Advanced Energy Storage Systems Market Size, Share & Trends Analysis Report By Technology (Batteries, Thermal, Flywheel), By Application (Transportation, Grid Storage), By End Use, By Region, And Segment Forecasts, 2024 - 2030

Report Overview

The global advanced energy storage systems market size was valued at USD 16.70 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 9.8% from 2024 to 2030. The increasing demand for efficient energy management solutions is a significant driver as industries and consumers seek to optimize energy usage and reduce costs. Additionally, advancements in renewable energy technologies, such as solar and wind power, create a greater need for reliable energy storage systems to ensure a stable and continuous energy supply. These factors are expected to drive market growth in the coming years.

The global push to reduce greenhouse gas emissions and combat climate change is encouraging the adoption of energy storage solutions that can support the integration of renewable energy sources into the grid. Government policies and incentives aimed at promoting clean energy and sustainability are also playing a crucial role in driving market growth. Furthermore, technological innovations and decreasing energy storage system costs make these solutions more accessible and attractive to a wider range of applications, from residential to industrial sectors.

The growing focus on energy security and resilience is also propelling market growth. Energy storage systems can provide backup power during outages and help stabilize the grid, making them essential for both developed and developing regions. Additionally, the rise of smart grid technologies, which enable better monitoring and management of energy flow, is increasing the integration of energy storage solutions. Lastly, the increasing investments in research and development by both public and private sectors are leading to innovations in energy storage technologies, further driving market expansion. These investments are resulting in more efficient, cost-effective, and environmentally friendly storage solutions, making them more attractive to a broader range of applications.

Technology Insights

Thermal accounted for the largest revenue share of 63.4% in 2023. This significant market share is attributed to the widespread adoption of thermal storage solutions in various applications, including heating, ventilation, and air conditioning (HVAC) systems and industrial processes. Thermal energy storage is valued for efficiently storing and releasing large amounts of energy, making it an ideal solution for balancing supply and demand in energy grids. Additionally, the growing focus on renewable energy integration has further boosted the demand for thermal storage systems, as they can effectively store excess energy generated from renewable sources such as solar and wind. The cost-effectiveness and reliability of thermal energy storage also contribute to its leading position in the market.

Batteries are expected to grow at the fastest CAGR of 12.1% in 2023. This rapid expansion is driven by several factors, including the increasing adoption of electric vehicles (EVs), which rely heavily on advanced battery technologies for efficient energy storage and performance. Additionally, the growing demand for renewable energy integration is boosting the need for battery storage solutions to store excess energy generated from sources like solar and wind. Technological advancements in battery chemistry and design also contribute to this growth, making batteries more efficient, cost-effective, and capable of higher energy densities. Furthermore, government incentives and policies promoting clean energy and sustainability encourage investment in battery storage systems, which are expected to drive the segment's growth. 

Application Insights

Transportation dominated the market with the largest revenue share in 2023. This dominance is primarily driven by the rapid adoption of electric vehicles (EVs) and the increasing need for efficient energy storage solutions to support their operation. The shift towards sustainable and eco-friendly transportation options has led to significant investments in advanced battery technologies, which are crucial for EV performance and range. Additionally, the development of charging infrastructure, supportive government policies, and incentives for EV adoption have further propelled the growth of energy storage systems in the transportation sector. As a result, transportation has become a key driver of innovation and revenue in the advanced energy storage market, highlighting the critical role of energy storage in the future of mobility.

Grid storage is expected to grow at the fastest CAGR over the forecast period. This rapid growth is driven by the increasing need to enhance grid stability and reliability, especially as the integration of renewable energy sources like solar and wind continues to rise. Grid storage solutions, such as large-scale batteries and pumped hydro storage, play a crucial role in balancing supply and demand, storing excess energy during periods of low demand and releasing it during peak times. Additionally, advancements in smart grid technologies and the modernization of aging grid infrastructure further propel the adoption of grid storage systems. Government policies and incentives promoting clean energy and reducing carbon emissions also encourage investments in grid storage. These factors are anticipated to drive the segment's growth in the coming years.

End Use Insights

The commercial segment dominated the market with the largest revenue share in 2023. This dominance is largely attributed to the increasing adoption of energy storage solutions by commercial enterprises seeking to enhance energy efficiency and reduce operational costs. Businesses increasingly invest in advanced energy storage systems to manage peak demand charges, ensure uninterrupted power supply, and support sustainability goals. Integrating renewable energy sources, such as solar panels, with energy storage systems in commercial buildings is also driving this growth.

The utility segment is expected to grow at the fastest CAGR over the forecast period. This rapid growth is driven by the increasing need for utilities to enhance grid stability and integrate a higher share of renewable energy sources. As the demand for clean energy rises, utilities are investing in large-scale energy storage solutions to manage the intermittent nature of renewable power and ensure a reliable supply. Additionally, regulatory policies and incentives aimed at reducing carbon emissions and promoting sustainable energy practices are encouraging utilities to adopt advanced energy storage technologies.

Regional Insights

North America advanced storage systems market accounted for the largest revenue share of 32.4% in 2023. This significant market share is attributed to several factors, including the region’s strong focus on renewable energy integration and grid infrastructure modernization. Additionally, favorable government policies and incentives aimed at promoting clean energy and reducing carbon emissions have further boosted the market in North America.

U.S. Advanced Storage Systems Market Trends

The U.S. advanced storage systems market dominated the North American market with the largest revenue share in 2023 as there is substantial investments in energy storage technologies to support the increasing adoption of solar and wind power. The presence of key industry players and ongoing technological advancements in energy storage solutions also contribute to the country is leading position in the market.

Europe Advanced Storage Systems Market Trends

The Europe advanced storage systems market was identified as a lucrative region in 2023. Rising adoption of electric vehicles in this region and stringent government regulations in France and Germany to minimize population levels is expected to drive market growth. Furthermore, rapid urbanization and industrialization in the region is driving the demand for this market.

The UK advanced storage systems market is expected to grow significantly over the forecast period.  The growing renewable energy capacity in this country and the UK government commitment to achieving net-zero carbon emissions by 2050 are expected to drive market growth in the coming years.

Asia Pacific Advanced Storage Systems Market Trends

Asia Pacific's advanced storage systems market is projected to grow at a significant CAGR of 11.0% during the forecast period. Increased spending on infrastructure in residential, industrial, and commercial sectors in developing countries such as China and Indonesia are anticipated to drive market growth in the upcoming years.

Key Companies & Market Share Insights

Some key companies in the advanced energy storage systems market include Siemens Ltd., Toshiba Corporation, Tesla Inc., General Electric Company, and others. Companies are focusing on launching new technology and increasing product ranges. Moreover, key players are taking several strategic initiatives, such as mergers and acquisitions and partnerships with other major companies.

• Siemens Ltd. offers a wide range of energy storage technologies, focusing on enabling the integration of renewable energy, enhancing grid stability and supporting industrial applications. The solutions include BESS, Hydrogen Storage Solutions, Thermal Storage, and Pumped Hydro Storage.

• Toshiba Corporation is a leading company that operates across various industries including, electronics, energy, and infrastructure. The company is an innovator mainly focusing on both energy management solutions and battery technologies to support the demand for reliable, efficient, and sustainable energy storage.

Recent Developments

• In September 2024, GE Vernova launched RESTORE DC Block, an advanced energy storage solution. This containerized solution is designed to provide enhanced efficiency, safety, energy storage and utility-scale renewable projects long-term performance.

• In May 2024, Siemens Bulgaria's, Smart Infrastructure, division participated in RE-Source Southeast, focusing on their latest generation solutions for Battery Energy Storage Systems (BESS). The event, held at Sofia Tech Park, brought together over 400 experts from 30 countries to discuss sustainable energy production and consumption.

Advanced Energy Storage Systems Market Report Scope

Global Advanced Energy Storage Systems Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global advanced energy storage systems market report based on technology, application, end use, and region:

• Technology Outlook (Capacity, Mega Watt; Revenue, USD Million, 2018 - 2030)

  • Batteries

  • Flywheel

  • Thermal

  • Molten Salt

  • Compressed Air

• Application Outlook (Capacity, Mega Watt; Revenue, USD Million, 2018 - 2030)

  • Transportation

  • Grid Storage

• End Use Outlook (Capacity, Mega Watt; Revenue, USD Million, 2018 - 2030) 

  • Residential

  • Industrial

  • Commercial

  • Utility

• Regional Outlook (Capacity, Mega Watt; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Russia

    • Netherlands

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Indonesia

    • Malaysia

    • Thailand

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • South Africa

    • UAE