Energy Storage System Market Report 2025 (Global Edition)

Global Energy Storage System Market Report 2025 Market Size Split by Technology Outlook: (Pumped Hydro Storage, Battery Energy Storage, Compressed Air Energy Storage, Flywheel Energy Storage), by Appl...

Energy Storage System Market Report Description

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Impact of Trumph Tariff on Energy and Power Industry

In 2025, global trade entered a turbulent phase as the U.S., under President Donald Trump, introduced aggressive "Liberation Day Tariffs" to address trade imbalances. These tariffs, ranging from 10% to 46%, heavily impacted the energy and power sector, which relies on global supply chains for critical components like rare earth metals, solar panels, wind turbines, and lithium. The U.S.–China trade war escalated, with reciprocal tariffs and China's trade surplus with the U.S. reaching USD 102.6 billion. Retaliatory tariffs from the EU and Canada further disrupted energy supply chains, raising material costs and causing delays in key projects.

The U.S. imposed a 20% tariff on rare earths, impacting EVs and clean tech; 25% on solar panels, increasing installation costs; 15–25% on wind turbine parts, affecting project timelines; and 10–15% on oil and gas equipment, pushing producers to rethink supply networks. Sub-sectors like renewables, EVs, oil & gas, and power generation are all experiencing rising costs, supply bottlenecks, and delayed investments. For instance, solar and wind projects now face 10–30% higher costs, and EV producers are struggling with battery input inflation.

China remains central to the U.S. energy supply chain, with even indirect imports via countries like Vietnam and Malaysia tightly linked to Chinese inputs. As a result, U.S. energy firms are exploring alternative sourcing from Southeast Asia, Latin America, and domestic production to reduce exposure. However, switching suppliers requires significant investment, coordination, and time.

In this volatile environment, market research is critical. It helps energy firms map supplier risks, track price trends, and explore alternative sourcing. It enables supply chain optimization through AI and predictive analytics, while regulatory tracking and scenario planning allow companies to anticipate future disruptions. Energy firms like NextEra and First Solar are responding by diversifying suppliers, investing in local production, and leveraging digital tools to improve procurement and adapt to tariff-driven challenges. Those using data-driven strategies and flexible operations are best positioned to thrive amid rising trade tensions.

Competitive Landscape of the Energy Storage Systems Market

The competitive landscape of the Energy Storage Systems (ESS) market is marked by the presence of both established players and emerging innovators. Key industry leaders include companies like Tesla, Siemens, LG Chem, and AES Corporation, which offer advanced battery technologies and energy storage solutions. New entrants focus on enhancing the efficiency and cost-effectiveness of ESS, particularly through innovations in lithium-ion, solid-state, and flow batteries. The market is also witnessing collaborations between technology providers, utilities, and governments to promote energy storage integration for renewable energy systems. This landscape is evolving with strong investments in R&D and strategic partnerships driving Growth.

In November 2023, Schneider Electric invested $1.7 million to build a state-of-the-art battery facility in Bengaluru (Bangalore). The facility will be complete with state-of-the-art equipment, contemporary safety measures, and specialized testing facilities. The plant will maintain strict safety regulations while guaranteeing excellent battery performance.

(Source:https://www.se.com/in/en/about-us/newsroom/news/press-releases/schneider-electric-unveils-cutting-edge-battery-lab-in-bangalore-655f33437d3dfe8ee10723b7)

Top Companies Market Share in Energy Storage System Industry: (In no particular order of Rank)

• Altairnano
• Ecoult
• Electrovaya
• GENERAL ELECTRIC
• Langley Holdings plc
• LG Chem
• Maxwell Technologies Inc.
• Saft
• Showa Denko Materials Co. Ltd.
• The Furukawa Battery Co. Ltd.
• Kokam
• Fluence
• Samsung SDI Co. Ltd
• Confidential Data
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• Data Hidden

*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Energy Storage Systems Market

Which Region Dominates the Energy Storage Systems Market in 2024?

According to Cognitive Market Research, North America currently dominates the Energy Storage systems market, and the region is expected to have significant Growth during the projected period. This is due to a combination of technological advancements, strong investments, and supportive government policies. The region's focus on renewable energy integration, grid modernization, and electric vehicle (EV) infrastructure development fuels the demand for ESS solutions. US states like California and Texas are leading in adopting ESS to enhance grid stability and energy efficiency. Additionally, the presence of key players like Tesla and LG Energy Solution, along with federal incentives, further accelerates market growth. North America's robust innovation and sustainability initiatives solidify its leadership in the global ESS market.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expected to make significant gains during the projected period, with the greatest compound annual growth rate (CAGR). The rapid urbanization, rising electricity demand, and significant investments in renewable energy sources. Governments in countries like China, Japan, and India are implementing favourable policies and incentives to promote solar energy adoption and energy storage solutions. Technological advancements in battery technologies, coupled with decreasing costs, are enhancing accessibility and accelerating market expansion.

The current report Scope analyzes Energy Storage System Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Energy Storage System Market Analysis

According to Cognitive Market Research, the global Energy Storage Systems market size was estimated at USD 493214.6 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 197285.84 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.7% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Energy Storage Systems market with a market size of USD 155658.53 million in 2024 and is projected to grow at a CAGR of 13.5% during the forecast period. The US leads due to technological innovation, government support, and investments.
• The Canada Energy Storage Systems market had a market share of USD 23674.30 million in 2024 and is projected to grow at a CAGR of 14.5% during the forecast period. Canada's Growth in Energy Storage Driven by Renewable Energy Investments
• The Mexico Energy Storage Systems market is projected to witness Growth at a CAGR of 14.2% during the forecast period, with a market size of USD 17953.01 million in 2024.

Europe Energy Storage System Market Analysis

According to Cognitive Market Research, the global Energy Storage Systems market size was estimated at USD 493214.6 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 147964.38 million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.0% from 2024 to 2031.

• The United Kingdom Energy Storage Systems market had a market share of USD 24858.02 million in 2024 and is projected to grow at a CAGR of 14.8% during the forecast period. In the UK, Energy Storage Systems sales witness an upswing due to renewable energy adoption, government incentives, and innovation.
• The France Energy Storage Systems market is projected to witness Growth at a CAGR of 13.2% during the forecast period, with a market size of USD 13612.72 million in 2024.
• According to Cognitive Market Research, the German Energy Storage Systems market size was valued at USD 29296.95 million in 2024 and is projected to grow at a CAGR of 14.2% during the forecast period. In Germany, Energy Storage Systems surged due to innovation, policy support, and sustainability.
• The Italy Energy Storage Systems market is projected to witness Growth at a CAGR of 13.4% during the forecast period, with a market size of USD 12724.94 million in 2024.
• The Russia Energy Storage Systems market is projected to witness Growth at a CAGR of 13.0% during the forecast period, with a market size of USD 22934.48 million in 2024.
• The Spain Energy Storage Systems market is projected to witness Growth at a CAGR of 13.1% during the forecast period with a market size of USD 12133.08 million in 2024
• The Luxembourg Energy Storage Systems market is projected to witness Growth at a CAGR of 14.1% during the forecast period, with a market size of USD 4586.90 million in 2024.
• The Portugal Energy Storage Systems market is projected to witness Growth at a CAGR of 13.8% during the forecast period, with a market size of USD 3107.25 million in 2024.
• The Greece Energy Storage Systems market is projected to witness Growth at a CAGR of 14.3% during the forecast period, with a market size of USD 1775.57 million in 2024.
• The Rest of Europe's Energy Storage Systems market is projected to witness Growth at a CAGR of 12.7% during the forecast period, with a market size of USD 22934.48 million in 2024.

Asia Pacific Energy Storage System Market Analysis

According to Cognitive Market Research, the global Energy Storage Systems market size was estimated at USD 493214.6 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 113439.36 million in 2024 and will grow at a compound annual growth rate (CAGR) of 17.5% from 2024 to 2031.

• According to Cognitive Market Research, the China Energy Storage Systems market size was valued at USD 51047.71 million in 2024 and is projected to grow at a CAGR of 17.0% during the forecast period. Energy Storage Systems surged in China due to innovation, government support, and demand.
• The Japan Energy Storage Systems market is projected to witness Growth at a CAGR of 16.0% during the forecast period, with a market size of USD 15654.63 million in 2024.
• The India Energy Storage Systems market had a market share of USD 13612.72 million in 2024 and is projected to grow at a CAGR of 19.3% during the forecast period. India's Growth in Energy Storage Systems is driven by renewable energy demand.
• The South Korean Energy Storage Systems market is projected to witness Growth at a CAGR of 16.6% during the forecast period, with a market size of USD 11343.94 million in 2024.
• The Australian Energy Storage Systems market is projected to witness Growth at a CAGR of 17.2% during the forecast period, with a market size of USD 5898.85 million in 2024.
• The South East Asia Energy Storage Systems market is projected to witness Growth at a CAGR of 18.5% during the forecast period, with a market size of USD 7827.32 million in 2024.
• The Rest of Asia Pacific Energy Storage Systems market is projected to witness Growth at a CAGR of 17.3% during the forecast period, with a market size of USD 8054.19 million in 2024.

South America Energy Storage System Market Analysis

According to Cognitive Market Research, the global Energy Storage Systems market size was estimated at USD 493214.6 Million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD 24660.73 million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.9% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Energy Storage Systems market size was valued at USD 10554.79 million in 2024 and is projected to grow at a CAGR of 15.5% during the forecast period. Energy Storage systems flourished in Brazil due to renewable energy investments.
• Argentina's Energy Storage Systems market had a market share of USD 4143.00 million in 2024 and is projected to grow at a CAGR of 15.8% during the forecast period. Argentina's Growth in energy storage stems from renewable energy investments.
• Colombia Energy Storage Systems market is projected to witness Growth at a CAGR of 14.7% during the forecast period, with a market size of USD 2194.80 million in 2024.
• Peru Energy Storage Systems market is projected to witness Growth at a CAGR of 15.1% during the forecast period, with a market size of USD 2022.18 million in 2024.
• Chile Energy Storage Systems market is projected to witness Growth at a CAGR of 15.2% during the forecast period, with a market size of USD 1775.57 million in 2024.
• The Rest of Latin America's Energy Storage Systems market is projected to witness Growth at a CAGR of 14.0% during the forecast period, with a market size of USD 3970.38 million in 2024.

Middle East Energy Storage System Market Analysis

According to Cognitive Market Research, the global Energy Storage Systems market size was estimated at USD 493214.6 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 9864.29 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.2% from 2024 to 2031..

• The GCC Countries Energy Storage Systems market is projected to witness Growth at a CAGR of 16.0% during the forecast period, with a market size of USD 4221.92 million in 2024. Energy Storage Systems sales flourish due to renewable energy demand and government investments.
• The Egypt Energy Storage Systems market is projected to witness Growth at a CAGR of 15.5% during the forecast period, with a market size of USD 1035.75 million in 2024.
• The South Africa Energy Storage Systems market is projected to witness Growth at a CAGR of 16.2% during the forecast period, with a market size of USD 1558.56 million in 2024. Energy Storage Systems sales flourished in South Africa due to energy storage benefits from renewable energy advancements.
• The Turkey Energy Storage Systems market is projected to witness Growth at a CAGR of 14.7% during the forecast period, with a market size of USD 848.33 million in 2024.
• The Nigeria Energy Storage Systems market is projected to witness Growth at a CAGR of 14.3% during the forecast period, with a market size of USD 1035.75 million in 2024.
• The Rest of the MEA Energy Storage Systems market is projected to witness Growth at a CAGR of 14.2% during the forecast period, with a market size of USD 1163.99 million in 2024.

Energy Storage System Market Analysis

How are Segments Performing in the Global Energy Storage Systems Market?

Energy Storage Systems Market Technology Segment Analysis

According to Cognitive Market Research, Pumped Hydro Storage (PHS) is the fastest-growing segment in the energy storage systems market due to its proven reliability, scalability, and ability to store large amounts of energy. PHS works by using excess electricity to pump water to a higher elevation, which is released to generate electricity when demand is high. Its Growth is driven by the increasing demand for renewable energy integration and grid stabilization, particularly in regions with abundant water resources. Additionally, PHS benefits from long life cycles, low operational costs, and high efficiency, making it an attractive option for large-scale energy storage solutions.

Battery Energy Storage (BES) dominates the Energy Storage Systems (ESS) market due to its high efficiency, scalability, and ability to store and dispatch energy on demand. BES technologies, particularly lithium-ion batteries, offer rapid response times, long cycle life, and relatively low maintenance costs, making them ideal for applications in renewable energy integration, grid stabilization, and backup power. Declining costs, technological advancements, and strong government support for sustainable energy solutions further drive their widespread adoption. BES is central to addressing intermittency issues of solar and wind power, driving its dominance in the growing global ESS market.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Energy Storage System Industry. Request a Free Sample PDF!

Energy Storage Systems Market Application Segment Analysis

According to Cognitive Market Research, Stationary Energy Storage Systems (ESS) are the fastest-growing segment of the energy storage market due to their ability to provide reliable energy storage solutions for grid stabilization, renewable energy integration, and backup power. These systems store energy produced by renewable sources like solar and wind, making them essential for balancing supply and demand. With increasing investments in renewable energy, government incentives, and advancements in battery technology, stationary ESS offer cost-effective, scalable solutions for both utility-scale and commercial applications. As the demand for clean energy grows, stationary ESS play a critical role in enabling efficient energy use and reducing carbon footprints.

In the Energy Storage Systems Market, Transportation is a dominant factor in the Energy Storage Systems (ESS) market due to the increasing demand for electric vehicles (EVs) and the need for efficient energy storage solutions. As governments push for cleaner energy alternatives, ESS plays a critical role in supporting EV infrastructure, providing energy storage for charging stations and optimizing energy usage. The need for longer-lasting and faster-charging batteries in electric vehicles drives innovation in ESS technology. Additionally, transportation systems such as trains and buses are increasingly adopting ESS to reduce dependence on fossil fuels, making this sector a key driver of market growth.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Energy Storage System End User Outlook: Segment Analysis

Energy Storage Systems Market End User Segment Analysis

According to Cognitive Market Research, The residential sector is driving the fastest Growth in the Energy Storage Systems (ESS) market due to the increasing demand for energy independence, cost savings, and sustainable living. Homeowners are increasingly adopting ESS to store energy from renewable sources like solar panels, enabling them to manage peak electricity demand and reduce reliance on grid power. Government incentives, declining battery costs, and advancements in energy storage technology further fuel this Growth. Additionally, growing concerns over energy security and the rising costs of electricity are motivating residential consumers to invest in ESS for long-term energy efficiency and resilience.

In the Energy Storage Systems market, the rapidly growing sector is Non-residential sectors are dominating the Energy Storage Systems (ESS) market due to their large-scale energy requirements and the growing need for reliable and cost-effective power solutions. Businesses, industrial facilities, and commercial establishments are increasingly adopting ESS to reduce energy costs, ensure power reliability, and meet sustainability goals. These sectors benefit from higher energy consumption, allowing for a quicker return on investment in energy storage technologies. Additionally, government incentives, rising electricity tariffs, and increasing integration of renewable energy sources, like solar and wind, are driving the adoption of ESS in non-residential applications, boosting market growth.

• Residential
• Non-Residential
• Utilities

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Vinayak Bali

Senior Research Analyst at Cognitive Market Research

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