The industry of energy storage systems is a key facilitator of the world energy transition, with unprecedented growth spurred by the need for renewable energy integration and grid modernization. LDES can potentially install 1.5 to 2.5 terawatts of power capacity—or eight to 15 times the amount of total energy-storage capacity installed today—around the world by 2040, equivalent to a total investment of $1.5 trillion to $3 trillion. LDES deployment would save 1.5 to 2.3 gigatons of CO2 equivalent annually by 2040, or approximately 10 to 15 percent of the current power sector emissions. Electrochemical energy storage leads current market deployment, and it is the largest growing sector in various applications.

The size of the stationary battery storage market was USD 264.9 billion in 2024 and is anticipated to attain a CAGR of 29.7% during 2025-2034, owing to increasing demand for efficient batteries from various industrial applications. The stationary flow battery storage market surpassed USD 7.6 billion in 2024 with a CAGR of 31% between 2034, fueled by the growing demand for bulk energy storage solutions in green energy integration and grid stabilization. Alternative energy storage technologies provide excellent performance across niche applications and new markets.

The market size for pumped hydro storage surpassed USD 349 billion in 2023, and is consistent for 11.8% CAGR until 2032, fueled by the additional cases of renewable energy integration coupled with a growing need for reliable energy storage solutions. In 2024, the flywheel energy storage market reached USD 1.3 billion with a prospect of 4.2% CAGR until 2034, due to increasing demand for reliable UPS systems in data centers. These technologies, and others such as compressed air energy storage, portable energy storage, solar energy storage, and thermal energy storage are flexible systems, meaning they can absorb and manage demand and supply variations by storing energy when available, and releasing energy when needed.