Battery Storage Systems Market Size, Share, Growth Analysis, By Battery Type(Lithium-ion batteries, advanced lead-acid batteries, flow batteries, others), By Connection Type(On-grid, Off-grid), By Application(Residential, Commercial, Utility), By Region - Industry Forecast 2024-2031

Asia-Pacific is the dominating and fastest growing region in global battery storage system market with substantial growth projected in the coming years. In 2023, the market was valued at USD 23.98 billion, with forecasts indicating a surge to USD 76.01 billion by 2031, showing compound annual growth rate (CAGR) of 15.5%. China stands at the lead of this growth, dominating revenues with capturing 37.77% market share. Major stakeholders are continuing growing the market by developing the latest solutions and establishing partnerships. LG Energy Solution is a South Korean company that unveiled innovative battery storage systems during the Smarter E event held in Munich; some of them include the RESU Flex home battery system. This system is scalable for different power and installation applications patterns making it a revolutionary home energy storage system. LG Energy Solution also provided a plan of the company to shift from NMC to LFP battery chemistry as a way to adapt to the shift towards safer and more stable battery technologies. Furthermore, in January 2024 in the Asia Pacific region, Grenergy entered into a partnership agreement with BYD, a multinational firm for the provision of big capacity ESS. Seven of those models, summarized as MC Cube ESS, will be supplied by BYD for Grenergy, along with 2,136 units of Blugel’s Blade battery which has good safety, durability, and operating performance. This partnership is evidence of emerging necessities of highly effective and reliable energy storage mechanisms across various categories of the market.  

North American battery storage system market developed as a significant region in the global energy storage landscape, showing strong growth and promising prospects. Valued at USD 10.2 billion in 2023, the market is expected to reach 31.23 billion by 2031, growing at a CAGR of 15.0% during the forecast period (2024-2031). The United States is leading the growth maintaining a strong CAGR of 15.2%. Canada also demonstrates impressive growth, with a CAGR of 13.7% from 2024 to 2031, shows its increasing significance in the regional market. The North American battery storage system market growth is driven by the expanding operational capacity of utility-scale projects. By the end of 2023, the US alone had around 16 GW of operational capacity, with plans to add another 15 GW in 2024 and about 9 GW in 2025. This trend shows the increasing scale and importance of battery storage projects in meeting energy needs and improving grid stability. Key market players in the market are driving growth through strategic collaborations and innovations. For instance, in November 2023, GE Vernova and Our Next Energy Inc. (ONE) announced the collaboration to advance battery energy storage solutions in the United States. This collaboration focuses on integrating ONE's locally manufactured lithium iron phosphate (LFP) battery modules into GE Vernova's Solar & Storage Solutions projects globally.