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US Advanced Energy Storage Market Outlook to 2030

January 2026 · Energy

The US advanced energy storage market is undergoing a structural transition from a “nice-to-have” source of grid flexibility to mission-critical national infrastructure. This shift is being driven by federal policy reform, accelerating electricity demand from AI-led data center expansion and re-shored manufacturing, and a rapid reconfiguration of global supply chains.

Excerpt

Executive Summary

The outlook through 2030 reflects the rapid scale-up of battery energy storage systems (BESS) as grid modernization efforts converge with unprecedented new load growth. While the Investment Tax Credit (ITC) remains intact, newly enacted compliance requirements under the One Big Beautiful Bill Act (as structured in July 2025) materially raise procurement and execution complexity. At the same time, enterprise buyers are reframing storage as a revenue-generating financial asset, enabled by virtual power plants (VPPs) and energy-as-a-service models.

Execution discipline—across compliance, supply chains, commissioning, and operations—now determines which projects succeed. Key Findings

The US battery energy storage system market expands from US$2.85 billion in 2024 to US$30.86 billion by 2034, representing a 26.9 percent compound annual growth rate, signaling sustained capital inflows alongside rising execution pressure.
Installations accelerate sharply: in the first three quarters of 2025, deployments surpassed total 2024 capacity, with cumulative storage additions projected to reach 93 gigawatts by 2029.
The One Big Beautiful Bill Act (July 2025) preserves the ITC for storage but introduces escalating domestic content thresholds and Foreign Entity of Concern (FEOC) restrictions, which can fully disqualify projects from credits if compliance is missed.
Market concentrat…

Key topics

Battery Energy Storage Systems (BESS)
Grid Scale Storage
FEOC Compliance
Grid Modernization
Lithium Ion Storage

Canonical: https://aloraadvisory.com/insights/us-advanced-energy-storage-market-outlook-2030