Off Grid Energy Storage Systems Market Size, Share, Trends, Growth 2034

Off Grid Energy Storage Systems Industry Prospective:

The global off grid energy storage systems market size was worth around USD 13.53 billion in 2024 and is predicted to grow to around USD 63.36 billion by 2034, with a compound annual growth rate (CAGR) of roughly 16.70% between 2025 and 2034.

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Off Grid Energy Storage Systems Market: Overview

Off-grid energy storage systems are independent of traditionally used electrical grids. These energy storage devices leverage renewable energy such as solar or wind power to generate, store, and provide energy independently. In recent times, off-grid energy storage systems have managed to transform the ways in which residential, industrial, or commercial units harness renewable energy.

The growing demand for power sources worldwide has created an urgent need for the development of more powerful off-grid energy storage systems. These technologies are equipped with a charge controller that manages the flow of energy and prevents battery damage.

Furthermore, an inverter for converting direct current to alternating current is also installed in the device. The demand for off-grid energy storage systems is particularly high in remote areas or off-beat locations that are not connected to the grid infrastructure. During the forecast period, the revenue in the off grid energy storage systems industry is expected to be driven by rising energy demands across end-user verticals.

Growing focus on generating and using sustainable energy will generate new growth opportunities for the market players. However, the industry will be impacted by the high initial cost of investment associated with technology installation.

Key Insights:

• As per the analysis shared by our research analyst, the global off grid energy storage systems market is estimated to grow annually at a CAGR of around 16.70% over the forecast period (2025-2034)
• In terms of revenue, the global off grid energy storage systems market size was valued at around USD 13.53 billion in 2024 and is projected to reach USD 63.36 billion by 2034.
• The off grid energy storage systems market is projected to grow at a significant rate due to the rising demand for energy across industrial, commercial, and residential spaces.
• Based on the grid type, the hybrid segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the power source, the solar PV segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Off Grid Energy Storage Systems Market: Growth Drivers

Rising demand for energy across industrial, commercial, and residential spaces to fuel market revenue

The global off grid energy storage systems market is expected to be led by the growing energy demand worldwide. Commercial complexes, residential buildings, and industrial facilities are increasingly consuming more energy due to rising end applications.

For instance, automated industrial facilities equipped with heavy and advanced machines consume more energy than units that primarily leverage human resources. Similarly, the rising rate of urbanization and commercialization has led to unprecedented energy consumption levels worldwide. According to the Quadracci Sustainable Engineering Lab, an average building in New York consumes up to 3.2 million kWh.

On the other hand, energy demands in emerging economies such as India and China have been growing steadily over the last few years. The current means of energy generation, such as dependence on non-renewable fuel, are expected to fail to meet the rising energy production rate. In such cases, off-grid energy storage systems can prove beneficial in the long run for end-users.

Rising government support to encourage the adoption of off-grid energy-preserving technologies will promote market expansion

A growing number of regional governments worldwide are increasingly supporting the development and installation of off-grid energy storage systems.

For instance, in 2024, the Indian government announced the launch of Surya Ghar: Muft Bijli Yojana, approving a budget of INR 75,021 crore for the initiative. The project focuses on providing a subsidy of INR 30,000 to INR 78,000 per household for rooftop solar installations. Additionally, the initiative will also allow the distribution of 300 units of free electricity monthly.

In March 2022, Denmark announced the launch of the DKK 1.25 billion subsidy scheme to encourage Power-to-X projects in the country to reach the goal of achieving 4 and 6 GW of electrolysis capacity by 2030.

Such novel measures adopted by official bodies promoting measures that allow a smooth transition toward sustainable energy sources will be critical for the global off grid energy storage systems market.

Off Grid Energy Storage Systems Market: Restraints

High cost of initial investment will limit the market’s expansion trajectory during the forecast period

The global off grid energy storage systems industry will be restricted by the high cost of initial investment. Off-grid energy storage systems demand elevated upfront investments, especially in the case of high-performance systems.

Furthermore, the complex installation process of off-grid energy storage systems against the backdrop of rising raw material prices will act against the market's overall revenue.

The average cost of installing an off-grid energy storage system with a 3 kW capacity can range between USD 30,000 and USD 35,000. The expense increases further as the capacity range is increased.

Off Grid Energy Storage Systems Market: Opportunities

Increasing the rate of research & innovation in the industry to generate growth opportunities for the players

The global off grid energy storage systems market is expected to generate growth opportunities due to ongoing technological advancements in the industry. Consistent research & development (R&D) toward improved technology performance and application will be critical to the industry’s future growth trajectory.

For instance, in April 2024, Schneider Electric, a leading solutions provider for digital transformation of energy management and automation, announced the launch of its latest Battery Energy Storage System (BESS). It is designed to be installed in a scalable and flexible infrastructure.

The tool comprises battery racks, battery modules, a power conversion unit, a battery management system, and a controller. The advantages of using Schneider’s latest invention include resilience against climate change, easy installation & maintenance, and full integration capabilities.

In November 2021, Panasonic announced the launch of EverVolt™ 2.0, a robust addition to its solar energy portfolio of Total Home Energy Solution offerings. The next-generation addition delivers exceptional scope for customization. It also delivers a weatherproof design and a convenient modular footprint.

In July 2024, Exide Technologies unveiled its latest innovation at the Electrical Energy Storage Europe 2024 convention. The company unveiled Solution Mega Three, which is a containerized energy storage series. The total capacity of the compact design is 3.4 MW with front-of and behind-the-meter applications.

Off Grid Energy Storage Systems Market: Challenges

Supply chain disruptions of raw materials and limited battery lifespan challenge market expansion

The global off grid energy storage systems industry is expected to be challenged by the risk of supply chain disruptions of raw materials. Materials such as cobalt, lithium, and nickel are essential for the production of energy storage systems. However, the availability of these materials is subject to geopolitical changes.

In addition to this, the limited lifespan of off-grid energy storage systems further discourages new buyers from entering the market. The device requires consistent maintenance and replacement of the battery or other parts. It can affect the overall market revenue rate in the future.

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Off Grid Energy Storage Systems Market: Report Scope

Off Grid Energy Storage Systems Market: Segmentation

The global off grid energy storage systems market is segmented based on grid type, power source, and region.

Based on the grid type, the global market segments are hybrid, direct current, and alternate current. In 2024, the highest demand was listed in the hybrid segment. These solutions are more versatile as they support alternating current and direct current.

A hybrid system consists of batteries, solar panels, and, in some cases, the connection of a generator backup for a consistent power supply. More than 490,000 homes in the US currently have installed energy storage systems in tandem with solar panels.

Based on the power source, the off grid energy storage systems industry divisions are solar PV, natural gas, diesel generators, CHP, and others. In 2024, the highest revenue was generated by the solar PV segment. The growing affordability of solar panel installations and increasing consumer awareness have helped the segment thrive.

According to the World Bank's Energy Sector Management Assistance Program (ESMAP), more than 50% of currently installed mini-grids are powered using solar or solar-hybrid systems.

Off Grid Energy Storage Systems Market: Regional Analysis

Asia-Pacific is to be led by China during the forecast period, according to the analysis

The global off grid energy storage systems market will be led by Asia-Pacific during the forecast period. China is currently one of the largest producers and users of off-grid energy storage systems in the regional as well as international markets.

According to industry research, China accounts for more than 66% of the installed capacity of battery energy storage on a global scale. In recent times, China has observed an increasing push toward harnessing renewable energy, driving demand for off-grid energy storage solutions.

As per official statistics, more than 29% of China’s current electricity supply is from renewable sources. In addition to this, government support toward the production and application of off-grid energy storage systems has been pivotal to the region’s overall revenue.

In November 2024, Deye, China’s leading inverter manufacturer, announced the launch of a micro energy storage system with off-grid applications. The company launched the AE-F(S)2.0-2H2, which works as a battery module, microinverter, and battery management system.

Additionally, increasing investment in solar power plants across commercial and residential spaces throughout the country will help China maintain its dominance in the regional market.

Off Grid Energy Storage Systems Market: Competitive Analysis

The global off grid energy storage systems market is led by players like:

• Blue Planet Energy Systems
• Enphase Energy
• BYD Company Limited
• Victron Energy
• Energy Vault
• Fluidic Energy
• Tesla Inc.
• Powin Energy
• Panasonic Corporation
• Sonnen Inc.
• OutBack Power Technologies
• Fluence Energy LLC
• Generac Power Systems
• LG Chem
• SimpliPhi Power.

The global off grid energy storage systems market is segmented as follows:

By Grid Type

• Hybrid
• Direct Current
• Alternate Current

By Power Source

• Solar PV
• Natural Gas
• Diesel Generators
• CHP
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa