Battery Energy Storage Market to Reach USD 114.05 Billion by 2032; Renewable Energy Boom Drives Exponential Market Growth

The global battery energy storage market size was valued at USD 25.02 billion in 2024. The market is projected to be worth USD 32.63 billion in 2025 and is expected to reach USD 114.05 billion by 2032, exhibiting a CAGR of 19.58% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Battery Energy Storage Market Size, Share & Industry Analysis, By Type (Lithium-Ion Battery, Lead Acid Battery, Flow Battery, and Others), By Connectivity (Off-Grid and On-Grid), By Application (Residential, Non-Residential, Utility, and Others), By Ownership (Customer-Owned, Third-Party Owned, and Utility-Owned), By Capacity (Small Scale {Less than 1 MW} and Large Scale {Greater than 1 MW}), and Regional Forecast, 2025-2032”.

This market is primarily driven by the global shift toward clean energy, as governments and private sectors invest heavily in solar, wind, and other renewable energy projects. Battery energy storage systems are critical for addressing the intermittency of renewable energy sources, ensuring a stable and reliable power supply. Additionally, declining costs of lithium-ion batteries and increasing investments in grid modernization are further propelling battery energy storage market growth.

The COVID-19 pandemic temporarily disrupted the battery energy storage market, causing supply chain interruptions and delays in project deployments. However, the market quickly rebounded as governments globally prioritized renewable energy projects to stimulate economic recovery. The pandemic also highlighted the importance of resilient energy systems, further accelerating investments in energy storage solutions.

LG Energy Solution Announced Acquisition with NEC Energy Solutions to Expand Market Growth

LG Energy Solution made an announcement of acquiring NEC Energy Solutions, a U.S.-based grid-battery integrator in February 2022. LG Energy Solution will benefit from this acquisition as it will help them to merge energy storage system integration with battery manufacturing vertically.

Rising Adoption of Renewable Energy Storage to Drive Market Growth

The shift toward solar and wind energy is driving the need for efficient energy storage systems to manage intermittent power supply. Supportive regulations and subsidies for renewable energy projects are boosting market growth. Innovations in battery technology, such as solid-state batteries, are enhancing storage capacity and efficiency.

However, the initial cost of these systems is quite high and upfront investment required for battery energy storage systems remains a barrier for widespread adoption.

Key Players Valuing Product Innovations are resulting in a Major Market Growth

The BESS market is highly competitive, with key players focusing on strategic partnerships, product innovations, and mergers & acquisitions to strengthen their market position. Major companies include Tesla Inc, LG Chem, Samsung SDI, and Panasonic Corporation, as these players are investing heavily to develop advanced battery technologies and expand their global footprint.

Key Players Profiled in the Report:

• GE (U.S.)
• ABB (Switzerland)
• Samsung SDI (South Korea)
• Hitachi Chemical Co., Ltd. (Japan)
• Siemens Energy (Germany)
• Total (France)
• LG Energy Solution (South Korea)
• Fluence (U.S.)
• Narada (China)
• VRB Energy (Canada)
• Kokam (South Korea)
• EVE Energy Co., Ltd. (China)
• Black & Veatch (U.S.)
• Hitachi Energy (Switzerland)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/battery-energy-storage-market-100489

Key Industry Development

• April 2021 – ABB Power Grids announced a joint partnership with Atlas Renewable Energy to deploy and develop utility-scale Battery Energy Storage Systems (BESS) for Atlas’ renewable energy projects. Through the partnership, ABB and Atlas will integrate energy storage systems into the design of early development stage projects, with Hitachi ABB providing input on the appropriate technical solutions as well as interconnections.

Further Report Findings:

• Based on type, lithium-ion battery owns 99.06% of the battery energy storage market share. Rising demand for new large-capacity grid infrastructure, along with advancements in Li-ion products are leading to significant market growth. Due to the surge in lead-acid batteries, the transportation sector is likely to expand at the end of 2029, because of increasing hybridization of vehicle fleets, along with their safety protocol and reliable operations.
• Asia Pacific was the primary BESS market in 2024 and is expected to continue to have the same movement during the forecast period. This is due to the majority adoption of BESS systems in China as the country has been the major source of lithium cells worldwide.
• North America battery energy storage market to witness major growth during the forecast period due to the increasing demand in the BESS market in the U.S. as the country is occupied in the research and development of substitutes to lithium-based batteries.
• Several nations such as South Africa, Brazil, Mexico, Saudi Arabia, the United Arab Emirates (UAE), and others have displayed noteworthy prospects for fulfilling BESS projects of various scales.

Table of Segmentation