The US energy storage market grew by a record 18.9 gigawatt-hours in Q2 as longer-duration storage systems and residential energy capacity expanded, Wood Mackenzie said Tuesday.
The market, assessed in GWh, posted a 17% year over year rise despite a 7% decline in installations, according to the analysis by Wood Mackenzie and American Clean Power Association. With the expansion, the national average duration of installed battery energy storage systems increased to 3.5 hours from 2.8 hours.
"Battery storage is one of the most important tools we have to meet growing electricity demand," said John Hensley, Senior Vice President of Markets and Policy Analysis at American Clean Power. "With a strong pipeline and continued technology improvements, the outlook for storage remains exceptionally strong."
Data center buildout will underpin future demand for energy storage systems, with the research firm forecasting US storage installations to grow over 50% in megawatt terms to 207 gigawatts/ 715 GWh by 2031.
Over the next five years, utility-scale storage could grow at an average annual rate of 8%, while the residential market may see a 9% annual expansion, Wood Mackenzie noted. For the community, commercial, and industrial sector, a 27% increase between 2026 and 2031 is likely as deployment expands to emerging markets, such as Maryland and Texas.