U.S. Energy Storage Market Size & Share 2025 – 2034

U.S. Energy Storage Market Size

The U.S. energy storage market was estimated at USD 106.7 billion in 2024 and is expected to reach USD 1.49 trillion by 2034, growing at a CAGR of 29.1% from 2025 to 2034, driven by increased renewable energy integration and grid modernization efforts. The surge in solar and wind projects has amplified the demand for storage solutions to address intermittency challenges. Federal incentives like the Investment Tax Credit (ITC) for standalone storage and state-level policies have further catalyzed adoption. Key markets such as California, Texas, and New York lead deployment, leveraging supportive regulatory frameworks.

Energy storage systems are widely used as EV battery storage systems such as lithium ion batteries. Additionally, EV sales in U.S. is rising due to the political shifts, consumer sentiments, and evolving industry dynamics. For instance, by the end of fourth quarter of 2024, U.S. witnessed more than 7% rise in sales of electric vehicles exceeding 360,000 volume sales of electric vehicles. Owing to its high energy density, lightweight design and longer life-period of the battery makes lithium-ion battery an ideal choice for EVs. This in turn rises demand for ESS in EV sector.
 

As the batteries under electrochemical technology are widely adopted various government authorities have implied favorable policies to further raise the demand for energy storage systems. For example, U.S. government is promoting more indigenous lithium battery development.
 

For instance, in October 2024, Biden administration announced funding of more than USD 3 billion in enhancing domestic manufacturing of advanced batteries and materials across 14 U.S states. The initiative goals in reducing U.S dependency on international market for lithium battery and other energy storage systems materials. The investment will help around 25 projects and creating significant number of jobs. Likewise, the DOE in February 2025, announced funding of more than USD 4 million under Blue Sky Training Program to bolster workforce of especially grid scale ESS sector.
 

U.S. Energy Storage Market Trends

The U.S. energy storage industry has been observing remarkable growth due to increasing demand for efficient battery storage from different sectors such as EV, renewable energy and many more. This is pushing numerous innovative initiations in the industry. Solid-state batteries, gravity-based ESS are some of the innovations in the field. SSB technology provide rapid charging times, higher energy density and improved safety to avoid risk of leaks and fire. Big companies such as CATL have introduced mass production of solid-state lithium-ion batteries to cater to future demands of advanced batteries.
 

Adoption of hi-tech such as AI and ML in ESS battery designs is another trend shaping the U.S. energy storage market in focus. These technologies help to improve the performance and safety of batteries. It offers real-time data on battery’s thermal management, charging and overcharging status, current status, shelf life of battery. Repurposed energy storage batteries is another trend stepping in to offer cost-effective ESS. Repurposed or second life batteries have significant amount of life efficiency left for energy storage. This reduces the cost of ESS. Various industry players in partnership with automakers are introducing effective solutions to capture the untapped U.S. energy storage market outlook.
 

To mitigate their carbon footprints related to manufacturing batteries and ESS several companies are altering the design of batteries with sustainable materials or technology. These include, gravity-based energy storage systems. This technology uses excess electricity to lift heavy weights. To generate power, the system uses gravitational potential energy. This offers sustainable and cost-effective ESS than conventional ESS. Various companies are introducing gravity-based ESS to achieve the cutting edge benefits from cost-sensitive target. For instance, in May 2024, European companies Enel and Energy Vault announced plan of building 18 MW/36 MWh of gravity storage in the U.S. for large scale grid facilities.
 

U.S. Energy Storage Market Analysis

Based on technology the market is segmented into pumped hydro, electro-chemical, electro-mechanical, and thermal energy storage. The U.S. market for energy storage reached USD 64.9 billion, USD 81.9 billion and USD 106.7 billion in 2022, 2023 and 2024 respectively.
 

• The pumped hydro technology battery uses excess electricity to pump water from lower to upper reservoir. The technology offers longer duration storage. Owing to this pumped hydro is majorly used in renewable energy integration and grid energy storage systems. Due to these factors government of different countries are initiating positive strategies.
   
• For instance, in November 2024 Sperra a U.S. based energy provider received USD 4 million fund from the US Department of Energy Water Power technologies Office to foster innovation in pumped storage hydropower technologies.
   
• Rising sales of EV in the nation is rising demand for electro-chemical energy storage majorly lithium-ion. For instance, sales of EVs in U.S. by General Motors (GM) in Q3 2024 registered over 9,700 units sales in the nation specifically accounting more than 30% revenue share from the country.
   
• Owing to high demand for lithium-ion batteries from different users such as automakers, consumer electronics, various companies and researchers have initiated to invest prominently to develop new technologies such as sodium sulfur technology and are currently in early stages.
   
• Solar power is gradually capturing significant growth in the energy industry. For instance, in 2024, the U.S. added nearly 48.2 gigawatts renewable energy capacity. The growing adoption of solar energy worldwide is expected to boost the demand for thermal energy storage systems.  

Learn more about the key segments shaping this market

Download Free PDF

The U.S. energy storage market by application is segmented into electric time energy shift, electric supply capacity, black start, renewable capacity firming, frequency regulation and others. The electric time energy shift segment accounted for 38.2% of the market share in 2024.
 

• The growing hurricane and other natural disasters leading to rising energy outage and cost of electricity units. For instance, Entergy the electric company in Louisiana increased energy unit rate by $8 a month after the destructive hurricanes in 2020 and 2021.
   
• In addition, this rate for the U.S. residential electricity bills was again increased by 2% in in 2023. Such instances is likely to increase demand for energy time shift to off period and peak shaving of energy. This reduces the cost and increases the availability of energy which will increase demand for ESS majorly from electric energy time shift, electric supply capacity applications.
   
• Owing to rise in adoption of EV due to rising adoption of environmental friendly transportation and favorable government policies in the field, the energy storage market is expected to witness higher demand.
   
• Favorable government initiatives to promote ESS in U.S. is likely to increase demand for ESS in future. For instance, Inflation Reduction Act (IRA) provides 30% credit on all residential ESS over 3 kWh in capacity until 2032. For standard household energy storage system IRA reduces cost of ESS by USD 3,000 to USD 5,000.
   
• Furthermore, increasing deployment of solar power and cost-effective ESS technologies in the U.S. is likely to boost the demand for energy storage systems in U.S.
   
• For instance, in 2024, solar energy contributed to 84% of new electricity generation capacity, amounting to 50 GW of installations. The growth further emphasize an increasing role of the solar energy in the economy of United States.
   

U.S. Energy Storage Market Share

Top 5 companies including BYD, General Electric, LG Energy Solution, Siemens and Samsung held a market share of over 40% in 2024. Many market players are operating in U.S. energy storage industry and players are working to develop cost-effective and wide range of ESS.
 

Among these companies BYD is one of the largest share holding company in the market. Owing to its vast product offerings, widespread of geological clientele and strategic partnership with clients to offer customized energy storage systems along the side of typical products. The demand for energy storage systems is expected to boost as the renewable energy and electric vehicle industry constantly grow, especially in emerging countries such as China, and India.
 

Furthermore, supportive government regulations in the developing and developed countries and affordable labor cost further decreases prices of energy storage systems and aids strong uphold of market in the cost-sensitive group of consumers. Other major companies including General Electric, LG Energy Solution, Siemens and Samsung are also poised to target significant share of the market in focus, particularly in cost-sensitive electric vehicles target group and energy storage systems sectors.
 

Some of the key players operating across the U.S. energy storage market are:

• ABB
• Abengoa
• BYD Company
• Burns & McDonnell
• CALMAC
• Exide Technologies
• General Electric
• Invinity Energy Systems
• Johnson Controls
• Lockheed Martin
• LG Energy Solution
• McDermott
• Panasonic
• SCHMID Group
• Samsung SDI
• Siemens
• Tesla
• Toshiba
• Voith
   

U.S. Energy Storage Market Companies

• BYD (Build Your Dreams) is a China based multinational company with global presence in both electric vehicles (EVs) and battery manufacturing. The company registered a revenue of USD 27.7 billion in Q3, 2024. In addition, recently BYD's next-generation Blade Battery is estimated to launch in 2025, featuring improvements that will boost its range and performance.
   
• General Electric is a U.S. based multinational company dealing in different business segment such as aviation, renewable energy and power. The company witnessed around 17% increase in revenue recording USD 68 billion in 2023. The company is engaging in partnership with several power grids to offer efficient utility scale ESS.
   
• LG Electronics a Japan based subsidiary of LG, operates in various electronics including ESS, which witnessed revenue of USD 60.7 billion in 2023. Their recent strategies of mass production of semi solid batteries and introducing new lithium batteries for new application range i.e., energy storage system to expand the clientele and reduce revenue dependence on EV. The company has also invested in US based startup manufacturing lithium batteries.
   
• Samsung is a South Korean multinational company that held around USD 54 billion in 2023. The company has recently introduced next generation SSB batteries. The company has also displayed its new batteries for UPS, ESS application range.
   
• Siemens a Germany headquartered multinational company with global footprint in energy, automation, and digitalization business segments. The company registered a revenue of USD 83 billion in 2023.
   

U.S. Energy Storage Market News

• In February 2025, GridStor a utility-scale battery energy storage systems manufacturer acquired 150 MW battery storage project, Texas from Balanced Rock Power. The acquisition will help company to expand its presence in the state and is estimated to benefit off of upcoming increase in energy demand by 2030.
   
• In February 2025, U.S. based Stryten Energy an energy storage solutions provider signed an agreement with Largo’s subsidiary signed an agreement with Largo Clean Energy Corp. (LCE) to form Storion a new joint venture to ease manufacturing and supply of battery in U.S.
   
• In February 2025, Fluence Energy developed Smartstack a grid-scale battery energy storage system. The system offers 7.5 MWh of energy storage. The system is designed so that to avoid the hustle of large container instead is easy to move.
   
• In October 2024, US-based automotive company “general motors” announced the launch of its energy storage system for residential uses. The system is available in two versions which have a capacity of 10.6 kWh and 17.7 kWh, and is scalable to a maximum capacity of 35.4 kWh. The company claims that this configuration would allow for around 20 hours of storage, estimating that the average daily home energy appliance usage in the United States is about 30 kWh.
   

The U.S. energy storage 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:

Click here to Buy Section of this Report

Market, By Technology

• Pumped Hydro
• Electro-Chemical
  • Lithium-Ion
  • Sodium Sulphur
  • Lead Acid
  • Flow Battery
  • Others
• Electro-Mechanical
  • Flywheel
  • CAES
• Thermal
  • Water
  • Molten Salt
  • PCM
  • Others

Market, By Application

• Electric Energy Time Shift
• Electric Supply Capacity
• Black Start
• Renewable Capacity Firming
• Frequency Regulation
• Others