The Global Energy Storage Market Records Unprecedented Growth in 2024
2024 Sets Global Record for BESS Installations
According to data from Rho Motion, 205 GWh of energy storage systems were installed in 2024, marking a 53% year-over-year increase. The primary driver of this growth was the grid-scale storage sector, which accounted for over 160 GWh, with lithium-ion systems making up 98% of the total.
Growth Leaders
The grid-scale storage market grew by 68%, from 96 GWh in 2023 to 160 GWh in 2024. China led the way, accounting for 67% of global installations, supported by local regulatory requirements and record-low cell and system prices.
The United States and Canada ranked second, with nearly 40 GWh of installed capacity. Notably, half of this was in California, reinforcing its leadership in energy storage.
Smaller markets, including the European Union, Latin America, and the Asia-Pacific region (excluding China), also experienced significant growth, with the number of new installations doubling compared to 2023.
Large-Scale Projects
In 2024, 17 projects with capacities exceeding 1 GWh were commissioned, compared to just four such projects in 2023. Of these, 11 were in China, five in the United States, and one in Saudi Arabia. Projections for 2025–2026 anticipate the completion of 140 projects exceeding 1 GWh, with 30 expected to surpass 2 GWh.
Diverse Applications and Growing Demand
The average energy storage duration in new projects is increasing globally. In Europe, this average exceeded two hours for the first time (up from 1.4 hours in 2023), while in North America, it has surpassed three hours. The most notable differences are seen in the U.S.—projects in Texas average 1.7 hours, whereas in California, the average reaches four hours. Latin America also showed a high average for new projects in 2024, with 4.2 hours.
Off-Grid Storage Market
Beyond grid-scale storage, over 40 GWh of systems were installed, mainly in commercial and residential markets. The behind-the-meter (BTM) segment in China played a key role, accounting for 39% of global commercial and industrial installations and 41% of the UPS market.
Technology and Market Trends
Lithium iron phosphate (LFP) batteries dominated the market due to record-low prices and technological innovations. CATL maintained its leadership in cell supply, with EVE Energy rising to second place, surpassing BYD.
Alternative technologies are also gaining traction. Flow batteries grew by over 300%, reaching 2.3 GWh of installed capacity in 2024. Meanwhile, sodium-ion batteries are developing at a slower pace, with 200 MWh installed, mainly in China.
Future Outlook
Rho Motion forecasts continued market growth in 2025, with over 400 GWh of projects planned worldwide. However, historical delays and project cancellations suggest that around 30% of investments may not be completed on schedule.
Long-term prospects remain promising, with the project pipeline exceeding 1 TWh between 2025 and 2030. Emerging markets such as Australia, Saudi Arabia, Central and Eastern Europe (including Poland), Canada, and Chile are expected to play a significant role in the continued growth of the energy storage market.
Source: energy-storage.news