Emerging Energy Storage Technologies: Market Trends and Emerging Innovations

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Global power systems are entering a new phase of transformation as electricity demand growth accelerates alongside rapid renewable deployment. Electrification across transport and industry is increasing pressure on grids, while the rapid expansion of AI infrastructure and hyperscale data centers is emerging as a new source of structural electricity demand. For example, data center power demand is expected to reach almost 1,500TWh by 2030.

At the same time, the continued build-out of wind and solar is reshaping the global power generation mix, as renewables are expected to overtake thermal generation by 2034. These structural shifts are accelerating the role of energy storage as a core component of modern power systems, capable of balancing intermittent renewable generation and supporting grid stability. As a result, the global pipeline of storage projects continues to expand, set to reach a capacity of ~1,683GW by 2030.

Energy storage deployment is becoming increasingly geographically concentrated, with Asia-Pacific emerging as the primary center of global capacity growth and set to account for ~62% of global storage capacity by the end of the decade. Strong renewable expansion, rapid power demand growth, and supportive policy frameworks have accelerated storage deployment across the region, with China playing a particularly significant role in driving the region’s project activity.

Within this landscape, battery energy storage systems (BESS) have emerged as the dominant technology for new deployments due to their scalability, declining costs, and ability to respond rapidly to fluctuations in supply and demand. For this reason, battery energy storage is set to account for ~77% of the global total energy storage capacity by 2030. However, reliance on lithium-ion technologies also raises challenges related to storage duration, material supply chains, and lifecycle performance.

To provide alternative solutions, innovation across the sector is expanding beyond lithium-ion technologies. Developers and system operators are increasingly exploring electromechanical, electrochemical, and thermal storage pathways, particularly long-duration storage solutions capable of supporting deeper renewable integration and improving overall grid resilience. Alongside established industry players, a growing number of innovative start-ups are developing alternative storage technologies aimed at improving storage duration, lowering costs, improving safety, and reducing reliance on critical minerals.

Scope

Snapshot of the global power mix

Energy storage capacity outlook

Regional distribution of energy storage capacity

Emerging energy storage framework

Challenges of scaling energy storage capacity

Case studies of innovative energy storage technologies

Key Highlights

Between 2025 and 2035, global power demand is projected to grow at a CAGR of ~4%, with data centers emerging as an increasingly significant source of additional demand.

A rapid pace of renewable installations continues to bolster the contribution of renewables to the overall power mix. Solar PV and onshore wind continue to represent the key drivers of this growth, with the two technologies accounting for 20% and 15%, respectively, of total power generation by 2035.

However, despite the increasingly global uptake of renewables, energy storage capacity remains regionally uneven, with Asia-Pacific dominating the market, and set to account for ~62% of global storage capacity by the end of the decade.

According to current project announcements, global energy storage capacity could reach approximately ~1,683GW by 2030, exceeding the IEA’s 1,500GW target by over 180GW. Although currently on track, this projection assumes a high level of project execution and therefore leaves limited room for project delays or cancellations.

Reasons to Buy

Gain insight into the energy storage capacity outlook.

Identify the key trends that are driving energy storage project activity.

Understand both the established and emerging technology trends that are influencing the energy storage market.

Understand how and where the market is growing as it is rapidly scales to become a key technology for the global energy transition.

Learn about the key companies that are developing energy storage technologies across electromechanical, electrochemical, and thermal energy storage.

Energy Vault
Beacon Power
Hydrostor
HiNa Battery Technology
Inlyte Energy
Meine Electric
GKN Hydrogen
H2MOF
Kraftblock
MGA Therm
Exowatt

Table of Contents

Executive Summary

The Global Power Mix

Global power demand outlook

Global power generation outlook

Energy Storage Outlook

Global energy storage capacity outlook

Regional breakdown of energy storage capacity

Country-level breakdown of energy storage capacity

Opportunities and Challenges

Key opportunities for the energy storage market

Main challenges for the energy storage market

Emerging Energy Storage Technologies

GlobalData’s emerging energy storage framework

Electromechanical Energy Storage

Hydro-pumped storage outlook

Emerging trends in electromechanical storage

Electrochemical Energy Storage

Electrochemical storage outlook

Battery energy storage innovation

Risk assessment across critical materials for batteries and EVs

Alternative chemical-based energy storage solutions

Thermal Energy Storage

Thermal energy storage outlook

Emerging trends in thermal energy storage

Contact Us

Table

The emerging energy storage framework

Risk assessment across critical energy transition materials for batteries and Evs

Figures

Global power demand by region, 2015-2035

Power demand by sector, 2025-2030

Global power generation mix, 2020-2035

Global energy storage capacity by storage type, 2020-2030

Global energy storage capacity based on project announcements vs target capacity by 2030

Cumulative energy storage capacity by region, 2015-2030*

Top 10 countries’ cumulative energy storage capacity, 2015-2030*

Pumped hydro storage projects by development stage, 2025-2035

Drought hotspots between 2023 and 2025 (UNCCD)

Regional breakdown of active and upcoming battery energy storage capacity, 2026YTD

Sub-technology breakdown of active and upcoming electrochemical energy storage projects

Critical mineral demand growth in 2040 compared to 2020 from battery storage additions by scenarios (IEA)

Leading countries for hydrogen energy storage project count based on active and upcoming projects, 2020-3030

Breakdown of active and upcoming thermal energy storage projects by development stage, 2026YTD

Active vs upcoming thermal energy storage projects by technology, 2026YTD

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