The Rapid Growth of the Global Energy Storage System Market and the Strategic Positioning of Korean Companies
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Explosive Growth of the Energy Storage System Market
As of November 2025, the global energy storage system (ESS) market is experiencing unprecedented growth, establishing itself as a game-changer in the energy industry. According to the latest report from Bloomberg NEF, the global ESS market size is expected to reach approximately $35 billion by 2025, marking a 25.8% increase from the previous year. Notably, battery energy storage systems (BESS) account for over 85% of the total market, taking the lead. The backdrop of this rapid growth includes the increase in renewable energy generation, heightened demand for grid stability, and the continuous decline in battery prices.
According to the International Energy Agency (IEA), around 42GWh of new ESS capacity was installed globally in 2024, representing a 70% increase compared to 2023. The United States emerged as the largest market, accounting for 35% of total installations, followed by China at 30% and Europe at 20%. Korea is rising as the second-largest ESS market in the Asia-Pacific region after China, capturing approximately 8% of the total market. In Korea, government-led investments aimed at achieving the K-New Deal policy and carbon neutrality goals are driving market growth, with cumulative ESS capacity expected to reach 12GWh by the end of 2025.
One of the key drivers of market growth is the sharp decline in battery prices. The price of lithium-ion battery packs has fallen by over 87%, from $1,100 per kWh in 2010 to $139 in 2024, and is expected to drop to around $130 by 2025. This price reduction has significantly improved the economics of ESS projects, transforming power storage from a mere technical necessity into an economically attractive investment. Simultaneously, improvements in battery energy density and lifespan are enhancing the commercial appeal of ESS.
The increase in renewable energy generation also plays a crucial role as a catalyst for ESS market growth. With global wind and solar power capacity surpassing approximately 3,870GW by 2024, the issue of grid instability due to intermittent generation characteristics is intensifying. Consequently, the installation of ESS linked to renewable energy plants is surging, with renewable-linked systems accounting for over 45% of total ESS installations. In particular, in California, over 80% of the ESS capacity installed in 2024 was linked to solar power plants, analyzed as a result of strategic investments to ensure grid stability and meet peak demand.
Competitive Landscape and Technological Innovation of Global Companies
Korean companies are occupying a unique position in the global ESS market. LG Energy Solution, headquartered in Pyeongtaek, Gyeonggi Province, maintained its number one position with a global ESS battery market share of 27.3% as of 2024. The company is particularly strong in large-scale grid ESS projects, having secured major contracts such as the 350MW/1,400MWh Gateway ESS project in Texas, USA, and the 300MW/450MWh Victorian Big Battery project in Victoria, Australia. LG Energy Solution’s ESS division revenue in 2024 increased by 45% year-on-year to 8.3 trillion won, and is expected to exceed 12 trillion won by 2025.
Samsung SDI, with a global market share of 18.7%, is in fierce competition with LG Energy Solution. Based in Suwon, Gyeonggi Province, Samsung SDI is expanding its presence in the European and North American markets, leveraging its differentiated technology in safety and durability. The company completed the construction of a dedicated ESS battery plant with an annual capacity of 23GWh in Göd, Hungary, in 2024, establishing a local production system in Europe. Samsung SDI’s proprietary solid-state battery technology is under development, targeting commercialization by 2026, and is expected to improve energy density by over 40% compared to existing lithium-ion batteries.
China’s CATL (Contemporary Amperex Technology) ranks third with a global market share of 15.2%, showing rapid pursuit. Headquartered in Ningde, Fujian Province, CATL is expanding its market share in Asia and Europe, emphasizing price competitiveness. The company’s LFP (lithium iron phosphate) battery technology demonstrates excellent performance in terms of safety and lifespan, with prices per kWh being 20-30% cheaper than NCM (nickel-cobalt-manganese) batteries. CATL began operating a 14GWh battery plant in Thuringia, Germany, in 2024, intensifying its European market penetration.
U.S.-based Tesla holds a unique position in the ESS market with its Megapack product. Headquartered in Austin, Texas, Tesla recorded a global ESS market share of 12.8% in 2024, differentiating itself with integrated software solutions and automated installation systems. Tesla’s Megapack offers a capacity of 3.9MWh per unit and enables optimized operation through an AI-based energy management system. The company announced that Megapack shipments in Q4 2024 increased by 130% year-on-year to 6.9GWh, with a target of 40GWh annual shipments by 2025.
China’s BYD is rapidly expanding into the ESS sector, leveraging battery technology accumulated from its electric vehicle business. Headquartered in Shenzhen, Guangdong Province, BYD recorded a global ESS market share of 8.9% in 2024, demonstrating a strong presence in the domestic Chinese market. The company’s blade battery technology is recognized for its excellent performance in safety and space efficiency, with BYD batteries used in over 35% of ESS projects in China throughout 2024. BYD plans to build ESS battery plants in Brazil and Indonesia by 2025, accelerating its global market expansion.
In terms of technological innovation, the competition to develop next-generation battery technologies is intense. New technologies such as solid-state batteries, sodium-ion batteries, and iron-air batteries are on the verge of commercialization, expected to overcome the limitations of existing lithium-ion batteries. Particularly, sodium-ion batteries are gaining attention in the large-scale ESS field due to their raw material costs being over 90% cheaper than lithium and their high supply chain stability. CATL and BYD have already begun commercial production of sodium-ion batteries, with full market launch expected by 2025.
Market Outlook and Investment Opportunities
The future outlook for the ESS market is very bright. According to the latest analysis by Wood Mackenzie, the global ESS market is expected to maintain an average annual growth rate of 22.6% from 2025 to 2030, reaching a size of $120 billion by 2030. This growth is primarily attributed to the increase in utility-scale ESS projects and the expansion of commercial and industrial ESS demand. Particularly, the U.S. Inflation Reduction Act (IRA), Europe’s Green Deal policy, and China’s carbon neutrality goals are expected to significantly stimulate ESS investment.
Regionally, the North American market is projected to experience the fastest growth. The U.S. recorded a cumulative ESS installation capacity of 18.4GWh as of 2024, expected to exceed 150GWh by 2030. Large-scale ESS projects are being intensively carried out in states with high renewable energy generation, such as Texas, California, and Florida. NextEra Energy announced plans to complete a total of 2.5GW/10GWh ESS projects in Florida by 2026, the largest ESS project undertaken by a single company.
The European market is also showing strong growth. Under the European Union’s REPowerEU plan, a target has been set to expand the share of renewable energy to 42.5% by 2030, necessitating large-scale ESS investments. Germany installed 5.2GWh of new ESS in 2024, an 85% increase from the previous year. In the UK, the government has set a target to secure 20GW of ESS capacity by 2030, announcing a £4 billion investment plan to achieve this.
In the Asia-Pacific region, while China remains the largest market, demand for ESS is rapidly increasing in India, Japan, and Australia. India had a cumulative ESS installation capacity of only 2.8GWh as of 2024, but it is expected to expand to 28GWh by 2030, driven by government policies to expand renewable energy and modernize the power grid. In Japan, interest in energy security has increased following the Fukushima nuclear disaster, leading to increased ESS investments, with 1.9GWh of new capacity installed in 2024.
From an investment perspective, the ESS market offers several attractive opportunities. First, battery manufacturers are expected to see continuous demand growth and margin improvement through technological innovation. LG Energy Solution and Samsung SDI are targeting ESS sales of 15 trillion won and 10 trillion won, respectively, by 2025, accounting for over 35% of their total sales. Second, ESS system integrators also show high growth potential. In Korea, companies like LS Electric and Hyosung Heavy Industries are expanding their ESS system integration business and actively pursuing overseas expansion.
However, the ESS market also faces several challenges. The most significant issue is the volatility of raw material prices. Prices of key raw materials such as lithium, nickel, and cobalt have been rising again in 2024, leading to increased battery manufacturing costs. The price of lithium carbonate rose by 35% from $13,000 per ton at the beginning of 2024 to $17,500 by the end of November. Additionally, safety concerns regarding ESS projects remain a persistent issue. In 2024, there were 23 ESS fire incidents worldwide, with 8 occurring in Korea, highlighting the urgent need for improved safety management systems.
Regulatory uncertainty also impacts market growth. In the U.S., while the IRA policy significantly promotes ESS investment, potential policy changes due to political shifts raise concerns among investors. Tariffs on Chinese batteries and supply chain sanctions also act as variables in the global ESS market. Despite these challenges, the long-term growth outlook for the ESS market remains positive, with technological innovation and cost reduction expected to gradually address these issues. Particularly for Korean companies, their technological prowess and quality competitiveness are expected to further strengthen their position in the global market, becoming a new growth engine for the domestic energy industry.
This analysis is intended for general informational purposes and does not constitute specific investment recommendations or advice. Please consult with a professional when making investment decisions.
