates such as Power China submit multi-gigawatt bids that redefine global price floors.

Vertical integration is rising. LG Energy Solution bundles cells, racks, and software under long-term service agreements. Tesla scales megapack capacity via its Shanghai facility, locking in off-take through corporate power-purchase contracts. New entrants target differentiated niches: Natron Energy backs sodium-ion for data centers, while ESS Inc. commercializes iron-flow chemistry for eight-hour applications.

Software is becoming the key battleground. Suppliers market AI-driven dispatch platforms that predict nodal congestion, regulate frequency within milliseconds, and prolong battery life via adaptive cycling. Integrators lacking proprietary code risk margin erosion as hardware commoditizes. Strategic alliances—Fluence with Amazon Web Services or Sungrow with Huawei Digital Power—underline the convergence of energy and cloud computing.

Battery Energy Storage System (BESS) Industry Leaders

  1. Contemporary Amperex Technology Co. Ltd. (CATL)

  2. BYD Company Limited

  3. Tesla Inc.

  4. LG Energy Solution Ltd.

  5. Samsung SDI Co. Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
Battery Energy Storage System Market Concentration
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • June 2025: Sungrow received orders from Toshiba Energy Systems for a 100 MW/351 MWh system at SGET Sapporo, one of Japan’s largest storage projects.
  • May 2025: Samsung C&T filed plans for a 320 MWh BESS in New South Wales under Australia’s EPBC Act.
  • April 2025: LG Energy Solution won a 1 trillion-won contract with Omron for over 2 GWh LFP batteries bound for Japan.
  • March 2025: Gentari chose Fluence’s AI platform for a 172 MW/408 MWh hybrid project in Australia

Table of Contents for Battery Energy Storage System (BESS) Industry Report

1. Introduction

  • 1.1 Study Assumptions & Methodology Scope
  • 1.2 Market Definition

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Recent Trends & Innovations
  • 4.3 Market Drivers
    • 4.3.1 Utility-Scale Procurement Mandates in U.S., China & EU Accelerating Gigawatt-Scale Orders
    • 4.3.2 Grid-Forming Inverter Requirements Unlocking Co-Location Value Stacks
    • 4.3.3 PV-Plus-Storage PPA Price Parity in Australia & Chile
    • 4.3.4 EU & U.S. Battery Supply-Chain Acts Creating Domestic Manufacturing Pull-Through
    • 4.3.5 Data-Center & AI Load Growth Driving 4-Hr Storage Demand in North America
    • 4.3.6 Second-Life EV Battery Availability Reducing CapEx in Asia
  • 4.4 Market Restraints
    • 4.4.1 Lithium & Graphite Processing Bottlenecks in Indonesia and Africa
    • 4.4.2 Fire-Safety Code Tightening (UL-9540A, NFPA-855) Inflating Balance-of-Plant Costs
    • 4.4.3 Long Interconnection Queues in U.S. ISOs Delaying FTM Project Revenues
    • 4.4.4 High Interest-Rate Environment Compressing Merchant Revenue Stacks
  • 4.5 Supply-Chain Analysis
  • 4.6 Regulatory and Policy Outlook
  • 4.7 Technological Outlook
  • 4.8 Porter's Five Forces
    • 4.8.1 Bargaining Power of Suppliers
    • 4.8.2 Bargaining Power of Buyers
    • 4.8.3 Threat of New Entrants
    • 4.8.4 Threat of Substitutes
    • 4.8.5 Intensity of Competitive Rivalry

5. Market Size & Growth Forecasts

  • 5.1 By Battery Type
    • 5.1.1 Lithium-ion
    • 5.1.2 Lithium Iron Phosphate (LFP)
    • 5.1.3 Nickel-Manganese-Cobalt (NMC)
    • 5.1.4 Lead-acid
    • 5.1.5 Others [Flow Batteries (Vanadium, Zinc-Br), Sodium-based (NaS, Na-ion)]
  • 5.2 By Connection Type
    • 5.2.1 On-Grid (Utility Interconnected)
    • 5.2.2 Off-Grid (Micro-Grid, Hybrid)
  • 5.3 By Component
    • 5.3.1 Battery Pack and Racks
    • 5.3.2 Power Conversion System (PCS)
    • 5.3.3 Energy Management Software (EMS)
    • 5.3.4 Balance-of-Plant and Services
  • 5.4 By Energy Capacity Range
    • 5.4.1 Below 100 MWh
    • 5.4.2 101 to 500 MWh
    • 5.4.3 Above 500 MWh
  • 5.5 By End-user Application
    • 5.5.1 Residential
    • 5.5.2 Commercial and Industrial
    • 5.5.3 Utility
  • 5.6 By Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
    • 5.6.2 Europe
    • 5.6.2.1 United Kingdom
    • 5.6.2.2 Germany
    • 5.6.2.3 France
    • 5.6.2.4 Spain
    • 5.6.2.5 Nordic Countries
    • 5.6.2.6 Russia
    • 5.6.2.7 Rest of Europe
    • 5.6.3 Asia-Pacific
    • 5.6.3.1 China
    • 5.6.3.2 India
    • 5.6.3.3 Japan
    • 5.6.3.4 South Korea
    • 5.6.3.5 Malaysia
    • 5.6.3.6 Thailand
    • 5.6.3.7 Indonesia
    • 5.6.3.8 Vietnam
    • 5.6.3.9 Australia
    • 5.6.3.10 Rest of Asia-Pacific
    • 5.6.4 South America
    • 5.6.4.1 Brazil
    • 5.6.4.2 Argentina
    • 5.6.4.3 Colombia
    • 5.6.4.4 Rest of South America
    • 5.6.5 Middle East and Africa
    • 5.6.5.1 United Arab Emirates
    • 5.6.5.2 Saudi Arabia
    • 5.6.5.3 South Africa
    • 5.6.5.4 Egypt
    • 5.6.5.5 Rest of Middle East and Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves (M&A, Partnerships, PPAs)
  • 6.3 Market Share Analysis (Market Rank/Share for key companies)
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
    • 6.4.1 BYD Company Limited
    • 6.4.2 Contemporary Amperex Technology Co. Ltd. (CATL)
    • 6.4.3 LG Energy Solution Ltd.
    • 6.4.4 Panasonic Holdings Corp.
    • 6.4.5 Tesla Inc.
    • 6.4.6 Samsung SDI Co. Ltd.
    • 6.4.7 Fluence Energy Inc.
    • 6.4.8 ABB Ltd.
    • 6.4.9 Siemens Energy AG
    • 6.4.10 GE Vernova
    • 6.4.11 Hitachi Energy Ltd.
    • 6.4.12 Mitsubishi Power
    • 6.4.13 Sungrow Power Supply Co.
    • 6.4.14 Eaton Corporation plc
    • 6.4.15 Toshiba Corp.
    • 6.4.16 EVE Energy Co.
    • 6.4.17 VARTA AG
    • 6.4.18 Saft SAS (TotalEnergies)
    • 6.4.19 CellCube Energy Storage Systems Inc.
    • 6.4.20 Enphase Energy Inc.

7. Market Opportunities & Future Outlook

  • 7.1 White-space & Unmet-Need Assessment
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Global Battery Energy Storage System (BESS) Market Report Scope

Battery energy storage systems (BESS) are rechargeable batteries that can store energy from different sources and discharge it when required. BESS consists of one or more batteries that can balance the electric grid, deliver backup power, and enhance grid stability. BESS enables energy from renewables, like solar and wind, to be stored and discharged when consumers need power.

The battery energy storage system market is segmented into type, application, and geography. The market is segmented by type into lithium-ion batteries, lead-acid batteries, nickel metal hydride, and other types. By application, the market is segmented into residential and commercial & industrial. The report also covers the market size and forecasts across major regions. 

The market sizing and forecasts for each segment are based on revenue (in USD).

By Battery Type Lithium-ion
Lithium Iron Phosphate (LFP)
Nickel-Manganese-Cobalt (NMC)
Lead-acid
Others [Flow Batteries (Vanadium, Zinc-Br), Sodium-based (NaS, Na-ion)]
By Connection Type On-Grid (Utility Interconnected)
Off-Grid (Micro-Grid, Hybrid)
By Component Battery Pack and Racks
Power Conversion System (PCS)
Energy Management Software (EMS)
Balance-of-Plant and Services
By Energy Capacity Range Below 100 MWh
101 to 500 MWh
Above 500 MWh
By End-user Application Residential
Commercial and Industrial
Utility
By Geography North America United States
Canada
Mexico
Europe United Kingdom
Germany
France
Spain
Nordic Countries
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Malaysia
Thailand
Indonesia
Vietnam
Australia
Rest of Asia-Pacific
South America Brazil
Argentina
Colombia
Rest of South America
Middle East and Africa United Arab Emirates
Saudi Arabia
South Africa
Egypt
Rest of Middle East and Africa
By Battery Type
Lithium-ion
Lithium Iron Phosphate (LFP)
Nickel-Manganese-Cobalt (NMC)
Lead-acid
Others [Flow Batteries (Vanadium, Zinc-Br), Sodium-based (NaS, Na-ion)]
By Connection Type
On-Grid (Utility Interconnected)
Off-Grid (Micro-Grid, Hybrid)
By Component
Battery Pack and Racks
Power Conversion System (PCS)
Energy Management Software (EMS)
Balance-of-Plant and Services
By Energy Capacity Range
Below 100 MWh
101 to 500 MWh
Above 500 MWh
By End-user Application
Residential
Commercial and Industrial
Utility
By Geography
North America United States
Canada
Mexico
Europe United Kingdom
Germany
France
Spain
Nordic Countries
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Malaysia
Thailand
Indonesia
Vietnam
Australia
Rest of Asia-Pacific
South America Brazil
Argentina
Colombia
Rest of South America
Middle East and Africa United Arab Emirates
Saudi Arabia
South Africa
Egypt
Rest of Middle East and Africa
Need A Different Region or Segment?
Customize Now

Key Questions Answered in the Report

What is the battery energy storage system market worth in 2025?

The market is valued at USD 76.69 billion in 2025.

How fast is the battery energy storage system market expected to grow?

It is projected to expand at a 17.56% CAGR, reaching USD 172.17 billion by 2030.

Which battery chemistry is growing the fastest?

Lithium Iron Phosphate (LFP) is the fastest-growing chemistry, advancing at a 19% CAGR through 2030.

Which region currently dominates the market, and which is growing the quickest?

Asia-Pacific holds 50.4% of 2024 revenue, while the Middle East and Africa is forecast to grow the fastest at a 19.5% CAGR.

What policies are propelling market expansion?

Key drivers include utility-scale procurement mandates, the U.S. Inflation Reduction Act, and the EU Net-Zero Industry Act, all of which underpin multi-gigawatt project pipelines.

What are the main barriers to deployment?

Supply-chain constraints in lithium and graphite processing and tighter fire-safety codes (UL-9540A, NFPA-855) are the leading restraints, adding cost and complexity to new projects.

Page last updated on: July 4, 2025