According to China Energy Network, as the global penetration rate of new energy continues to rise, the core value of energy storage as a “stabilizer” and “regulator” for power systems has become increasingly prominent, driving explosive growth in market demand.

In the first three quarters of 2025, companies involved in energy storage delivered impressive performance, with energy storage operations becoming a key engine driving corporate revenue growth. Particularly in the second half of the year, overseas orders surged significantly, while product prices stabilized and showed signs of recovery. Industry prospects are universally optimistic, with the global energy storage market projected to grow at nearly 50% by 2026.

Industry experts note that once renewable energy reaches a certain proportion, energy storage becomes essential for achieving power balance. Conversely, expanding storage capacity creates new opportunities for renewable energy development.

Analysts predict that the energy storage market will maintain rapid growth in 2026, though demand structures will undergo significant shifts: AI data center (AIDC) storage systems will enter a peak deployment phase, large-scale storage demand will shift toward “4-hour and longer duration” applications, and the commercial and industrial (C&I) market is expected to demonstrate stronger growth resilience than residential storage.

Strong Energy Storage Demand

Driven by growing market demand, the performance of energy storage-related enterprises has also risen accordingly.

During the first three quarters of 2025, energy storage battery and system integration companies frequently reported order successes, with overseas markets performing particularly strongly.

Liu Yong, Secretary-General of the Energy Storage Application Branch of the China Association of Chemical and Physical Power Sources, recently revealed that in the first nine months of this year, Chinese companies secured 308 new overseas energy storage orders totaling 214.7 GWh, a year-on-year increase of 131.75%. Europe accounted for 48.08 GWh, Australia for 43.21 GWh, the Middle East for 40.06 GWh, India for 13.25 GWh, and Chile for 10.81 GWh. Europe and Australia each represented over one-fifth of the total.

The active order book for the 2025 energy storage market is driven by multiple segments including grid-side storage in China, the US, and Europe; AIDC (Advanced Industrial Data Centers) paired storage; and specific customer storage. For instance, China's sustained demand for paired storage with new energy projects and the maturation of the “standalone storage” model have kept grid-side storage tenders at high levels. The U.S. Inflation Reduction Act (IRA) with its 30% Investment Tax Credit (ITC) significantly enhanced project economics, while grid fluctuations and high electricity prices in Texas created substantial arbitrage opportunities for energy storage. In Europe, the high penetration of renewable energy creates urgent demand for grid-side storage to provide ancillary services like frequency regulation and peak shaving.

Reports indicate that driven by demand growth, energy storage cell prices saw a slight rebound in the third quarter. Analysis suggests robust domestic demand for energy storage cells, with leading cell manufacturers maintaining high production levels expected to persist until January-February 2026, keeping actual transaction prices elevated. Entering November, some manufacturers have shifted their quoted prices upward, with short-term transaction prices likely to continue rising modestly.

The upward trend in energy storage cell prices remains supply-demand driven; robust downstream demand could further push prices higher. Currently, upstream raw material costs have not significantly impacted cell pricing. Sungrow Power stated: “The recent tight supply of 314Ah cells was primarily driven by global energy storage demand growth, but overall industry capacity remains sufficient, with current supply conditions stable and healthy.”

Market Growth Likely to Continue

Currently, manufacturers remain broadly optimistic about the 2026 energy storage market. The sector is expected to sustain rapid growth in 2026, though demand patterns will undergo significant shifts.

First, AI and data center (AIDC) applications will transition from “explosive demand” to “scaled deployment.” 2025 marked the “demand launch year” for AIDC energy storage, while 2026 will be the “delivery peak year.” As AI hardware infrastructure continues to expand, supporting energy storage systems will enter a peak period of large-scale deployment.

Second, demand in the large-scale storage market will shift toward “4-hour and longer duration” systems. In 2026, orders for “4-hour systems” will significantly outpace those for “2-hour systems,” placing higher demands on enterprises' system integration capabilities and cost control.

Third, the C&I market will accelerate its penetration, particularly in China, the United States, and Africa (in diesel generator replacement scenarios), where the C&I market will demonstrate stronger growth resilience than residential storage.

Other companies also anticipate that the global energy storage market will maintain rapid growth in 2026, with an expansion rate of 40%–50%. This outlook is driven by:

First, the continuous increase in renewable energy storage requirements;

Second, the extended operational lifespans of certain overseas power grids, creating urgent storage needs for grid security and stability;

Third, accelerated demand in the consumer-side market spurred by policies such as Europe's dynamic electricity pricing initiatives.

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