Energy storage market seen topping $172B by 2030

The Business Research Company says the global energy storage market is on track to exceed $172 billion by 2030 as renewable power growth, grid stability needs and battery adoption accelerate. Asia-Pacific is expected to lead the market, while lithium-ion batteries remain the biggest technology segment.

Why it matters: - Energy storage is becoming a core piece of power systems as utilities and businesses add more solar and wind generation. - The market's growth reflects rising demand for grid stability, backup power and load management. - The expansion also points to a larger shift toward electrification, renewable integration and more flexible energy infrastructure.

What happened: - The Business Research Company released its Energy Storage Global Market Report 2026, covering market size, trends and forecasts through 2035. - The report says the global energy storage market will surpass $172 billion by 2030. - The report projects a 10% compound annual growth rate through 2030. - Energy storage is expected to account for nearly 2% of the larger utilities market, which the report says will reach $9,379 billion by 2030.

The details: - Lithium-ion batteries are projected to hold a 46% share of the energy storage market and about $79 billion in value by 2030. - The report points to lower production costs, higher energy density, longer cycle life and broader use in renewable balancing and peak demand management as drivers of lithium-ion growth. - The market is split across front-of-the-meter grid storage, behind-the-meter customer storage, off-grid standalone storage and virtual power plant integrated storage. - Ownership models include utility-owned, third-party owned, customer-owned and community/shared storage. - Applications include renewable energy integration, peak shaving and load shifting, backup power and energy security, frequency regulation and ancillary services, and energy arbitrage and trading. - End users include power generation, transmission and distribution, residential, commercial, industrial and transportation sectors. - Renewable energy integration is expected to contribute about 2.0% annual growth to the market. - Grid stability and load management are expected to add about 1.5% annual growth. - Broader adoption of battery energy storage systems is expected to contribute about 0.8% annual growth. - Asia-Pacific is forecast to lead the market with a $70 billion valuation by 2030, up from $43 billion in 2025, at a 10% CAGR. - The region's growth is linked to renewable capacity additions, grid modernization, utility-scale battery deployment, supportive policies, domestic manufacturing and rising electricity demand in China, India, Japan, South Korea, Australia and Southeast Asia. - China is projected to remain the largest single market in 2030 at $37 billion, up from $23 billion in 2025, with a 9% CAGR. - China’s growth is tied to renewable build-outs, storage mandates for new solar and wind projects, domestic lithium-ion production, smart grid investment, long-duration storage deployment and government support for carbon neutrality. - BYD Co. Ltd. led global energy storage sales in 2025 with an 8% market share. - BYD's energy solutions division offers battery energy storage systems, lithium-ion battery packs, integrated power solutions and grid-scale storage. - Other major competitors include Tesla Inc., Contemporary Amperex Technology Co., Limited, LG Energy Solution Co. Ltd., Samsung SDI Co. Ltd., EVE Energy Co. Ltd., Fluence Energy Inc., CALB Group Co. Ltd., Xiamen Hithium New Energy and Panasonic Corp. - The top ten energy storage companies held 32% of total revenue in 2025, showing moderate market concentration. - Barriers to entry include complex battery manufacturing, system integration challenges, strict grid safety standards and the need for reliable large-scale storage. - VEICHI launched a portfolio in July 2026 that includes hybrid inverters, microgrid inverters and battery energy storage systems with built-in energy management. - VEICHI's systems include millisecond switching, virtual synchronous generator functions, black-start capabilities and anti-backflow control. - The report says all ten major technology segments will together add more than $65.5 billion in market value by 2030. - Lithium-ion battery storage and flow battery systems are each projected to add $29 billion. - Sodium-sulfur batteries, lead-acid storage, thermal energy storage, flywheels, supercapacitors and ultracapacitors, compressed air, pumped hydro and hydrogen energy storage are expected to contribute smaller gains.

Between the lines: - The report suggests the market is moving beyond a single-technology story, with long-duration storage, microgrids and AI-driven energy management becoming more important. - Moderate concentration among the largest players suggests scale still matters, but the segment remains open to technology-led competition. - The strongest growth appears to be coming from regions and applications where grids need help balancing intermittent renewables with rising power demand.

What's next: - The report expects continued investment in battery technology, grid modernization and storage deployments through 2030. - Companies are likely to keep competing on efficiency, integration capabilities, manufacturing scale and supply chain reach. - More adoption of hybrid inverter microgrid systems and AI-enabled energy management is likely as customers seek better resilience and forecasting.

The bottom line: - Energy storage is shifting from a supporting technology to a central part of the global power transition, with Asia-Pacific and lithium-ion batteries leading the next phase of growth.