Energy Storage As A Service Industry Overview
The global Energy Storage As A Service Market was valued at $1.79 billion in 2024. It is anticipated to expand at a compound annual growth rate (CAGR) of 11.0% from 2025 to 2030. The increasing requirement for effective power management solutions and economical battery backup during power disruptions is fueling the demand for energy storage as a service (ESaaS). Moreover, consistent growth in energy consumption across both developed and developing nations is contributing to the industry's growth. The ongoing transition towards smart grids and renewable energy sources has created significant demand for these services.
The rapidly increasing contribution of intermittent renewable energy sources like solar and wind has made energy storage crucial for aligning energy supply and demand. Energy storage solutions facilitate the storage of surplus energy generated during peak production periods, such as sunny or windy times, for utilization when demand is higher or generation is lower.
Detailed Segmentation:
- Service Insights
The ancillary services segment is anticipated to expand at the highest CAGR during the forecast period in the global market, owing to the widespread adoption of battery storage systems in this area. Utilities are reducing their dependency on fossil fuel generation and shifting to renewable and battery storage systems for ancillary services. Energy storage-as-a-service plays a critical role in providing ancillary services to the grid, which are necessary for maintaining grid stability, reliability, and efficiency. Ancillary services include a range of support functions such as frequency regulation, voltage control, spinning reserve, and others, which help balance supply and demand, especially as renewable energy sources become more prevalent.
- End-use Insights
The industrial, residential & commercial segment accounted for a dominant revenue share in the energy storage as a service industry in 2024. The ESaaS model is widely adopted by the industrial sector for reliable power generation and stable energy supply. Meanwhile, larger housing societies and remote residential areas utilize these services to ensure a consistent power supply and lower energy consumption costs. The increasing adoption of solar panels by homeowners presents a notable avenue for market growth. ESaaS can be leveraged to store excess solar energy produced during the day for use during nighttime or on cloudy days. This maximizes the self-consumption of solar energy and reduces reliance on the grid.
- Regional Insights
North America energy storage as a service market accounted for a significant revenue share in the global ESaaS market in 2024, aided mainly by the high energy consumption in the region due to the presence of various large-scale industries such as aerospace, automotive, healthcare, and chemicals. As a result, the demand for services such as black start, energy arbitrage, peak load, and demand charge management is extensive among the commercial, residential, and industrial sectors. This has led to societies and commercial establishments opting for energy storage services instead of purchasing energy storage systems to ensure a regular and reliable energy supply and to avoid blackouts.
Gather more insights about the market drivers, restraints, and growth of the Energy Storage As A Service Market
Key Companies & Market Share Insights
Some major companies involved in the global energy storage as a service industry include Siemens Energy, Customized Energy Solutions, and YSG, among others.
- Siemens Energy is a Germany-based solution provider for conventional and renewable energy sources. The company offers a range of products, including energy storage, gas turbines, generators, grid automation solutions, offshore grid connections, steam turbines, and power plants. These solutions cater to industries such as renewables, power & heat generation, oil & gas, power transmission, marine, and data centers. Siemens Energy offers the ESaaS model to provide businesses with easy and efficient access to energy storage solutions. The company has developed a storage-as-a-service model via a collaboration between Siemens Smart Infrastructure, Siemens Financial Services, Fluence, and MW Storage, with the Finnish beverage manufacturer Sinebrychoff being the first company to adopt this service, utilizing a 20 MW Gridstack energy storage system.
- Customized Energy Solutions is a U.S.-based energy consulting and services company that provides clients with innovative energy management solutions. The company operates in several business areas that address the demands of energy generation providers and retail marketers. These include CES PowerGreen, Demand Side Energy Management, Power Generation Management, Natural Gas Management, Load Management, Renewable Energy Management, Congestion Management, and Emerging Technologies.
Key Energy Storage As A Service Companies:
The following are the leading companies in the energy storage as a service market. These companies collectively hold the largest market share and dictate industry trends.
- Siemens Energy
- Veolia
- Honeywell International Inc.
- NRStor Inc.
- ENGIE Storage Services NA LLC
- Customized Energy Solutions Ltd.
- YSG
- SREIL Energy
- Hydrostor
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Recent Developments
- In November 2024, Hydrostor signed the Crown Lands agreement with Australia’s New South Wales (NSW) government. The collaboration allows for the development of the ‘Silver City Energy Storage Centre’ to create a mini-grid system for supporting energy stability in the region and providing essential backup power to Broken Hill. As per the agreement, Hydrostor’s facility would be able to generate 200 MW of power that can offer 8 hours of storage during full capacity discharge and for increased periods at lower output levels.
- In December 2023, Customized Energy Solutions and Peninsula Clean Energy announced a long-term partnership to enable efficient management and optimization of the latter’s renewables and energy storage portfolio in the California Independent System Operator markets. The development is expected to strengthen Peninsula Clean Energy’s objective of supplying 100% renewable energy to its customers in the City of Los Banos and San Mateo County by 2025.
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