U.S. Energy Storage Market Unlocking Growth Potential: 2025-2033 Analysis and Forecasts

U.S. Energy Storage Market by Technology (Pumped Hydro, Electro-Chemical, Electro-Mechanical, Thermal Energy Storage), by Application (Electric Time Energy Shift, Electric Supply Capacity, Black Start, Renewable Capacity Firming, Frequency Regulation, Others), by U.S. Forecast 2025-2033

U.S. Energy Storage Market Unlocking Growth Potential: 2025-2033 Analysis and Forecasts

Key Insights

The size of the U.S. Energy Storage Market was valued at USD 68.6 Billion in 2023 and is projected to reach USD 188.10 Billion by 2032, with an expected CAGR of 15.5% during the forecast period. U.S. Energy Storage Market refers to the systems designed for storing energy that can be later used to ensure the reliability and flexibility of the generation and distribution of power. These systems, therefore, form a critical balance between supply and demand, mainly with the rising integration of renewable energy sources like wind and solar. The energy storage solutions are batteries, pumped hydro storage, and thermal storage. Most common are lithium-ion batteries due to their high energy density and efficiency. Their applications range from residential to industrial and utility-scale storage to ensure the availability of energy during peak demand or in an emergency. These are mainly influenced by technological advances, such as improved battery chemistry and energy management systems, as well as regulations that encourage the use of cleaner energy. This would mean that energy storage has an impact on the market, since it reduces carbon emissions, supports grid stability, and enables energy independence. A key advantage is that excess renewable energy can be stored for later use, which resolves the problem of intermittency. The U.S. Energy Storage Market will be poised for substantial growth, making the energy infrastructure more sustainable and resilient, due to further innovation in storage solutions coupled with favorable policies.

U.S. Energy Storage Market Concentration & Characteristics

The U.S. Energy Storage Market is highly fragmented, with numerous players operating in different segments. The top players include Tesla, General Electric, Exide Technologies, and BYD Company. However, the market is rapidly consolidating, with strategic acquisitions and partnerships taking place to gain market share and enhance technological capabilities.

The market is characterized by innovation and technological advancements, as companies invest in research and development to improve energy storage performance and reduce costs. Regulatory frameworks at the state and federal levels have a significant impact on the industry, incentivizing investment and setting standards for safe and reliable storage systems.

Product substitutes, such as pumped hydro storage, provide competition for electrochemical energy storage technologies, but each has its strengths and applications. End-user concentration is evident in the utility and industrial sectors, which account for a significant portion of energy storage demand.

Mergers and acquisitions have been a key trend in the market, with companies seeking to gain scale, expand into new markets, and acquire specialized technologies. Examples include Tesla's acquisition of SolarCity in 2016 and Brookfield's acquisition of TerraForm Power in 2021.

U.S. Energy Storage Market Trends

Increased Deployment of Renewable Energy: The growth of renewable energy sources, such as solar and wind, is creating a surge in demand for energy storage systems to manage intermittent power generation.

Government Support: Government incentives, including tax credits, subsidies, and clean energy mandates, are driving investment in energy storage and accelerating market adoption.

Technology Advancements: Technological advancements in energy storage systems, such as lithium-ion batteries and flow batteries, have improved efficiency, reduced costs, and increased durability, making them more viable for a wider range of applications.

Decentralization of Energy Grid: Energy storage plays a crucial role in the decentralization of the energy grid, enabling distributed generation, microgrids, and increased reliance on renewable energy at the local level.

Electrification of Transportation: The growing popularity of electric vehicles is creating a need for energy storage to provide charging infrastructure and grid balancing.

U.S. Energy Storage Market Growth

Key Region or Country & Segment to Dominate the Market

U.S. Energy Storage Market Regional Insights

U.S.:
- California
- Texas
- New York
- Pennsylvania
- Illinois

Segments:

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)
Application:
- Electric Time Energy Shift
- Electric Supply Capacity
- Black Start
- Renewable Capacity Firming
- Frequency Regulation
- Others

The electro-chemical segment, particularly lithium-ion batteries, is expected to dominate the market, driven by their high energy density, cost-effectiveness, and adaptability to various applications. The electric time energy shift application is projected to be the fastest-growing segment, stimulated by the demand for reliable and flexible grid balancing solutions.

U.S. Energy Storage Market Product Insights Report Coverage & Deliverables

Market Size
Market Share
Growth Rate
Technology Analysis
Application Analysis
Competitive Landscape
Regional Analysis
Industry Trends
Future Outlook

U.S. Energy Storage Market Analysis

The U.S. Energy Storage Market is analyzed based on market size, market share, and growth rate. The market is segmented by technology and application to provide a detailed understanding of the market's composition and dynamics.

Market Size: The size of the market is estimated using various methodologies, including bottom-up and top-down approaches. Data sources include industry reports, company filings, and government statistics.

Market Share: The market share of each segment is calculated based on revenue. Market shares are presented in both absolute and percentage terms.

Growth Rate: The growth rate is determined by analyzing historical data and current market trends. The forecast growth rate is based on factors such as demand growth, technological advancements, and regulatory policies.

U.S. Energy Storage Market Regional Insights

The following list of states are included in the U.S. Energy Storage Market Regional Insights:

California
Texas
New York
Pennsylvania
Illinois
Other States

Driving Forces: What's Propelling the U.S. Energy Storage Market

Increasing demand for renewable energy integration
Supportive government initiatives
Technological advancements in energy storage systems
Growing need for reliable and flexible grid balancing solutions
Electrification of transportation

Challenges and Restraints in U.S. Energy Storage Market

High upfront costs
Regulatory barriers
Intermittency of renewable energy sources
Environmental concerns

Emerging Trends in U.S. Energy Storage Market

Integration of energy storage with distributed generation
Virtual power plants
Hybrid energy storage systems
Second-life applications for batteries

U.S. Energy Storage Industry News

In September 2022, LG Energy Storage system introduced a Home 8 ESS next generation which provides all-in-one solution. It enables homeowners to manage energy and provide backup power to reduce dependence on the electric grid. The Home 8 combines an upgraded inverter and battery in a single unit and wall supports to provide an organized & streamlined installation.
In November 2021, Panasonic Corporation launched EverVolt 2.0, an updated version of the previously launched EverVolt battery storage system. The new battery system offers a wide range of advantages & features including larger available sizes, different lithium-ion battery chemistry, and an outdoor rating. Furthermore, three EverVolt 2.0 battery systems can be stacked up to provide 76.9kWh usable capacity, further favoring their demand in energy storage systems.

Leading Players in the U.S. Energy Storage Market

U.S. Energy Storage Market Segmentation

1. Technology
- 1.1. Pumped Hydro
- 1.2. Electro-Chemical
  - 1.2.1. Lithium-Ion
  - 1.2.2. Sodium Sulphur
  - 1.2.3. Lead Acid
  - 1.2.4. Flow Battery
  - 1.2.5. Others
- 1.3. Electro-Mechanical
  - 1.3.1. Flywheel
  - 1.3.2. CAES
- 1.4. Thermal Energy Storage
  - 1.4.1. Water
  - 1.4.2. Molten Salt
  - 1.4.3. PCM
  - 1.4.4. Others
2. Application
- 2.1. Electric Time Energy Shift
- 2.2. Electric Supply Capacity
- 2.3. Black Start
- 2.4. Renewable Capacity Firming
- 2.5. Frequency Regulation
- 2.6. Others

U.S. Energy Storage Market Segmentation By Geography

1. U.S.

U.S. Energy Storage Market Regional Share

U.S. Energy Storage Market REPORT HIGHLIGHTS

Aspects	Details
Study Period	2019-2033
Base Year	2024
Estimated Year	2025
Forecast Period	2025-2033
Historical Period	2019-2024
Growth Rate	CAGR of 15.5% from 2019-2033
Segmentation	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 By Application Electric Time Energy Shift Electric Supply Capacity Black Start Renewable Capacity Firming Frequency Regulation Others By Geography U.S.

Table Of Content

1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
2. Executive Summary
- 2.1. Introduction
3. Market Dynamics
- 3.1. Introduction
- - 3.2. Market Drivers
  - - 3.2.1 Favorable regulatory framework
    - 3.2.2 Growth in the renewable energy sector
    - 3.2.3 Increasing concerns toward security of supply
- - 3.3. Market Restrains
  - - 3.3.1 High capital cost of pumped storage plants
    - 3.3.2 Safety concerns
- - 3.4. Market Trends
4. Market Factor Analysis
- 4.1. Porters Five Forces
- 4.2. Supply/Value Chain
- 4.3. PESTEL analysis
- 4.4. Market Entropy
- 4.5. Patent/Trademark Analysis
5. U.S. Energy Storage Market Analysis, Insights and Forecast, 2019-2031
- 5.1. Market Analysis, Insights and Forecast - by Technology
  - 5.1.1. Pumped Hydro
  - 5.1.2. Electro-Chemical
    - 5.1.2.1. Lithium-Ion
    - 5.1.2.2. Sodium Sulphur
    - 5.1.2.3. Lead Acid
    - 5.1.2.4. Flow Battery
    - 5.1.2.5. Others
  - 5.1.3. Electro-Mechanical
    - 5.1.3.1. Flywheel
    - 5.1.3.2. CAES
  - 5.1.4. Thermal Energy Storage
    - 5.1.4.1. Water
    - 5.1.4.2. Molten Salt
    - 5.1.4.3. PCM
    - 5.1.4.4. Others
- 5.2. Market Analysis, Insights and Forecast - by Application
  - 5.2.1. Electric Time Energy Shift
  - 5.2.2. Electric Supply Capacity
  - 5.2.3. Black Start
  - 5.2.4. Renewable Capacity Firming
  - 5.2.5. Frequency Regulation
  - 5.2.6. Others
- 5.3. Market Analysis, Insights and Forecast - by Region
  - 5.3.1. U.S.
6. Competitive Analysis
- 6.1. Market Share Analysis 2024
- - 6.2. Company Profiles
  - - 6.2.1 Tesla
      6.2.1.1. Overview
      6.2.1.2. Products
      6.2.1.3. SWOT Analysis
      6.2.1.4. Recent Developments
      6.2.1.5. Financials (Based on Availability)
    - 6.2.2 General Electric
      6.2.2.1. Overview
      6.2.2.2. Products
      6.2.2.3. SWOT Analysis
      6.2.2.4. Recent Developments
      6.2.2.5. Financials (Based on Availability)
    - 6.2.3 Exide Technologies
      6.2.3.1. Overview
      6.2.3.2. Products
      6.2.3.3. SWOT Analysis
      6.2.3.4. Recent Developments
      6.2.3.5. Financials (Based on Availability)
    - 6.2.4 BYD Company Ltd
      6.2.4.1. Overview
      6.2.4.2. Products
      6.2.4.3. SWOT Analysis
      6.2.4.4. Recent Developments
      6.2.4.5. Financials (Based on Availability)
    - 6.2.5 Toshiba Corporation
      6.2.5.1. Overview
      6.2.5.2. Products
      6.2.5.3. SWOT Analysis
      6.2.5.4. Recent Developments
      6.2.5.5. Financials (Based on Availability)
    - 6.2.6 Samsung SDI Co. Ltd
      6.2.6.1. Overview
      6.2.6.2. Products
      6.2.6.3. SWOT Analysis
      6.2.6.4. Recent Developments
      6.2.6.5. Financials (Based on Availability)
    - 6.2.7 Panasonic Corporation
      6.2.7.1. Overview
      6.2.7.2. Products
      6.2.7.3. SWOT Analysis
      6.2.7.4. Recent Developments
      6.2.7.5. Financials (Based on Availability)
    - 6.2.8 LG Energy Solution
      6.2.8.1. Overview
      6.2.8.2. Products
      6.2.8.3. SWOT Analysis
      6.2.8.4. Recent Developments
      6.2.8.5. Financials (Based on Availability)
    - 6.2.9 Siemens
      6.2.9.1. Overview
      6.2.9.2. Products
      6.2.9.3. SWOT Analysis
      6.2.9.4. Recent Developments
      6.2.9.5. Financials (Based on Availability)
    - 6.2.10 Lockheed Martin Corporation
      6.2.10.1. Overview
      6.2.10.2. Products
      6.2.10.3. SWOT Analysis
      6.2.10.4. Recent Developments
      6.2.10.5. Financials (Based on Availability)
    - 6.2.11 SCHMID Group
      6.2.11.1. Overview
      6.2.11.2. Products
      6.2.11.3. SWOT Analysis
      6.2.11.4. Recent Developments
      6.2.11.5. Financials (Based on Availability)
    - 6.2.12 Invinity Energy Systems
      6.2.12.1. Overview
      6.2.12.2. Products
      6.2.12.3. SWOT Analysis
      6.2.12.4. Recent Developments
      6.2.12.5. Financials (Based on Availability)
    - 6.2.13 ABB
      6.2.13.1. Overview
      6.2.13.2. Products
      6.2.13.3. SWOT Analysis
      6.2.13.4. Recent Developments
      6.2.13.5. Financials (Based on Availability)
    - 6.2.14 Johnson Controls
      6.2.14.1. Overview
      6.2.14.2. Products
      6.2.14.3. SWOT Analysis
      6.2.14.4. Recent Developments
      6.2.14.5. Financials (Based on Availability)
    - 6.2.15 McDermott
      6.2.15.1. Overview
      6.2.15.2. Products
      6.2.15.3. SWOT Analysis
      6.2.15.4. Recent Developments
      6.2.15.5. Financials (Based on Availability)
    - 6.2.16 CALMAC
      6.2.16.1. Overview
      6.2.16.2. Products
      6.2.16.3. SWOT Analysis
      6.2.16.4. Recent Developments
      6.2.16.5. Financials (Based on Availability)
    - 6.2.17 Abengoa S.A
      6.2.17.1. Overview
      6.2.17.2. Products
      6.2.17.3. SWOT Analysis
      6.2.17.4. Recent Developments
      6.2.17.5. Financials (Based on Availability)
    - 6.2.18 Burns & McDonnell
      6.2.18.1. Overview
      6.2.18.2. Products
      6.2.18.3. SWOT Analysis
      6.2.18.4. Recent Developments
      6.2.18.5. Financials (Based on Availability)
    - 6.2.19 Voith GmbH & Co KGaA
      6.2.19.1. Overview
      6.2.19.2. Products
      6.2.19.3. SWOT Analysis
      6.2.19.4. Recent Developments
      6.2.19.5. Financials (Based on Availability)

List of Figures

Figure 1: U.S. Energy Storage Market Revenue Breakdown (Billion, %) by Product 2024 & 2032
Figure 2: U.S. Energy Storage Market Share (%) by Company 2024

List of Tables

Table 1: U.S. Energy Storage Market Revenue Billion Forecast, by Region 2019 & 2032
Table 2: U.S. Energy Storage Market Revenue Billion Forecast, by Technology 2019 & 2032
Table 3: U.S. Energy Storage Market Revenue Billion Forecast, by Application 2019 & 2032
Table 4: U.S. Energy Storage Market Revenue Billion Forecast, by Region 2019 & 2032
Table 5: U.S. Energy Storage Market Revenue Billion Forecast, by Technology 2019 & 2032
Table 6: U.S. Energy Storage Market Revenue Billion Forecast, by Application 2019 & 2032
Table 7: U.S. Energy Storage Market Revenue Billion Forecast, by Country 2019 & 2032

STEP 1 - Identification of Relevant Samples Size from Population Database

STEP 2 - Approaches for Defining Global Market Size (Value, Volume* & Price*)

Top-down and bottom-up approaches are used to validate the global market size and estimate the market size for manufactures, regional segemnts, product and application.

Note* : In applicable scenarios

STEP 3 - Data Sources

Primary Research

Web Analytics
Survey Reports
Research Institute
Latest Research Reports
Opinion Leaders

Secondary Research

Annual Reports
White Paper
Latest Press Release
Industry Association
Paid Database
Investor Presentations

STEP 4 - Data Triangulation

Involves using different sources of information in order to increase the validity of a study

These sources are likely to be stakeholders in a program - participants, other researchers, program staff, other community members, and so on.

Then we put all data in single framework & apply various statistical tools to find out the dynamic on the market.

During the analysis stage, feedback from the stakeholder groups would be compared to determine areas of agreement as well as areas of divergence

Additionally after gathering mix and scattered data from wide range of sources, data is triangull- ated and correlated to come up with estimated figures which are further validated through primary mediums, or industry experts, opinion leader.

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U.S. Energy Storage Market Unlocking Growth Potential: 2025-2033 Analysis and Forecasts