Asia Pacific Energy Storage Systems Market

Asia Pacific Energy Storage Systems Market Size

The Asia Pacific energy storage systems market was at USD 301.2 billion in 2024. The market is expected to grow from USD 402.4 billion in 2025 to USD 2.44 trillion in 2034, at a CAGR of 22.2%. Rapid urbanization and the increasing demand for electricity in APAC countries are driving the need for efficient energy storage solutions. Energy storage systems are becoming essential for maintaining grid stability, supporting electric transportation infrastructure, and enhancing the resilience of power networks.

Countries including China, India, and Japan are making substantial investments in renewable energy, necessitating reliable energy storage solutions to manage the intermittent nature of solar and wind power. For instance, China's ambitious plans include investing around USD 800 billion by 2030 to modernize its power grid, aiming to reach peak carbon emissions by 2030 and achieve carbon neutrality by 2060.

Various APAC governments are implementing policies to promote energy storage adoption. For reference, in India, the government approved a USD 2.48 billion Production Linked Incentive scheme to build manufacturing capacity for advanced chemistry cell batteries. Similarly, Japan's government is mandating solar panel installations in new homes from 2025 and developing virtual power plants to enhance grid stability.

Innovations in battery technologies, such as improvements in lithium-ion batteries and the development of solid-state batteries, are enhancing the efficiency and cost-effectiveness of energy storage systems. Additionally, the integration of artificial intelligence and machine learning in grid management is optimizing energy storage utilization.

Asia Pacific Energy Storage Systems Market Trends

The Trump administration's reintroduction of tariffs on Chinese imports has significantly impacted the Asia-Pacific (APAC) energy storage systems industry, particularly in the battery energy storage systems (BESS) sector. It has led to a substantial increase in the cost of BESS components. For instance, the combined tariffs have resulted in a total duty of approximately 38.4% on Chinese batteries. This has disrupted the cost competitiveness that Chinese manufacturers previously provided, with BESS prices from China averaging around USD 101 per kWh, significantly lower than those from the U.S. and Europe. While companies are adapting through diversification and investment in domestic manufacturing, the long-term impact will depend on the evolution of trade policies and their implementation.

Countries including Japan, Australia, and South Korea are accelerating BESS deployment, especially for renewables integration and grid support. South Korea is emphasizing second-life batteries (reused EV batteries) to reduce waste and cut costs. Australia’s NEM (National Electricity Market) is adding utility-scale batteries at an unprecedented pace to manage rooftop solar surplus.

The move toward smart grids and decentralized energy systems (e.g., microgrids, virtual power plants) is boosting ESS deployment at the distribution and customer levels. Projects like Japan’s VPP initiatives and Indonesia’s rural microgrids underscore this trend. Many APAC nations are seeking to reduce dependence on fossil fuel imports. ESS helps stabilize energy supply from domestic renewables, improving energy security while also supporting decarbonization goals.

Asia Pacific Energy Storage Systems Market Analysis

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• Asia Pacific energy storage systems industry was valued at USD 177.8 billion, USD 231.9 billion, and USD 301.2 billion in 2022, 2023, and 2024, respectively. Based on technology, the industry can be categorized into pumped hydro, electro-chemical, electro-mechanical, and thermal energy storage.
  
• The pumped hydro segment is expected to dominate the market and exceed revenue of USD 515 billion by 2034. PHES offers large-scale energy storage (100 MW+) ideal for balancing load during peak demand periods. Decades of successful operation and long asset lifespans (up to 80 years) make it a low-risk investment. Hilly and mountainous regions (e.g., China, India, Australia) are ideal for cost-effective PHES development.
  
• In electro-chemical segment, batteries can be rapidly deployed, scaled, and sited flexibly for both grid and distributed storage applications. Lithium-ion battery costs have dropped over 85% since 2010; high round-trip efficiency up to 90% boosts economics. R&D and scale in the electric vehicle (EV) sector accelerate improvements and cost reductions for stationary storage.
  
• Technologies like flywheels excel in grid stabilization, frequency response, and short-duration, high-power applications. As more renewables are added, fast-responding systems like flywheels or compressed air can buffer fluctuations. Gravity and compressed air storage suit off-grid industrial applications or remote microgrids.
  
• Thermal energy storage supports addressing the variability of solar and wind energy by storing excess heat (e.g., from concentrated solar power or surplus electricity) for later use. It provides a low-carbon alternative to fossil fuels for processing heating, which is vital for industries like chemicals, cement, and steel. Additionally, surplus electricity from renewables can be converted to thermal energy during low-demand periods and reused when electricity demand is high.
  

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• Based on the application, the Asia Pacific energy storage systems market is trifurcated into electric time energy shift, electric supply capacity, black start, renewable capacity firming, frequency regulation and others. The electric energy time shift segment is set to lead the industry with a major market share of 54% in 2024 while growing at a positive CAGR through 2034. Greater price differentials between peak and off-peak hours make arbitrage more profitable. Creates surplus generation during mid-day (solar) or nighttime (wind), which can be stored and used during high-demand periods. Utilities and regulators increasingly support load-shifting to reduce peak demand.
  
• Electric supply capacity can reduce the need for transmission and distribution upgrades by supplying power locally during peak loads. ESS can ramp up in milliseconds compared to several minutes for thermal plants. Regulatory bodies require reserve margins that ESS can fulfill more efficiently than traditional generators.
  
• Black start is restarting the grid or a power plant without relying on the external electric power supply. SS can provide reliable power in emergencies, aiding system restoration. Growth in microgrids (especially in critical infrastructure) increases the demand for localized black start capabilities.
  
• In renewable capacity firming, power providers must prove they can meet demand reliably, requiring firm capacity even from renewable sources. ESS makes intermittent sources like wind and solar more predictable and dispatchable. Growth in solar-plus-storage and wind-plus-storage projects is directly tied to the need for capacity firming.
  
• As conventional spinning reserves decline, fast-responding ESS is critical for maintaining frequency. Batteries and flywheels can respond in milliseconds—essential for modern grid operations. High revenue potential from frequency regulation services in liberalized power markets.
  

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• China energy storage systems industry is estimated to reach a value of USD 97.7 billion, USD 147.3 billion, and USD 208.8 billion in 2022, 2023, and 2024. Leading the world in wind and solar capacity, which drives a need for storage to manage intermittency. China's 14th Five-Year Plan prioritizes storage for grid modernization and flexibility. Provinces require solar and wind projects to include co-located storage.
  
• In Japan, Post-Fukushima reforms have led to a fragmented grid with high need for ESS. Create strong economic incentives for time-shifting and peak shaving with storage. Government-led programs support residential and commercial battery aggregation. Solar owners adding batteries to maximize self-consumption and returns.
  
• In India, rapid industrialization and electrification require grid flexibility and capacity support. SECI and state utilities are issuing large-scale storage tenders (e.g., battery energy storage systems - BESS). Frequent outages and evening peaks support storage value. Decentralized energy systems for off-grid and backup use.
  
• South Korea Targets 20% renewable energy by 2030, with storage supporting intermittent resources. Tax benefits and tariffs for C&I customers deploying ESS. Need for demand response and energy arbitrage. Integration of storage in advanced grid projects.
  
• Australia’s price spikes and negative pricing incentivize time-shifting and arbitrage. A shift to consumer-owned generation and storage (VPPs, peer-to-peer trading). Programs like ARENA, CEFC, and state-specific rebates (e.g., South Australia Home Battery Scheme). One of the highest in the world, creating demand for residential storage (e.g., Powerwall, home batteries).
  

Asia Pacific Energy Storage Systems Market Share

The top 5 players operating in Asia Pacific energy storage systems industry include CATL, BYD, LG Energy Solution, Samsung SDI, and Tesla which collectively hold over 35% of the market share. A higher market share signals strong brand presence, technology leadership, and customer trust. Dominant players often set industry standards, influence pricing, and shape regulatory discussions.

Companies with large market shares typically benefit from economies of scale—lower production costs, better supplier terms, and more efficient R&D spending. This enables them to offer more competitive pricing or invest more in innovation.

Asia Pacific Energy Storage Systems Market Companies

• CATL is a Chinese company and the world's largest battery manufacturer. It leads the ESS market with its lithium iron phosphate (LFP) batteries, which are cost-effective and have a longer lifespan, making them ideal for grid storage applications. The company reported revenue of USD 50.4 billion in 2024.
  
• BYD is a vertically integrated Chinese manufacturer producing electric vehicles, batteries, and energy storage systems. Its FinDreams Battery division offers advanced LFP-based storage solutions, including the Blade Battery technology, which enhances safety and efficiency.
  
• LG Energy Solution is a leading supplier of lithium-ion batteries for various applications, including ESS. It is restructuring operations to focus more on LFP batteries to remain competitive against Chinese counterparts. The company had gross profit of USD 2.44 billion in 2024.
  
• Samsung SDI manufactures rechargeable batteries for IT devices, automotive, and ESS applications. The company is investing in LFP battery production to enhance its position in the growing ESS market.
  
• Panasonic Corporation is a significant player in the battery industry, supplying batteries for electric vehicles and energy storage systems. Its ESS solutions are used in various applications, including residential and commercial energy storage. The company noted research & development expenditure of over USD 3.39 billion for FY2024.
  

Some of the key market players operating across the Asia Pacific energy storage systems industry are:

• ABB
• Abengoa
• Burns & McDonnell
• BYD
• CALMAC
• Durapower Group
• Exide Technologies
• General Electric
• Hitachi Energy
• Johnson Controls
• LG Energy Solution
• McDermott
• Narada Power Source
• Panasonic Corporation
• Samsung SDI
• SCHMID Group
• Siemens
• Sinohydro Corporation
• Toshiba Corporation
• Voith
  

Asia Pacific Energy Storage Systems Industry News

• In January 2025, BYD secured contracts from the Saudi Electricity Company for five 500 MW/2,500 MWh battery storage projects across Saudi Arabia, totaling 12.5 GWh. These projects aim to enhance grid stability and integrate renewable energy sources
  
• In March 2025, ABB announced its support for hydrogen pilot projects in the Asia-Pacific region, aiming to integrate hydrogen energy solutions with energy storage systems to enhance grid stability and support the transition to renewable energy sources..
  
• In April 2025, Panasonic announced a strategic shift in its battery production, focusing more on lithium iron phosphate (LFP) batteries to align with the growing demand for cost-effective and safe energy storage solutions in the Asia-Pacific region.
  
• In December 2024, LG Energy Solution and India's JSW Energy discussed a USD 1.5 billion joint venture to manufacture batteries for electric vehicles and renewable energy storage in India, with plans to operationalize the plant by the end of 2026.
  

Asia pacific energy storage systems market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million & MW” from 2021 to 2034 for the following segments:

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Market, By Technology

• Pumped hydro
• Electro-chemical
  • Lithium-ion
  • Sodium sulphur
  • Lead acid
  • Flow battery
  • Others 
• Electro-mechanical
  • Flywheel
  • CAES
• Thermal energy storage
  • Water
  • Molten salt
  • PCM
  • Others

Market, By Application

• Electric time energy shift
• Electric supply capacity
• Black start
• Renewable capacity firming
• Frequency regulation
• Others

The above information has been provided for the following countries:

• China
• Japan
• India
• South Korea
• Australia