Market Definition

Grid-scale batteries are large-capacity energy storage systems used within power grids to store and release electricity as needed. The market covers various technologies such as lithium-ion, flow, and sodium-sulfur batteries, along with essential components like battery cells, power conversion systems, and energy management software. Their applications encompasses renewable energy integration, frequency regulation and backup power.

Grid-Scale Battery Market Overview

The global grid-scale battery market size was valued at USD 11.21 billion in 2024 and is projected to grow from USD 13.84 billion in 2025 to USD 71.90 billion by 2032, exhibiting a CAGR of 26.54% during the forecast period.

The market is driven by the growing integration of renewable energy sources, which requires efficient and reliable energy storage systems to ensure stable power supply across transmission and distribution networks.

The market is progressing, due to rising electricity demand across urban and industrial sectors, prompting investments in large-scale battery systems to support peak load management and enhance grid resilience.

Major companies operating in the grid-scale battery industry are Panasonic Life Solutions India Pvt. Ltd, Tesla, Fluence, SAMSUNG SDI, BYD Company Ltd, The AES Corporation, ESS Tech, Inc, LG Energy Solution, Siemens Energy, Durapower Group, NextEra Energy Resources, LLC, TOSHIBA CORPORATION, Form Energy, General Electric Company, and Hydrostor.

The continuous rise in global electricity consumption is creating a growing need for more flexible and reliable energy infrastructure. The deployment of grid-scale batteries is increasing to support stable and responsive power delivery as industrial activity expands, urbanization accelerates, and sectors such as transport and heating undergo electrification.

According to the International Energy Agency (IEA), global electricity demand is projected to grow at an average annual rate of 3.4% through 2026. In China, electricity demand rose by 6.4% in 2023 and is expected to grow by 5.1% in 2024, 4.9% in 2025, and 4.7% in 2026.

Grid-Scale Battery Market Size & Share, By Revenue, 2025-2032

Key Highlights:

The grid-scale battery market size was valued at USD 11.21 billion in 2024.
The market is projected to grow at a CAGR of 26.54% from 2025 to 2032.
Asia Pacific held a market share of 36.43% in 2024, with a valuation of USD 4.08 billion.
The lithium-ion segment garnered USD 4.08 billion in revenue in 2024.
The utility-owned segment is expected to reach USD 36.55 billion by 2032.
The renewables segment is anticipated to register the fastest CAGR of 28.92% over the forecast period.
The market in North America is anticipated to grow at a CAGR of 27.46% through the forecast period.

Market Driver

Increasing Penetration of Renewable Energy

The rapid growth of renewable energy sources such as solar and wind drives the demand for grid-scale batteries to address their intermittent nature. These batteries store surplus energy produced during peak generation times, such as sunny or windy periods, and release it during low-production or high-demand phases.

This ensures a stable, reliable power supply, enabling greater renewable integration into the grid. Batteries support the transition to cleaner energy by reducing fluctuations, enhancing grid resilience and reducing reliance on fossil fuels.

The International Energy Agency (IEA) estimates battery storage capacity to increase sixfold by 2030 to support the expected tripling of renewable energy capacity. Under the Net Zero Emissions (NZE) scenario, 1,500 GW of global energy storage is required by 2030, with batteries accounting for 1,200 GW, a 14-fold increase from current levels.

Market Challenge

High upfront investment costs

High upfront investment costs are significantly limiting the adoption of grid-scale battery systems, particularly in developing regions and among smaller utilities. These expenses encompass the cost of battery installation, grid integration, and permitting processes.

Battery prices are gradually declining; however, the overall capital required for large-scale deployment remains substantial, posing financial challenges. This financial burden delays project execution or increases reliance on government subsidies and incentives.

Additionally, uncertainty around long-term returns discourages private investment, hindering market expansion and slowing technological advancement.

Companies are increasingly forming strategic partnerships with utilities, renewable developers, and financial institutions to share costs and risks. They are offering energy storage-as-a-service (ESaaS) models, enabling clients to pay through performance-based contracts.

Additionally, manufacturers are focusing on modular and scalable battery systems that reduce initial investment and allow phased deployment.

Market Trend

Hybrid Energy Storage Systems

Hybrid energy storage systems are gaining traction in the grid-scale battery market, as they combine multiple storage technologies to enhance performance, flexibility, and reliability. By integrating different chemistries such as lithium-ion with flow or sodium-ion batteries these systems deliver both high power and long-duration capabilities.

This system allows grid operators to optimize energy management across varying load demands and renewable inputs. Additionally, the versatility of hybrid systems supports greater grid stability, efficient energy utilization, and seamless integration of intermittent renewable sources, accelerating energy transition goals.

In May 2025, China Southern Power Grid commissioned the world’s first grid-forming sodium-ion battery storage facility at the Baochi Energy Storage Station in Yunnan. The 200 MW / 400 MWh hybrid plant integrates lithium-ion and sodium-ion technologies to stabilize renewable energy output and reduce system costs. Supporting over 30 local wind and solar plants, the project enhances grid reliability and facilitates high renewable penetration, marking a major step in China’s energy transition.

Grid-Scale Battery Market Report Snapshot

Segmentation	Details
By Battery Type	Lithium-ion, Flow, Sodium-Sulfur, Lead-Acid, Others
By Ownership Model	Utility-owned , Third-Party-Owned
By Application	Renewables, Peak Shifting, Ancillary Services, Backup Power, Others
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, Flow, Sodium-Sulfur, Lead-Acid, and Others): The lithium-ion segment earned USD 4.08 billion in 2024, due to its high energy density, scalability, and declining costs, making it ideal for grid-scale applications.
By Ownership Model (Utility-Owned, Third-Party-Owned): The utility-owned segment held 58.54% share of the market in 2024, due to increased investments by utilities to enhance grid reliability and meet renewable integration goals.
By Application (Renewables, Peak Shifting, Ancillary Services, and Backup Power): The renewables segment is projected to reach USD 30.45 billion by 2032, owing to the rising demand for energy storage systems that support the stable integration of intermittent solar and wind power.

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.

Grid-Scale Battery Market Size & Share, By Region, 2025-2032

Asia Pacific accounted for 36.43% share of the grid-scale battery market in 2024, with a valuation of USD 4.08 billion. This market dominance is attributed to significant public and private investments in advanced long-duration energy storage technologies and expanding manufacturing capacities in the region.

Regional efforts to deploy scalable battery systems are strengthening grid reliability and supporting increasing renewable energy integration.

Growing demand from residential, commercial, and utility sectors, coupled with government backing and private funding, is accelerating project developments in the market in the region. These factors are fueling the market, reinforcing its role in supporting the region’s energy transition and infrastructure modernization.

In September 2024, ESS Tech’s, a leading manufacturer of long-duration energy storage systems secured USD 42 million in public and private funding to accelerate iron flow battery deployments. The investment supports expanding manufacturing capacity in Queensland, aiming for 400 MW annual production by 2029. These long-duration energy storage systems will enhance renewable energy integration and grid reliability across Australia and Asia Pacific.

The grid-scale battery industry in North America is set to grow at a robust CAGR of 27.46% over the forecast period. This growth is attributed to increasing electricity demand from expanding residential and industrial sectors in the region.

Thus, utilities are investing in large-scale battery storage projects that enhance grid reliability and enable efficient peak load management in energy systems. Strategic acquisitions among battery project developers are further accelerating the deployment of advanced energy storage solutions across the region. This focus on flexible, clean, and scalable energy infrastructure is driving the market in the region.

In January 2025, GridStor acquired a 100 MW / 400 MWh battery energy storage project in Arizona from Capacity Power Group. This acquisition aims to support the rising power demand in the region and enhance grid reliability. The project addresses the growing energy needs of residential and industrial customers by expanding utility-scale battery capacity, reinforcing clean and stable power supply solutions in the area.

Regulatory Frameworks

In the U.S., the Federal Energy Regulatory Commission (FERC) oversees interstate electricity markets and ensures fair access to energy storage systems.
In the UK, the Office of Gas and Electricity Markets (Ofgem), oversees electricity markets, network regulation, and ensures system reliability. Ofgem sets the rules for grid connection, market participation, and incentives for energy storage projects.
In India, the Central Electricity Regulatory Commission (CERC) governs interstate electricity transmission and tariff frameworks. It is responsible for local grid policies, project approvals, and integration.

Competitive Landscape

Major players in the grid-scale battery market are focusing on securing large-scale contracts to support national renewable energy goals. They are deploying advanced battery technologies that enhance system integration and grid stability.

Strategic partnerships with utilities enable rapid project execution across multiple sites, improving energy infrastructure flexibility and reliability. These initiatives are helping to expand large-scale battery installations, strengthen grid reliability, and facilitate the transition toward cleaner energy sources.

In February 2025, BYD Energy Storage signed the world’s largest grid-scale battery storage project contracts with Saudi Electricity Company, totaling 12.5 GWh capacity across five sites. Utilizing BYD’s advanced CTS (Cell-to-System) super-integrated technology, these projects aim to enhance grid stability and support Saudi Arabia’s renewable energy targets under Vision 2030.

List of Key Companies in Grid-Scale Battery Market:

Panasonic Life Solutions India Pvt. Ltd
Tesla
Fluence
SAMSUNG SDI
BYD Company Ltd
The AES Corporation
ESS Tech, Inc
LG Energy Solution
Siemens Energy
Durapower Group
NextEra Energy Resources, LLC
TOSHIBA CORPORATION
Form Energy
General Electric Company
Hydrostor

Recent Developments (Product Launch)

In April 2025, PURE launched a 5 MWh grid-scale battery storage system, aiming to enhance energy storage capacity and support grid flexibility. This deployment supports the advancement of scalable and efficient battery solutions that improve grid stability and facilitate renewable energy integration.
In February 2024, Siemens launched Gridscale X, a modular software solution designed to help utilities rapidly scale grid capacity and manage distributed energy resources (DERs). Gridscale X supports grid decarbonization by enhancing flexibility and accelerating digital transformation in planning, operations, and maintenance, enabling utilities to improve reliability and move toward autonomous grid management.