Long Duration Energy Storage (LDES) Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Long Duration Energy Storage (LDES) Market size was estimated at USD 4,840 million in 2024 and is projected to reach USD 12,328.2 million in 2031 at a CAGR of 14.29 % during the forecast period 2025-2031.

Long Duration Energy Storage (LDES) refers to energy storage systems capable of discharging power over extended periods, typically from 8 hours to several days. Unlike traditional batteries, which are designed for short-duration storage, LDES technologies are aimed at addressing the challenges of storing renewable energy at large scales. They help mitigate intermittency issues associated with renewable sources like wind and solar, providing a reliable backup when the generation of electricity is low or demand spikes. LDES includes technologies such as pumped hydro storage, compressed air energy storage, and advanced flow batteries, offering a broad spectrum of solutions to the energy storage landscape.

The scope of the LDES market has expanded as the global push for decarbonization and renewable energy integration grows. Governments, utilities, and private companies are investing in these technologies to reduce reliance on fossil fuels and to facilitate the transition to a sustainable energy grid. The need for storage solutions that can handle large volumes of electricity for extended periods has placed LDES at the forefront of energy infrastructure development. The market's growth is driven by the increasing deployment of renewable energy sources and the realization that traditional short-duration storage cannot meet the grid's demands for balancing supply and demand over longer periods.

Trends in the LDES market are leaning towards the development of more cost-effective, scalable, and efficient storage technologies. Innovations in materials science, such as solid-state electrolytes and flow batteries, are expected to reduce the costs and improve the efficiency of long-duration storage systems. Additionally, advancements in grid integration technology are making it easier for LDES solutions to connect with existing power grids, improving system flexibility and resilience. As governments and corporations set more ambitious net-zero targets, there is an increasing emphasis on energy storage solutions that can support high renewable penetration without compromising grid stability.

Several drivers are fueling the growth of the LDES market, with the most significant being the need for energy security and sustainability. As the world transitions to more renewable energy, the demand for storage solutions to ensure consistent energy supply has skyrocketed. Additionally, energy storage technologies, including LDES, are becoming more affordable due to economies of scale and technological advancements. The push for grid modernization, regulatory support, and decreasing costs of renewable energy generation are also significant drivers. Collectively, these factors are creating favorable conditions for the widespread adoption of long-duration energy storage, making it a critical component of the future energy ecosystem.

Delvens Industry Expert's Standpoint

Experts in the Long Duration Energy Storage (LDES) Market highlight several key trends driving growth and innovation. The Long Duration Energy Storage (LDES) market is rapidly growing as a solution to store renewable energy for extended periods, addressing the challenges of intermittency in wind and solar power. LDES technologies, such as pumped hydro, compressed air, and flow batteries, offer scalable, efficient, and cost-effective energy storage to support the transition to a more sustainable energy grid. Driven by the need for energy security, decarbonization, and grid modernization, the market is advancing through innovations that improve efficiency and reduce costs. As renewable energy deployment increases, LDES is becoming essential for balancing supply and demand, ensuring grid stability, and enabling higher renewable penetration.

Market Portfolio

Key Findings

• The 50-100 MW capacity segment is projected to experience the highest compound annual growth rate (CAGR) in the long-duration energy storage market during the forecast period. This range is particularly suitable for grid stabilization, renewable energy integration, and peak load management, making it a preferred choice for both power utilities and independent power producers. As renewable energy projects, such as large-scale solar and wind farms, continue to expand, there is a growing demand for efficient storage solutions capable of addressing intermittency and ensuring grid reliability. Storage systems within the 50-100 MW range offer an ideal balance of cost-effectiveness and scalability.

• The mechanical storage segment is anticipated to dominate the long-duration energy storage market during the forecast period. This is due to the scalability and high efficiency of mechanical storage systems, which are well-suited for large-scale energy storage applications. Pumped hydro storage, compressed air energy storage (CAES), and flywheels have emerged as key players in the energy storage market due to their long operating durations and their ability to maintain grid stability. These systems are resilient to the effects of harsh outdoor environments and experience minimal degradation over time. Furthermore, advancements in CAES technology and innovations in gravitational storage have improved the cost-effectiveness and practicality of mechanical storage solutions. Governments around the world are investing in these technologies, offering subsidies, and implementing policies to support energy transition goals.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America region is projected to hold the largest market share. Factors such as integration of renewable energy, energy grid stability, declining storage costs, government support, technological advancements, sustainability goals, clean energy demand, energy independence, infrastructure development, and corporate investment have triggered the Long Duration Energy Storage (LDES) Market in the region.

Regional Analysis

North America to Dominate the Market

• Europe is expected to experience the highest compound annual growth rate (CAGR) in the energy storage market during the forecast period. This growth is driven by ambitious renewable energy targets, robust government policies, and the ongoing modernization of power grids across the region. Energy storage systems are vital for managing the intermittency of renewable energy sources and ensuring grid stability. The rising demand for energy, along with the increasing shift toward decentralized energy systems, has led to greater investments in utility-scale energy storage technologies. The region is seeing significant investments aimed at enhancing grid resilience through the adoption of advanced energy storage technologies. Key areas of focus include lithium-ion batteries, flow batteries, compressed air energy storage, and thermal storage. Europe is also prioritizing innovation, with extensive research and development efforts focused on improving efficiency, reducing costs, and achieving long-duration storage. Germany, the UK, and Spain are receiving substantial government funding for the development of cutting-edge technologies. Additionally, the region benefits from significant private sector involvement. Energy storage is playing an increasingly important role in balancing the growing adoption of electric vehicles (EVs) and managing energy demand within both residential and commercial sectors.

Competitive Landscape

• Sumitomo Electric Industries, Ltd.
• ESS Tech, Inc.
• Eos Energy Enterprises
• Invinity Energy Systems
• Energy Vault, Inc.
• MAN Energy Solutions
• Highview Power
• Primus Power
• CMBlu Energy AG
• Malta Inc.
• RheEnergise Limited
• QuantumScape Battery, Inc.
• Form Energy
• SFW
• GKN Hydrogen
• Alsym Energy Inc
• Ambri Incorporated
• VFlowTech Pte Ltd
• VoltStorage
• MGA Thermal Pty Ltd
• Rondo Energy, Inc.
• Lina Energy Ltd
• e-Zinc Inc
• Storelectric LTD
• 1414 DEGREES

Recent Developments

• In March 2023, Sumitomo Electric Industries, Ltd. (Japan) introduced sEMSA, a cloud-based energy management solution for grid storage batteries. The system optimizes charging and discharge schedules to enhance profitability while supporting applications like supply-demand balancing and power trading. It consists of sEMSA servers dedicated to plan optimization and terminal units for on-site battery control. Designed to stabilize the power grid and enable virtual power plant (VPP) capabilities, sEMSA supports a range of battery types, facilitates renewable energy integration, and opens new revenue opportunities for energy operators.

• In May 2024, ESS Tech, Inc. (US) and Burbank Water and Power (US) celebrated the launch of BWP's first long-duration energy storage (LDES) system—a 75 kW/500 kWh ESS Energy Warehouse iron flow battery. Installed at BWP’s EcoCampus and connected to a 265 kW solar array, the system powers around 300 homes, contributing to a decarbonized grid through iron flow technology. This project supports California’s goal of achieving zero-emission electricity by 2045 and demonstrates the importance of LDES in facilitating renewable energy integration.

• In January 2024, Energy Vault Holdings, Inc. (US) signed a licensing and royalty agreement with Gravitricity (UK) and a South African consortium for the deployment of its patented gravity energy storage technology and the VaultOS platform in the SADC region. The consortium, which includes WBHO, iX Engineers, and Sizana Solutions, will focus on storage projects across utilities, mining, industrial applications, and microgrids. This partnership is expected to generate significant revenue through EPC projects and royalty streams, targeting regional markets with the potential to exceed 125 GWh by 2035.

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Report Scope