Report Details:
15 Companies Covered
100 Pages
Market Research Future (MRFR) has published a cooked research report on the “Europe and South America Energy Storage Market” that contains the information from 2019 to 2035.
The Energy Storage market is estimated to register a CAGR of 15.7% during the forecast period of 2025 to 2035.
MRFR recognizes the following companies as the key players in the Europe and South America Energy Storage Market— ABB, Siemens, BYD Company Ltd, Tesla Energy, SMA Solar, Varta AG, Eaton, Wärtsilä, Sungrow, Battlink, LG Energy Solution, Fluence, Saft (TotalEnergies), Northvolt, Leclanché.
Europe and South America Energy Storage Market Highlights
The Europe and South America Energy Storage Market is accounted for to register a CAGR of 15.7% during the forecast period and is estimated to reach USD 43,940.5 million by 2035.
The sharp decline in lithium-ion battery pack prices reaching a record low of $115 per kilowatt-hour in 2024, as reported by BloombergNEF has substantially strengthened the business case for grid-scale energy storage across Europe and South America. This 20% year-on-year price drop, the largest since 2017, was primarily driven by a global oversupply of battery cells, declining input material costs, and broader adoption of lithium-iron-phosphate (LFP) chemistries. With 3.1 TWh of battery-cell manufacturing capacity already commissioned globally more than 2.5 times the annual demand the oversupplied market is forcing prices down and enabling utilities and IPPs (independent power producers) to consider battery energy storage systems (BESS) as a mainstream grid asset. In Europe, this price trajectory has directly impacted the economic viability of energy storage in frequency regulation markets, peak shaving, and renewable firming especially in countries like the UK, Germany, and Spain, where renewable penetration regularly challenges grid stability.
In South America, where cost sensitivity has traditionally slowed grid-scale energy storage deployments, this price collapse presents a historic opportunity. Nations such as Chile, Brazil, and Argentina can now integrate storage with large solar and wind installations without heavy reliance on subsidies. In Chile’s Atacama Desert or Brazil’s northeast wind corridor, storage can prevent renewable curtailment and provide reliable backup during low generation windows. Previously, BESS installations in the region were economically justifiable only under pilot programs or donor-backed schemes. Now, with system costs dropping (including inverters and balance-of-system components), developers can present viable business cases with faster ROIs. Additionally, with stationary storage demand accelerating and EV battery growth plateauing, manufacturers are turning their attention to utility-scale projects driving innovation, quality, and competition in favor of buyers in both regions.
The $115/kWh global average battery price also redefines the economics of behind-the-meter (BTM) storage, a segment witnessing tremendous growth in Europe and beginning to gain traction in South America. At this price point, residential and commercial storage systems especially those coupled with rooftop solar are becoming accessible to mass-market consumers. In Germany, where retail electricity prices remain high (above €0.30/kWh), residential PV-plus-storage systems now achieve payback periods under 7 years, spurring demand. The affordability of lithium-iron-phosphate (LFP) chemistry, with its longer life cycle and lower fire risk, further reduces long-term ownership costs for households and small businesses. Governments in countries like Italy and Austria are also offering tax deductions or rebates to accelerate adoption, amplifying the price impact. In the UK, home energy storage systems have surged by over 80% year-on-year, partly due to volatile electricity tariffs and increased awareness of grid reliability issues.
In South America, where residential solar growth is strong (particularly in Brazil, which surpassed 2.5 million distributed solar systems in 2024), falling battery prices open the door to scalable solar-plus-storage adoption. Previously, residential batteries were largely unaffordable or limited to premium users. Now, PAYG (Pay-As-You-Go) solar models are beginning to include storage in their bundles, targeting middle-income and off-grid customers. Moreover, for commercial and industrial users, battery storage is proving essential for energy cost management, especially in countries where demand charges and power outages are common. Mining companies in Chile and Peru are beginning to invest in modular BESS to complement renewable microgrids, while Argentine agribusinesses are exploring containerized storage for irrigation and processing equipment. As the cost of storage declines, distributed systems become a cost-effective tool not just for resilience and autonomy, but also for decarbonization across rural and urban settings alike.
Segment Analysis
The Europe and South America Energy Storage Market has been segmented based on Technology, Type, End-User and Region
The Europe and South America Energy Storage Market segmentation, based on Technology has been segmented into Pumped Hydro Storage, Battery Energy Storage, Compressed Air Energy Storage, Flywheel Energy Storage and Others. Among these, the Battery Energy Storage is projected to dominate the Europe and South America Energy Storage Market revenue through the projected period. Based on Type it has been segmented into Mechanical, Thermal, Electro-Chemical and Chemical. Electro-Chemical is projected to dominate the Europe and South America Energy Storage Market revenue through the projected period.
The Europe and South America Energy Storage Market segmentation, based on End-User has been segmented into Utility, Commercial & Industrial and Residential. Among these, the Utility Energy Storage is projected to dominate the Europe and South America Energy Storage Market revenue through the projected period.
Region Analysis
By Region, the Energy Storage market is segmented into Europe and South America. Europe Energy Storage market holds the considerable market share and is also forecasted to hold the largest share during the forecast period.
Key Findings of the Study
- The Europe and South America Energy Storage Market is expected to reach 43,940.5 million by 2035, at a CAGR of 15.7% during the forecast period.
- Europe accounted for the fastest-growing market.
- Based on Technology, the Battery Energy Storage segment was attributed to holding the largest market in 2024.
- Based on Type, the Electro-Chemical segment was attributed to holding the largest market in 2024.
- Based on End-User, the Utility segment was attributed to holding the largest market in 2024.
- ABB, Siemens, BYD Company Ltd, Tesla Energy, SMA Solar, Varta AG, Eaton, Wärtsilä, Sungrow, Battlink, LG Energy Solution, Fluence, Saft (TotalEnergies), Northvolt, Leclanché are the key market players.
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https://www.marketresearchfuture.com/reports/energy-storage-market-4476