The US battery energy storage market to reach $7.02 billion by 2029

Driven by rising grid resilience demands and renewable energy growth, the US battery storage market is set to expand at 26.8% annually through 2029.

Partagez:

The United States battery energy storage system (BESS) market is expected to grow from $2.13 billion in 2024 to $7.02 billion in 2029, according to a report published by MarketsandMarkets™ on April 9. This growth, with a projected compound annual rate of 26.8%, is fuelled by the need to integrate intermittent energy sources such as wind and solar into the US power grid while enhancing resilience to climate-related disruptions.

Leading states and dominant technology

Large-scale energy storage installations are expected to increase significantly in 2024, with battery capacity forecast to nearly double. California and Texas remain the most active states in deploying these systems. Lithium-ion technology has established itself as the market standard due to its high energy density, fast response times and a nearly 20% annual cost reduction over the past decade.

Large-scale manufacturing, notably through facilities such as Tesla’s Gigafactory, has improved accessibility to this technology. These batteries, which can operate for up to 15 years under effective cycle management, meet key grid requirements such as frequency regulation and renewable energy storage.

A transforming energy infrastructure

On-grid BESS systems now represent the dominant market share, enabling the storage of excess energy generated during peak production and low demand periods, such as at night or on sunny days. These systems are essential for managing consumption spikes, stabilising the grid, and optimising energy resources.

The utility-scale application segment is expected to capture a significant share of the market, supported by infrastructure modernisation and national renewable energy targets. Rising electricity prices and increasingly frequent outages caused by extreme weather are encouraging energy providers to adopt these systems. The economic benefits of lower electricity costs are also driving wider deployment across the utility sector.

Matrix Renewables and Pioneer Community Energy have signed an energy capacity contract for a 22 MW battery storage project in Kern County, operational from early 2026.
The Ignitis Group is starting the construction of three battery energy storage systems in Lithuania, with a combined capacity of 291 MW and a total investment of €130mn.
Alinta Energy has appointed GenusPlus Group to build the first phase of the Reeves Plains Energy Hub Battery, a high-capacity storage facility designed to support grid stability in South Australia.
A partnership between Indonesia Battery and Contemporary Amperex Technology aims to launch a lithium-ion battery plant in Indonesia by the end of 2026, with a 6.9 gigawatt-hour capacity and planned expansion.
State Grid Wuzhong Power Supply Company announces the completion of the energy storage compartment at Tongli substation, a key step for the upcoming integration of a 300 MW shared storage power plant in Ningxia.
Globeleq and African Rainbow Energy finalise commercial agreements for a 153 MW energy storage project in South Africa, aimed at enhancing national grid stability and optimising peak energy management.
Estimated at 40.9 billion dollars in 2024, the global microgrid market is expected to grow at an average annual rate of 19.28% to reach 191.01 billion dollars by 2033, driven notably by innovative energy contracts.
The U.S. energy storage market set a historic record in early 2025, surpassing 2 GW installed in the first quarter despite increasing uncertainty regarding federal fiscal policies and tax credits.
The Sino-Moroccan joint venture COBCO has begun manufacturing essential lithium-ion battery components at its Jorf Lasfar plant, targeting a final annual capacity of 70 GWh, enough to equip one million electric vehicles.
Trianel teams with BKW and Luxcara to build a 900 MW lithium-iron-phosphate storage park in Waltrop, the first phase of a complex that could reach 1.5 GW and stabilise the German grid.
Blue Whale Energy partners with UNIGRID to deploy behind-the-meter storage systems adapted to constrained commercial and industrial urban areas in Southeast Asia.
Northvolt, recently placed under judicial administration, has received an indicative offer from a foreign investor to acquire its Swedish assets, signaling a potential imminent restart of its battery production units.
The frame agreement aligns Jinko ESS’s utility-scale storage technology with Metlen’s development pipeline, unlocking more than 3GWh across Chile and Europe while reducing delivery risk for grid operators.
Buffalo-based Viridi has obtained the cETLus mark for its RPS150 system, meeting the UL 9540 standard only days after a public battery fire-containment demonstration.
Tesla is building a giant electricity storage facility in Shanghai, China, signing a $560 million contract to meet growing demands on the urban electricity grid.
Envision Energy signs a turnkey contract with Kallista Energy for a 120 MW / 240 MWh energy storage project in Saleux, Hauts-de-France, marking its entry into France’s stationary battery market.
The Dubai-based company obtains a USD72mn loan to add a 300MWh battery system to its 500MW solar plant in Kom Ombo, with commissioning expected in July 2025.
Asian developer Gurīn Energy selected Saft to supply a battery storage system exceeding 1 GWh in Fukushima, marking a new stage in Japan’s energy storage deployment.
Chinese lithium-ion battery manufacturer CBAK Energy confirmed a $11.6mn order for LFP cylindrical batteries to power the electric motorcycle fleet of a rapidly growing African group.
China’s 600MW/2400MWh project enters energisation phase following the installation of 240 battery containers, initiating initial maintenance of this ultra-high-voltage hybrid energy facility.