Visiongain has published a new report entitled Grid Scale Battery Storage Technologies Market Report 2025-2035: The global grid-scale battery storage technologies market is estimated at US$5,811.1 million in 2025 and is projected to grow at a CAGR of 19.6% during the forecast period 2025-2035.

Government Incentives and Policy Support

Supportive regulatory frameworks and government incentives are significantly accelerating investments in grid-scale battery storage technologies. Many countries have implemented policies such as investment tax credits, renewable portfolio standards, and capacity payment schemes that favour the deployment of large-scale energy storage. In the United Kingdom, the Contracts for Difference (CfD) scheme and National Grid’s Dynamic Containment services offer revenue opportunities for battery storage operators. Similarly, the Inflation Reduction Act (IRA) in the United States provides direct incentives for energy storage projects. Companies like Fluence Energy and NextEra Energy are actively leveraging these schemes to expand their battery portfolios.

Limited Long-Duration Storage Capabilities

Most commercial battery storage systems today, particularly lithium-ion, are economically viable only for short-duration applications—typically up to four hours. However, the growing reliance on renewable energy demands longer-duration storage to ensure energy availability during prolonged periods of low generation (e.g., cloudy weeks or windless days). Technologies like flow batteries, sodium-sulphur, and metal-air batteries offer potential for extended duration, but they are not yet mature or widely deployed at scale. Companies such as ESS Inc. (specialising in iron flow batteries) and Form Energy (developing iron-air batteries) are making progress, but technological limitations and high costs continue to pose significant barriers to mass adoption.

How will this Report Benefit you?

Visiongain’s 417-page report provides 122 tables and 212 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the grid-scale battery storage technologies market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Grid-Scale Battery Storage Technologies. Get financial analysis of the overall market and different segments including installation, capacity, end-user, type and application, and company size and capture higher market share. We believe that there are strong opportunities in this fast-growing grid-scale battery storage technologies market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

Forecasts by Installation (Standalone Storage Systems, Hybrid Storage Systems), by Capacity (10–100 MWh, 100–500 MWh, Above 500MWh), by End-user (Utilities and Power Grid Operators, Independent Power Producers (IPPs), Commercial and Industrial (C&I), Other), by Type (Lithium-ion Batteries, Lead–acid Batteries, Redox Flow Batteries (RFBs), Sodium-Based Batteries, Other), by Application (Renewable Energy Integration, Peak Shaving and Load Management, Frequency Regulation and Grid Stabilisation, Microgrids and Off-Grid Applications, Backup Power and Emergency Response, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

What are the Current Market Drivers?

Falling Costs of Battery Technologies

Rapid advancements in battery chemistries, particularly lithium-ion, have led to significant cost reductions over the past decade, making grid-scale storage projects more economically viable. The cost per megawatt-hour of storage has declined due to improved manufacturing processes, economies of scale, and increased competition. CATL (Contemporary Amperex Technology Co. Ltd.), a Chinese battery manufacturer, is at the forefront of producing low-cost, high-efficiency battery systems for grid applications. The decreasing costs make it financially attractive for utilities and energy providers to invest in large-scale storage, particularly for time-shifting renewable energy.

Grid Modernisation and Decentralisation Efforts

The ageing electrical grid infrastructure in many countries is undergoing modernisation to accommodate decentralised and digitalised energy systems. Grid-scale battery storage is vital for enhancing grid flexibility, providing ancillary services like frequency regulation, voltage control, and black start capability. Countries like Germany and Japan are integrating distributed energy resources (DERs) and upgrading grid infrastructure to support decentralisation. Companies such as ABB and Siemens Energy are developing advanced battery management systems (BMS) and energy management software to optimise grid storage operations, thereby supporting modern grid functionality.

Where are the Market Opportunities?

Commercialisation of New and Diverse Storage Technologies

While lithium-ion batteries dominate the current landscape, there is significant opportunity in emerging chemistries such as sodium-ion, flow batteries, and solid-state systems. These technologies promise benefits such as longer cycle life, enhanced safety, and lower environmental impact. For instance, CATL in China has introduced its first generation of sodium-ion batteries, and ESS Inc. in the US is scaling iron flow battery solutions. These innovations not only diversify the technology base but also reduce dependence on scarce raw materials like lithium and cobalt, offering cost-effective and sustainable alternatives for grid-scale deployment.

Growing Role in Capacity Markets and Ancillary Services

Battery storage systems are increasingly participating in electricity markets by providing frequency regulation, spinning reserve, and capacity support. These grid services are critical for maintaining system stability, especially in high-renewable grids. Many grid operators now offer financial incentives or market mechanisms to encourage storage participation. For example, National Grid ESO in the UK operates the Dynamic Containment and Firm Frequency Response programmes, where storage assets from companies like Pivot Power and Zenobe Energy are actively bidding for ancillary services. This creates new revenue streams and business models for storage providers.

Competitive Landscape

The major players operating in the grid-scale battery storage technologies market are ABB Ltd, BYD Co. Ltd, Enphase Energy, Inc., Fluence Energy, Kokam Co., Ltd., LG Chem, NEC Corporation, Powin Energy, Primus Power, Saft Groupe SAS, Samsung SDI Co., Ltd, Sonnen GmbH, Tesla Energy Operations, Inc., The AES Corporation, Wärtsilä Corporation. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.

Recent Developments

• 13 March 2025, Tesla partnered with Guadalupe Valley Electric Cooperative (GVEC) to participate in the Electric Reliability Council of Texas (ERCOT) pilot program for aggregated distributed energy resources. This initiative aims to enhance grid reliability by integrating consumer-level energy devices into a virtual power plant.
• 06 March 2025, The AES Corporation entered into multiple Power Purchase Agreements (PPAs) with Microsoft to supply renewable energy to the MISO power grid. These agreements encompass two solar projects nearing completion in Michigan and Missouri, expected to be operational in the first half of 2025, and a third solar project in Illinois. This collaboration supports Microsoft’s sustainability objectives and contributes to the expansion of renewable energy infrastructure in the Midwest.

Notes for Editors

If you are interested in a more detailed overview of this report, please send an e-mail to contactus@visiongain.com or call +44 207 336 6100.

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