China accounted for 54 p.c of final yr’s document international vitality storage installations and appears set to keep up its dominant place within the sector past the last decade regardless of coverage headwinds, Wooden Mackenzie stated Tuesday.
Worldwide vitality storage installations in 2025 totaled 106 gigawatts (GW), up 43 p.c from 2024. International capability now stands at about 270 GW, the Edinburgh, Scotland-based vitality consultancy agency stated in an insights piece on its web site. “Vitality storage has established itself as a vital part of the international vitality transition”, WoodMac stated.
By 2034 international vitality storage capability is predicted to succeed in 1,545 GW, with China poised to contribute round half of additives within the 10-year interval from 2025.
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“Nonetheless, the Chinese language market faces appreciable challenges getting into 2026-27”, it stated. “The removing of necessary renewable-storage coupling necessities and the absence of established income frameworks create substantial uncertainty”.
Nonetheless the world’s second-biggest financial system is rising renewable vitality and storage to displace the dearer gasoline energy, WoodMac stated earlier.
“China’s battery prices have dropped by over 50 p.c within the final three years whereas its 42 GW of grid-connected vitality storage additions final yr (excluding pumped hydro installations) have been double that of gasoline energy in 2024”, WoodMac wrote October 30, 2025.
“Consequently, China’s gasoline energy era share of output has remained broadly flat in 2025 as vitality storage eats into gasoline’s market share. The worldwide LNG trade ought to take word”.
U.S. Development
WoodMac stated Tuesday the US vitality storage market seems to additionally proceed displaying resilience in opposition to a backdrop of coverage reversals, with installations rising 53 p.c year-on-year in 2025.
“The passage of reconciliation laws launched provide chain restrictions for initiatives in search of federal tax credit, creating preliminary market uncertainty”, it stated.
“Nonetheless, U.S. large-scale forecast truly elevated following the invoice’s passage, pushed by bulletins of home cell manufacturing services and dedicated massive electrical energy masses. Builders accelerated development on over 13 GW of ‘safe-harbored’ initiatives to qualify beneath earlier coverage frameworks.
“Key development drivers in U.S. embody capacity-constrained markets the place storage supplies vital reliability providers, state-level incentives and mandates, and the nation’s first wave of battery augmentation initiatives.
“Roughly 12 p.c of present programs required capability additions in 2025, creating a brand new market phase that’s anticipated to broaden considerably within the coming years”.
WoodMac expects the coverage transitions within the U.S. and China to lead to a “average” vitality storage development in 2026. “Nonetheless, sustained long-term development stays sturdy, supported by authorities tenders driving large-scale deployment and assist schemes accelerating distributed phase adoption”, it stated.
Utility-Scale Tasks
On-grid vitality storage installations contributed 82 p.c of final yr’s vitality storage buildout, in response to WoodMac. “This phase continues to considerably outpace each residential and C&I installations, pushed by massive grid purposes, renewable vitality integration necessities and authorities procurement applications”, it stated.
“By 2025, common utility-scale vitality storage durations reached roughly 2.5 hours globally, with some markets like Chile and Saudi Arabia growing initiatives with durations exceeding 3-4 hours to handle particular grid necessities.
“The utility-scale phase’s management place is predicted to proceed by 2034, with projections exhibiting sustained sturdy development throughout all main markets.
“The enterprise case for utility-scale storage has strengthened significantly, supported by declining battery prices, improved mission economics and more and more various income alternatives.
“Moreover, government-led tenders are driving deployment of utility storage programs. Even restricted coverage assist can speed up mission improvement and supply buyers with the boldness wanted when absolutely service provider enterprise instances seem too dangerous”.
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