As the world enters a new phase of energy transition, the energy storage industry is witnessing unprecedented transformation—driven by policy mandates, technological breakthroughs, and surging demand from AI infrastructure.
Global Storage Market Poised for Record Growth
The global battery energy storage system (BESS) market is entering a period of accelerated expansion. According to industry projections, global BESS new installations are expected to exceed 130 GW / 350 GWh in 2026, with China, the United States, the United Kingdom, Australia, and Germany remaining the dominant markets. Emerging markets including Italy, Saudi Arabia, Chile, and Eastern Europe are also rapidly gaining momentum as policy frameworks and grid needs align.
What makes 2026 particularly significant is that BESS has crossed a historic threshold—global operational BESS capacity surpassed 250 GW in 2025, overtaking pumped hydro storage for the first time. Annual new installations in 2025 exceeded 100 GW / 280 GWh, nearly three times the volume added in 2023, reflecting a compound annual growth rate exceeding 100% between 2020 and 2025.
Perhaps more tellingly, BESS is beginning to displace natural gas generation. In Australia's Victoria region, battery output surpassed gas-fired generation for the first time in 2025, with similar transitions expected in New South Wales and Queensland in 2026. In California, batteries supplied over 20% of evening electricity in April 2025—a role traditionally played by gas peaker plants. The message is clear: energy storage is no longer just a renewable energy support system; it is becoming a primary grid resource.
