Growth Opportunities for the Grid-scale Battery Energy Storage Systems (BESS) Industry

Growth Opportunities for the Grid-scale Battery Energy Storage Systems (BESS) Industry

The Era of Flexibility is Approaching the Mainstream, Intensifying Competition and Requiring New Strategies to Capture Value

Global grid-scale battery energy storage system (BESS) deployment experienced unprecedented growth in 2023, expanding 159.5% from 2022. The year 2024 will break another record in new installations, with deployments of 41.84 GW/104.67 GWh.

BESS has rapidly become the fastest-growing clean energy technology, driven by the growth of wind and solar and the need for grid flexibility. Governments, system operators, and regulators recognize the diverse benefits of energy storage and are advancing regulations and incentives to support the technology’s deployment, albeit at varying rates. While North America, Europe, Australia and New Zealand (ANZ), and China are the most important regions for development, Japan, India, Turkey, Chile, South Africa, and Israel, among other countries, are at a turning point in terms of development and poised for considerable growth.

The low-price scenario and the push for domestic content and higher ESG transparency are injecting additional dynamism into the industry. Frost & Sullivan forecasts cumulative grid-scale BESS capacity to grow nearly eight-fold, reaching 549.93 GW/1,549.02 GWh by 2030.

This study provides a regional-level forecast and analysis of how grid-scale BESS capacity and investments will evolve by 2035. It discusses the main drivers and restraints, supply and technology trends, business models, and use cases. In addition, it highlights growth opportunities for industry participants.