As part of the U.S. Department of Energy''s (DOE''s) Energy Storage Grand Challenge (ESGC), this report summarizes published literature on the current and projected markets for the global
McKinsey''s Energy Storage Team can guide you through this transition with expertise and proprietary tools that span the full value chain of BESS (battery energy storage systems), LDES (long-duration energy storage), and TES

Europe and China are leading the installation of new pumped storage capacity – fuelled by the motion of water. Batteries are now being built at grid-scale in countries including the US, Australia and Germany. Thermal energy storage is predicted to triple in size by 2030. Mechanical energy storage harnesses motion or gravity to store electricity.
The United States has a range of competitive energy storage technologies, from lithium ion batteries, to flow batteries, compressed air energy storage, liquid air energy storage, pumped hydro, hydrogen, thermal storage, and more!
Liquids – such as water – or solid material - such as sand or rocks - can store thermal energy. Chemical reactions or changes in materials can also be used to store and release thermal energy. Water tanks in buildings are simple examples of thermal energy storage systems.
By 2030, over 35-GWh LHV of onboard hydrogen storage could be deployed annually. China and other Asian countries are projected to deploy the most onboard hydrogen storage, with Europe close behind. Fuel cell buses and passenger light-duty FCEVs are projected to have the greatest demands for onboard hydrogen storage.
In contrast to growth in transportation, the United States is a leader in global stationary storage deployments. This is usually because renewables are often the lowest-cost generation source, but require storage to mitigate variability.
Energy storage is needed to effectively integrate intermittent solar and wind power into the grid with systems to match power supply and demand. For public projects, TPC, will announce public procurements. U.S companies can bid and sell their equipment to TPC.
The European energy storage market is booming with Germany leading residential adoption (+58% YoY) thanks to €500/kWh subsidies. Italy's new tax credits drive 5.2GWh commercial deployments, while UK grid-scale projects exceed 8GWh with 2-hour duration systems. Key selection criteria: German-certified safety (VDE-AR-E 2510), 10+ year warranties, and VPP readiness. Top-performing products include Sonnen's hybrid inverters (98% efficiency) and BYD's Blade Battery (12,000 cycles @80% DoD). For snowy regions like Scandinavia, consider Huawei's -30°C compatible systems. France mandates carbon footprint declarations - Sungrow's ISO-14067 certified solutions gain preference.
For European homeowners, 5-10kWh systems with 3-phase compatibility are ideal. Top picks: 1) Tesla Powerwall 3 (13.5kWh, 97% round-trip efficiency) for smart home integration; 2) LG Chem RESU Prime for compact urban installations; 3) SMA Sunny Boy Storage for retrofit projects. Critical features: EU-made battery cells (exempt from CBAM tariffs), dynamic tariff optimization (like Octopus Energy integration), and fire-safe LiFePO4 chemistry. Southern Europe demands 85%+ depth of discharge capability, while Nordic markets require -25°C operation. Always verify CEI 0-21 compliance for Italian grid connection and EnWG certification for German feed-in.