Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Energy Storage as a Service Market size was USD 1.8 billion in 2024 and is estimated to reach USD 7.1 billion by the end of 2037, expanding at a CAGR of 11.2% during the forecast period, i.e., 2025-2037. In 2025, the industry size of energy storage as a service is assessed at USD 2 billion.
The green energy transformation driving a push towards decarbonization is necessitating companies and governments to invest in clean energy sources and storage systems. The integration of energy storage as a service (ESaaS) with solar, wind, and other renewable sources is offering energy independence to customers and reducing carbon footprints. The European Union (EU) states that almost all primary energy production in its region is from renewables. For instance, Moldova and Georgia account for 99.1 % and 91.4 % of shares, respectively, in renewable power production. In 2022, renewables captured 43.3% of the total energy generation, followed by nuclear with 27.6% in Europe.
According to the study by the International Energy Agency (IEA), clean energy production is set to reach 17,000 TWh by 2030, a hike of nearly 90.0% from 2023. By the end of 2025, electricity generation from renewables is expected to overtake coal-fired generation. Whereas, in renewables, solar PV is set to dominate energy generation by 2029, and wind-based to surpass hydropower by 2030. The lucrative race in clean energy mix, coupled with the net-zero emission goals, is driving investments in renewables and is directly set to boost the revenues of ESaaS companies in the coming years.
Energy Storage as a Service Market: Growth Drivers and Challenges
Growth Drivers
- Grid expansion and upgradation: Grid modernization to accommodate renewable energy and advanced technologies drives a high need for storage systems to stabilize the energy supply and demand. ESaaS enables utilities and large-scale industries to participate in demand response and improve their grid flexibility and operational efficiency, creating a lucrative environment for key market players. Modern and digital grids play an important role in safeguarding electricity security during clean energy transitions, says the IEA. The same source also estimates that out of 3,000 GW of renewable power projects, around 1,500 GW are in the developing stages and waiting for grid connections. To meet the climate commitments, the investments in grid modernization and digitalization need to double by 2030.
- Transformations of EVs for energy storage and supply: The booming automotive market, due to increasing popularity and adoption of electric vehicles, is set to fuel the revenues of energy storage service providers. The introduction of vehicle-to-grid (V2G) technology enables to transformation of EVs into energy storage systems. ESaaS vital role in energy optimization and grid integration by offering modern infrastructure and management solutions is set to drive the overall market growth in the coming years. According to an analysis by Clean Energy Works, the U.S., with nearly 2.1 million battery electric vehicles, offers 126 gigawatt-hours of storage capacity, offering lucrative opportunities for ESaaS companies. Furthermore, the global automotive V2X (vehicle-to-everything) market is projected to increase from USD 3.0 billion in 2025 to USD 287.6 billion by 2037.
Challenges
- High maintenance and replacement costs: The high upfront costs associated with the maintenance, monitoring, and replacement of parts act as a major challenge for the energy storage as a service market growth. The small-scale end users of customers with limited budgets often hesitate to invest in energy storage solutions owing premium costs. This hampers the pockets of service providers in terms of profitability and pricing flexibility. Continuous innovations aimed at the cost-effectiveness of products and their components are poised to uplift the service demand in the coming years.
- Technological incompatibilities lead to recall and free services: The scaling of energy storage systems at a large scale creates an efficient maintenance challenge and decreases the profitability of service providers. Issues with battery degradation and technological incompatibilities lead to recalls, hampering the goodwill of the manufacturers. According to the U.S. Consumer Product Safety Commission, in January 2022, Eguana Technologies was directed to recall Evolve Home Energy Storage Systems with LG Batteries due to a fire hazard, which led to free services to all users employing these systems. Thus, recalls also directly hamper the service profit shares of the companies.
Energy Storage as a Service Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
11.2% |
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Base Year Market Size (2024) |
USD 1.8 billion |
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Forecast Year Market Size (2037) |
USD 7.1 billion |
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Regional Scope |
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Energy Storage as a Service Segmentation
End user (Utility, Industrial, Residential, & Commercial)
Industrial, residential & commercial segment is set to hold over 72.2% energy storage as a service market share by the end of 2037. Industrial and commercial structures require a constant flow of power to carry out their operational workflow. ESaaS providers offer tailored storage solutions for industrial and commercial clients with power backup and reduced energy costs through charge management solutions. The residential structures are also investing heavily in energy storage solutions owing to supportive government policies in the form of tax credits, subsidies, and schemes, which are directly opening profitable doors for service providers. The rise in the use of energy storage solutions in residential, commercial, and industrial structures is poised to propel the revenue shares of service providers.
Service (Bulk Energy Services, Ancillary Services, Transmission Infrastructure Services, Distribution Infrastructure Services, Customer Energy Management Services, Others)
Customer energy management services segment is set to capture around 33.5% energy storage as a service market share by the end of 2037. Customer energy management services (CEM) offer strategies that aid in shifting energy consumption away from peak demand periods, mitigate costs, and improve grid stability, which are majorly backing their demand. The increasing popularity of renewable energy systems, owing to long-term benefits, is fueling the need for efficient CEM providers. Continuous innovation and integration of artificial intelligence and behavioral science are expected to enhance the capabilities of customer energy management services in the coming years.
Our in-depth analysis of the global energy storage as a service market includes the following segments:
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Service |
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End user |
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Contract |
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Customize this ReportEnergy Storage as a Service Industry - Regional Scope
North America Market Forecast
By 2037, North America energy storage as a service market is set to dominate over 42.3% revenue share. The supportive government policies and fueling public-private investments in renewables are opening lucrative doors for ESaaS providers. The growing adoption of electric vehicles and the increasing popularity of smart home ecosystems are fueling the sales of ESaaS companies. Furthermore, the strict environmental regulations and net-zero emission goals are increasing the adoption of renewable technologies in the U.S. and Canada, and ultimately driving the demand for after-sales services.
The government’s initiatives in the form of schemes and tax benefits are propelling the sales of energy storage solutions in the U.S. The U.S. Energy Information Administration (EIA) estimates that the country’s battery storage capacities almost doubled in 2024, a 89.0% rise from 2021. Texas and California are leading the energy storage system sales owing to high public investments. The installed battery storage capacity in these states amounted to 3.2 GW and 7.3 GW, respectively. Such booming installations are directly increasing the demand for energy management services.
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Top 10 U.S. States with the Most Installed Battery Capacity Megawatts |
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California |
7,302 |
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Texas |
3,167 |
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Arizona |
803 |
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Florida |
561 |
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Massachusetts |
258 |
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Nevada |
249 |
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Colorado |
240 |
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New Mexico |
238 |
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New York |
194 |
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Hawaii |
175 |
Source: U.S. IEA
Canada is a leader in renewable capacity installations owing to long-term government support for non-fossil fuel electricity. Tax benefits are fueling the adoption of renewable sources in the residential and commercial segments. The cold weather of the country drives high energy demand, and to mitigate the premium fossil fuel electricity costs, Canadians focus on installations of energy storage solutions, further opening high chances for customer energy management service providers to grow. The smart home trend and EV adoptions are also backing the overall ESaaS market growth.
Asia Pacific Market Statistics
The Asia Pacific energy storage as a service market is projected to expand at a robust pace during the study period. The swift rise in industrial and urban activities is fueling electricity demand, leading to energy transitions. With the growing importance of clean energy and long-term benefits, the industrial and residential sectors are investing heavily in renewable energy sources. The investments are also backed by government schemes, which directly enable growth in the service segment. Dominance of China, India, Japan, and South Korea in the renewable energy mix is expected to uplift Asia Pacific's position in the competitive landscape in the coming years.
China, leading the renewable investments in Asia Pacific, is driving high demand for clean energy management services. Investments coupled with innovations are augmenting the adoption of energy storage solutions in the country. The 14th Five-Year Plan, aimed at net-zero carbon emissions, is opening opportunities for ESaaS providers. The huge industrial base is backing the renewable installation capacities and pushing the energy storage battery trade activities. For instance, a report by the Ember Energy Organization revealed that the solar exports of China captured 80.0% of the global revenue share in 2022.
India holds the fourth position in renewable energy capacity installation due to a positive government approach in the form of schemes, policies, tax benefits, and incentives. The increasing public awareness of clean energy at large is set to significant drive the ESaaS sales growth in the years ahead. The India Brand Equity Foundation (IBEF) underscores that in the interim budget of 2024-2025, around USD 1.02 billion was allocated for solar power grid infrastructure development. Considering the long-term benefits, the government is expanding its renewable investment plans. In February 2024, the Ministry of New and Renewable Energy unveiled that the Solar Energy Corporation of India Limited (SECI) contracted the largest BESS of the country, which stores energy using solar.
Companies Dominating the Energy Storage as a Service Landscape
- Hydrostor, Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Veolia Environnement S.A.
- Siemens Energy
- Honeywell International Inc.
- ENGIE Storage Services NA LLC
- NRStor Inc.
- YSG Solar
- Customized Energy Solutions Inc.
- Johnson Controls
- Suntuity Renewables
- Fluence Energy Storage Company
- Ambri Energy Storage Company
- Stem, Inc.
- Swell Energy
- Sunrun
- Sonnen
- Generac Power Systems,
- Eos Energy Storage
- Powin Energy
- NantEnergy
Energy storage as a service market is an opportunistic marketplace for both new and existing companies, owing to positive public-private investments. The leading companies are employing several organic and inorganic strategies such as enhanced service options, digital marketing, collaborations & partnerships, mergers & acquisitions, and global expansions. Strategic collaborations with product manufacturers are set to offer lucrative gains to the third-party service providers. Partnerships with other players are expected to boost their market reach and open new revenue streams. Digital marketing approaches are also emerging as a profitable means of reaching customers.
Some of the key players include are energy storage as a service market:
In the News
- In November 2024, Hydrostor, Inc. and the New South Wales (NSW) Government entered into a Crown Lands agreement to start the construction of the Silver City Energy Storage Centre. This collaboration aims to provide crucial backup power to Broken Hill and offer energy stability in the region by enabling a mini-grid system.
- In November 2024, Veolia Environnement S.A. announced that it became the first local producer of energy from waste in Corrèze, France. The plant is set to supply electricity to around 3,000 homes and 6,500 households with district heating.
Author Credits: Dhruv Bhatia
- Report ID: 7422
- Published Date: Apr 01, 2025
- Report Format: PDF, PPT
