Japan Energy Storage Systems Market

Japan Energy Storage Systems Market Insights Forecasts to 2035  

• The Japan Energy Storage Systems Market Size Was Estimated at USD 35850.4 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 11.5% from 2025 to 2035
• The Japan Energy Storage Systems Market Size is Expected to Reach USD 118750.7 Million by 2035

According to a Research Report Published by Decision Advisior & Consulting, the Japan Energy Storage Systems market?is anticipated to reach USD 118750.7 million by 2035, growing at a CAGR of 11.5% from 2025 to 2035. The Japanese energy storage systems market is driven by growing energy consumption, technological advancements, and the rising demand for renewable energy sources augment the energy storage systems market.

Market Overview

Japan's energy storage systems market (ESS) is an industry that develops, manufactures, integrates and deploys systems that will enable the storage of energy for later use. These storage systems are mostly made up of lithium-ion batteries, sodium-sulfur batteries, flow batteries and various advanced forms of energy storage. These batteries and energy storage systems are being deployed in residential, commercial, industrial and utility-scale applications. Japan's energy storage systems market presents excellent growth opportunities because of the significant growth of renewable energy, especially solar and wind. As renewable energy generation is not a continuous process, the use of an ESS is necessary for grid stability, peak load shaving, frequency control and backup power. The energy storage systems market in Japan is supported by the Japanese Government through various government programs and initiatives. Some of the key government programs are the Green Growth Strategy 2050, which aims for carbon neutral energy generation and a significant increase in renewable energy, and a large quantity of electric vehicles being developed. The government provides subsidies and incentives for residential and commercial battery storage, renewable-plus-storage projects and investments in next generation battery technology.

Report Coverage

This research report categorizes the Japan Energy Storage Systems market based on various segments and regions, and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan Energy Storage Systems market. Recent market developments and competitive strategies, such as expansion, Protein launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan Energy Storage Systems market.  

Driving Factor 

The Japanese Energy Storage Systems market is driven by the rapid renewable energy adoption, increasing need for grid stability, rising electricity demand, frequent natural disasters, growth of electric vehicles, smart grid development, declining battery costs, and strong government support for carbon neutrality, energy security, and advanced battery research and deployment.

Restraining Factor

The Japanese energy storage systems market is restrained by high initial investment costs, limited availability of raw materials, battery recycling challenges, safety concerns, long approval processes, land constraints for large-scale projects, and technological limitations related to long-duration energy storage and scalability.

Market Segmentation  

The Japan energy storage systems market share is classified into technology and application.

• The pumped segment dominated the market in 2024 and is expected to grow at a remarkable CAGR during the forecast period.  

The Japanese Energy Storage Systems market is segmented by technology into pumped storage, electrochemical storage, electromechanical storage, thermal storage, and others. Among these, the pumped segment dominated the market in 2024 and is expected to grow at a remarkable CAGR during the forecast period. This dominance is due to long-term demand for pumped hydro storage (PHS) is predicted to be driven by favorable compliance regulations and rising electricity consumption

• The grid storage segment dominated in 2024 and is expected to grow at a substantial CAGR during the predicted period.

The Japanese Energy Storage Systems market is segmented by application into transportation and grid management. Among these, the grid storage segment dominated in 2024 and is expected to grow at a substantial CAGR during the predicted period. Grid storage systems are extensively used for the storage of energy on a large scale. The energy demand is high across the industrial sector which drives the growth of the segment.

Competitive Analysis: 

The report offers the appropriate analysis of the key organizations/companies involved within the Japan Energy Storage Systems market, along with a comparative evaluation primarily based on their Protein offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes Protein development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.  

List of Key Companies 

• Panasonic Corporation
• NGK Insulators, Ltd.
• Toshiba Energy Systems & Solutions Corporation
• NEC Corporation
• Hitachi Energy / Hitachi Ltd.
• GS Yuasa Corporation
• Others

Key Target Audience

• Market Players 
• Investors 
• End-users 
• Government Authorities? 
• Consulting and Research Firm 
• Venture capitalists 
• Value-Added Resellers (VARs) 

Market Segment 

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Decision Advisior has segmented the Japan Energy Storage Systems market based on the below-mentioned segments: 

Japan Energy Storage Systems Market, By Technology

• Pumped Storage
• Electrochemical Storage
• Electromechanical Storage
• Thermal Storage
• Others

Japan Energy Storage Systems Market, By Application

• Transportation
• Grid Management

FAQ’s

Q: What is the current size and future growth outlook of the Japan Energy Storage Systems Market?

A: The Japan Energy Storage Systems Market was valued at USD 35850.4 million in 2024 and is projected to reach USD 118750.7 million by 2035, growing at a strong CAGR of 11.5% during the forecast period from 2025 to 2035.

Q: What factors are driving the rapid growth of the Japan Energy Storage Systems Market?

A: Market growth is driven by rising renewable energy adoption, increasing electricity demand, need for grid stability, frequent natural disasters, expansion of electric vehicles, smart grid development, declining battery costs, and strong government support for carbon neutrality and energy security.

Q: What are energy storage systems and why are they important in Japan?

A: Energy storage systems store electricity for later use and help balance supply and demand. In Japan, they are critical for integrating renewable energy, ensuring grid reliability, providing backup power during disasters, and reducing dependence on imported energy resources.

Q: Which technology segment dominates the Japan Energy Storage Systems Market?

A: Pumped storage technology dominated the market in 2024 and is expected to grow at a remarkable CAGR due to its large-scale storage capacity, long operational life, and favorable regulatory support in meeting Japan’s rising electricity demand.

Q: Which application segment holds the largest share in the market?

A: The grid management segment dominated the market in 2024 and is expected to grow at a substantial CAGR, supported by increasing demand for large-scale energy storage to stabilize grids and support industrial and renewable energy needs.