Global ESS market projected to grow 2.6 times by 2035

The global energy storage system (ESS) market is expected to grow approximately 2.6 times over the next decade, rising from 548GWh last year to an estimated 1,447GWh by 2035, according to a report by Samjong KPMG.

Growth is being driven by the expansion of renewable energy and the surging power demands of AI data centers. Grid-scale ESS is expected to account for about 67% of the total market, while ESS for uninterruptible power supply (UPS) in AI data centers is projected to increase 20-fold.

While Chinese companies held an 83.6% market share in the first quarter of this year, with CATL holding 29.8%, the competitive landscape is shifting. Due to stricter supply chain regulations and subsidy requirements in the United States and the European Union, market entry now depends on local production capabilities and supply chain compliance rather than just low costs.

To remain competitive, the report suggests that companies must focus on establishing regional production bases, enhancing LFP (lithium iron phosphate) battery competitiveness, strengthening safety certifications, and expanding into system integration, energy management software, and operations and maintenance services.