Energy Storage Market growing at a CAGR of 23.05% by 2031 as Battery Storage and Grid-Scale Projects Support Capacity Expansion | Says Mordor Intelligence Reports
Energy Storage Market growing at a CAGR of 23.05% by 2031 as Battery Storage and Grid-Scale Projects Support Capacity Expansion
Mordor Intelligence has published a new report on the “Energy Storage Market” offering a comprehensive analysis of trends, growth drivers, and future projections.
According to Mordor Intelligence, the global energy storage market size is expected to increase from 0.54 terawatt in 2026 to 1.52 terawatts by 2031. The market is supported by increasing deployment of battery storage systems, policy support for grid modernization, and growing investments in renewable power infrastructure. The Energy Storage Market continues to grow as countries expand renewable electricity generation and strengthen grid reliability. Energy storage systems help balance electricity supply and demand, improve power quality, and support renewable energy integration across residential, commercial, industrial, and utility-scale applications.
Battery technologies continue to account for the largest share of installed capacity, while hydrogen-based storage is expected to record the highest growth rate over the forecast period. Utilities are increasingly deploying storage systems to improve grid flexibility, manage peak demand, and integrate higher levels of solar and wind generation. At the same time, energy storage adoption is expanding in electric vehicle charging infrastructure and commercial facilities that require reliable power supply.
Upcoming Energy Storage Market Trends
On-Grid Systems Continue to Lead Installed Capacity
On-grid systems accounted for 93.26% of installed capacity in 2025, reflecting their widespread adoption for supporting electricity grids, integrating renewable energy, and improving power system reliability across utility-scale applications.
Off-Grid Deployments Register the Fastest Growth
Off-grid energy storage is projected to grow at a 31.35% CAGR during the forecast period, supported by rising deployment in remote locations, microgrids, and areas where reliable access to the main electricity grid remains limited.
Grid-Scale Utility Applications Hold the Largest Share
Grid-scale utility applications held 70.63% of installed capacity in 2025, making them the largest application segment as utilities continue deploying large energy storage systems to manage peak demand and balance renewable power generation.
Explore In-Depth Insights and Regional Perspectives, Including Localized Editions in the Japan Market: https://www.mordorintelligence.com/ja/industry-reports/energy-storage-market?utm_source=abnewswire
Energy Storage Market Segmentation
By Technology
- Batteries
- Pumped Hydro Storage
- Thermal Energy Storage
- Hydrogen Energy Storage
- Flywheel Energy Storage
- Other Technologies
By Connectivity
- On-grid
- Off-grid
By Application
- Grid-scale Utility
- Behind-the-Meter
- EV Charging Infrastructure
- Commercial and Industrial
- Residential
By Geography
- North America
- Europe
- Asia-Pacific
- South America
- Middle East and Africa
- Tesla Inc.
- BYD Company Ltd.
- Contemporary Amperex Technology Co. Limited (CATL)
- Fluence Energy Inc.
- Sungrow Power Supply Co. Ltd.
Asia-Pacific Leads the Energy Storage Market
Asia-Pacific remains the largest regional market, accounting for 45.11% of global installed capacity in 2025. The region continues to add large-scale storage capacity alongside renewable energy projects and grid expansion programs. China plays a major role through extensive deployment of battery storage and continued investment in manufacturing capacity. Other countries across the region are also increasing storage installations to support renewable integration, improve electricity reliability, and meet rising power demand. Large utility-scale projects, expanding transmission infrastructure, and increasing renewable electricity generation continue to support the region’s leadership in the global Energy Storage Market Share, while ongoing investments are expected to maintain steady market expansion during the forecast period.
Explore Related Reports from Mordor Intelligence Database:
Solar Tracker Market is segmented by axis type (single axis and dual axis), technology (photovoltaic, concentrated solar power, and concentrated photovoltaic), drive type (electric motor, linear actuator, and hydraulic), application (utility-scale, commercial and industrial, residential and micro-grid, and agrivoltaics), and geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa).
Masterbatch Market is segmented by type (white, black, color, additive, and others), polymer (polypropylene, polyethylene, and others), end-user industry (building and construction, packaging, agriculture, and others), and geography (Asia-Pacific, North America, Europe, South America, and the Middle East & Africa).
About Mordor Intelligence:
Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.
With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.
For media inquiries or further information, please contact:
Mordor Intelligence Private Limited
https://www.mordorintelligence.com
Media Contact
Company Name: Mordor Intelligence
Contact Person: Jignesh Thakkar
Email: Send Email
Phone: +1 617-765-2493
Address:11th Floor, Rajapushpa Summit, Nanakramguda Rd, Financial District, Gachibowli [email protected]
City: Hyderabad
State: Telangana 500008
Country: India
Website: https://www.mordorintelligence.com/industry-reports/energy-storage-market
