Global energy storage deployment reached a new milestone in 2025, with 112 gigawatts (GW) of annual additions excluding pumped hydro, marking a 48 percent increase over the previous year. That surge took cumulative annual installs from 10 GW in 2021 to over 100 GW in just four years, outpacing the growth timelines of solar and wind power development. The record reflects increased market maturity and the accelerating role of storage in balancing renewable energy.
China led the expansion, accounting for 54 percent of new deployments, followed by the United States at 16 percent. Australia’s additions climbed nearly sixfold, buoyed by favorable market conditions and new residential subsidies. Saudi Arabia also emerged as a fast-growing market, driven in part by Chinese suppliers entering the region. BloombergNEF projects annual additions will rise to 158 GW in 2026 and reach 308 GW by 2036, supported by falling costs, higher renewable penetration, co-location mandates, auction frameworks, and new applications in data centers and electric vehicle charging.
Although the conflict in the Middle East has not directly disrupted storage markets—largely due to China’s predominant role in battery manufacturing—soaring fossil fuel prices are reshaping competitive power markets. Higher intraday price spreads can improve storage revenues, while sustained retail electricity price increases could prompt more rooftop solar and battery installations. However, regional impacts will vary, as shipping and manufacturing expenses may climb alongside oil prices, affecting project economics.
Technological shifts are also underway. Lithium iron phosphate (LFP) batteries made up more than 90 percent of storage additions in 2025, but long-duration storage (durations of six hours or more) is set to quadruple to 2 GW in 2026, largely on non-lithium chemistries. Sodium-ion batteries are gaining traction, backed by supply agreements and abundant raw materials that could drive costs down as scale improves.
As the energy transition accelerates, the storage sector is poised for continued rapid expansion, underpinning grid flexibility and supporting deeper renewable integration over the next decade. Source: BloombergNEF
