Viewpoint: Asia energy storage to accelerate in 2026 - Argus Media
Published February 04, 2026
Viewpoint: Asia's Energy Storage Market Set for Acceleration by 2026
As the global energy landscape continues to evolve, the Asia-Pacific region is poised for significant advancements in energy storage technologies. According to recent analyses, the energy storage market in Asia is expected to experience substantial growth, particularly from 2026 onwards. This anticipated acceleration is driven by a combination of factors, including increasing demand for renewable energy, supportive government policies, and technological innovations.
The energy storage sector has gained considerable momentum in recent years, particularly as countries across Asia strive to transition to more sustainable energy systems. The integration of renewable energy sources, such as solar and wind, has underscored the need for effective energy storage solutions that can manage the intermittent nature of these resources. As a result, energy storage systems, particularly battery storage technologies, are becoming essential components of modern energy infrastructures.
In 2021, the Asia-Pacific region accounted for approximately 40% of the global energy storage market, with countries like China, Japan, and South Korea leading the charge. The growth in this sector is expected to continue, with projections indicating that the energy storage capacity in Asia could reach over 500 gigawatt-hours (GWh) by 2026. This represents a significant increase from the current capacity, driven by investments in new projects and advancements in battery technologies.
China is at the forefront of this transformation, with its government implementing various policies to promote energy storage development. The country’s 14th Five-Year Plan emphasizes the importance of energy storage in achieving carbon neutrality by 2060. As a result, China is expected to dominate the energy storage market, contributing around 300 GWh of the projected capacity by 2026. This growth is supported by the rapid expansion of the electric vehicle (EV) market, which is driving demand for battery technologies.
In addition to China, other countries in the region are also making strides in energy storage development. Japan, for instance, has been investing heavily in lithium-ion battery technologies, particularly following the Fukushima disaster in 2011, which highlighted the need for energy resilience. The Japanese government has set ambitious targets for renewable energy adoption, aiming for 36-38% of its energy mix to come from renewables by 2030. Energy storage systems are crucial to achieving these goals, enabling the integration of variable renewable sources into the grid.
South Korea is another key player in the energy storage market, with the government launching initiatives to enhance the adoption of energy storage systems. The country aims to install 1.5 GWh of energy storage capacity by 2025, with a focus on supporting renewable energy projects. South Korea's commitment to reducing greenhouse gas emissions and increasing energy efficiency further underscores the importance of energy storage in its energy transition strategy.
Technological advancements are also driving the growth of the energy storage market in Asia. Innovations in battery technologies, such as solid-state batteries and flow batteries, are expected to enhance the performance and safety of energy storage systems. These advancements could lead to longer-lasting batteries with higher energy densities, making them more suitable for a wider range of applications, including grid-scale storage and residential energy systems.
Moreover, the declining costs of battery technologies are making energy storage more accessible to a broader range of consumers. According to industry reports, the cost of lithium-ion batteries has fallen by nearly 90% since 2010, making energy storage systems more economically viable for both commercial and residential applications. This trend is likely to continue, further accelerating the adoption of energy storage solutions across the region.
As the energy storage market in Asia continues to grow, the role of policy and regulatory frameworks will be critical in shaping its future. Governments across the region are increasingly recognizing the importance of energy storage in achieving their climate goals and are implementing supportive policies to facilitate its development. This includes financial incentives for energy storage projects, streamlined permitting processes, and the establishment of standards and regulations to ensure safety and reliability.
In addition to governmental support, collaboration among industry stakeholders will be essential for the successful deployment of energy storage technologies. Partnerships between utilities, technology providers, and research institutions can foster innovation and drive the development of new solutions tailored to the unique challenges faced by the region. Furthermore, knowledge sharing and best practices can enhance the overall effectiveness of energy storage systems, ensuring they meet the needs of diverse markets.
As we look ahead to 2026, the energy storage market in Asia is on the cusp of a significant transformation. With the convergence of technological advancements, supportive policies, and growing demand for renewable energy, the region is well-positioned to become a leader in energy storage solutions. This transition not only supports the decarbonization of the energy sector but also enhances energy security and resilience in the face of climate change.
In conclusion, the momentum building in Asia's energy storage market is indicative of a broader shift towards sustainable energy systems. The expected acceleration in energy storage capacity by 2026 will play a crucial role in facilitating the integration of renewable energy sources and enhancing grid stability. As countries across the region continue to invest in energy storage technologies and supportive policies, the future looks promising for the development of a robust energy storage ecosystem in Asia.
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