Global energy storage market: review and outlook

Global energy storage market

The global energy storage market added 175.4 GWh of installed capacity in 2024, with the three major regional markets—China, the Americas, and Europe—continuing to account for over 90% of global installations.

In 2025, the global energy storage market is projected to maintain its growth trajectory, with new installed capacity reaching 221.9 GWh, up 26.5% YoY, as InfoLink forecasts. Regionally, China, the Americas, and Europe are anticipated to see steady growth, while emerging markets, led by the Middle East and Africa, will begin scaling up, causing the combined share of installations from China, the Americas, and Europe to fall below 90% for the first time. This trend may highlight that the cost decline over the past few years has driven energy storage into an era of accelerated diversification in the global market. 


 

European energy storage market

The European energy storage market added 19.1 GWh of installed capacity in 2024, up 12.4% YoY, with drastic changes in the ESS landscape throughout the year.

• Italy has become the largest energy storage market in Europe through front-of-meter (FTM) installations, surpassing Germany and the UK.
  
  

• For the first time, the European energy storage market has seen the installation capacities of front-of-meter (FTM) and behind-the-meter (BTM) markets reach parity, with the growth engine gradually shifting from BTM to FTM markets.

In 2025, the European market is projected to add nearly 27 GWh of new installed capacity, up 41% YoY, with the following forecasts.

• By submarket, the scale of BTM energy storage installations in Europe, after the decline in 2024, is expected to grow steadily, while the FTM market in Europe is projected to develop rapidly.

• By country, Italy is expected to maintain its position as Europe’s largest energy storage market, with Germany ranking second and the FTM market in Germany likely to surpass 1 GWh in new installations in 2025. Meanwhile, as utility-scale storage projects in Spain, Belgium, and other countries, gradually come online in 2025, the European market will shift from being dominated by Italy, Germany, and the UK to a more diversified landscape with growth in multiple regions.
  
  
   

Energy storage market of the Americas

The energy storage market of the Americas added 41.3 GWh of installed capacity in 2024, up 53% YoY, with the U.S. and Chile as the primary driving forces.

• The U.S.

The U.S. market is primarily driven by FTM projects, which account for over 90% of the installed capacity. In 2024, the FTM market across the country remained strong. By state, California, Texas, Arizona, Nevada, and New Mexico led in installed capacity, with California and Texas making up over 65% of the total. Additionally, the average storage duration for projects nationwide is 3.10 hours, with California averaging 4.00 hours.


 

• Chile

Chile's market is driven by FTM market. Projects in 2024 focused on Antofagasta and Atacama, key lithium regions. Total capacity surpassed 30 GWh by the end of the year, with over 2 GWh added in 2024.

Energy storage capacity in the Americas is estimated to increase by 33% YoY to 55 GWh in 2025. 

Forecast by region:

• After the change in the U.S. administration, energy storage market uncertainty has risen. Incentive policies may face delays or cancellations, while the 2026 Section 301 tariff hike is driving a 2025 installation rush. US capacity growth may remain above 20% in 2025.

• Chile’s market is expected to grow steadily, with over 3 GWh of new capacity expected in 2025, driven by stable power needs for lithium extraction.

• Ontario’s tenders could boost capacity in Canada starting in 2025, with annual additions likely to exceed 2 GWh.
  
  
   

Energy storage markets of the Middle East and Africa

2024 is the start of energy storage in the Middle East and Africa, with 2.7 GWh of capacity. 

Key points:

• Tender projects surged, exceeding 40 GWh, mainly from the UAE and Saudi Arabia.

• China-funded companies led, winning most announced projects.

• Intense competition lowered bid prices compared to other regions.

Capacity is estimated to grow by 381% to 13 GWh in 2025, becoming the fastest-growing region globally. Saudi Arabia will lead, with major projects from BYD (2.6 GWh) and Sungrow (7.8 GWh).

Emerging non-China markets are expanding and becoming more regionally diverse. To capitalize on this trend, manufacturers should focus on market insights and plan for new opportunities. Developing energy storage has become a global consensus. It was announced at COP29 in late 2024 that global storage capacity will increase to 1,500 GW by 2030, more than six times the 2022 level. As a result, InfoLink maintains a cautiously optimistic outlook for the medium- to long-term development of energy storage systems.