For the last three years the BESS market has been the fastest growing battery demand market globally. In 2024, the market grew 52% compared to 25% market growth for EV battery demand according to Rho Motion’s EV and BESS databases. As with the EV market, China currently dominates global grid deployments of BESS, but in coming years other markets will grow significantly, fuelled by low-cost lithium-ion cells and renewable energy capacity build out.
What does the current landscape look like?
China accounts for approximately two thirds of the installed capacity of grid scale BESS worldwide. It is followed by the US which accounts for roughly 25% of the total installed market.
Within Europe, the UK has by far the largest installed capacity with 7.5 GWh. Other notable markets include Australia and Chile, which in recent years have built out significant capacity pipelines. Elsewhere the industry remains in relative nascency, with market maturity yet to be fully realised.
Read: Global BESS deployments surpass expectations in 2024
Where are the fastest growing markets?
According to Rho Motion’s BESS database as of February 2025, by 2027 the top 20 countries’ deployed BESS grid capacity will have grown by at least 289% compared to 2024. That considered, there will be significant regional disparities with some markets growing faster than others.
Canada is expected to be the fastest growing market to 2027, with its cumulative project pipeline reaching 18.3GWh – a notable increase from its current capacity of 0.3GWh. Similarly, Saudi Arabia’s capacity could increase 24-fold reaching 32.4GWh. The next three market leaders in growth are Australia, Chile and Uzbekistan. This capacity development is largely driven by renewables buildout, the need for grid flexibility and strong revenue potential for asset owners and investors.
Read: What does Africa’s BESS landscape look like?
What countries have the biggest pipelines?
China, the US, and Australia have the largest total project pipelines, primarily because their BESS landscapes are more advanced with stronger investment signals and greater revenue potential. Their early-mover advantage positions their markets closer to maturity, allowing for faster project deployment and greater investor confidence.
China will remain the dominant player in 2027, but its share of the total market is set to decline to just over 50% of the world’s total market based on the current pipeline.
What challenges come with market growth?
Although the BESS market is growing the world over, there are still challenges that face the industry, including grid connection queues and development of revenue streams in nascent markets.
More Information
This data comes from Rho Motion’s BESS Database, to find out more click here.
Image Credit: Adobe Stock
Source: https://rhomotion.com/news/which-are-the-top-20-countries-for-battery-energy-storage-capacity/
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