Battery Energy Storage System Market to Reach USD 172.17 Billion by 2030 Driven by Utility-Scale Procurement and Grid Stability Needs

Mordor Intelligence has published a new report on the "Battery Energy Storage System Market" offering a comprehensive analysis of trends, growth drivers, and future projections.

Introduction

According to Mordor Intelligence, the global Battery Energy Storage System (BESS) market is estimated at USD 76.69 billion in 2025 and is expected to reach USD 172.17 billion by 2030, growing at a CAGR of 17.56% during the forecast period. The market is witnessing significant growth due to increasing utility-scale procurement mandates, evolving grid-forming inverter requirements, and policy-driven domestic manufacturing pull-through in key regions.

Battery energy storage systems have emerged as essential assets for grid stability, renewable energy integration, and peak shaving. With the rising deployment of renewable generation, BESS solutions are enabling power systems to manage intermittency while maintaining frequency and voltage stability efficiently. Governments across the United States, China, European Union, and other regions are mandating procurement targets to accelerate energy transition and grid flexibility.

Report Overview: https://www.mordorintelligence.com/industry-reports/battery-energy-storage-system-market?utm_source=openpr

Key Trends

Utility-Scale Procurement Mandates Accelerating Orders

The market is being driven by utility-scale procurement mandates in the United States, China, and the European Union, which are accelerating gigawatt-scale battery storage orders. These mandates aim to integrate higher shares of renewable energy and address grid reliability challenges. The trend is expected to have a medium-term impact (2-4 years), supporting the market growth trajectory in North America, China, and Europe.

Grid-Forming Inverter Requirements Unlocking Co-Location Value

Grid-forming inverter requirements are unlocking co-location value stacks globally. Such inverters enable BESS to operate in grid-forming mode, enhancing system resilience and supporting renewable co-location projects. This trend is witnessing early gains in Australia and the Netherlands, with short-term impact (≤ 2 years) and potential global adoption.

PV-Plus-Storage PPA Price Parity Emerging

PV-plus-storage Power Purchase Agreements (PPAs) are achieving price parity in markets like Australia and Chile, with spill-over potential to Latin America. The combination of solar and storage is becoming cost-competitive with conventional generation, making it an attractive option for utilities and developers. This trend is expected to have a medium-term impact (2-4 years).

Domestic Manufacturing Pull-Through via Supply Chain Acts

Battery supply-chain acts in the EU and the U.S. are creating domestic manufacturing pull-through, supporting localised battery production and reducing reliance on imports. The initiatives are fostering industrial growth and job creation while strengthening regional energy security. This trend is projected to have a long-term impact (≥ 4 years) across North America and Europe.

Data-Center and AI Load Growth Driving 4-Hour Storage Demand

Data-center expansion and AI computing load growth are driving demand for 4-hour storage systems in North America, with the trend expected to expand into Asia-Pacific. BESS provides reliable backup and peak load management for data centers, enhancing operational resilience. This trend is having a short-term impact (≤ 2 years).

Second-Life EV Batteries Reducing CapEx

The availability of second-life EV batteries is reducing capital expenditure for BESS projects in Asia-Pacific, with spill-over potential to the Middle East and Africa. Reusing EV batteries for stationary storage applications provides cost benefits while supporting circular economy goals. This trend is anticipated to have a medium-term impact (2-4 years).

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Market Segmentation

The Battery Energy Storage System market is segmented as follows:

By Battery Type

Lithium-Ion

Lithium Iron Phosphate

Nickel-Manganese-Cobalt

Other battery types

By Connection Type

On-Grid

Off-Grid

By Components

Battery Pack and Racks

Power Conversion System

Other components

By Energy Capacity Range

Below 100 MWh

100-500 MWh

Above 500 MWh

By End-User Application

Utility

Residential

Commercial and Industrial

By Geography

North America

Europe

Asia-Pacific

South America

Middle East and Africa

Among these segments, the utility segment holds the largest market share due to rapid renewable deployment, large-scale grid balancing needs, and government-backed storage targets. Lithium-ion batteries, particularly lithium iron phosphate chemistries, continue to dominate owing to their cost competitiveness, energy density, and cycle life advantages.

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Key Players

Contemporary Technology Co. Ltd. (CATL)

CATL is a leading supplier of lithium-ion batteries, providing large-scale BESS solutions globally. The company has secured multiple utility-scale orders across China and international markets, focusing on high-energy-density, safety, and cost efficiency to serve the growing grid storage demand.

BYD Company Limited

BYD offers integrated battery energy storage systems widely used in China and abroad for grid balancing and renewable integration. Its vertically integrated production and strong focus on lithium iron phosphate batteries position it well to serve utility, commercial, and residential sectors.

Tesla Inc.

Tesla's Megapack and Powerpack solutions continue to gain traction globally for utility-scale projects. Its deployments, such as the Hornsdale Power Reserve in Australia, have demonstrated the economic and operational viability of battery storage in enhancing grid stability and enabling renewable integration.

LG Energy Solution Ltd.

LG Energy Solution supplies advanced battery systems for grid, commercial, and residential applications. The company is expanding production capacity and enhancing battery management systems to meet diverse customer requirements across key geographies.

Samsung SDI Co. Ltd.

Samsung SDI offers lithium-ion-based BESS solutions for utility and commercial markets, focusing on high energy density, durability, and safety. Its presence across Asia-Pacific, Europe, and North America supports projects aiming for peak shaving, frequency regulation, and renewable integration.

Conclusion

The Battery Energy Storage System market is poised for significant growth driven by utility-scale procurement mandates, technological advancements, and supportive government policies worldwide. Declining battery costs and the availability of second-life EV batteries are making storage solutions more affordable, encouraging broader adoption across grid-scale, commercial, and residential applications.

Asia-Pacific remains a major market led by China's large-scale deployments and manufacturing dominance. North America and Europe are expected to witness high growth supported by renewable energy targets, grid reliability concerns, and domestic supply-chain initiatives.

As utilities continue to adopt battery storage for grid stabilisation and renewable energy firms integrate BESS with solar and wind assets, the market outlook remains strong. The role of battery energy storage in enabling energy transition, decarbonisation, and grid resilience will only grow in the coming years, shaping a more stable and sustainable global power sector.

Industry Related Reports

India Battery Energy Storage Systems Market: India Battery Energy Storage System Market is Segmented by Battery Type (Lithium-ion, Lead-acid, Flow, and Other Battery Types) and by Connection Type (On-grid and Off-grid).

Get more market insights: https://www.mordorintelligence.com/industry-reports/india-battery-energy-storage-systems-market?utm_source=openpr

North America Battery Energy Storage System Market: The North America Battery Energy Storage System Market report segments the industry into Technology Type (Lithium-ion Batteries, Lead-Acid Batteries, Other Technology Types), Application (Residential, Commercial & Industrial, Utility), and Geography (United States, Canada, Rest of North America).

Get more market insights: https://www.mordorintelligence.com/industry-reports/north-america-battery-energy-storage-system-market?utm_source=openpr

South America Battery Energy Storage System Market: South America Battery Energy Storage System Market is segmented by Technology (Lithium-ion, Lead-acid, and Others), Application (Residential, Commercial and Industrial, and Utility), and Geography (Brazil, Argentina, Chile, and the Rest of South America).

Get more market insights: https://www.mordorintelligence.com/industry-reports/south-america-battery-energy-storage-system-market?utm_source=openpr

Europe Battery Energy Storage System (BESS) Market: Europe Battery Energy Storage System (BESS) Market is Segmented by Battery Type (Lithium-Ion, Lead-Acid, Flow Battery, Sodium-Ion, and Other Battery Types), Application (Behind-The-Meter and Front-Of-The-Meter), Power Rating (Up To 100 KW, 101 KW To 1 MW, 1 MW To 10 MW, and Above 10 MW), and Geography (Germany, United Kingdom, Italy, France, Spain, Nordic Countries, and Rest of Europe).

Get more market insights: https://www.mordorintelligence.com/industry-reports/europe-battery-energy-storage-system-market?utm_source=openpr

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