The global advanced energy storage systems market size was valued at USD 18.44 billion in 2024. The market is projected to grow from USD 20.20 billion in 2025 to USD 46.31 billion by 2034. It is projected to exhibit a CAGR of 9.7% from 2025 to 2034.
Advanced energy storage systems refer to innovative technologies that store energy for later use, improving the reliability and efficiency of energy delivery. These systems are crucial for providing backup power, balancing supply and demand, and supporting renewable energy sources. Compressed energy air storage, lithium-ion batteries, pumped heat electrical storage, thermal energy storage, and supercapacitors are a few common examples of advanced energy storage systems.
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The rising demand for efficient energy management systems among consumers and industries to reduce costs and optimize energy storage is a major driver of the advanced energy storage systems market growth. In addition, technological innovations in energy storage systems and the implementation of favorable government initiatives to promote energy efficiency are supporting the development of the market.
Major economies, including China and India, are making substantial investments in grid expansion and infrastructure modernization. This trend is expected to drive advanced energy storage systems market expansion in the coming years. Advancements in renewable energy technology, which need reliable energy storage systems to ensure a continuous and stable energy supply, are expected to provide lucrative market opportunities during the forecast period.
People across the world are becoming more conscious of the harmful effects of carbon dioxide emissions and greenhouse gases on the environment. This has led to increased interest in renewable energy sources as an alternative to conventional power sources such as coal and fossil fuels. Governments worldwide are revising their energy policies to ensure a significant portion of energy is produced from renewable sources. Also, both governments and private entities are making substantial investments in the renewable energy sector. Thus, the increased shift toward renewable energy is driving the advanced energy storage systems market demand.
With more consumers opting for EVs, there is increased demand for EV charging infrastructure. Advanced energy storage systems play a crucial role in the development of reliable EV charging facilities by ensuring a steady power supply and managing the impact of EV charging on the grid. In addition, these systems enable the deployment of smart charging technologies, reducing overall electricity costs for EV owners and enhancing the utilization of renewable energy sources. Thus, the growing adoption of EVs boosts the advanced energy storage systems market revenue.
The advanced energy storage systems market, based on technology, is segmented into electrochemical, mechanical, and thermal. The thermal segment dominated the market with a revenue share of 66.1% in 2024. Thermal energy storage systems are used in various applications, including HVAC systems and industrial processes. These systems are known for their efficiency and large energy storage capacities, making them an ideal solution for balancing demand and supply in energy grids. The increased focus on renewable energy integration has led to increased demand for thermal energy storage systems, owing to their capacity to efficiently store excess energy generated from renewable sources. In addition, the cost-effectiveness and reliability of these systems contribute to their dominance in the market.
The advanced energy storage systems market, based on end use, is segmented into residential, commercial, industrial, and utility. The utility segment is projected to register the highest CAGR from 2025 to 2034. The rapid growth is fueled by the increased need for utilities to integrate a higher share of renewable energy sources and improve grid stability. Grid expansion and modernization, increased demand for new infrastructure in emerging economies such as India and China, and the implementation of favorable regulatory initiatives aimed at promoting sustainable energy practices are expected to encourage utilities to adopt advanced energy storage systems.
By region, the market report offers advanced energy storage systems market insights into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America dominated the market with a revenue share of 35.1% in 2024, owing to the region’s strong focus on integrating renewable energy sources and modernizing grid infrastructure. In addition, the introduction of new large-capacity energy projects and the implementation of favorable initiatives aimed at promoting clean energy drive the market growth in the region.
The advanced energy storage systems market in Asia Pacific is anticipated to register a significant CAGR of 10.1% from 2025 to 2034. Significant advances in power distribution infrastructure, especially in emerging economies such as China, India, and South Korea, are expected to propel the regional market growth. Further, the growing need for advanced energy storage systems due to the increased usage of renewable power resources for power generation is likely to support the market development in the region.
The advanced energy storage systems market research study encompasses a thorough vendor share research for all the major market players. The market for advanced energy storage systems is highly competitive and has the presence of several large enterprises and small and medium-sized businesses. The top market participants are introducing new products to cater to the growing customer needs. In addition, these companies are using strategic developments such as collaborations, partnerships, and mergers and acquisitions to enhance their offerings and expand their regional footprint.
To thrive in the competitive market environment, companies must deliver advanced energy storage systems that are efficient and cost-effective. A few of the key players in the market are ABB Ltd., AES Corporation, CALMAC Inc., Ecoult Energy Storage, Evapco Inc., General Electric, GS Yuasa, Hitachi Chems, Lockheed Martin, LG Chem, Panasonic Corporation, Saft Groupe., Samsung SDI, Siemens Ltd., Schneider Electric, Tesla Inc., and Toshiba Corporation.
September 2024: GE Vernova Inc. announced the launch of the RESTORE DC Block, an advanced containerized energy storage system. The company stated that the new solution is designed to improve the efficiency, safety, and long-term performance of utility-scale energy storage projects.
March 2024: Schneider Electric signed a memorandum of understanding (MoU) with Hy Stor Energy for supporting the Mississippi Clean Hydrogen Hub (MCHH) project. According to Schneider, the alliance aims to address the challenges related to the transition to renewable and fossil-free energy systems.
By Technology Outlook
By Application Outlook
By End Use Outlook
By Regional Outlook
Report Attributes |
Details |
Market Size Value in 2024 |
USD 18.44 billion |
Market Size Value in 2025 |
USD 20.20 billion |
Revenue Forecast by 2034 |
USD 46.31 billion |
CAGR |
9.7% from 2025 to 2034 |
Base Year |
2024 |
Historical Data |
2020–2023 |
Forecast Period |
2025–2034 |
Quantitative Units |
Revenue in USD billion and CAGR from 2025 to 2034 |
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
Segments Covered |
|
Regional Scope |
|
Competitive Landscape |
|
Report Format |
|
Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
The market was valued at USD 18.44 billion in 2024 and is projected to grow to USD 46.31 billion by 2034.
The market is projected to register a CAGR of 9.7% from 2025 to 2034.
North America accounted for the largest region-wise market size in 2024.
A few of the key players in the market are ABB Ltd., AES Corporation, CALMAC Inc., Ecoult Energy Storage, Evapco Inc., General Electric, GS Yuasa, Hitachi Chems, Lockheed Martin, LG Chem, Panasonic Corporation, Saft Groupe., Samsung SDI, Siemens Ltd., Schneider Electric, Tesla Inc., and Toshiba Corporation.
The thermal segment accounted for the largest market share in 2024.
The utility segment is anticipated to witness the highest CAGR during the forecast period.