Global installed battery energy storage capacity (BESS) is projected to increase sixfold between 2025 and 2030, growing at a compound annual growth rate of 42%, driven by rising electricity demand from electrification, industry and AI-powered data centers alongside the expanding share of wind and solar generation, according to a report by market intelligence firm GlobalData.

China and the U.S. accounted for a combined 74.6% of global BESS capacity at the end of 2025, supported by regulatory frameworks, large-scale utility procurement and clean energy mandates. The two countries are expected to remain the dominant markets through 2030, according to the report.

The report, Strategic Intelligence: Batteries in Power (2026), also highlighted a shift toward four-hour battery storage systems as the industry standard, replacing two-hour designs.

Higher shares of solar and wind create longer daily mismatches between generation and demand, with utilities and regulators increasingly treating four-hour storage as the minimum requirement for capacity credit and resource adequacy, the report said.

Co-located hybrid projects, particularly solar-plus-storage facilities, are gaining traction as developers seek to reduce costs by sharing sites and grid connections. Such projects allow excess solar generation to be stored and delivered during higher-demand periods without exceeding grid interconnection limits.

Battery storage is also expected to play a larger role in supporting data centers beyond traditional uninterruptible power supply functions, helping manage power between the grid and IT equipment, respond to voltage and frequency fluctuations, reduce peak demand charges and support expansion in areas with limited grid capacity.

Energy shifting has become the primary value proposition for battery storage, reducing renewable curtailment, easing network congestion and lowering reliance on peaking generation. Declining costs and the ability to monetize stacked revenue streams, supported by government mandates, will keep energy shifting as the principal catalyst for deployment, concluded the report.