Global energy storage capacity will surpass 1 TW/3 TWh by 2033

Homeowners eagerly await prices to decline for home battery systems.

The global energy storage sector is expanding rapidly, driven by the increasing demand for clean, firm capacity and the significant drop in battery storage prices. Despite this rapid growth, analysts believe the industry is still in its early stages, with expectations of exponential growth in the coming years.

According to recent forecasts by research and consulting firm Wood Mackenzie, the global energy storage market (excluding pumped hydro) is projected to reach 159 GW/358 GWh by the end of 2024.

Looking further ahead, an additional 926 GW/2,789 GWh is expected to be added between 2024 and 2033, representing a 636% increase, according to Wood Mackenzie’s Q2 global energy storage market outlook update. This positions energy storage as one of the fastest-growing markets in the power industry, especially as renewable integration challenges intensify.

Anna Darmani, principal analyst for energy storage at Wood Mackenzie claims that global energy storage deployment in 2023 saw record-breaking growth of 162% compared to 2022, with 45 GW/100 GWh installed. While this growth is impressive, she says, it is just the beginning for a market that will reach multiple terawatts, driven by policy support such as tax exemptions and capacity and hybrid auctions accelerating storage buildout across all regions.

China continues to lead the world in energy storage deployment, fueled by its booming solar market, with an average of 42 GW/120 GWh annual capacity additions forecasted over the next decade.