Large-scale batteries expected to become the European market’s trailblazer in 2025, re-accelerating total installations to 36% annual growth

With 29.7 GWh deployed in 2025 under the Medium Scenario, the battery market is expected to regain speed with a 36% annual growth, installing in a single year about half of the total operating fleet at the end of 2024 (see Fig. 3). The utility-scale battery market is projected to almost double in Europe in 2025, compensating an overall stagnation in the behind-the-meter (BTM) segment. Household battery installations are poised to decline again, while the C&I segment continues to grow though far below its true potential. The energy security imperative, the integration of more renewables, strong climate commitments, favourable economics against conventional power generators, and new aid schemes, are all factors pointing to an unstoppable growth in the large-scale segment over the coming years. However, improved regulatory and financial conditions are needed to boost the small-scale segment, to support energy independence and resilience for citizens and businesses.

European Market Outlook for Battery Storage 2025-2029

7 May 2025