APAC Energy Storage Market Research Report By Technology (Lithium-ion Batteries, Flow Batteries, Lead-Acid Batteries, Sodium-Sulfur Batteries), By End Use (Residential, Commercial, Utility, Transportation), By Application (Grid Storage, Renewable Energy Integration, Backup Power, Electric Vehicle Charging), By Energy Capacity (Small Scale, Medium Scale, Large Scale), and By Regional (China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC)- Forecast to 2035

APAC Energy Storage Market Overview

As per MRFR analysis, the APAC Energy Storage Market Size was estimated at 4.78 (USD Billion) in 2023.The APAC Energy Storage Market is expected to grow from 5.29(USD Billion) in 2024 to 16 (USD Billion) by 2035. The APAC Energy Storage Market CAGR (growth rate) is expected to be around 10.581% during the forecast period (2025 - 2035).

Key APAC Energy Storage Market Trends Highlighted

The growing use of renewable energy sources, especially solar and wind, is causing a major shift in the APAC energy storage market. In order to improve grid stability and include intermittent renewable sources, governments throughout the area are putting supportive laws and regulations into place to encourage energy storage options.

The demand for energy security, particularly in nations that rely significantly on imported fossil fuels, complements this drive. The declining costs of battery technology, especially lithium-ion batteries, which are becoming more and more practical for both home and business use, are important market drivers.

Energy storage is a vital instrument in accomplishing sustainability objectives as the area concentrates on lowering carbon emissions. This market offers a plethora of chances to investigate. Investments in energy storage systems that facilitate vehicle-to-grid technology are being spurred by the growth of electric cars (EVs), which will increase the overall resilience of energy infrastructure.

Large-scale battery storage projects are also becoming more popular as a way to control peak demand and facilitate the growth of microgrids in isolated locations. Furthermore, there is a great chance for contemporary energy storage solutions to increase efficiency and dependability because to the outdated power infrastructure in some APAC countries.

In order to develop in the energy storage space, digital businesses and energy firms are increasingly collaborating, according to recent trends. Energy storage systems are being combined with smart grid technology to improve user experience and maximize performance.

Furthermore, in order to stay ahead of the competition, nations like China, Japan, and South Korea are concentrating on research and development, seeing energy storage as a critical component of their national energy policies. Therefore, as these factors change, the APAC energy storage market is expected to expand.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

APAC Energy Storage Market Drivers

Growing Demand for Renewable Energy Sources

The APAC Energy Storage Market is experiencing a significant upsurge due to the increasing demand for renewable energy sources across the region. Nations like China, India, and Japan are heavily investing in renewable energy technologies, which are expected to form a substantial portion of their energy mix.

According to the International Renewable Energy Agency (IRENA), renewables accounted for 40% of the total installed capacity in the Asia-Pacific region in 2020, a figure that is likely to grow as countries strive to meet their commitments to international climate agreements.

Established organizations such as the Asian Development Bank (ADB) have emphasized the importance of energy storage solutions in stabilizing the grid and effectively integrating variable renewable energy sources.

This trend indicates that the APAC Energy Storage Market will continue to grow, as energy storage systems are essential for managing peak loads and ensuring a reliable energy supply during intermittent renewable generation.

Government Policies and Incentives

The APAC Energy Storage Market is strongly influenced by various government policies and incentives aimed at promoting energy storage technologies. For instance, countries like South Korea and Japan have implemented frameworks to support the deployment of energy storage systems, providing tax incentives and subsidies for both manufacturers and consumers.

In 2020, South Korea announced a plan to invest USD 1.5 billion in energy storage projects as part of its Green New Deal, significantly driving demand in the market. This alignment between government support and industry growth showcases how policies can bolster the APAC Energy Storage Market by incentivizing technological advancements and facilitating investment in energy solutions.

Technological Advancements in Energy Storage Systems

Continual advancements in energy storage technologies, particularly in battery systems, have been instrumental in propelling the APAC Energy Storage Market. Breakthroughs in lithium-ion technology, solid-state batteries, and flow batteries have led to improved efficiency, longer life cycles, and reduced costs, making energy storage more viable.

In 2021, a report by the Global Energy Storage Alliance highlighted that costs for utility-scale batteries fell by more than 60% from 2015 to 2020.

Prominent companies, such as Samsung SDI and LG Chem, are heavily investing in Research and Development (R&D) to innovate and enhance battery technologies. As these advancements continue, the APAC Energy Storage Market can expect robust growth, driven by falling prices and better performance in storage solutions.

Rising Urbanization and Electrification

Rapid urbanization and the increasing demand for electrification in developing countries in the Asia-Pacific region are major drivers for the APAC Energy Storage Market. According to the United Nations, by 2050, around 66% of the global population is expected to reside in urban areas, with a significant proportion located in the APAC region.

This surge in urban populations leads to higher electricity demand, necessitating effective energy storage solutions to ensure a stable and reliable power supply.

For example, India is implementing various initiatives to improve electricity access, such as the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, which aims to provide electricity to all households by 2022. Government initiatives and rising societal needs are expected to propel the demand for energy storage systems, reinforcing the growth of the APAC Energy Storage Market.

APAC Energy Storage Market Segment Insights

Energy Storage Market Technology Insights

The APAC Energy Storage Market, specifically in the Technology segment, showcases significant growth prospects underpinned by the rapid adoption of advanced energy storage solutions. As renewable energy sources gain traction in the region, the demand for efficient energy storage technologies has surged.

Among these, Lithium-ion Batteries stand out due to their high energy density, longer life cycles, and decreasing costs, making them essential for applications in electric vehicles and renewable energy systems. Flow Batteries are increasingly recognized for their scalability and long discharge times, which makes them suitable for large-scale applications like grid storage.

In contrast, Lead-Acid Batteries continue to play a crucial role in various applications owing to their established technology, cost-effectiveness, and ubiquity, particularly in backup power and renewable energy integration.

Sodium-sulfur batteries are gaining attention for their high energy capacity and ability to operate at elevated temperatures, positioning them as a reliable option for utility-scale applications. The Asian Pacific region's focus on reducing carbon emissions and enhancing energy efficiency initiatives fosters a conducive environment for these technologies' growth.

Additionally, supportive government policies and incentives further propel the adoption of various energy storage solutions, which is critical for managing the intermittent nature of renewable energy outputs.

Overall, the Technology segment within the APAC Energy Storage Market is a multifaceted landscape that reflects the ongoing transformation towards sustainable energy solutions and is defined by varying technologies addressing distinct market needs.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Energy Storage Market End-Use Insights

The end-user segment of the APAC Energy Storage Market plays a crucial role in addressing the region's growing energy demands and sustainability goals. This segment is characterized by its diverse applications, including Residential, Commercial, Utility, and Transportation.

The Residential sector emphasizes energy independence and renewable integration, showcasing a rising trend in rooftop solar installations combined with home storage solutions. The Commercial sector, driven by businesses seeking to enhance energy efficiency and reliability, reflects significant investments in energy management systems.

The Utility segment remains central to the grid's stability, facilitating the transition to cleaner energy sources by integrating large-scale energy storage solutions for load shifting and peak shaving. Lastly, the Transportation sector is increasingly focusing on electric vehicles, which rely heavily on energy storage technologies for performance and range while promoting greener alternatives to traditional fuels.

Overall, the APAC Energy Storage Market segmentation indicates a multifaceted approach to energy storage, with each area expanding significantly due to technological advancements and regulatory support aimed at reducing carbon emissions and enhancing energy security in the region.

Energy Storage Market Application Insights

The Application segment of the APAC Energy Storage Market is witnessing substantial growth due to the increasing demand for reliable and efficient energy solutions. Within this segment, Grid Storage plays a crucial role in stabilizing the electricity supply and enhancing the resilience of power grids, which is vital for countries in the region as they modernize their energy infrastructure.

Renewable Energy Integration is gaining momentum as governments are pushing for greener energy initiatives, allowing for smoother incorporation of solar and wind energy. Backup Power systems are particularly important in urban areas prone to outages, ensuring that critical services remain operational during power disruptions.

Electric Vehicle Charging infrastructure is also expanding, driven by the rising adoption of electric vehicles, aligning with sustainability goals set by various APAC countries.

Overall, the trends in the APAC Energy Storage Market highlight a shift towards more sustainable and innovative energy practices, fostering growth across all application areas and reflecting a commitment to addressing both environmental and energy security challenges in the region.

Enhanced policies and investments in technology are driving the significant demand in this sector, providing substantial opportunities for market players.

Energy Storage Market Energy Capacity Insights

The Energy Capacity segment of the APAC Energy Storage Market is integral to ensuring energy reliability and sustainability in the region. The APAC region has witnessed significant growth in energy storage solutions, driven by increasing renewable energy deployment, particularly solar and wind resources.

Small Scale energy storage primarily caters to residential and localized applications, providing essential backup power and enabling households to capitalize on renewable energy generation. Conversely, Medium Scale energy storage solutions are crucial for commercial entities and municipalities, offering greater flexibility to manage peak loads and enhance energy efficiency.

Large Scale energy storage is becoming increasingly important, particularly for grid stability and large utilities, as it helps to mitigate fluctuations from renewable sources, supporting national energy security.

The ongoing government initiatives promoting clean energy, coupled with technological advancements, position the APAC Energy Storage Market for substantial growth, highlighting the importance of diverse energy capacity solutions across various applications to meet the rising energy demands efficiently.

As the industry evolves, innovation in energy storage technologies is expected to enhance overall market performance, providing significant opportunities for stakeholders in this dynamic sector.

Energy Storage Market Regional Insights

The APAC Energy Storage Market is witnessing significant growth across its regional landscape, driven by increasing energy demands and the transition towards renewable energy sources. China stands out as a dominant player, heavily investing in energy storage technologies to support its ambitious sustainability goals.

India is rapidly expanding its market share, fueled by government initiatives promoting clean energy and the modernization of its electrical infrastructure. Japan, with its focus on energy security post-Fukushima, continues to innovate in battery technology and energy management systems.

South Korea is also making strides, leveraging its technological expertise and strategic policies aimed at boosting energy efficiency. Meanwhile, Malaysia, Thailand, and Indonesia are emerging players in the energy storage field, focusing on diversifying their energy portfolios and enhancing grid resilience.

The Rest of APAC region, comprising various smaller economies, is gradually adopting energy storage solutions to meet local requirements and reduce reliance on fossil fuels. Overall, the regional market is characterized by a blend of established and developing economies, all navigating the challenges and opportunities presented by the evolving energy landscape.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

APAC Energy Storage Market Key Players and Competitive Insights

The APAC Energy Storage Market has been experiencing notable growth, driven by an increased demand for renewable energy sources, the need for grid stability, and a shift towards electric mobility. As countries in this region are prioritizing energy security and sustainability, various players are entering the market with innovative solutions.

Competitive insights within this landscape highlight that companies are increasingly focusing on advanced technologies to enhance energy storage systems, including lithium-ion batteries, flow batteries, and compressed air energy storage.

The market is characterized by a blend of established firms and emerging startups, all vying for a share of the expanding energy storage sector, which is necessary for achieving the energy transition goals set by various governments and private sectors in the Asia-Pacific.

Focusing on Hitachi within the APAC Energy Storage Market, the company has made significant strides by leveraging its extensive expertise in electrical equipment and systems. Hitachi emphasizes innovation and technology development, allowing it to create energy storage solutions that cater to various sectors, including utilities and industrial applications.

One of Hitachi's key strengths in this market is its ability to integrate advanced information and communication technology with energy storage systems, leading to enhanced efficiency and performance.

The company’s presence in several APAC countries is a testament to its commitment and capability to support regional energy initiatives. Furthermore, Hitachi’s strategic partnerships and collaborations with local entities bolster its market positioning, providing access to localized solutions that meet specific regional needs effectively.

Exide Industries has established itself as a prominent player in the APAC Energy Storage Market, particularly due to its wide array of battery solutions catering to various applications. The company’s portfolio comprises lead-acid and advanced lead-carbon batteries, which are instrumental for both stationary and mobile energy storage solutions.

Exide’s strengths lie in its significant manufacturing capabilities and well-developed distribution network across the region, enabling it to respond quickly to market demands. The company is also involved in research and development, consistently innovating its products to secure a competitive edge.

Moreover, Exide Industries has been active in several mergers and acquisitions, which have enhanced its market footprint and expanded its technological capabilities, ensuring that it can cater to the evolving needs of the energy storage landscape in the APAC region effectively.

Key Companies in the APAC Energy Storage Market Include:

• Hitachi


• Exide Industries


• CATL


• Fraunhofer UMSICHT


• BYD


• Panasonic


• Samsung SDI


• Toshiba


• Sunverge


• Eguana Technologies


• EnerSys


• Saft


• LG Energy Solution


• Mitsubishi Electric


• A123 Systems

APAC Energy Storage Market Developments

The APAC Energy Storage Market is witnessing significant developments, with companies like CATL, BYD, and LG Energy Solution expanding their production capabilities to meet burgeoning demand. Recently, in November 2023, Toshiba announced a strategic collaboration with several local governments to deploy energy storage systems aimed at enhancing grid stability.

Meanwhile, Hitachi is progressing with its energy management solutions aimed at promoting renewable integration, recently unveiling new technologies in October 2023. In terms of acquisitions, Exide Industries completed the acquisition of a regional battery manufacturer to fortify its market presence and expand product offerings in September 2023.

Growth in market valuation has been notable; for instance, Mitsubishi Electric reported a 25% increase in its energy storage revenues year-on-year due to heightened investments in clean energy initiatives.

Over the past two years, the APAC region has seen a surge in government incentives promoting energy storage technologies, notably Australia's increased funding for battery storage projects since January 2022. This momentum reflects the region's commitment to transitioning towards sustainable energy solutions while enhancing energy security.

APAC Energy Storage Market Segmentation Insights

Energy Storage Market Technology Outlook

• Lithium-ion Batteries


• Flow Batteries


• Lead-Acid Batteries


• Sodium-Sulfur Batteries

Energy Storage Market End-Use Outlook

• Residential


• Commercial


• Utility


• Transportation

Energy Storage Market Application Outlook

• Grid Storage


• Renewable Energy Integration


• Backup Power


• Electric Vehicle Charging

Energy Storage Market Energy Capacity Outlook

• Small Scale


• Medium Scale


• Large Scale

Energy Storage Market Regional Outlook

• China


• India


• Japan


• South Korea


• Malaysia


• Thailand


• Indonesia


• Rest of APAC

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	4.78(USD Billion)
MARKET SIZE 2024	5.29(USD Billion)
MARKET SIZE 2035	16.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	10.581% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Hitachi, Exide Industries, CATL, Fraunhofer UMSICHT, BYD, Panasonic, Samsung SDI, Toshiba, Sunverge, Eguana Technologies, EnerSys, Saft, LG Energy Solution, Mitsubishi Electric, A123 Systems
SEGMENTS COVERED	Technology, End Use, Application, Energy Capacity, Regional
KEY MARKET OPPORTUNITIES	Increased renewable energy integration, Government incentives and subsidies, Growing electric vehicle adoption, Rising demand for grid stability, Energy storage for industrial applications
KEY MARKET DYNAMICS	Increased renewable energy adoption, Government incentives and subsidies, Technological advancements in batteries, Growing demand for grid stability, Rising energy storage investments
COUNTRIES COVERED	China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC