As per MRFR analysis, the India Energy Storage Market Size was estimated at 1.2 (USD Billion) in 2023.The India Energy Storage Market is expected to grow from 1.5(USD Billion) in 2024 to 6 (USD Billion) by 2035. The India Energy Storage Market CAGR (growth rate) is expected to be around 13.431% during the forecast period (2025 - 2035).
Key India Energy Storage Market Trends Highlighted
Numerous causes are causing notable changes in the Indian energy storage market. One significant trend is the growing emphasis on integrating renewable energy, which is mostly the result of government programs meant to accomplish challenging climate targets like switching to a sustainable energy mix.
Energy storage solutions are becoming more and more necessary to handle the intermittency problems with solar and wind power as a result of the Indian government's ambitions for the construction of renewable energy.
The decline in battery prices, which has increased energy storage's viability and accessibility for a range of uses, is another factor supporting this change. The India Energy Storage Market offers a plethora of prospects for investigation.
Battery storage devices could support the grid and improve the efficiency of charging stations as the nation expands its electric vehicle (EV) infrastructure. The necessity for localized energy storage technologies that can handle power outages and enhance energy availability is highlighted by the recent push for energy security, especially in rural and off-grid locations.
To increase investment in energy storage technology, creative funding schemes and public-private partnerships can also be investigated. In order to promote research and development in energy storage technologies, the government and industry participants have also collaborated more recently.
The goal of initiatives to establish battery and energy storage component manufacturing centers in India is to lessen reliance on imports. Additionally, new developments in battery technology, like flow and solid-state batteries, are becoming more popular and offer better choices for energy storage solutions.
The government's dedication to creating guidelines and standards will improve market stability, draw in capital, and propel the energy storage industry's expansion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India Energy Storage Market Drivers
Growing Renewable Energy Capacity
The increasing investment in renewable energy sources in India is a significant driver for the India Energy Storage Market. The Indian government has set an ambitious target to achieve 500 GW of non-fossil fuel-based power generation capacity by 2030, as stated in the National Electricity Policy 2021.
This transition towards renewable sources such as solar, wind, and hydroelectric power necessitates efficient energy storage solutions, as renewable energy generation is often intermittent.
For example, the Ministry of New and Renewable Energy has reported that as of 2021, India's renewable energy capacity reached over 150 GW, with solar power alone accounting for around 48 GW. The increasing deployment of renewable energy sources will drive demand for energy storage systems, enabling grid stability and reliability, further propelling growth in the India Energy Storage Market.
Government Initiatives and Policies
Various government initiatives play a crucial role in promoting the adoption of energy storage systems in India. The government has launched several programs to support the integration of energy storage technologies into the power sector.
Notably, the National Mission on Electric Mobility aims to bolster electric vehicle adoption, which will inherently increase the demand for energy storage solutions. Additionally, policies such as the Production-Linked Incentive (PLI) scheme specifically target battery manufacturing under the Atmanirbhar Bharat initiative.
By promoting local manufacturing of batteries, the government aims to reduce dependency on imports, increase local employment, and enhance the competitiveness of the energy storage sector. These initiatives are expected to lay the groundwork for significant growth in the India Energy Storage Market.
Rapid Urbanization and Demand for Energy
India is witnessing rapid urbanization, with the urban population projected to reach 600 million by 2031, according to the Census of India 2021. This population growth is directly correlated with an increasing demand for energy, leading to greater pressure on the electricity grid.
As urban areas expand, the need for reliable energy sources and energy storage systems becomes paramount for managing fluctuating energy demands and ensuring stability in energy supply.
Urbanization trends necessitate advanced energy storage solutions to support renewable integration and provide backup power during peak demand periods. The consequent surge in energy consumption will be a driving factor for the India Energy Storage Market, establishing a robust market for energy storage technologies.
India Energy Storage Market Segment Insights
Energy Storage Market Technology Insights
The Technology segment within the India Energy Storage Market is poised for significant growth, driven by the escalating demand for reliable and efficient energy storage solutions.
Among the various technologies, Lithium-ion Batteries have emerged as a leading choice, primarily due to their high energy density, efficiency, and decreasing costs, making them suitable for a wide range of applications including electric vehicles and renewable energy integration in India.
Flow Batteries, while less prevalent, offer unique advantages such as scalable energy output and long cycle life, which are beneficial for large-scale energy storage projects that support grid stability and renewable integration efforts.
Lead-Acid Batteries, despite their maturity, retain relevance because of their cost-effectiveness and widespread availability in India, especially in off-grid applications where quick deployment is essential.
Furthermore, Sodium-Sulfur Batteries present a significant opportunity given their high energy efficiency and operational capabilities at elevated temperatures, making them ideal for industrial applications where durability and longevity are crucial.
The Government of India has been actively promoting policies that enhance the energy storage landscape, encouraging investments and innovation, which, combined with the nation's rising energy needs, contribute to a dynamic and evolving energy storage ecosystem.
Emerging trends in technology, including advances in battery management systems and recycling processes, are expected to drive the sector forward, addressing environmental concerns and efficiency standards.
The India Energy Storage Market segmentation reveals that while Lithium-ion currently holds a majority share, all these technologies will play pivotal roles in meeting future energy demands and supporting the transition to a more sustainable energy infrastructure in the country.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Energy Storage Market End-use Insights
The India Energy Storage Market is evolving, with the End-use segment encompassing Residential, Commercial, Utility, and Transportation sectors, each playing a pivotal role in shaping the industry's landscape. In the Residential sector, energy storage systems are becoming vital as consumers shift towards renewable energy sources, enhancing energy independence and efficiency.
The Commercial sector sees similar trends as businesses increasingly adopt storage solutions to reduce energy costs and ensure reliable power supply during peak hours. Meanwhile, the Utility segment focuses on large-scale applications, where energy storage systems are used to stabilize the grid, integrate renewable energy, and deliver peak-shaving solutions.
Transportation stands out due to the growing demand for electric vehicles, which necessitate advanced energy storage technologies to enhance battery performance and reduce charging times. The interplay of these segments contributes significantly to the overall dynamics of the India Energy Storage Market, reflecting a shift towards sustainable energy practices.
Market growth is driven by government initiatives supporting renewable energy adoption and advancements in technology, while challenges may arise from initial investment costs and infrastructure readiness.
Energy Storage Market Application Insights
The Application segment of the India Energy Storage Market is crucial for the country's transition towards a sustainable energy landscape. With a strong emphasis on Grid Storage, this segment supports stability and reliability by ensuring efficient energy distribution and management, thereby addressing the growing demand for electrification.
Renewable Energy Integration plays a vital role as well, enabling the seamless use of solar and wind resources, which are abundant in India, thus contributing to reducing reliance on fossil fuels. Backup Power solutions are increasingly significant in urban and rural settings, providing an essential safety net for households and businesses during outages.
As electric vehicle adoption rises in India, Electric Vehicle Charging infrastructure becomes a dominant player, facilitating the transition to cleaner transport solutions.
Overall, these applications collectively enhance energy security, promote renewable energy sources, and align with governmental policies aimed at achieving sustainable development goals. The growth in these areas reflects increasing investments and innovation within the India Energy Storage Market, addressing both current and future energy challenges.
Energy Storage Market Energy Capacity Insights
The Energy Capacity segment within the India Energy Storage Market is evolving rapidly, reflecting the country's commitment to enhancing energy resilience and sustainability.
This segment encompasses various applications ranging from Small-scale setups, commonly used in residential and commercial sectors, to Medium Scale systems, which are pivotal for industrial use, and Large-scale installations that serve utility needs.
Small-scale storage solutions are gaining traction due to their ability to facilitate decentralized energy generation, a trend supported by India's push for renewable energy integration. Meanwhile, medium-scale systems are positioned as critical components for larger enterprises seeking reliable backup solutions and efficiency improvements.
Large-scale energy storage dominates the landscape as it aligns with national goals for grid stability and renewable integration, addressing the intermittency issues posed by solar and wind sources.
The Energy Storage Market in India is significantly bolstered by government initiatives, technological advancements, and increasing renewable energy adoption, which collectively indicate robust market growth and abundant opportunities across its capacity segments.
As India continues to transition towards clean energy, the significance of each capacity segment in driving efficiency and reliability in energy distribution cannot be overstated.
India Energy Storage Market Key Players and Competitive Insights
The India Energy Storage Market is experiencing robust growth driven by the increasing demand for efficient and sustainable energy solutions. As renewable energy sources such as solar and wind gain traction, the need for energy storage technologies that can store this energy and provide stability becomes paramount.
Various companies within this market are competing fiercely, leveraging advancements in technology, innovative business models, and strategic partnerships to gain market share. The landscape is characterized by a mix of established players and new entrants, each striving to enhance their product offerings and improve cost efficiencies while addressing the unique requirements of the Indian market.
This dynamic environment fosters a competitive spirit that drives innovation and enhances the overall growth prospects of the energy storage sector in India.
Aussie Solar has established itself as a notable player in the India Energy Storage Market, particularly through its focus on solar energy solutions. The company's commitment to harnessing sustainable energy has enabled it to develop a strong presence in the market.
Its strengths lie in delivering high-quality energy storage products that integrate seamlessly with solar panel systems, which cater directly to the Indian consumer's need for reliable and affordable energy alternatives.
Aussie Solar emphasizes developing technologies that enhance energy efficiency and promote green practices, aligning well with the government's renewable energy initiatives.
The company has an excellent reputation for its customer service, creating long-lasting relationships with both residential and commercial clients, further solidifying its footing in the competitive landscape of India's energy storage sector.
Karma Energy is another prominent entity within the India Energy Storage Market, recognized for its diverse range of solutions aimed at enhancing energy efficiency and reliability for various applications. The company offers products that include advanced battery systems and energy management tools designed specifically for Indian consumers.
Karma Energy's market presence is bolstered by its strong distribution network and partnerships with local entities that facilitate a wider reach. The company actively invests in research and development, thereby enabling it to remain at the forefront of technological advancements, which is vital in this rapidly evolving sector.
Additionally, Karma Energy has been involved in strategic mergers and acquisitions that have expanded its capabilities and resources, allowing it to innovate and improve its product line continually. By focusing on high-performance energy storage systems, Karma Energy seeks to address the growing challenges posed by energy reliability, making it a significant contender in the Indian energy storage marketplace.
Key Companies in the India Energy Storage Market Include:
India Energy Storage Market Developments
Recent developments in the India Energy Storage Market have been significant, particularly with companies like Adani Group and Tata Power increasing their investments in renewable energy storage solutions to meet the rising demand for grid stability.
In September 2023, Exide Industries announced plans to expand its battery production capacity in response to the growing electric vehicle market, aiming for a greener future. Karma Energy recently launched a solar energy storage initiative in Gujarat, reflecting the trend towards integrated renewable energy solutions.
Meanwhile, Wipro, in collaboration with Siemens, is focusing on Research and Development to enhance energy efficiency in storage systems. Notably, in March 2023, Amara Raja Batteries and ABB entered into a strategic partnership to develop advanced energy storage technologies.
The Indian government is also strengthening its commitment by facilitating policies that support energy storage deployment, which leads to the growth of market valuation. Major players like BHEL and Olectra Greentech are actively exploring hybrid energy systems that combine solar and storage technologies.
Over the past two to three years, the market has seen dynamic changes, reflecting a robust shift towards sustainable energy, thereby positioning India as a pivotal player in the future of energy storage technologies.
India Energy Storage Market Segmentation Insights
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 1.2 (USD Billion) |
| MARKET SIZE 2024 | 1.5 (USD Billion) |
| MARKET SIZE 2035 | 6.0 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 13.431% (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 | Aussie Solar, Karma Energy, L and T, Exide Industries, Renew Power, Siemens, BHEL, Wipro, Amara Raja Batteries, Mahindra Group, Adani Group, Sungrow, Tata Power, ABB, Olectra Greentech |
| SEGMENTS COVERED | Technology, End Use, Application, Energy Capacity |
| KEY MARKET OPPORTUNITIES | Rising renewable energy adoption, Battery manufacturing expansion, Government incentives and policies, Off-grid and rural electrification, Electric vehicle charging infrastructure |
| KEY MARKET DYNAMICS | Government policies and incentives, Rising renewable energy integration, Technological advancements in batteries, Increasing electricity demand, Cost reduction in energy storage |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Energy Storage Market is expected to be valued at 1.5 billion USD in 2024.
By 2035, the overall market is anticipated to reach 6.0 billion USD.
The expected CAGR for this market is 13.431% during the period from 2025 to 2035.
By 2035, the Lithium-ion Batteries segment is projected to dominate with a value of 3.6 billion USD.
Some of the major players include Aussie Solar, Karma Energy, Exide Industries, and Tata Power among others.
The Flow Batteries segment is expected to reach a value of 1.2 billion USD by 2035.
The market presents opportunities driven by renewable energy integration and increasing demand for energy security.
The Lead-Acid Batteries segment is anticipated to reach a value of 0.8 billion USD by 2035.
Challenges include the need for advancements in technology and reduction in costs of energy storage solutions.
The Sodium-Sulfur Batteries segment is projected to grow to a value of 0.4 billion USD by 2035.
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Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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