The US Battery Energy Storage System (BESS) market is expected to reach USD 7.02 billion by 2029, growing at a CAGR of 26.8% from 2024 to 2029. The increasing demand for BESS is driven by factors such as the need to integrate intermittent renewable energy sources like solar and wind into the grid, and the growing need to bolster grid resilience against extreme weather and potential disruptions. View detailed Table of Content here
The installation of large-scale energy storage systems in the US is projected to rise significantly throughout 2024, driven primarily by a few leading states. According to data from the Energy Information Administration (EIA) released in January 2024, US energy storage system deployment is expected to nearly double in 2024, with battery capacity forecast to increase drastically. The two states i.e. California and Texas have installed the highest number of energy storage systems.

• Lithium-ion battery segment to dominate the battery type segment of the market during the forecast period
• On-grid connection segment to dominate the BESS market during the forecast period
• Utility application segment to hold a substantial market share in the BESS Market

Lithium-ion batteries will lead the US BESS market with their higher energy density, efficiency, and falling prices, making them suitable for various applications, ranging from rooftop solar storage to utility-scale grid support. As of 2025, Li-ion technology represents the majority of new deployments of BESS in the United States, powered by advances in manufacturing scale such as Tesla’s Gigafactory production and a resilient supply chain that has lowered costs by almost 20% a year over the last decade.

The market is expected to be driven by the increasing mandates to integrate intermittent renewable energy sources like solar and wind into the grid and the growing need to bolster grid resilience against extreme weather and potential disruptions. The strong government incentives such as the Inflation Reduction Act, which offers significant tax credits and support to manufacturers, are further driving the rapid deployment of BESS solutions. Utility Application Segment
The utility application segment is expected to hold a substantial market share in the BESS market, driven by the growing electricity demand, renewable energy targets, and massive investments in grid modernization. Rising electricity prices, coupled with more frequent power outages caused by extreme weather, are driving the adoption of BESS among utility companies. Lithium-Ion Battery Segment
The lithium-ion battery segment is expected to dominate the battery type segment of the market during the forecast period, driven by the higher energy density, efficiency, and falling prices of lithium-ion batteries. Li-ion technology represents the majority of new deployments of BESS in the United States, powered by advances in manufacturing scale and a resilient supply chain. On-Grid Connection Segment
The on-grid connection segment is expected to dominate the BESS market during the forecast period, driven by the increasing demand for energy storage systems that can serve large-scale energy storage by storing excess electrical energy when there is high generation or low demand. Key Players
The report profiles key players in the US BESS companies, including Tesla, GE Vernova, Honeywell International Inc., Johnson Control, East Penn Manufacturing Company, Primus Power Solutions, The AES Corporation, KORE Power, Inc., and ESS Tech, Inc. These players have adopted various organic and inorganic growth strategies to strengthen their position in the market. About MarketsandMarkets
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The author of this report is Mr. Rohan Salgarkar, who has extensive experience in market research and consulting. He has worked with numerous clients across the globe and has a deep understanding of the US BESS market. Contact Information
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