Grid-scale Battery Storage Market Forecast to Reach $38.46 Billion by 2031

Grid-scale energy storage solutions, are designed to store and dispatch large volumes of electricity for power networks and industrial operations. These systems play a vital role in maintaining grid reliability, managing fluctuations in electricity demand, supporting renewable energy integration, and providing backup power during peak periods or outages. Common technologies in this segment include lithium-ion, flow-based, and next-generation solid-state batteries, all widely deployed across global utility, commercial, and industrial markets.

Accelerating Adoption of Grid-Scale Battery Systems

Recent market activity demonstrates strong momentum in the grid-scale battery market. In the United States, new utility-scale energy storage installations reached a quarterly record in September 2025, with 4.9 gigawatts of capacity added. This represented year-on-year growth of more than 60% and delivered enough stored electricity to supply millions of households. In the following month, multiple large battery energy storage systems were completed in the Pacific Northwest, contributing hundreds of megawatts of power capacity and several gigawatt-hours of storage.

By November, battery energy storage systems were reported to supply more than one-third of evening peak electricity demand in a major western state, highlighting the growing role of large-scale batteries in balancing power grids during critical demand periods.

Europe Expands Large-Scale Energy Storage Deployment

The European grid-scale battery market is also expanding rapidly. Revenues from large-scale energy storage projects rose sharply in September 2025, reflecting increased investment and project development. October saw ownership changes involving a high-capacity battery project in Eastern Europe, underscoring growing investor interest. In November, the commissioning of the continent's largest battery storage facility in northern Scotland further demonstrated how energy storage supports renewable generation and grid stability.

Key Drivers of Grid-Scale Battery Market Growth

Several factors continue to support long-term growth in the utility-scale battery market, including rising investment in renewable energy infrastructure, declining battery production costs, and policy frameworks that encourage clean energy storage deployment. Together, these trends position grid-scale battery systems as a cornerstone of future electricity networks worldwide.