What is the market share of battery energy storage systems in 2024?

By connection type, on-grid installations held a 78% share of the battery energy storage system market in 2024; off-grid applications are the fastest-growing segment at 18.5% CAGR. By component, battery packs, and racks represented 63% revenue share in 2024; energy-management software is advancing the fastest, at 20% CAGR.

What factors drive the market for battery energy storage systems?

Network and escalating use of lithium-ion battery energy storage systems due to their excellent characteristics are among the factors that drive the market for battery energy storage systems. Battery energy storage systems can store energy from renewable sources such as the sun and wind.

What is the global battery market size?

The global battery market size was estimated at USD 134.6 billion in 2024 and is projected to reach USD 329.84 billion by 2030, growing at a CAGR of 16.4% from 2025 to 2030. The increasing adoption of electric vehicles (EVs) is a significant factor driving the growth of the market.

What is the future of battery energy storage systems?

The battery energy storage systems industry has witnessed a higher inflow of investments in the last few years and is expected to continue the same trend in the coming future. According to the International Energy Agency (IEA), investments in battery energy storage exceeded USD 20 billion in 2022.

What is the market share of lithium ion batteries?

Lithium-ion batteries hold 69.3% market share due to their efficiency, scalability, and declining cost trends. Off-grid battery energy storage accounts for 78.9%, driven by rural electrification and remote power applications. Utility applications dominate the market at 56.1%, supporting grid stability and renewable energy integration worldwide.

What is the global battery market based on end use?

Based on end use, the market is segmented into automobiles, consumer electronics, grid-scale energy storage, telecom, power tools, military & defense, aerospace, and others. The automobile segment has emerged as the largest end use in the global battery industry, capturing over 31.0 % of the market share in 2024.