Asia Pacific to Lead the Global Battery Energy Storage Market by 2026

The global battery energy storage market will reach USD 10.84 billion in 2026, with Asia Pacific accounting for 68% of total demand. According to GlobalData, China, Japan, India, South Korea and Australia will drive the regional market.

Bhavana Sri Pullagura, senior power analyst at GlobalData, attributes the expected growth in the battery energy storage market to “falling battery technology prices, increased demand for grid stability, and the resilience of the electricity market to integrate renewables.”

As one of the fastest growing economies, China is expected to lead the global battery energy storage market with a share of US$4.04 billion in 2026. The massive target of 1,200 GW of wind and solar capacity during the forecast period will provide considerable growth opportunities for the energy storage market.

South Korea, the US, Germany and the UK will become mainstream markets with supportive regulations and incentives, and other countries will also see rapid growth in electricity demand and wider penetration of renewable energy integration.

Over the past decade, countries have been aggressively modernizing their grids and enhancing their capabilities to meet current and future demands. In addition, the batteries being deployed will complement the smart grid, integrating renewable energy sources, creating responsive electricity markets, providing ancillary services, and increasing system resilience and energy self-sufficiency.

Pullagura said, “GlobalData believes that incentive policies and high electricity tariffs are also driving the market towards renewable energy, and energy storage plus renewable energy models at the end-consumer level. As the power industry continues to evolve to adapt to new technologies and With changing market trends, energy storage will play a key role in the transition and transformation of the power industry.”