2026: A landmark year for battery energy storage

The battery energy storage market continues its rapid growth, reshaping power systems worldwide. After a historic 2025, when global BESS capacity surpassed 250 GW and overtook pumped hydropower, momentum is set to accelerate in 2026. Key markets are expanding, emerging regions are stepping into the spotlight, and battery storage is increasingly replacing gas generation.

What to expect in the market in 2026?

• Record growth: Global BESS additions are projected to exceed 130 GW/350 GWh, led by China, the US, UK, Australia and Germany.
• Emerging markets rising: Italy, Saudi Arabia, Chile, Eastern Europe and the Middle East are gaining importance.
• Battery storage replacing gas: Regions including New South Wales, Queensland, and California will see growing battery generation.
• Costs and economics: While cost declines slow, BESS remains economically viable, with longer lifetimes and attractive solar-plus-BESS projects.
• Investor opportunities: Energy arbitrage and ancillary service revenues continue to attract interest across mature and emerging markets.

Access the whitepaper to get the Energy Storage Outlook and detailed insights into 2026 market trends.