Long-Duration Energy Storage (LDES) Market to Reach US$23.02 Billion by 2036, Growing at 13.8% CAGR as Multi-Day Storage Scales
Government storage incentives and grid congestion challenges are driving sustained market expansion
London, UK – 23 February 2026 – The global long-duration energy storage (LDES) market is estimated at US$6.34 billion in 2026 and is projected to grow at a CAGR of 13.8% from 2026 to 2036, reaching US$23.02 billion by 2036.
As power systems move toward higher renewable penetration and electrification accelerates across heavy industry, system operators are placing greater emphasis on storage duration and resilience rather than short-discharge capacity alone.
The growth is driven by rapid renewable energy deployment, increasing grid congestion, supportive storage-focused policy frameworks and rising demand for multi-day and industrial-scale energy storage solutions.
Key Market Drivers
- Rapid technology diversification beyond 4-hour lithium-ion systems into multi-day mechanical, thermal and electrochemical storage
- Growing renewable curtailment and grid congestion are creating strong demand for long-duration flexibility
- Government Energy Storage Shot initiatives, investment tax credits and capacity mechanisms are improving project bankability
- Rising need for industrial heat decarbonisation and electrification of energy-intensive processes
“Long-duration energy storage is moving from pilot phase to grid-critical infrastructure. As renewables scale and grids face deeper reliability challenges, multi-day and industrial storage solutions are becoming essential rather than optional,” said Visiongain’s lead analyst.
Regulatory & Trade Impact
U.S. trade tariffs on energy equipment, battery components, steel, aluminium and critical minerals have reshaped cost structures across the LDES value chain. While near-term cost pressures have affected electrochemical and modular systems, tariffs are also accelerating domestic manufacturing investment, supply chain diversification and localisation strategies. Over the longer term, policy incentives and technology innovation are expected to offset tariff-related cost inflation.
“Policy alignment and industrial strategy are accelerating cost reductions and shortening the pathway to commercial-scale long-duration storage deployment,” added Visiongain’s lead analyst.
Competitive Highlights
Key players operating in the global LDES market include ACWA Power, Ambri, BYD Co., Ltd, Contemporary Amperex Technology Co., Limited, Engie SA, ESS Inc., Everllence, Fluence Energy, MGA Thermal Pty Ltd, Sumitomo Corporation, TAQA, Tesla Energy Operations, Inc., The AES Corporation, Toshiba Energy Systems & Solutions Corporation and VFlowTech Pte Ltd.
Recent developments include large-scale solar and storage agreements in the Gulf region, new strategic investments in thermal storage technology, long-term battery supply partnerships and the deployment of high-capacity industrial heat pump systems supporting district heating decarbonisation.
About the Report
Visiongain’s 429-page report provides 127 tables and 203 charts. It delivers detailed forecasts from 2026 to 2036 by storage duration, deployment type, storage medium, application and technology. The study also includes regional and leading national market analysis, competitive benchmarking and assessment of policy and trade impacts across the LDES value chain.
About Visiongain
Established in 1998, Visiongain is an independent publisher of analyst-led market intelligence, delivering data-driven research, forecasts, and strategic insight across global industries and emerging markets. Visiongain supports evidence-based decision-making for investment, procurement, and long-term strategic planning.
Contact Information
Email: contactus@visiongain.com
Telephone: +44 (0) 20 7336 6100
Website: www.visiongain.com
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