Grid Scale Battery Market

Market Definition

The market involves the production, deployment, and management of large-capacity battery energy storage systems designed to support electrical power grids. These batteries store excess energy—often from renewable sources like solar and wind—and release it when demand is high and supply is low. 

This market includes various battery types, technologies, and services that enhance grid stability, improve energy reliability, and facilitate the integration of clean energy into the grid on a large scale. The report covers key market drivers, a detailed regional analysis, and a comprehensive overview of the competitive landscape shaping future opportunities.

Grid Scale Battery Market Overview

Global grid scale battery market size was valued at USD 9.23 billion in 2024, which is estimated to be valued at USD 11.24 billion in 2025 and reach USD 51.32 billion by 2032, growing at a robust CAGR of 24.22% from 2025 to 2032. 

The market is driven by the growing demand to integrate renewable energy sources like solar and wind into existing grids. These batteries help manage the intermittency of renewables, enabling reliable, low-carbon power and supporting global efforts to reduce carbon emissions.

Major companies operating in the grid scale battery industry are NGK INSULATORS, LTD., BYD Company Limited, Sumitomo Electric Industries, Ltd., SAMSUNG SDI., General Electric Company, Yuasa Corporation, LG Energy Solution, Mitsubishi Corporation, Panasonic Corporation, ABB, Hitachi Ltd, Fluence, TOSHIBA CORPORATION, TotalEnergies, S&C Electric Company, and others.

The market is experiencing significant growth as countries are rapidly adopting cleaner energy systems. With the increasing adoption of renewable energy sources like solar and wind, grid-scale batteries have become essential for balancing supply and demand, managing peak loads, and ensuring grid reliability. 

Declining battery costs, technological innovation, and supportive government policies are also accelerating investments in large-scale storage infrastructure. As power systems modernize and electrification expands, the market is expected to play a central role in enabling a stable, resilient, and sustainable energy future.

• In June 2024, ABB energized one of the world’s largest grid-scale Battery Energy Storage Systems in Limay, Philippines, for Universal Power Solutions Inc. The 50MW solution enhances grid stability, supports renewable integration, and advances the country's energy goals using ABB’s modular, pre-engineered eStorage Max system and energy management technologies.

Key Highlights:

1. The grid scale battery market size was recorded at USD 9.23 billion in 2024.
2. The market is projected to grow at a CAGR of 24.22% from 2025 to 2032.
3. Asia-Pacific held a market share of 42.09% in 2024, with a valuation of USD 3.88 billion.
4. The lithium-ion segment garnered USD 6.93 billion in revenue in 2024.
5. The third-party-owned segment is expected to reach USD 26.58 billion by 2032.
6. The ancillary services segment is anticipated to witness fastest CAGR of 26.37% during the forecast period
7. Europe is anticipated to grow at a CAGR of 24.71% during the forecast period.

Market Driver

Increasing Need for Renewable Energy Integration

One of the primary growth drivers in the market is the increasing need to integrate renewable energy into existing power grids. Solar and wind power, while sustainable, are intermittent by nature, which can cause fluctuations in electricity supply. 

Grid-scale batteries provide critical storage capacity that fixes these inconsistencies and ensures a steady and reliable energy flow. This capability is essential for reducing reliance on fossil fuels and achieving carbon reduction targets worldwide. As governments and industries prioritize sustainability, investments in battery storage to support renewable integration continue to rise significantly.

• In December 2023, LG Energy Solution Vertech was selected for 10 GWh of grid-scale battery projects across the U.S. Each project integrates advanced lithium-ion batteries, AEROS software, and end-to-end services, reinforcing LG’s commitment to expanding energy storage infrastructure and localized battery manufacturing.

Market Challenge

High Upfront Capital of Large-scale Deployment

A major challenge in the grid scale battery market is the high upfront costs associated with large-scale installations, which can deter investment and slow deployment. These costs stem from expensive battery materials, complex engineering, and infrastructure requirements. 

However, solutions like economies of scale, technological advancements, and modular system designs are helping to reduce costs. Additionally, government incentives and innovative financing models, such as power purchase agreements (PPAs), are making projects more financially viable and accelerating market growth.

Market Trend

Rising Focus on Sustainability and Circular Economy Principles

A growing trend in the market is the increasing focus on sustainability and circular economy principles within battery technology. As the demand for energy storage rises, repurposing batteries through second-life applications helps reduce environmental impact by extending battery life and minimizing waste. 

This approach conserves valuable raw materials and lowers carbon footprints associated with new battery production. Market players are prioritizing eco-friendly solutions, driving innovations in recycling, reuse, and sustainable manufacturing practices to support a greener, more circular energy future.

• In May 2025, Connected Energy and Forsee Power partnered to develop a modular grid-scale energy storage solution using second-life batteries from electric buses. The first 2.5MWh system will be operational by the end of 2025, with plans to scale deployments across Europe, enhancing sustainability and cost efficiency in energy storage.

Grid Scale Battery Market Report Snapshot

Segmentation	Details
By Battery Type	Lithium-Ion, Lead Acid, Flow, Sodium-Based, Others
By Ownership Model	Utility-Owned, Third-Party-Owned
By Application	Renewable Integration, Ancillary Services, Peak Shaving, Backup Power
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Battery Type (Lithium-Ion, Lead Acid, Flow, Sodium-Based, and Others): The lithium-ion segment earned USD 6.93 billion in 2024 driven by high energy density and declining costs.
• By Ownership Model (Utility-Owned and Third-Party-Owned): The utility-owned segment held 62.09% of the market in 2024, fueled by utilities’ increasing investments to stabilize grids and integrate renewable energy.
• By Application (Renewable Integration, Ancillary Services, Peak Shaving, and Backup Power): The renewable integration segment is projected to reach USD 23.84 billion by 2032, propelled by rising renewable adoption and the need for reliable energy storage solutions.

Grid Scale Battery Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific grid scale battery market share stood around 42.09% in 2024 in the global market, with a valuation of USD 3.88 billion. The Asia Pacific region dominates the market due to rapid industrialization, urbanization, and increasing energy demand. 

Strong government initiatives promoting renewable energy integration and energy storage solutions further accelerate market growth. The region benefits from a large consumer base and ongoing investments to modernize power infrastructure for grid stability and reliability. 

Additionally, the availability of raw materials for battery production and the presence of leading battery manufacturers strengthen Asia Pacific’s position as a key hub for innovation and deployment of large-scale energy storage systems.

• In May 2025, the GEAPP Leadership Council launched India’s first utility-scale standalone Battery Energy Storage System (BESS), a 20 MW/40 MWh project in New Delhi. This milestone project, developed in record time, aims to improve power quality and enable reliable 24/7 electricity for over 12,000 low-income consumers, setting new affordability standards in India’s energy storage market.

Europe is poised for significant growth at a robust CAGR of 24.71% over the forecast period. Europe is the fast-growing region in the grid scale battery industry, propelled by strong regulatory support and ambitious renewable energy targets. 

Governments across the continent are prioritizing clean energy integration and grid stability, which drives the demand for large-scale battery storage solutions. Key countries such as Germany, Italy, and the UK are modernizing their energy infrastructure to support decarbonization efforts. 

Further, the region’s sustainability, energy security, and innovation focus promotes market growth, positioning Europe as a global leader in advancing battery storage technologies and accelerating clean energy transition.

Regulatory Frameworks

• In the U.S., Federal Energy Regulatory Commission (FERC) Order No. 2222 enables distributed energy resources—like battery storage, rooftop solar, and EVs—to join wholesale electricity markets, expanding their role in grid services and enhancing system flexibility and resilience.
• In India, the Ministry of New and Renewable Energy (MNRE) is the primary regulatory body for tidal energy development. It is responsible for promoting and regulating the development of renewable energy sources.

Competitive Landscape

Companies in the grid scale battery market are actively advancing energy storage technologies to meet the growing global demand. They focus on developing innovative, scalable solutions that enhance efficiency, reliability, and sustainability. 

Efforts include integrating second-life batteries, improving battery chemistry, and expanding manufacturing capacities. Collaborations and strategic partnerships are common to accelerate deployment and reduce costs. 

Additionally, companies focus on offering comprehensive services, from system design to after-sales support, aiming to provide end-to-end solutions that facilitate the transition to cleaner, more resilient energy systems worldwide.

• In February 2025, BYD Energy Storage and Saudi Electricity Company signed contracts for the world’s largest grid-scale energy storage project, totaling 15.1 GWh. This collaboration boosts Saudi Arabia’s renewable energy development, supporting Vision 2030 goals. BYD’s advanced technology and extensive experience strengthen energy infrastructure, ensuring stable, efficient, and sustainable power supply across the Kingdom.

List of Key Companies in Grid Scale Battery Market:

• NGK INSULATORS, LTD.
• BYD Company Limited
• Sumitomo Electric Industries, Ltd.
• SAMSUNG SDI.
• General Electric Company
• Yuasa Corporation
• LG Energy Solution.
• Mitsubishi Corporation
• Panasonic Corporation
• ABB
• Hitachi Ltd
• Fluence
• TOSHIBA CORPORATION
• TotalEnergies
• S&C Electric Company

Recent Developments (Partnerships)

• In March 2025, Sumitomo Electric’s redox flow battery was selected for a grid-scale energy storage project by SHIN-IDEMITSU in Kumamoto, Japan. This battery, noted for its long lifespan, high safety, and eco-friendliness, will stabilize renewable energy supply, supporting Japan’s carbon neutrality goals with a planned completion in October 2026.
• In June 2024, GS Yuasa Corporation secured orders for a 50MWh lithium-ion battery storage system at Tsunokobaru Power Storage Station, Japan. The system enhances renewable energy utilization by stabilizing the power grid through advanced safety features, reliable monitoring, and efficient operation, supporting Japan’s carbon neutrality goal by 2050.
• In July 2023, NTT Anode Energy, Kyushu Electric Power, and Mitsubishi Corporation launched a 1.4 MW/4.2 MWh grid-scale battery system in Fukuoka to reduce solar power curtailment. This project supports Japan’s carbon neutrality goals by optimizing renewable energy use, stabilizing the grid, and validating business models for multi-market battery applications.