Renewable Energy Storage Market Size, Share Global Analysis Report, 2025 – 2034

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global renewable energy storage market size was worth around USD 59.30 billion in 2024 and is predicted to grow to around USD 189.11 billion by 2034, with a compound annual growth rate (CAGR) of roughly 15.6% between 2025 and 2034.

Market Overview

Renewable energy storage means storing energy from renewable sources like wind, solar, or hydropower, which can be used later. Since renewable energy production is usually intermittent, storage systems promise a reliable and continuous energy supply. Energy storage is vital in balancing demand and supply, improving grid stability, and lowering dependency on fossil fuels.

The global renewable energy storage market is anticipated to witness momentous growth over the forecast period owing to the growing demand for renewable energy, supportive government incentives and policies, and lowering costs of energy storage technologies.

The growing ecological concerns and policy obligations fuel the worldwide shift towards renewable energy sources. This has compelled the need for energy storage technologies to handle intermittent renewable energy generation.

Governments on a global scale are offering subsidies, incentives, and tax breaks for renewable energy storage solutions. Prominent policies like ITC (Investment Tax Credit) in the United States for energy storage, along with the Green Deal in Europe, promote the adoption of energy storage.

Also, economies of scale and technological improvements have significantly reduced energy storage costs, especially lithium-ion batteries. This has notably increased the affordability of renewable energy storage for commercial and residential applications.

Nevertheless, the global market is hindered by restricted storage duration, low energy density, and resource and environmental constraints. A few energy storage solutions, like conventional batteries, possess restricted energy density and may not store power for prolonged periods. This may be challenging for future storage needs.

Moreover, manufacturing energy storage devices, mainly batteries, needs raw materials, which are costly, limited, and prone to geopolitical risks.

Yet, the market is opportune for technological improvements in storage solutions and the expansion of hybrid renewable energy systems.

Emerging technologies like hydrogen storage, solid-state, and flow batteries provide fresh opportunities to enhance the energy storage systems' efficiency, performance, and cost-effectiveness. These solutions are projected to affect industry growth over the coming years.

Furthermore, hybrid systems that blend renewable energy sources with storage are gaining prominence. These systems offer efficient and reliable energy supply, mainly in remote areas,  propelling global storage demand.

Key Insights:

• As per the analysis shared by our research analyst, the global renewable energy storage market is estimated to grow annually at a CAGR of around 15.6% over the forecast period (2025-2034)
• In terms of revenue, the global renewable energy storage market size was valued at around USD 59.30 billion in 2024 and is projected to reach USD 189.11 billion by 2034.
• The renewable energy storage market is projected to grow significantly owing to the growing inclination towards ecological energy sources, supportive government incentives and policies, and surging demand for renewable energy.
• Based on the source, the solar segment is expected to lead the market.
• Based on technology, the battery energy storage segment is projected to witness sizeable revenue over the forecast period.
• Based on application, the residential segment is expected to lead the market.
• Based on region, North America is projected to dominate the global market during the estimated period, followed by Asia Pacific.

Growth Drivers

• Better grid reliability and stability drive the renewable energy storage market growth

With the growing penetration of renewable energy, grid stability, reliability, and maintenance are challenging owing to the differences between wind and solar generation. Energy storage systems provide a solution by preserving additional energy during high generation times and releasing it during peak demands. This helps to maintain optimal grid stability.

Texas has witnessed growth in renewable energy in recent years, and grid stability is a persistent problem since renewable energy sources significantly add to the energy mix. The state is taking initiatives to grow its investments in the domain to handle variations and guarantee reliability efficiently. By 2025, Texas is planning to incorporate 1.7 GW of energy storage.

The IRENA predicts battery storage will play a key role in grid stabilization as more economies will shift towards 100% renewable energy.

• Growing investments in energy storage projects to propel market growth

There is a heavy flood of investments in energy storage schemes as governments and companies identify the crucial role of storage in allowing the shift toward renewable energy. This investment is fueling the development of novel technologies and storage projects.

The United Kingdom government has assigned GBP 68 million for energy storage plans, emphasizing the creation of groundbreaking storage solutions for industrial and residential sectors.

These vast investments denote the rising significance of energy storage in broader renewable energy infrastructure. This assures cost-effective and reliable energy storage technologies back the shift towards clean energy.

Restraints

• Maintenance costs and performance degradation unfavorably impact the market progress

Energy storage systems, especially batteries, lose efficiency and degrade over time. This means that though storage systems offer significant upfront savings, they may incur performance issues and maintenance costs over time, decreasing their cost efficiency. Replacement and maintenance costs increase as batteries degrade. For instance, replacing an ion battery may cost around 200-400 per kWh, adding extra financial pressure to the owners.

In off-grid systems and remote areas, ongoing maintenance and battery replacement costs could be significantly high. This may result in high financial pressure on users dependent on systems for their energy requirements, thus hampering the growth of the renewable energy storage industry.

Opportunities

• Development of Long-Duration Energy Storage (LDES) positively impacts the renewable energy storage market growth

As the world is looking to overcome the challenge of intermittency, developing LDES (Long-Duration Energy Storage) technologies like pumped hydro storage and flow batteries offers a key opportunity. These technologies may provide storage solutions for more extended periods than the usual lithium-ion batteries. This will overcome the battery storage problem for several weeks.

Form Energy, in 2023, declared the development of a novel type of iron-air battery that may preserve energy for around 100 hours at a notably lower price than lithium-ion batteries. This technology is projected to play a vital role in the shift towards a renewable energy grid.

Challenges

• Manufacturing constraints and supply chain disruptions hamper the market growth

The disturbances in the supply chain have challenged the speedy growth of the renewable energy storage industry. This is further worsened by geopolitical stresses, high demand for materials utilized in energy storage devices, and COVID-19 delays. These obstacles may lead to high costs, manufacturing barriers, and delayed product deliveries.

In 2023, the price of lithium increased by 400% in the past couple of years, fueled by the growing demand from the energy storage and EV sectors. The rise in lithium costs has stressed generation of batteries for energy systems and resulted in elevated overall prices.

Report Scope

Segmentation Analysis

The global renewable energy storage market is segmented based on source, technology, application, and region.

Based on the source, the global renewable energy storage industry is divided into wind, solar, bioenergy, and hydropower. The solar segment registered a maximum market share in 2024. The growth is attributed to the rising use of solar photovoltaic or PV systems and the growing need to preserve additional energy generated during heavy sunlight hours to be used when the demand is high and solar production is low.

Since solar power installations are growing globally, mainly in commercial and residential sectors, the demand for storage solutions, such as lithium-ion batteries, is also increasing to store power for later usage.

Based on technology, the global renewable energy storage industry is segmented as pumped hydroelectric storage, battery energy storage, flywheel energy storage, compressed air energy storage, thermal energy storage, and hydrogen energy storage.

The battery energy storage segment registered a notable market share in 2024 and will lead over the estimated period. The BEES technology, mainly the lithium-ion batteries, has witnessed substantial growth backed by its speedy developments, reducing costs, and versatility in commercial and residential applications. Besides cost decline and flexibility, the technology offers renewable integration and optimal grid stability.

With the growing saturation of renewable energy, mainly in wind and solar, the need for power storage to balance demand and supply has increased battery storage usage.

Based on application, the global market is segmented into residential, commercial, and industrial. The residential segment is projected to witness substantial growth over the estimated period, owing to the rising adoption of solar energy systems and the increasing need for owners to preserve additional energy to be used during grid outages and non-sunny times.

Residential owners are actively adopting solar PV systems. The requirement for residential battery storage systems like LG Chem RESU or Tesla Powerwall has matured to store surplus solar energy during the daytime.

Furthermore, reducing the price of lithium-ion batteries and enhancing energy efficiency have increased the accessibility and affordability of residential energy storage systems to owners.

Regional Analysis

• North America to witness significant growth over the forecast period

North America is the dominating region in the global renewable energy storage market, owing to key factors like strong governmental support, rising investments in renewable energy, technological improvements, and growing adoption of energy storage technologies. The region has witnessed significant growth in wind and solar energy installations, thus creating a higher demand for energy storage technologies to manage intermittent energy production effectively.

Furthermore, North America, essentially the United States, is a leading hub for several energy storage enterprises, like NextEra Energy, Fluence, and Tesla. These are leading in deploying and developing superior storage technologies like advanced flow and lithium-ion batteries.

Asia Pacific is also expected to hold a considerable share of the global renewable energy storage market owing to speedy renewable energy growth, rising investments in energy storage solutions, and supportive government policies and initiatives.

Among others, China is the leading energy consumer and has expanded its wind and solar energy capacity. China is also a leader in battery manufacturing, especially lithium-ion batteries, with prominent firms like BYD and CATL, increasing supply and lowering storage system costs.

The Asia Pacific renewable energy storage industry is also projected to progress with a 22.5% CAGR by 2030, owing to elevated investments in renewable integration and grid modernization.

Competitive Analysis

The global renewable energy storage market is led by players like:

• Tesla
• Fluence
• NextEra Energy
• LG Chem
• BYD
• Panasonic
• Varta AG
• Sonnen GmbH
• Enphase Energy
• Eos Energy Enterprises
• AES Energy Storage
• Bloom Energy
• Sunverge Energy
• SimpliPhi Power
• Vionx Energy

Key Market Trends

• Improvements in Long-Duration Energy Storage:

Technologies like CAES (compressed air energy storage), flow batteries, and hydrogen storage are developing and gaining prominence to offer prolonged storage solutions. These can store energy for several days, thus overcoming the restrictions of temporary systems, including lithium-ion batteries.

• Decentralized storage and grid modernization:

With the development and transformation of energy grids, there is also a growing trend towards distributed energy and smart grid storage systems, for instance, Powerwall and Tesla. This enables decentralized energy storage, significantly reducing transmission losses and improving grid reliability.

The global renewable energy storage market is segmented as follows:

By Source Segment Analysis

• Wind
• Solar
• Bio Energy
• Hydropower

By Technology Segment Analysis

• Pumped Hydroelectric Storage
• Battery Energy Storage
• Flywheel Energy Storage
• Compressed Air Energy Storage
• Thermal Energy Storage
• Hydrogen Energy Storage

By Application Segment Analysis

• Residential
• Commercial
• Industrial

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America