The battery sector is rapidly growing in multiple directions, with battery storage technologies expected to be responsible for powering many major sectors including data centers and 6G power stations, and solid-state batteries gaining increasing amounts of attention for their safer chemistries. IDTechEx's portfolio of Batteries & Energy Storage Research Reports and Subscriptions covers the latest trends and developments within the large battery market.
The growing demand for data center power
The battery storage market has seen increased growth in line with energy and power demand ramping up, with data centers in particular expected to become an increasing driver of power demand. Across the US, Europe, and China, data centers are likely to see developments and advancements surrounding the ways in which they are powered, with long duration battery technologies expected to be used in the future as this approach becomes more mainstream and necessary for supporting power demand. Switching to long duration technologies will also help with improving grid flexibility.
IDTechEx's report, "Battery Storage for Data Centers, Commercial & Industrial Applications 2026-2036: Market, Forecasts...", identifies that although data centers, in particular hyperscalers, will be a primary driver for battery storage demand over the next few years, 5G and 6G base stations are likely to take over in the 2030s as a result of growth in China and other regions. Battery energy storage paired with EV chargers will also maintain its prevalence as more vehicles become electrified and more charging infrastructure is needed globally. Over the next decade, the demand for global commercial and industrial (C&I) lithium-ion battery energy storage systems (BESS) is expected to jump from 22GWh to 108GWh in 2036, while the commercial and industrial sector in particular will see a compound annual growth rate of 17.4% during the same period eventually reaching a value of US$21.3 billion. It is not just large players operating at grid scale that are expected to be contributing to this growth, but smaller C&I BESS manufacturers that may be able to target market shares not yet dominated by bigger companies.
New battery chemistries are also expected to be adopted within the battery storage sector, such as redox flow batteries and Na-ion for data centers, as a result of not only demand for longer cycle life and lower degradation, but safer technologies that don't use flammable electrolyte. Na-ion batteries in particular are named by IDTechEx as a technology which could be used for discharging at high rates, meaning applications like volatile AI compute loads could be more easily managed.
Solid-state safety and improved performance
Solid-state chemistries are renowned for improved safety in their move away from flammable liquid components, which as outlined in IDTechEx's report, "Solid-State Batteries 2026-2036: Technology, Forecasts, Players", can be hazardous in a number of ways. Conventional lithium-ion batteries commonly use flammable liquid electrolytes based on organic carbonate solvents. Several widely used linear carbonates have relatively low flash points and high volatility, increasing fire risk if the cell is damaged, overheated, or leaks. In addition, the commonly used conducting salt LiPF₆ can decompose or hydrolyze in the presence of moisture and under thermal-abuse conditions, generating corrosive and toxic HF-containing species that may degrade cell components.
Solid-state batteries can also provide more flexibility in shape and form factor design, which isn't possible when the right stacking of materials in a conventional Li-ion battery needs to be considered. Solid-state batteries can also either be thin film or bulk, meaning there are more options available, and more applications that can be targeted. In terms of performance, IDTechEx states that conventional electrolyte is usually compatible with low-voltage cathodes, whereas with a solid-state electrolyte, high voltage cathodes and high-capacity anodes can be used, meaning the output practical energy density can be increased.
For more information on movements within the wider battery sector, visit IDTechEx's portfolio of Batteries & Energy Storage Research Reports and Subscriptions for the latest developments.
