Storage industry grows despite US customs dispute

22.10.2025

Source: E & M powernews

The global market for energy storage is growing, even if trade conflicts and political uncertainties are slowing things down. China and Germany are driving development, according to Bloomberg NEF.

According to the new "Energy Storage Market Outlook" for the second half of 2025 from Bloomberg NEF, the global energy storage market remains on course for growth. Bloomberg NEF (New Energy Finance) is the energy market research unit of the financial and information services provider Bloomberg. The report was published on October 20 and looks ahead to 2035 with forecasts.

Although US tariff disputes and political uncertainties are delaying expansion, the year 2025 is likely to be one of the strongest with around 92,000 MW or 247,000 MWh of new capacity - an increase of around 23% compared to 2024, according to Bloomberg NEF.

Germany remains central market in Europe

Europe is growing: from 2026, annual installations in Europe, the Middle East and Africa - the EMEA region - are expected to exceed those of the American markets. Within Europe, Germany and the United Kingdom are among the established growth drivers; Italy is expected to grow from 2030 via auction programs. For EMEA, Bloomberg NEF expects a cumulative total of 516,000 MW or 1.56 million MWh by 2035.

Germany is regarded as one of the central anchors of the European storage market, as Bloomberg NEF continues. The country benefits from clear grid connection rules, the integration of storage facilities into the electricity market and the latest auction procedures for system-critical capacities. According to the analysts, the German market therefore remains structurally stable - and forms the "backbone of European expansion".

China as a global growth driver

In Asia, new targets in China are compensating for earlier political changes; projects are being remunerated on a more market-based basis. India and Australia are increasing the pace through procurement and investor programs. For Asia-Pacific (APAC), Bloomberg NEF forecasts a cumulative storage capacity of over 1 million MW or around 4 million MWh by 2035.

In North and South America, on the other hand, political hurdles are hampering progress. In the USA, project developers are trying to accelerate the completion of existing plants before possible new tariffs take effect. Canada will exceed the gigawatt mark for the first time in 2025, while in Latin America, auction programs in Chile, Brazil and Argentina are driving expansion forward.

Technological change

According to Bloomberg NEF, large-scale storage projects currently account for 84% of newly installed capacity. Systems with a discharge time of less than six hours will continue to dominate until the end of the decade. After that, long-term storage systems will gain in importance - i.e. systems with longer operating times, which are being tested in Australia, Italy and the USA, among others.

Technologically, the lithium iron phosphate battery (LFP) leads the market. The reasons: low costs and a long service life. Its market share is expected to peak at 93% in 2027 before alternative technologies gain in importance.

Overall, Bloomberg NEF expects installed output to increase to 2 million MW or a capacity of around 7 million MWh by 2035 - this corresponds to twelve times the existing capacity in 2024. Annual additions will grow by an average of 23%. Despite short-term setbacks, the storage sector thus remains one of the central pillars of the energy transition.

Author: Davina Spohn