Five Key Energy Storage Trends as the Global Market Passes 100 GW

The global energy storage market reached a historic milestone in 2025, with annual installations exceeding 100 GW for the first time. This rapid growth underscores the expanding role of battery energy storage systems in enabling renewable energy integration, enhancing grid stability, and supporting electricity market flexibility worldwide.

Market expansion has continued despite policy adjustments in major regions. In parts of Asia, the removal of mandatory storage requirements for new renewable projects has shifted investment toward market-based revenue models, introducing short-term uncertainty. In North America, financial incentives remain supportive, although new supply chain and trade constraints are affecting access to certain battery components.

Industry analysis points to five major trends shaping the global energy storage landscape in the coming years.

1. Energy Storage Supply Chains Are Reshaping

Global energy storage supply chains are being restructured as manufacturers adapt to changing regulatory and trade environments. Ownership structures, production locations, and investment strategies are evolving to preserve market access. Supply constraints that emerged in late 2025 are expected to persist into mid-2026, particularly for large-scale battery systems, although pricing is likely to stabilize later in the year. Suppliers are also expanding into new regions to support long-term growth.

2. Grid-Forming Storage Becomes Essential

Grid-forming battery energy storage is moving from an optional feature to a standard requirement in many power systems. These systems actively support voltage and frequency stability, which is increasingly important as fossil fuel generation declines and variable renewables expand. Cost differences between grid-forming and conventional systems are narrowing, accelerating adoption.

3. Non-Lithium Battery Technologies Scale Up

Although lithium-ion remains dominant, alternative energy storage technologies such as sodium-ion, flow batteries, and long-duration systems are gaining traction. These solutions are becoming cost-competitive for specific applications, particularly where longer discharge durations or improved safety profiles are required. Policy support in several regions is further encouraging diversification beyond lithium-based storage.

4. Data Centers Drive New Storage Demand

Rising electricity demand from large data centers is accelerating the deployment of battery storage. Storage systems help manage rapid load changes and alleviate grid connection constraints, making them an increasingly common component of data center energy strategies alongside conventional onsite generation.

5. Hybrid Renewable and Storage Projects Expand

Developers are increasingly combining battery storage with solar and wind projects. Hybrid systems reduce renewable curtailment, improve revenue stability, and enhance grid value, particularly in markets experiencing frequent negative power prices. As a result, hybrid renewable-plus-storage projects are becoming a dominant model in multiple regions.

Outlook

While some markets may experience short-term slowdowns due to supply chain adjustments, global energy storage deployment is expected to remain on a strong growth trajectory. Energy storage is no longer viewed as a backup solution but is becoming a core pillar of modern, reliable, and low-carbon power systems.