According to The Insight Partners' research, the Europe battery energy storage system market was valued at US$ 11,372.32 million in 2024 and is expected to reach US$ 40,806.94 million by 2031, registering a CAGR of 19.5% from 2025 to 2031. Growing investment in renewable power generation and growing focus on establishing vigorous storage infrastructure are among the critical factors attributed to drives the Europe battery energy storage system market.
Since over 70% of greenhouse gas emissions come from the energy sector, an EMS is an effective tool in the fight against CO2 emissions, as per the EIA. A battery energy storage system boosts the usage of renewable energy during peak periods and thus reduces dependence on fossil fuels. The load optimization process ensures a device operates at peak efficiency, preventing energy wastage and lowering emissions. In addition, an EMS facilitates the seamless integration of renewable power sources, including solar and wind, into the power grid. By prioritizing renewable energy when available, BESS minimizes reliance on fossil fuels, which are the primary contributors to carbon emissions. Efficiency is an important measure for reducing energy demand in the Net Zero Emissions by 2050 scenario and has made progress in recent years. However, to achieve this target, the rate of improvement in global energy intensity must be higher than in the past.
According to the IEA, in 2-24, renewables accounted for 50% of electricity generation in Europe, with investments in low-emission power practices reaching around US$ 390 billion. To intensify the growth, the EC's Recovery and Resilience Facility (RRF) has committed to over 60 GW of renewable capacity across 19 Member States, which is sufficient to power 41.5 million households. This effort also includes more than 7 GW of energy storage and 21 GW of grid enhancements. Moreover, Europe will need approximately US$ 6 trillion in investments for the power sector by 2050. This amounts to an average of 220 billion annually to achieve its renewable energy and infrastructure objectives, including generating 70% of its electricity from renewable sources by 2030. These factors are likely to create lucrative opportunities for battery energy storage systems installations in Asia Pacific during the forecast period.
On the contrary, scarcity of raw materials hampers the growth of Europe battery energy storage system market.
Based on type, the Europe battery energy storage system market is bifurcated into lithium ion and others. The lithium ion segment held 93.8% share of Europe battery energy storage system market in 2024, amassing US$ 10,664.15 million. It is projected to garner US$ 38,122.18 million by 2031 to register 19.4% CAGR during 2025-2031.
By connection type, the Europe battery energy storage system market is bifurcated into on-grid and off-grid. The on-grid segment held 69.6% share of Europe battery energy storage system market in 2024, amassing US$ 7,919.43 million. It is projected to garner US$ 26,224.89 million by 2031 to expand at 18.4% CAGR from 2025 to 2031.
Based on end user, the Europe battery energy storage system market is segmented into commercial, utilities, and residential. The utilities segment held 54.2% market share in 2024, amassing US$ 6,167.14 million. It is projected to garner US$ 23,279.31 million by 2031 to register 25.0% CAGR during 2025-2031.
Based on country, the Europe battery energy storage system market is categorized into Germany, France, Italy, the UK, and the Rest of Europe. Our regional analysis states that Italy captured 34.0% share of Europe battery energy storage system market in 2024. It was assessed at US$ 3,866.59 million in 2024 and is likely to hit US$ 8,790.75 million by 2031, registering a CAGR of 11.8% during 2025 to 2031.
Key players operating in the battery energy storage system market are Panasonic Holdings Corp, BYD Co Ltd, Contemporary Amperex Technology Co Ltd, Tesla Inc, Samsung SDI Co Ltd, AES Corp, Ameresco Inc, NextEra Energy Inc, ESS Inc, Saft Groupe SA, LG Chem Ltd, General Electric Co, KORE Power Inc, Eos Energy Enterprises Inc, and Siemens AG, among others.
Contact Us
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com