| Study Period | 2019 - 2032 |
| 2024 Market Size | 48.3 GW |
| 2025 Market Size | 53.7 GW |
| 2032 Forecast | 120.3 GW |
| Growth Rate (CAGR) | 12.2% |
| Largest Region | West |
| Fastest-Growing Region | South |
| Nature of the Market | Moderately Consolidated |
| Largest Application Category | Grid Management |
|
Explore the market potential with our data-driven report
The U.S. energy storage market generated 48.3 GW in 2024, and this is expected to increase to 120.3 GW by 2032, advancing at a CAGR of 12.2% during 2025–2032.
This is due to the increasing integration of renewable sources of energy, such as wind and solar, which require energy storage for supply efficiency and grid stability. Tax credits and grants are other factors encouraging the adoption of energy storage systems since they are aimed at energy security and sustainability. In addition, the enhancements in lithium-ion and solid-state batteries and hydrogen storage technologies improve the efficiency and reduce the cost of electricity storage and supply.
However, the market faces certain challenges, including high fixed costs, regulatory matters, and technical complexities in the integration of distributed energy resources into the electrical grid. There is a large growth potential, with the Solar Energy Industries Association predicting battery energy storage capacity additions to rise to 119 GWh by 2030 from 18 GWh in 2022.
Electrochemical is the largest category, with a revenue share of 45%, in 2024, and it is also witnessing the fastest growth. This is due to their high energy density, efficiency, and rapid reduction in costs of Li-ion batteries. Moreover, their versatility enables their usage in utility-scale, residential, and commercial energy storage applications. Their adoption is further boosted by the growing sale of EVs.
Technologies covered in this report:
The larger category is grid management, with a revenue share of 65% in 2024. Efficient energy storage and supply play a key role in ensuring electrical grid stability and reliability, especially with the rapid integration of renewable energy resources, such as solar and wind. As they are intermittent sources, energy storage solutions are indispensable to support the supply and demand balance and ensure smooth grid operation. Applications including peak load shaving, frequency regulation, and power backup demand large-scale storage systems, such as lithium-ion batteries and pumped hydro storage. With the government incentives and policies for the expansion and modernization of the grid infrastructure, the adoption of energy storage systems is growing rapidly in grid management and resilience.
Major applications are:
The largest category is utilities, which is also the fastest-growing category, with 12.6% CAGR. This is primarily due to the major demand for large-scale energy storage to maintain grid stability and manage the variability in renewable energy production. With the increasing adoption of clean sources, such as wind and solar, utilities in the country are focusing on balancing their intermittent supply with stored electricity.
Moreover, the need for grid modernization is growing alongside government regulations, incentives, and technological advancements, driving a lot of investment by utilities in energy storage. By implementing such technologies, utilities gain higher economies of scale and the ability to meet sudden surges in electricity demand, such as on extremely hot or cold days.
The end users studied in this report:
Drive strategic growth with comprehensive market analysis
The Western region is the prime revenue with around 50% share. This is due to the solar and wind capacity expansion of California, backed by favorable regulations and investments in projects. California's Self-Generation Incentive Program (SGIP) and large-scale projects, such as the Moss Landing Energy Storage Facility, highlight the region's lead in adopting and integrating energy storage solutions.
These regions are analyzed:
The U.S. energy storage systems market is fragmented as it has multiple companies, from battery makers, providers of water pumping systems, and integrators of thermal energy storage solutions. Many firms exist across all segments, including well-known names, such as Tesla and LG Chem, alongside smaller specialized ones. Additionally, no company offers everything, which is the key reason for the market fragmentation.
In August 2024, LG Chem Ltd. inaugurated a new customer support center in Ravenna, Ohio.
In April 2024, The AES Corporation operationalized its solar + storage facility in West O‘ahu, Kapolei, Hawaii.
Want a report tailored exactly to your business need?
Request CustomizationLeading companies across industries trust us to deliver data-driven insights and innovative solutions for their most critical decisions. From data-driven strategies to actionable insights, we empower the decision-makers who shape industries and define the future. From Fortune 500 companies to innovative startups, we are proud to partner with organisations that drive progress in their industries.
Working with P&S Intelligence and their team was an absolute pleasure – their awareness of timelines and commitment to value greatly contributed to our project's success. Eagerly anticipating future collaborations.
McKinsey & Company
India
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws
Customize the Report to Align with Your Business Objectives
Request the Free Sample Pages