Battery and Energy Storage Market Trends and Growth Projections for 2024-2034

**Battery & Energy Storage Market Outlook, Trends, Technologies and Growth | Exactitude Consultancy**

**Battery & Energy Storage Market Report: 2024–2025 Overview**

Battery energy storage has become crucial in the global energy transition, enhancing grid reliability, facilitating renewable energy integration, and encouraging innovations in new chemistries and domestic manufacturing.

**Key Insights from Industry Leaders**

Vittoria Bellissimo, CEO of CanREA (Canada Renewable Energy Association), stated, “Storage provides many different services to the electricity grid… and the cost of storage has fallen by more than 90% in the past 15 years. It is time to leverage this to our advantage.”

Terje Pilskog, CEO of Scatec, noted, “Solar panel prices have dropped 66% and battery systems 58% in the past few years… now renewables can be used in many more situations.”

Joe Mastrangelo, CEO of Eos Energy, emphasized, “We can still build things in the U.S.”, highlighting the resurgence of domestic manufacturing with non-flammable batteries now being produced in large volumes.

**Market Size & Growth**

The global Battery Energy Storage System (BESS) market, valued at approximately $10.5 billion in 2024, is projected to expand to about $32 billion by 2034. This growth is driven by rising demand for renewable energy integration, grid stability, and energy efficiency initiatives. The estimated Compound Annual Growth Rate (CAGR) from 2025 to 2034 is 12.5%, showcasing strong momentum in energy storage technologies.

The Environmental, Social, and Governance (ESG) sector is also experiencing significant growth, with a current market value around $1.7 trillion, expected to reach approximately $3.5 trillion by 2034, reflecting a CAGR of about 7.5%.

**Regional Highlights**

The Asia-Pacific region is expected to lead the ESS market, growing from $3.16 billion in 2024 to $10.3 billion by 2033, at a CAGR of 14%. In 2024, this region dominated with $13.3 billion in market value, driven by China’s cell manufacturing capabilities. North America and Europe are increasing BESS investments through grid modernization and a mix of renewable sources. The residential U.S. Li-ion BESS market is valued at $1.52 billion in 2024, projected to grow to $1.99 billion in 2025 and $5.09 billion by 2032, with a CAGR of 14.4%.

**Key Market Events (2024–2025)**

– 24 GWh of large-scale battery deployments in the U.S. are anticipated in 2024, marking a 71% annual increase, with California leading at 11 GWh.
– The Alberta Energy Storage Conference in 2025 will call for broader deployment as costs have plummeted by over 90%.
– Major projects include the Nova BESS (680 MW) and Belgium’s Green Turtle (600 MW/2.4 GWh), alongside utility-scale developments in the U.S.
– Tariff-driven geopolitics are influencing the market, with significant tariffs imposed on Chinese ESS, encouraging South Korean manufacturers to scale up operations.
– Notable grid-scale supply contracts, such as NEV Energy’s 440 MWh Reid Gardner backup system, are leading to reduced customer bills.

**Strategic Company Developments**

– **CATL**: A leading lithium-ion manufacturer with a 40% global market share, aiming for over 1.5 TWh capacity by 2027.
– **BYD**: Holding the second position in ESS manufacturing with a 17% share, focusing on blade and sodium-ion technologies.
– **Eos Energy**: Specializing in zinc-based long-duration storage, expanding U.S. production significantly.
– **Neoen**: A French renewable energy player with over 2.3 GW / 5.3 GWh of global battery assets.

**Funding & Investment Highlights**

Large ESS projects typically involve capital expenditures and utility investments, with notable examples including RWE’s 220 MW German BESS and Giga Storage’s 600 MW project in Belgium. Eos Energy has gained private funding to enhance domestic manufacturing of zinc batteries.

**Government Initiatives & Policies**

– FERC Order 841 in the U.S. promotes storage participation in markets, while California’s SGIP and ITC support residential BESS.
– Geo-economic tariffs aim to strengthen domestic and Korean battery manufacturing.
– Canada’s energy storage incentives and the EU’s plans for capacity growth are encouraging regional investments.

**Future Trends & Strategic Insights**

– Continued cost declines in battery cells and advancements in new chemistries like zinc and sodium-ion are emerging.
– The market is seeing the rise of virtual power plants and dynamic pricing strategies in Europe and North America.
– Security and economics are influencing regional sourcing and supply chain policies.

**Case Studies Highlighting Innovations**

1. **CATL**: Launched its TENER Smart Storage platform, featuring the world’s first 9 MWh ultra-large-capacity LFP container.
2. **Eos Energy**: Rapidly scaling its Z3 zinc-bromine systems, with significant contracts supporting microgrid projects.
3. **Neoen**: Executed the Collie Battery project in Australia, one of the largest 4-hour battery installations globally.

**Market Research Reports**

– **Battery Energy Storage System Market**: Expected to grow from $10.5 billion in 2024 to $32 billion by 2034, with a CAGR of 12.5%.
– **Grid-Scale Battery Storage Market**: Projected to reach $64 billion by 2034 from an estimated $18 billion in 2024, showing a CAGR of 14%.
– **Residential Energy Storage Market**: Anticipated to grow from $10 billion in 2024 to $35 billion by 2034, reflecting a CAGR of 13.2%.

This comprehensive outlook highlights the dynamic landscape of the battery and energy storage sector, emphasizing growth opportunities and strategic developments that will shape the future of energy storage solutions.