Global Energy Storage Market Surges 35% in 2025, Driven by Long-Duration Tech and Policy Backing
LONDON, Nov. 10, 2025 — The global energy storage sector is on track to set a new annual growth record in 2025, with installations projected to reach 94 gigawatts (247 gigawatt-hours) excluding pumped hydro, marking a 35% year-on-year increase, according to BloomberNEF’s latest industry outlook. This robust expansion comes amid rising demand for grid stability as renewable energy penetration deepens, fueled by breakthroughs in long-duration storage technologies and supportive policies across key markets.
North America leads the charge with high-profile utility-scale projects. U.S.-based ESS Tech recently secured a partnership with Arizona’s Salt River Project (SRP) to deploy a 5MW/50MWh iron flow battery system, backed by Google, driving a 175% surge in the company’s stock within two days. Fellow American firm Eos Energy Enterprises signed a 750MWh supply deal with MN8 Energy for its zinc-based Z3™ storage systems, alongside a $353 million investment to expand its Pennsylvania manufacturing hub into the nation’s largest zinc-battery production center. Meanwhile, Rondo Energy’s 100MWh thermal battery system in California, leveraging firebrick storage technology with 97% efficiency, has entered commercial operation to support industrial decarbonization.
Europe’s growth is anchored by regulatory clarity and cross-border innovation. The UK’s energy regulators Ofgem and NESO introduced a “Cap & Floor” mechanism to stabilize returns for long-duration storage projects, reducing investment risks for systems with 6+ hours of discharge capacity. In Scotland, Argyll Data and SambaNova Systems are developing a 2GW AI cloud platform powered by wind, wave, solar, and vanadium redox flow batteries (VRFB), enabling off-grid operation. German research institute Fraunhofer ICT’s RedoxWind project, a 2MW/20MWh VRFB system coupled with wind power, is now Europe’s largest flow battery demonstration, testing grid integration capabilities for high-renewable energy grids.
Technological advancements are broadening application scope. Chinese-European collaboration has yielded quantum battery breakthroughs, with Australia’s RMIT University extending quantum energy retention to microsecond levels—1,000 times longer than previous models—paving the way for portable electronics and IoT devices that hold charge for weeks. Tesla’s quantum battery R&D,integrating quantum tunneling and supercapacitor tech, has achieved 1,980km driving range for its Model S, with 80% charging in 15 minutes, promising a transformative impact on electric mobility. For commercial and industrial users, Clou Energy unveiled its Aqua-C 3.0 Pro liquid-cooled system at Solar & Storage Live UK, boasting 92.3% round-trip efficiency and 6.88MWh per cabinet, cutting total ownership costs by 10.63%.
Despite policy shifts in China and U.S. tariff hikes, the global outlook remains resilient. BloombergNEF forecasts a 14.7% compound annual growth rate through 2035, with annual installations expected to hit 220GW/972GWh. “Long-duration storage is no longer a niche technology but a core pillar of the energy transition,” noted an industry analyst. “As costs fall and policies mature, we anticipate accelerated adoption across emerging markets in Southeast Asia and Latin America.”
Your message must be between 20-3,000 characters!
