Long Duration Energy Storage Market Size, Share, and Industry Analysis, By Type (Thermal, Electrochemical, Mechanical, and Chemical), By Application (Residential, Commercial, Industrial, and Utility), and Regional Forecast, 2026-2034

The global long duration energy storage market size was valued at USD 5.62 billion in 2025. The market is projected to grow from USD 6.4 billion in 2026 to USD 18.07 billion by 2034, exhibiting a CAGR of 13.86% during the forecast period.

The global long duration energy storage market is expanding considering the escalating emphasis on curbing carbon emissions and the increasing deployment of renewable-based energy. Long duration energy storage refers to technologies that store energy in different forms, such as chemical, thermal, mechanical, or electrochemical. These systems can release energy or heat for long periods, ranging from eight hours to several days or even seasons.

• According to the International Renewable Energy Agency (IRENA), by the end of 2023, renewable energy capacity reached 3.9 TW, making up 43% of the total global capacity of 9 TW, which includes both renewable and non-renewable sources.

Long Duration Energy Storage Market Driver

Setting up Decarbonization Target to Lead the Market Growth

The governments of nations across the globe have set different targets to limit carbon emissions, which has subsequently led to a rise in the installation of renewable energy power plants. As countries increase their reliance on renewables to meet these targets, effective storage solutions are essential for managing intermittency.

• The European Union aims to achieve climate neutrality by 2050, meaning net-zero greenhouse gas emissions. This goal is central to the European Green Deal and is mandated by the European Climate Law.

Long Duration Energy Storage Market Restraint

High Initial and Operational Cost of Batteries to Restrain the Market Growth

Long-duration energy storage technologies, such as flow batteries and thermal storage, involve high procurement and installation costs and a limited life span, which leads to the inclination toward different backup solutions such as fossil fuel-based power plants. In addition, mechanical and thermal storage systems involve high operational costs, playing a key role in restraining market growth.

Long Duration Energy Storage Market Opportunity

Mounting Demand for Maintaining Grid Stability to Offer New Growth Opportunities

The rising demand for maintaining grid stability and providing continuous power to end users is playing a key role in the expansion of the global long duration energy storage market. In the event of outages or disruptions, LDES provides backup energy, enhancing the grid's resilience and reducing dependence on fossil fuel-peaked plants.

• In June 2024, Orsted approved a battery energy storage system to stabilize the U.K. energy supply and reduce price fluctuations. The Tesla battery system will be installed alongside the onshore converter station for Orsted’s Hornsea 3 Offshore Wind Farm in Swardeston, near Norwich. With a capacity of 600 MWh and a power rating of 300 MW, it can store enough energy to power 80,000 U.K. homes for a day.

Segmentation

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Countries
• Latest Technological Advancement
• Insight on Regulatory Landscape
• Porters Five Forces Analysis
• Impact of COVID-19 on the market 

Analysis by Type

By type, the market is divided into thermal, electrochemical, mechanical, and chemical.

The electrochemical segment dominates the market owing to the high research & development taking place in battery chemistry, energy density, and cost reductions. In addition, the need to balance intermittent renewable energy sources such as wind and solar is also playing a key role in the growth of the global long duration energy storage market.

Analysis by Application

By application, the market is categorized into residential, commercial, industrial, and utility.

The utility segment holds a dominating share in the market due to the expansion of renewable energy power generation coupled with the rising government initiatives for boosting the renewable energy share in the energy mix. For instance, in February 2023, the U.S. government has set the target of achieving 80% power generation through renewable energy by 2030. Such plans are anticipated to lead to the installation of long-duration energy storage for providing backup solutions during the intermittency of renewable power plants.

Regional Analysis

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By region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.

The Asia Pacific dominated the long duration energy storage market owing to the high rate of installations of lithium-ion batteries in the utility sector in China, Japan, South Korea, and Australia. The rising concerns about greenhouse gas emissions from fossil fuel-based energy storage systems have been the major factor in the installation of long-duration energy storage systems.

• CATL introduced TENER, a new energy storage system with zero degradation for the first five years and a 6.25 MWh capacity in Beijing, China. This mass-producible system offers all-around safety and aims to enhance renewable energy integration and grid balancing by providing long-term stability and reliability.

North America is the second leading market owing to the growing integration of the renewable energy sector with energy storage systems for providing backup power in the case of intermittency. The surging deployment of solar and wind energy in regional countries such as the U.S. and Canada is a major factor driving the industry growth.

• According to the Solar Energy Industries Association (SEIA), the U.S. installed 32.4 GW of solar energy in 2023, a 51% increase from 2022.

Furthermore, various initiatives and investments are being made in other regions such as Europe and the rest of the world, which will provide a positive outlook to the global market.

Key Players Covered

The global long duration energy storage market is fragmented with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• BYD (China)
• Samsung SDI (South Korea)
• Tesla (U.S.)
• Panasonic Corporation (Japan)
• LG Energy Solution (South Korea)
• GE Vernova (U.S.)
• ABB (Switzerland)
• Hitachi Energy (Switzerland)
• Honeywell (U.S.)
• Siemens (Germany)
• Toshiba Corporation (Japan)
• CATL (China)
• NGK Insulators (Japan)
• VRB Energy (Canada)
• Mitsubishi Heavy Industries, Ltd. (Japan)

Key Industry Developments

• In September 2024, BHE Renewables chose Powin as the energy storage provider for its Ravenswood microgrid in West Virginia, which aims to be the world’s largest solar and storage microgrid. The project would supply 70% of the power for Titanium Metals’ new titanium mill and includes a 106-MW solar array and Powin’s 50-MW Centipede Stack 800 battery system, which utilizes lithium iron phosphate batteries that discharge for 10 to 12 hours.
• In May 2024, RWE approved a large-scale 50MW/400MWh battery energy storage system (BESS) project in New South Wales, Australia. The battery, designed for an 8-hour duration, will be located next to RWE’s 249MW Limondale Solar Farm near Balranald.