Analyst Insight: Energy Storage Market Update

Energy storage is fundamental to creating a more flexible, resilient energy system. Globally, countries are utilizing energy storage by  pairing energy storage systems (ESS) with renewable technologies such as wind or solar generation to decarbonize economies, stabilize the energy grid, increase community resilience, and reduce energy costs.

Dramatic cost decreases, increasing manufacturing capacity, and regulatory reforms have combined to form a thriving energy storage market in both distributed and utility-scale settings. Guidehouse Insights projects the energy storage market to grow steadily through 2033 across all technologies and regions. Lithium ion (Li-ion) batteries are forecast to be the leading technology in both revenue and capacity additions throughout the next decade, capturing around half of the market. The Asian Pacific region is similarly forecast to be a dominant market for ESS technologies.

This Analyst Insight is based on data gleaned from Guidehouse Insights’ internal energy storage databases, updated in 1Q 2024. This quarter, Guidehouse Insights made several updates to the forecasts. Updated data was integrated into estimates across eight ESS technology types, five regions, and five application types. This Analyst Insight summarizes the updated forecast and highlights market news in the energy storage space.