Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Grid Scale Battery Market size is set to expand from USD 8.61 billion in 2024 to USD 296.79 billion by 2037, reflecting a CAGR of more than 31.3% during the forecast timeline, from 2025 to 2037. Currently in 2025, the industry revenue of grid scale battery is evaluated at USD 10.5 billion.
The growth of the market can be attributed to the rising investment in renewable energy, and the low cost of grid scale batteries in the coming years. The scarcity of renewable energy sources across the world with the rising consumption of electricity with increasing population is anticipated to drive market growth. Electricity consumption across the world raised over 25,000 terawatt-hours in the year 2021. The growing number of electronic devices used around the world is also rising the growth of the market.
The increasing population, rapid industrialization, and growing urbanization are expected to drive market growth in the coming years. The market growth is also attributed to the increasing utilization of consumer electronics and rising internet penetration worldwide. The escalating industries globally that use a high amount of renewable sources for the operation of heavy machinery and equipment are also anticipated to have a positive impact on the market growth as per the market analysis. The increasing development in the industrial sector involves continuous utilization of manufacturing units that need regular electricity and power supply which increases the demand for electricity. More than 5 billion people worldwide are using the internet in the year 2023 i.e., equal to 65% of the global population.
Grid Scale Battery Sector: Growth Drivers and Challenges
Growth Drivers
- Rapid Urbanization and Industrial Growth Across the World – The increasing number of industries across the world with urbanization and digitalization are estimated to drive market growth in the coming years. The economic standards of many countries are rising day by day with increasing disposable income of people expected to drive the market growth as per the market analysis. The increasing migration of people from rural populations for job opportunities is rising urbanization. As per the estimations, more than 50% of the population across the world i.e., more than 4 billion people lived in the cities as of 2022.
- Growing Investments in Renewable Energy Worldwide – The investment in renewable energy technologies in the United States is estimated to reach about USD 60 billion in the year 2019.
- Declining Costs of Grid-Scale Battery Across the World – The price of lithium-ion battery cells was decreased by more than 95% in the last three decades since 1991. The price of a battery with a capacity of one kilowatt per hour was more than USD 7000 and decreased to USD 180 in the year 2018 globally.
- Rising Need for Electricity and Power Storage Plants – The residential and commercial energy demand across the world is estimated to increase by over 10% by the end of 2050.
Challenges
- High Demand-Supply Mismatch of Raw Materials for the Battery
- Challenges Faced in the Recycling of Batteries
- Side Effects Caused by using Batteries on the Population – The increasing use of batteries may cause health complications such as bronchial irritation, cough, headache, reduced mental ability, muscle cramps, numbness, itching of the skin, and burns, and are harmful to the eyes and skin. These are the side effects that are estimated to hamper the market growth in the coming years.
Grid Scale Battery Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
31.3% |
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Base Year Market Size (2024) |
USD 8.61 billion |
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Forecast Year Market Size (2037) |
USD 296.79 billion |
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Regional Scope |
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Grid Scale Battery Segmentation
Type (Lithium-Ion, Lead Acid, Flow Battery, Sodium-Based)
In grid scale battery market, lithium-ion segment is poised to account for substantial revenue share by 2037, attributed to the efficiency of the batteries to store energy for more than 30 minutes to 3 hours. Also, the high utilization of lithium-ion battery in various sectors is estimated to drive market growth. The replacement of cobalt with lithium-ion in batteries is also expected to propel market growth, attributed to the increasing use of these batteries in many electronic devices and consumer electronics. Consumer electronics are increasing day by day with the rising disposable income of people across the world. More than 90% of U.S. respondents are using consumer electronics such as smartphones.
Application (Frequency Regulation, Peak Shaving, Bill Management, Load Shifting, Renewable Integration)
In grid scale battery market, renewable integration segment is expected to account for remarkable revenue share by 2037, due rising importance of variable renewable energy (VRE) technologies owing to the reduced cost, policies that support the technology, and rising advancements. The integration of renewable energies can decrease the production of carbon and many air pollutants hence the growth of the market is estimated to rise during the forecast period. According to the estimations, the release of carbon dioxide from the electric power sector in the United States in the year 2021 was estimated to be more than 1500 million metric tons which is over 30% of the total carbon dioxide emissions in the U.S. The increasing electricity security and the decarbonization effect are the factors that are anticipated to propel market growth.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Application |
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Customize this ReportGrid Scale Battery Industry - Regional Synopsis
APAC Market Statistics
In grid scale battery market, Asia Pacific segment is poised to capture substantial share by the end of 2037, due to growing electricity demand, and rapid urbanization in the region. As per the United Nations Department of Economic and Social Affairs, it is projected that India and China will have added 416 million and 255 million urban dwellers respectively. In addition, expanding the grid capacity of developing nations, and increasing the deployment of renewables for energy generation is also expected to accelerate the market. The increasing number of sectors that require energy storage units with increasing consumption of power and electricity is estimated to drive market growth. The rising adoption of power backup in IT sectors and other software industries to prevent unwanted disturbance in the program is anticipated to drive the market growth.
North American Market Forecast
North America region is anticipated to hold lucrative share by 2030, owing to the growing focus of the government on utilizing renewable energy storage in residential, non-residential, and utility sectors in the region. The rising power plants with increasing industries are also anticipated to drive market growth in the coming years. The growth rate of industrial production in the United States increased by more than 0.6% in the year 2023.
Europe Market Forecast
On the other hand, Europe had set a goal of meeting approximately 21% of its renewable sources with sustainable power by 2020, so the sustainable energy market in Europe was anticipated to grow at a rapid pace in the following decade. Over the projected timeframe, the development of the renewable energy sector is projected to generate sales of grid-scale batteries in the region.
Companies Dominating the Grid Scale Battery Landscape
- Panasonic Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- LG Chem Ltd.
- Samsung SDI Co. Ltd
- BYD Co. Ltd
- Contemporary Amperex Technology Co Ltd
- Tesla, Inc.
- ABB, Ltd.
- General Electric Company
- Toshiba Corporation
- NGK Insulators, Ltd.
In the News
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ABB Ltd. developed safety heights for sustainable battery power solutions with the tallest wooden skyscrapers. The electricity comes from renewable sources such as hydro and wind generation. The wooden structure will remove twice the emissions of carbon dioxide released during operation.
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General Electric Company tripled the production capacity of its solar and energy storage battery Power Electronics Systems to reach 9GW per year by the end of 2022 to back up the decrease in the first six months of the year.
Author Credits: Dhruv Bhatia
- Report ID: 3764
- Published Date: Mar 21, 2025
- Report Format: PDF, PPT
