North America Battery Energy Storage System Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The North America battery energy storage system market size is expected to reach US$ 23,475.02 million by 2031 from US$ 20,057.56 million in 2024. The market is estimated to record a CAGR of 2.8% from 2025-2031.

Executive Summary and North America Battery Energy Storage System Market Analysis:

As per the National Institute of Standards and Technology (NIST), the manufacturing sector in the US was valued at US$ 2.3 trillion in 2023. It accounted for a 10.2% share of the country's GDP that year. In terms of value added by manufacturing, a main indicator of economic activity, the US ranks as the second-largest manufacturing economy worldwide, following China. It is also a global leader in manufacturing fabricated metal products. Proliferation of the manufacturing and industrial sectors boosts energy demand across North America, subsequently fueling the growth of the battery energy storage system market.

The aerospace and defense sector in North America is witnessing high growth owing to the stable economy, developed infrastructure, high technology adoption rate, and increasing government investments. According to data released by Airlines for America in 2023, commercial aviation accounted for US$ 1.37 trillion (~5% of US GDP) in 2023. More than 26,000 flights from the US carry 2.6 million passengers to nearly 80 countries every day. A well-developed infrastructure is required to cater to the increasing passenger traffic in the US, which is anticipated to fuel the demand for energy. Thus, the burgeoning applications in airports, fueling stations, and commercial buildings boost the requirement for battery energy storage systems in the region.

North America Battery Energy Storage System Market: Strategic Insights

North America Battery Energy Storage System Market Segmentation Analysis:

Key segments that contributed to the derivation of the battery energy storage system market analysis are type, connection type, and end user.

• By type, the battery energy storage system market is bifurcated into lithium ion and others. The lithium ion segment held a larger share of the market in 2024.

• By connection type, the battery energy storage system market is bifurcated into on-grid and off-grid. The on-grid segment held a larger share of the market in 2024.

• By end user, the battery energy storage system market is segmented into commercial, residential, and utilities. The utilities segment held the largest share of the market in 2024.

North America Battery Energy Storage System Market Players Density: Understanding Its Impact on Business Dynamics

The North America Battery Energy Storage System Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

North America Battery Energy Storage System Market Outlook

With renewable energy sources, such as wind and solar, becoming more common, the requirement for reliable energy storage to manage intermittency and ensure grid stability is strengthening. Governments and the private sector are investing considerably in robust storage systems, supporting energy transition goals, reducing carbon emissions, and improving energy security. Advanced battery technologies, such as solid-state batteries and lithium-ion, are gaining traction due to their efficiency and scalability.

The changing energy circumstances across the globe are generating a demand for energy storage infrastructure. The growing energy demand displays the significance of energy storage systems. The storage system allows energy storage and its usage as per the requirement. Battery energy storage is also important owing to the required balance of energy supply. Developments in energy storage systems and an increase in research and development in energy management systems are driving the battery energy storage system market. For instance, in the US, Stor4Build, an association on energy storage for buildings, is working to accelerate the optimization and deployment of storage technologies. The consortium is co-led by the National Renewable Energy Laboratory (NREL), U.S. Department of Energy (DoE), Oak Ridge National Laboratory (ORNL), and Lawrence Berkeley National Laboratory (Berkeley Lab).

In January 2024, Plus Power stated that it initiated operation at its Kapolei Energy Storage facility in Oahu, Hawaii. The plant is equipped with a grid-scale battery energy storage system, helping in the transition of the state's electric power from coal to solar and wind. In June 2024, Plus Power started managing seven large-scale battery energy storage plants across Arizona and Texas for a total of 1,325 MW/3,500 MWh. Thus, the growing focus of countries on building a vigorous storage infrastructure is driving the battery energy storage system market in the US. Thus, growing focus on establishing vigorous storage infrastructure across the globe is boosting the growth of the battery energy storage system market.

North America Battery Energy Storage System Market Country Insights

Based on country, the North America battery energy storage system market comprises the US, Canada, and Mexico. The US held the largest share in 2024.

The rising awareness regarding adopting renewable energy and increasing investments in solar and wind energy projects are propelling the demand for lithium-ion batteries for energy storage in the US. In 2023, the US witnessed ~37% growth in renewables installation compared to 2021 and a 51% increase compared to 2022 installations. The US installed approximately 14.1 gigawatt (GW)-hours (4.3 GW alternating current [GWac]) of energy storage onto the electric grid in the first quarter (Q1)/second quarter (Q2) of 2024 A rise in demand for backup power during power outages or when grid access is limited is expected to drive the demand for BESS in the country. In addition, the rise in usage of battery energy storage systems (BESS) in microgrids and off-grid systems across the US to ensure stable and reliable power supply is projected to boost the market growth during 2023-2031. Moreover, the increase in investment and initiatives toward the development of solar and wind power projects across the country is anticipated to fuel the market growth in the coming years. In 2023, Texas state of the US installed around 6,500 MW worth of solar energy systems across the region and surpassed California to become the largest renewable installed state across the country.

North America Battery Energy Storage System Market Company Profiles

Some of the key players operating in the market include 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. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

North America Battery Energy Storage System Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.

• Industry trade journals and other relevant publications.

• Government documents, statistical databases, and market reports.

• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.

• Enhance the expertise and market understanding of the analysis team.

• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers

• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise