The global energy storage market is set to reach a cumulative deployment level of 500 GW by 2031, of which 75% will be in the U.S. and China, according to Wood Mackenzie Power & Renewables. While the U.S. remains an energy storage market leader, disruption from trade actions has prompted the research firm to downgrade its near-term forecasts, reducing demand projections for the market by 34% for 2022 and by 27% for 2023.

The downgrade is associated with disruptions within the grid-scale and distributed segments from the recent antidumping and countervailing duties tariff suit. The U.S. solar-and-storage market was particularly hit hard by this tariff petition, with approximately 35% of 2022 hybrid grid-scale installations delayed.

The top 10 markets will account for 91% of additions over the forecast period. Source: Wood Mackenzie

The U.S. and China are projected to dominate the market during 2021 to 2031 in terms of GWh deployments, while the top 10 markets will account for 91% of additions over the period. The U.S. is set to be a 27 GW annual market by 2031; 83% of that volume is grid-scale. Grid-scale will account for the biggest portion in most nations other than Germany, India and Japan, where residential and commercial-industrial sites together will account for the majority.