Dublin, Feb. 18, 2026 (GLOBE NEWSWIRE) -- The "Long-Duration Energy Storage (LDES) Market Report 2026-2036" report has been added to ResearchAndMarkets.com's offering.
Overall world revenue for the Long-Duration Energy Storage (LDES) Market will surpass US$6.34 billion in 2026
This report will prove invaluable to leading firms striving for new revenue pockets if they wish to better understand the industry and its underlying dynamics. It will be useful for companies that would like to expand into different industries or to expand their existing operations in a new region.
Net-Zero Grid Targets Forcing a Structural Shift from Peaking Plants to Long-Duration Storage
The single biggest driver for LDES is the hard math of net-zero power systems: studies for the LDES Council and McKinsey show that by 2040 the world may need 1.5-2.5 TW and 85-140 TWh of long-duration storage to decarbonise power systems while keeping reliability, making LDES a foundational asset class rather than a niche add-on.
As wind and solar reach 60-80% of generation in many grids, short-duration lithium-ion alone cannot cover multi-day wind lulls, seasonal mismatches or extended extreme-weather events, so regulators and system planners increasingly model LDES as 'clean firming capacity' that can replace gas peakers and reduce curtailment of renewables. For example, the UK's cap-and-floor scheme now explicitly targets long-duration storage projects across pumped hydro, flow batteries, CAES and LAES, with 28.7 GW of eligible projects in the pipeline, signalling that LDES will be remunerated like other network assets rather than speculative merchant bets.
In North America, utilities such as Xcel Energy, Georgia Power and Great River Energy are contracting multi-day iron-air battery projects with Form Energy specifically to backfill coal retirements and improve system adequacy, demonstrating that planning departments now see LDES as part of their capacity stack, not just an ancillary-services tool. This long-term planning signal crowds in investment, spurs technology competition and underpins the medium-to-high growth CAGRs we model for the sector through the 2030s.
High Upfront Capital Costs, Long Payback Periods and Bankability Gaps
Despite strong drivers, LDES adoption is still constrained by high upfront capex, relatively immature cost curves and the difficulty of securing bankable long-term offtake contracts. Analysis for the DOE's Long Duration Storage Shot underscores that many LDES technologies-especially LAES, advanced CAES and novel electrochemistries-remain far above target levelized cost of storage thresholds, prompting the 90% cost-reduction goal by 2030. Even in positive policy environments, early projects often depend on grants, concessional finance or bespoke revenue support (as seen with the UK's cap-and-floor mechanism and Highview's heavily supported plants) rather than purely commercial project finance.
Publicly listed innovators like ESS Tech highlight the challenge: although ESS reported rapid revenue growth in 2025, it is still incurring substantial operating losses and has warned of a 'survival battle' through its operational reset, underlining how difficult it is to reach scale and profitability in a capex-intensive, slow-build infrastructure market. Until more standardised contracts, risk-sharing structures and robust operating track records are established, the cost of capital for many LDES technologies will remain elevated, limiting deployment pace.
What would be the Impact of US Trade Tariffs on the Global Long-Duration Energy Storage (LDES) Market?
U.S. trade tariffs on energy-related equipment, critical minerals, and battery components have emerged as a significant external factor influencing the global Long-Duration Energy Storage (LDES) market. These tariffs primarily affecting lithium-ion batteries, power electronics, steel, aluminium, and certain electrochemical components have altered cost structures, supply chain strategies, and investment decisions across the LDES value chain.
While many LDES technologies aim to reduce reliance on lithium-ion systems, several still depend on globally sourced materials and components that are exposed to U.S. trade policies. From a global perspective, U.S. tariffs have created short-term cost inflation, particularly for electrochemical and modular LDES systems, while simultaneously accelerating regional manufacturing localization and diversification of supply chains. The long-term impact of tariffs on the long-duration energy storage (LDES) market depends on how quickly manufacturers adapt, how governments respond with incentives, and how rapidly alternative technologies such as mechanical, thermal, and chemical LDES scale commercially. Scenario-based recovery pathways (V-shaped, U-shaped, and L-shaped) provide a useful framework to assess these impacts.
Key Questions Answered
- How is the long-duration energy storage (LDES) market evolving?
- What is driving and restraining the long-duration energy storage (LDES) market?
- How will each long-duration energy storage (LDES) submarket segment grow over the forecast period and how much revenue will these submarkets account for in 2036?
- How will the market shares for each long-duration energy storage (LDES) submarket develop from 2026 to 2036?
- What will be the main driver for the overall market from 2026 to 2036?
- Will leading long-duration energy storage (LDES) markets broadly follow the macroeconomic dynamics, or will individual national markets outperform others?
- How will the market shares of the national markets change by 2036 and which geographical region will lead the market in 2036?
- Who are the leading players and what are their prospects over the forecast period?
- What are the long-duration energy storage (LDES) projects for these leading companies?
- How will the industry evolve during the period between 2026 and 2036? What are the implications of long-duration energy storage (LDES) projects taking place now and over the next 10 years?
- Is there a greater need for product commercialisation to further scale the long-duration energy storage (LDES) market?
- Where is the long-duration energy storage (LDES) market heading and how can you ensure you are at the forefront of the market?
- What are the best investment options for new product and service lines?
- What are the key prospects for moving companies into a new growth path and C-suite?
Market Dynamics
Market Driving Factors
- The Escalating Demand for Renewable Energy Sources is Critical Factor Driving Market Growth
- Rising Need to Ensure Grid Resilience and Reliability Driving the Market Growth
- Government Incentives and Supportive Policy Frameworks Driving the Market Growth
Market Restraining Factors
- Lack of Commercial Readiness and Scalability Among Emerging long-duration energy storage Technologies
- Substantial Capital Expenditure Required for Development and Installation of long-duration energy storage Systems
Market Opportunities
- Development of Long-Duration Storage Technologies Opportunities for the Market Growth
- Expansion into Emerging Economies Opportunities Grow the Market
- Collaboration and Partnership Between Market Players Creating Opportunities for Market Growth
Leading Companies Profiled
- 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
- VFlowTech Pte Ltd
Segments Covered in the Report
By Storage Duration
- 8-24 hours
- More than 24 hours
By Deployment Type
- Behind-the-Meter (BTM) Commercial & Industrial
- Behind-the-Meter (BTM) Residential & Community-Scale
- Front-of-the-Meter (FTM) Utility-scale Projects
By Storage Medium
- Mechanical LDES
- Electrochemical LDES
- Thermal LDES
- Chemical LDES
By Application
- Renewable Energy Integration & Bulk Energy Shifting
- Capacity Firming and Peak Shaving
- Industrial Process Power & Heat Shifting
- Transmission & Distribution (T&D) Deferral and Congestion Management
- Other Applications
By Technology
- Pumped Hydro Energy Storage
- Flow Batteries
- Compressed Air Energy Storage (CAES)
- Liquid Air Energy Storage (LAES)
- Thermal Energy Storage
- Other Technologies
For more information about this report visit https://www.researchandmarkets.com/r/t3lpah
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