Delray Beach, FL, May 13, 2025 (GLOBE NEWSWIRE) — The report “Battery Energy Storage System Market Size, Share & Industry Trends Growth Analysis Report by Battery Type (Lithium-ion, Advanced Lead Acid, Flow, Nickel-based), Energy Capacity (Below 100 MWh, Between 100 MWh & 500 MWh, Above 500 MWh), Connection Type, Ownership and Region – Forecast to 2029”, The US Battery Energy Storage System market is expected to reach USD 7.02 billion by 2029, up from USD 2.13 billion in 2024, at a CAGR of 26.8% from 2024 to 2029.
The increasing demand for Battery Energy Storage Systems (BESS) in the US is driven by factors such as increasing mandates to integrate intermittent renewable energy sources like solar and wind into the grid and the growing need to bolster grid resilience against extreme weather and potential disruptions. Along with this, the strong government incentives such as the Inflation Reduction Act, which offers significant tax credits and support to manufacturers are further driving the rapid deployment of BESS solutions. The installation of large-scale energy storage systems in the US is projected to rise significantly throughout 2024, driven primarily by a few leading states.
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List of Players in the Battery Energy Storage System:
- Tesla (US),
- GE Vernova (US),
- Honeywell International Inc. (US),
- Johnson Control (US),
- East Penn Manufacturing Company (US),
- Primus Power Solutions (US),
- The AES Corporation (US),
- KORE Power, Inc. (US), and
- ESS Tech, Inc. (US).
US Battery Energy Storage System Market Segmentation:
Lithium-ion battery segment to dominate the battery type segment of the market during the forecast period.
Lithium-ion batteries will lead the US BESS market with their higher energy density, efficiency, and falling prices, making them suitable for various applications, ranging from rooftop solar storage to utility-scale grid support. As of 2025, Li-ion technology represents the majority of new deployments of BESS in the United States, powered by advances in manufacturing scale such as Tesla’s Gigafactory production and a resilient supply chain that has lowered costs by almost 20% a year over the last decade. Additionally, the major factors driving the growth of the li-ion batteries is their quick response times which is vital for grid ancillary services such as frequency regulation, high cycle life (up to 10-15 years with effective management), and suitability for renewable energy integration, which is in line with the US drive towards a 50% renewable energy blend by 2030. With continued R&D enhancing safety and recycling efficiency, Li-ion’s supremacy is likely to continue, cementing its position as the backbone of the US BESS market for at least up to 2030.
On-grid connection segment to dominate the BESS market during the forecast period.
On-grid systems form a critical part of the BESS market in the US, serving large-scale energy storage by storing excess electrical energy when there is high generation. For instance, sunny or windy days with high solar and wind generation, or low demand, such as nighttime hours. The major uses of on-grid BESS in the US are load leveling for supply-demand balance, peak shaving to offload strain during periods of high usage such as summer afternoons, and power demand management for grid stability. These functions match the needs of US consumers and utilities, and on-grid BESS thus becomes a key element of America’s new energy infrastructure.
Utility application segment to hold a substantial market share in the BESS Market.
Utility-scale deployments in the US BESS industry will gain a considerable market share in the forecast period, fueled by growing electricity demand, renewable energy targets, and massive investments in grid modernization. Rising electricity prices, coupled with more frequent power outages caused by extreme weather are some of the factors driving the adoption of BESS among utility companies. Since BESS systems offer the ability to store excess solar energy and provide backup power during outages, they help reduce electricity bills. As awareness of these benefits grows and BESS installation becomes more affordable, utilities will increasingly adopt these systems.
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Attractive Opportunities in the battery energy storage system market
- The growth of this market can be attributed to the increasing renewable energy generation and integration in the grid to reduce carbon footprint.
- The reduction of li-ion battery prices to further boost the demand for battery energy storage systems in the coming years.
- Product launches, collaborations, and contracts are expected to offer lucrative growth opportunities for market players during the forecast period.
- The utility application segment is anticipated to bolster the market growth of the battery energy storage system.
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