Long Duration Energy Storage Market Size, Share, Report 2024 to 2033

Long Duration Energy Storage Market Size and Growth 2024 to 2033

The global long duration energy storage market size was valued at USD 256.45 billion in 2023 and is expected to be worth around USD 605.10 billion by 2033, growing at a compound annual growth rate (CAGR) of 8.96% from 2024 to 2033.

Long-duration energy storage (LDES) is a system that can store energy from renewable sources and release it later, when it's needed. LDES systems can store energy for days, weeks, months, or even years.  LDES is a key component of a decarbonized power system, as it can help balance energy supply and demand. It can also help provide reliable and affordable electricity. The demand for long duration energy storage (LDES) is increasing because it's a key technology for decarbonizing the grid, improving grid flexibility, extending the life of transmission equipment, and increasing resilience of renewable energy are the key factors driving the market growth.  

• The U.S. Department of Energy’s (DOE) Office of Electricity (OE) today announced the selectees of $15 million in awards at the Long Duration Energy Storage (LDES) Council Summit on April 8, 2024. These awards are through the Storage Innovations 2030: Technology Liftoff funding opportunity announcement (FOA) to advance energy storage innovations to help deliver clean, affordable electricity to Americans when and where it is needed most.
• VFlowTech, a Singapore-headquartered company announced the largest long-duration energy storage manufacturing facility at IESW. This facility is located in Palwal, Haryana. The brand aims to boost its current 100mWh capacity to a Gigafactory in the next two years. The brand is a pioneer of Vanadium and Redox, which make its energy storage solutions superior to the current crop of products.

Long Duration Energy Storage Market Growth Factors

• Enhanced Grid Reliability: Long-duration energy storage systems are essential for improving grid reliability, especially as renewable energy sources like solar and wind become integrated. They ensure continuous power availability, manage grid fluctuations, and enhance grid stability against blackouts or power failures.
• Growing Demand for Electric Vehicles: The global rise in electric vehicle (EV) adoption is boosting the need for long-duration energy storage systems. These systems support fast charging networks and manage energy demand peaks, helping stabilize the grid by storing excess renewable energy during low demand periods.
• Government Incentives: Governments worldwide are promoting energy storage systems through financial incentives, subsidies, and tax breaks, such as the U.S. Infrastructure Investment and Jobs Act, the European Union's Green Deal, and renewable energy initiatives in Asia.
• Rising Energy Costs: The rising energy costs, driven by increased demand and supply chain disruptions, are prompting businesses and utilities to adopt long-duration energy storage systems. These systems can reduce electricity costs and improve energy efficiency, especially in industries with high energy consumption.
• Deregulation of Electricity Markets: Deregulation in electricity markets is boosting competition and innovation in energy storage solutions, making long-duration storage crucial for energy providers and consumers. This shift from centralized control to flexible systems creates new revenue streams and encourages the deployment of storage technologies.
• Rapid Industrialization: Emerging economies are experiencing rapid industrialization, necessitating the need for sustainable energy solutions. Long-duration energy storage is being deployed to manage energy loads and reduce reliance on fossil fuels, ensuring continuous power supply.

Long Duration Energy Storage Market Trends

• Increased Adoption of Renewable Energy Integration: The integration of renewable energy sources like wind and solar is increasing as the world moves towards decarbonization. Long-duration energy storage is being used to store excess energy and supply it when renewable generation is low, driving innovation in energy storage technologies.
• Advancements in Flow Battery Technologies: Flow batteries, such as vanadium redox and zinc-bromine, are gaining attention as scalable long-duration energy storage solutions. Unlike traditional lithium-ion batteries, flow batteries are designed to store energy for longer periods and offer higher durability and longer lifespans. As a result, flow batteries are becoming a preferred option for large-scale, long-duration applications in utility grids and renewable energy integration.
• Focus on Green Hydrogen for Long-Term Storage: Hydrogen-based storage is gaining popularity in long-duration energy storage, with countries like Japan, Germany, and the U.S. investing heavily in hydrogen infrastructure to transition to renewable energy. Green hydrogen, produced using renewable energy, can be stored for months and converted back into electricity as per requirement.
• Growth of Thermal Energy Storage (TES): Thermal energy storage, which stores heat or cold for later use, is gaining traction in applications like district heating, cooling, and industrial processes. TES systems are particularly useful for concentrated solar power (CSP) plants, where excess heat generated during the day can be stored and used to produce electricity at night. This trend is driven by the need for sustainable and cost-effective long-duration storage options for managing renewable energy generation.
• Development of Gravity-Based Energy Storage: Gravitational energy storage is a type of energy storage that utilizes earth’s gravitational energy for the generation and storage of energy in the form of potential energy. The mechanism is cab be installed in any location including plains, desert or sub-zero climate. The mechanism is highly effective for long duration storage.

Report Scope

Long Duration Energy Storage Market Dynamics

Drivers

Increased Adoption of Renewable Energy Integration

• As more countries transition to renewable energy sources like wind and solar, which are intermittent, there is a rising need for long-duration energy storage to store excess energy and provide a stable supply during low generation periods. This demand is a major driver for the market.

Advancements in Flow Battery Technologies

• Advancements in the solid-state battery technology is the development of energy density. The ongoing focus on the development of composite materials for energy storage such as sodium-ion and advanced lithium-sulphur compounds, that significantly boost energy storage.

Restraints

High Initial Capital Costs

• One of the primary barriers to the widespread adoption of long-duration energy storage is the high upfront costs associated with installing large-scale storage systems. Battery cost is another factor contributing to the overall cost. Manufacturing of high efficiency batteries are expensive which significantly affects their overall cost ultimately hampering the growth of long duration energy storage market across the globe.

Competition from Short-Duration Storage Technologies

• Short duration energy storage (SDES) is a system that can store and release energy for up to hours when needed. These systems are mostly reliable across short power outage to help balance the supply and demand of electricity. Their lower cost and higher availability make them most adopted system across small to medium scale users with moderate energy demand, which is a key factor retraining the market growth.

Opportunities

Integration with Renewable Energy Projects

• The increasing deployment of renewable energy projects offers a substantial opportunity for long duration energy storage. By converting excess renewable energy, it can be stored and used when renewable generation is low. This not only enhances the efficiency of renewable energy systems but also provides a reliable and flexible energy storage solution.

Rise of Battery Energy Storage Systems (BESS)

• The use of battery energy storage systems is gaining popularity owing to the innovations in the latest battery technologies. The battery energy storage system (BESS) is an advanced technological solution that allows energy storage in multiple ways for later use. Growing popularity of these technologies are providing growth opportunities for long duration energy storage.

Challenges

Lack of standardization in storage systems

• Every manufacturer of the energy storge system manufacturers their own batteries as they lack standardizations. This creates challenge for large scale projects that upgrades over time as storage systems do not fir the requirement of the projects and batteries required to change.

Challenges of Grid Integration

• The implementation of long duration energy storage is required in current grid infrastructure for proper functioning of the grid. These installations of energy storage require the modernized grid systems to handle mostly intermittent renewable energy sources and balance the supply with demand over a long duration.

Long Duration Energy Storage Market Segmental Analysis

Type Analysis

Based on type, the market is segmented into thermal, electrochemical, mechanical, chemical and others.

Thermal: Thermal energy storage includes the heating and cooling medium to use the energy when required. This type of storage can be used to balance the consumption between day and night. Thermal energy storage solutions include water or storage tanks of ice-slush, earth or bedrock accessed via boreholes and large bodies of underground water.

Electrochemical: Electrochemical energy storage (EES) is a process that converts chemical energy into electrical energy, and vice versa, using electron and ion transfer in electrodes. EES systems include batteries, supercapacitors, and fuel cells. This type energy storage have lower environmental impact as compared to other energy storage technologies.

Mechanical: Mechanical energy storage (MES) is a technology that stores energy in the form of kinetic energy, potential energy, or compression. It can be used to store energy when it's available in excess and release it when there's an energy shortfall. MES is a cost-effective alternative to battery storage that can store clean power for long durations.

Chemical: Chemical energy storage is a technology that uses reversible chemical reactions to store energy in chemical form. It's a key technology for renewable and hybrid energy systems, and can be used to add power to the grid, store excess power from the grid for later use , support grid power, transportation, and other large-scale energy needs, and enhance the flexibility of power generation systems.

Technology Analysis

Based on technology, the market is segmented into compressed air energy storage (CAES), liquid-air energy storage (LAES), liquid/cryogenic carbon dioxide energy storage (APHS), gravitational energy storage systems (GESS), others.

Compressed Air Energy Storage (CAES): CAES systems store energy by compressing air in underground reservoirs, such as salt caverns or depleted gas fields, and releasing it to generate electricity when needed. This technology provides large-scale, long-duration energy storage, with high capacity and durability. CAES is particularly useful for balancing intermittent renewable energy sources like wind and solar.

Liquid-Air Energy Storage (LAES): LAES systems store energy by cooling air to a liquid state at very low temperatures and then releasing it by expanding the air to drive turbines and generate electricity. LAES offers high energy density and long-duration storage capabilities without the need for specific geographical conditions, making it more flexible than CAES. It is suitable for grid-scale applications, particularly in regions with high renewable energy penetration.

Liquid/Cryogenic Carbon Dioxide Energy Storage (APHS): Advanced Pumped Heat Storage (APHS) with cryogenic carbon dioxide (COâ‚‚) uses low-temperature COâ‚‚ as a working fluid to store energy in liquid form, which is then converted back to electricity when needed. This emerging technology offers long-duration storage with a high energy density and is versatile across various scales.

Gravitational Energy Storage Systems (GESS): GESS stores energy by raising a mass (such as large weights or water) to a higher altitude, converting potential energy into electricity when the mass is released. This technology is well-suited for long-duration storage and offers a simple, mechanical solution for energy storage without relying on chemical processes.

Others: Other emerging long-duration energy storage technologies include hydrogen storage, supercapacitors, and innovative battery technologies beyond traditional electrochemical storage. Hydrogen energy storage, in particular, is gaining significant traction due to its potential for storing renewable energy over long periods and across different sectors, such as transportation and industry.

Application Analysis

Based on application, the market is segmented into Utility-scale energy storage, renewable energy integration, grid resilience and stability, industrial backup, others.

Utility-Scale Energy Storage: Utility-scale energy storage provides large-scale energy management solutions, ensuring efficient energy use and maintaining power supply balance across the grid. It plays a key role in addressing the intermittency of renewable energy sources by storing surplus power during off-peak hours and releasing it when demand spikes.

Renewable Energy Integration: The integration of renewable energy sources, such as solar and wind, is a primary application for long-duration energy storage. LDES systems store excess energy generated during periods of high renewable output and dispatch it when generation is low or demand is high. This enhances the reliability and availability of renewable power, promoting a smoother energy transition.

Grid Resilience and Stability: Long-duration energy storage contributes to grid resilience by providing backup power during outages or disruptions. This ensures a stable and reliable electricity supply. Long duration energy storage systems balance supply and demand over extended periods, helping prevent blackouts and manage peak loads.

Industrial Backup: In industrial settings, long-duration energy storage provides critical backup power to maintain operations during grid failures or energy shortages. Industries with continuous processes, such as manufacturing, mining, and oil and gas, require reliable power to avoid costly downtimes. LDES solutions offer long-term energy security and efficiency, making them essential for sectors dependent on uninterrupted energy supply.

Others: Other applications of long-duration energy storage include microgrids, commercial and residential energy storage, and transportation. Microgrids benefit from LDES by providing localized energy storage, enabling energy independence in remote areas. The commercial and residential sectors utilize LDES to manage energy costs and reduce dependence on grid power.

Long Duration Energy Storage Market Regional Analysis

The long duration energy storage market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

Why is Asia-Pacific experiencing rapid growth in long duration energy storage market?

The Asia-Pacific region is experiencing rapid industrialization and urbanization, leading to increased energy demand and growing interest in long-duration energy storage. Countries like China, India, and Japan are aggressively expanding their renewable energy capacity, particularly solar and wind, driving the need for storage solutions like GESS, LAES, and CAES. China, in particular, is investing heavily in pumped hydro storage and exploring gravitational and hydrogen-based storage systems to address grid stability challenges.

North America Long Duration Energy Storage Market Growth

In North America, the focus on the generation of clean energy storage is gaining popularity. The region is focusing on the diversion towards renewable energy sources for generation of electricity. Renewable such as solar panels, wind turbines and hydroelectric dams offers a better alternative to the non-renewable sources. This shifting preference along with the growing focus on the renewable energy generation is the key factor driving the growth of the long duration energy storage market across the region.

Europe Long Duration Energy Storage Market Trends

Europe is at the forefront of renewable energy adoption, particularly in countries like Germany, the UK, and Spain, which have ambitious energy transition targets. This has fueled the demand for long-duration energy storage solutions such as Liquid/Cryogenic Carbon Dioxide Energy Storage (APHS) and LAES. Europe’s dense grid infrastructure and renewable energy reliance are driving the development of flexible, long-duration storage to manage intermittent renewable power.

LAMEA Long Duration Energy Storage Market Trends

The LAMEA region is gradually adopting long-duration energy storage technologies as renewable energy projects, especially solar and wind, gain momentum. In Latin America, countries like Brazil and Chile are investing in CAES and thermal storage technologies to support their renewable energy grids. The Middle East, with its vast solar energy potential, is exploring thermal storage and hydrogen energy storage solutions as part of its long-term energy diversification plans.

Long Duration Energy Storage Market Top Companies

• Ambri
• Cellcube
• CMBlu Energy AGs
• Energy Vault, Inc.
• ESS, Inc.
• e-Zinc Inc
• Fluence
• Form Energy
• Highview Power
• Hydrostor
• Invinity Energy Systems
• Lockheed Martin Corporation
• Malta Inc.
• NestEra Energy
• Sonnen

New players such as Hydrostor and Peak Power Inc are leveraging advancements in technologies such as compressed air energy storage. This type of storage technology can storage energy in smaller spaces for longer periods. While dominating players such as Energy Vault, Inc. and ESS, Inc. stand out due to their extensive global energy storage systems infrastructure. Energy Vault's systems are cost-effective, with a lower cost per kilowatt-hour than other options. The company also encourage strategic partnerships in order to accelerate adoption of global energy storage providers of the company’s transformative technology.

CEO Statements

Malta Inc., Ramya Swaminathan, CEO

• "Linde is at the forefront of hydrogen energy solutions, leveraging our expertise to develop cutting-edge technologies and infrastructure. Our focus is on enhancing the efficiency and scalability of hydrogen storage systems to accelerate the transition to cleaner energy."

CellCube, Alexander Schoenfeldt, CEO

• "CellCube’s vanadium redox flow batteries are purpose-built for long-duration energy storage, offering unrivaled reliability, scalability, and sustainability. As the world shifts towards renewables, our focus is on ensuring grid stability and resiliency through innovative flow battery solutions that can store energy for extended durations.”

ESS, Inc., Eric Dresselhuys, CEO

• "ESS Inc. is committed to addressing the world’s long-duration energy storage needs with our iron flow battery technology. Unlike traditional lithium-based systems, our batteries provide long-lasting, sustainable energy storage without relying on scarce or toxic materials. We are driven by the need to provide reliable, safe, and environmentally friendly solutions that can meet the growing demands of renewable energy integration.”

Hydrostor, Curtis VanWalleghem, CEO

• "Hydrostor is leading the way in advanced compressed air energy storage (A-CAES) to address the critical need for long-duration, large-scale storage solutions. Our technology offers long-lasting, emission-free energy storage, enabling utilities to integrate more renewables into the grid and enhance system reliability.”

Recent Developments

Strategic partnerships and acquisitions highlight the rapid advancements and collaborative efforts in the long duration energy storage industry. industry players are involved in various aspects of long duration energy storage, including production, storage technologies, and fuel cells, and play a significant role in advancing the market. some notable examples of key developments in the long duration energy storage industry include:

• In September 2024, ESS Tech, Inc. (ESS), a leading manufacturer of long-duration energy storage systems (LDES) for commercial and utility-scale applications, today announced that its Australian partner, Energy Storage Industries Asia Pacific (ESI), has received an investment of AU$25 million (~US$17 million) from the Queensland Government and raised a further AU$40 million (~US$23 million) in private capital to accelerate the clean energy transition in Australia and Oceania.
• In October 2022, Ambri, a provider of long-duration energy storage systems, announced a memorandum of understanding to deliver a pilot system to Reliance Industries Limited. As the largest private-sector corporation in India and a multinational conglomerate, Reliance is considering enabling and establishing 100 GW of solar generation capacity and has announced setting up of giga scale battery manufacturing to support round the clock and firm power supported by reliable, clean, and affordable energy.
• In October 2023, Technology Group STRABAG Invests 100 Million Euros into Battery and Energy Storage Company CMBlu Energy. By joining forces with storage producer CMBlu Energy, STRABAG is planning to speed up the development of specific large energy storage projects through their support with construction and infrastructure.
• In April 2021, Highview Power, a global long duration energy storage solutions providing, has selected MAN Energy Solutions to provide its LAES turbomachinery solution to Highview Power for its CRYOBattery facility, a 50 MW liquid-air, energy-storage facility – with a minimum of 250MWh – located in Carrington Village, Greater Manchester (UK).

These developments underscore significant strides in advancing hydrogen infrastructure and technology, reflecting growing collaborations and strategic investments aimed at expanding the global hydrogen economy.

Market Segmentation

By Type 

• Thermal 
• Electrochemical 
• Mechanical 
• Chemical

By Technology

• Compressed Air Energy Storage (CAES)
• Liquid-Air Energy Storage (LAES)
• Liquid/Cryogenic Carbon Dioxide Energy Storage (APHS)
• Gravitational Energy Storage Systems (GESS)
• Others

By Application 

• Utility-Scale Energy Storage
• Renewable Energy Integration
• Grid Resilience and Stability
• Industrial Backup
• Others

By Region

• North America
• APAC
• Europe
• LAMEA