Battery Energy Storage System Market: $198.8 Bn by 2031, Fueled by On-Grid Utility Storage and North America, Europe Investments | Says Mordor Intelligence
Hyderabad, India, May 29, 2026 (GLOBE NEWSWIRE) -- According to Mordor Intelligence, the global battery energy storage system market is witnessing strong expansion, with its value projected to rise from USD 89.89 billion in 2026 and further reach USD 198.88 billion by 2031, growing at a CAGR of 17.21%. This growth is being driven by falling lithium-ion battery costs, increased investments in grid modernization, and supportive government policies such as the Inflation Reduction Act in the U.S. and the EU’s Net-Zero Industry Act, which are enabling large-scale deployment pipelines. At the same time, grid-forming inverter technologies are creating new value opportunities beyond simple energy storage, while solar-plus-storage projects are achieving cost competitiveness in regions like Australia and Chile. Rising electricity demand from data centers and ongoing supply chain localization efforts are further strengthening long-term market expansion.
BESS Market Trends & Forecast
Rapid Expansion of Lithium-Ion Gigafactory Capacity
Global lithium-ion production is scaling quickly as new gigafactories come online, pushing strong demand for battery-grade graphite and related materials. Major producers are expanding anode and synthetic graphite capacity to secure long-term supply agreements with leading EV manufacturers, while new facilities in North America and Europe are being developed to reduce reliance on concentrated supply chains. This expansion is also encouraging investment in low-carbon production routes and localized sourcing strategies.
“As investment across power systems, renewable integration, and grid resilience continues to evolve, stakeholders benefit from analysis grounded in transparent assumptions, cross-validated industry sources, and consistent market tracking. Mordor Intelligence’s structured research approach helps decision-makers evaluate battery energy storage system opportunities with a level of context and comparability that can be difficult to obtain from less rigorously documented market studies,” says Himanshu Vasisht, Senior Research Manager, Mordor Intelligence.
Supply Chain Restructuring Driven by Export Controls
Changes in export policies have pushed global buyers to diversify sourcing and invest in new production capacity outside traditional supply hubs. This shift is encouraging the development of alternative mining, refining, and anode manufacturing projects in Western regions, aiming to strengthen supply security and reduce geopolitical risk exposure.
Material Innovation and Silicon Adoption in Battery Anodes
Advancements in silicon-based anode technologies are gradually reducing graphite intensity per battery as manufacturers seek higher energy density solutions. While adoption is still limited, hybrid silicon-graphite chemistries are gaining traction in premium EV models. However, cost-sensitive battery formats continue to rely heavily on graphite, keeping overall demand resilient.
Battery Energy Storage System Segments & Scalability Priorities
By Battery Type
By Connection Type
By Component
By Energy Capacity Range
By End-user Application
By Geography
For a full breakdown of market dynamics, segmentation insights, regional analysis, and competitive landscape, access the details of the Mordor Intelligence report: https://www.mordorintelligence.com/industry-reports/battery-energy-storage-system-market?utm_source=globenewswire
Battery Energy Storage System Market Share by Region:
Asia-Pacific Market Leadership and Manufacturing Strength
Asia-Pacific leads the market, driven by strong deployment in China, expanding projects in India, and growing capacity additions in Japan and South Korea, supported by a robust manufacturing base supplying global demand.
Rapid Growth in Middle East & Africa Storage Adoption
The Middle East and Africa are the fastest-growing regions, with large-scale renewable integration projects and utility storage deployments improving grid reliability and enabling higher solar penetration.
Steady Expansion in North America and Europe with Policy Support
North America and Europe continue to see strong investments, supported by policy incentives and grid modernization efforts, though project execution is shaped by regulatory and infrastructure challenges, leading to diverse market approaches.
BESS Companies:
Explore the latest market insights, industry trends, and growth opportunities with our Japanese-language reports: https://www.mordorintelligence.com/ja/industry-reports/battery-energy-storage-system-market?utm_source=globenewswire
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