Europe’s battery energy storage market is entering another strong growth phase.
According to the latest forecast from EUPD Research, Europe is expected to install 57 GWh of battery storage in 2026, up from 32 GWh in 2025. That represents a year-on-year increase of approximately 78%.
The growth is not limited to one part of the market. Residential storage continues to expand, while commercial and industrial (C&I) and utility-scale projects are also gaining momentum.
For companies involved in electrical equipment and component sourcing, this shift is worth watching closely. Storag
Europe’s Battery Storage Market Could Reach 57 GWh in 2026
EUPD Research expects Europe’s annual battery storage installations to increase from 32 GWh in 2025 to 57 GWh in 2026.
Several factors are supporting this growth, including falling battery costs, high electricity prices, greater use of solar-plus-storage systems, and supportive energy policies in several European markets.
At the same time, battery storage is becoming more important for renewable energy integration and grid flexibility.
This means the market is moving beyond the early stage of residential solar storage and becoming a broader part of Europe’s electrical infrastructure.
Residential Storage Is Still Growing
Residential battery storage remains an important part of the European market.
EUPD Research forecasts residential installations to increase from 11 GWh in 2025 to 15 GWh in 2026, representing growth of around 36%.
Germany is expected to remain the largest residential storage market in Europe, followed by Italy, the Netherlands, the UK and Austria.
However, the residential segment is growing more slowly than the European storage market as a whole.
This is an important change.
The 78% overall market growth suggests that the next stage of Europe’s storage expansion will increasingly involve larger commercial, industrial and utility-scale projects alongside residential systems.
C&I and Utility-Scale Storage Are Gaining Momentum
Commercial and industrial energy storage is becoming increasingly relevant as businesses look for ways to reduce electricity costs, improve the use of on-site solar generation and increase energy flexibility.
Large battery projects are also expanding in markets such as the UK, Spain and Bulgaria.
These projects are different from residential storage in terms of scale, system design and equipment requirements. They often involve more complex electrical infrastructure, power conversion equipment, monitoring systems, protection devices and other supporting components.
For suppliers and sourcing companies, this creates opportunities across a much wider electrical supply chain.
The market is no longer simply about supplying batteries.
Germany, Bulgaria, Italy, the UK and Spain Are Key Markets
EUPD Research identifies Germany, Bulgaria, Italy, the United Kingdom and Spain as leading European storage markets for 2026.
Germany and Italy benefit from established solar and storage markets and mature installer networks.
The UK and Spain are seeing strong momentum in larger front-of-the-meter projects.
Bulgaria is particularly interesting because of the rapid development of large-scale storage projects supported by EU recovery funding.
The emergence of Bulgaria also highlights a broader trend: storage opportunities in Europe are becoming less concentrated in the traditional markets.
Central and Southeastern Europe are becoming increasingly relevant for companies looking for new project opportunities.
Chinese Brands Continue to Play a Major Role in Residential Storage
The European residential storage market is also seeing strong competition among Chinese suppliers.
According to EUPD Research, the leading residential storage brands in Europe during the first half of 2026 were Fox ESS, Huawei, BYD and Sigenergy.
Fox ESS and Sigenergy showed particularly strong growth during the period, while Huawei and BYD continued to maintain significant positions in the market. EUPD Research expects the competitive landscape to continue evolving through the rest of 2026.
The market is also moving beyond battery hardware.
Energy storage companies are increasingly competing through integrated systems, intelligent energy management and broader product ecosystems.
This means that successful storage products increasingly depend on more than the battery itself.
What Does This Mean for Electrical Component Supply?
The expansion of Europe’s energy storage market creates opportunities across the wider electrical equipment supply chain.
Storage projects can require a wide range of components, depending on the system design and application, including:
- Power and energy meters
- DC and AC electrical components
- Control boards
- Relays and contactors
- Protection components
- Charging and power management components
- Monitoring and communication devices
- Other customized electrical components
For equipment manufacturers and system developers, finding suitable components at the right price and with reliable delivery can become increasingly important as project volumes increase.
This is where a flexible sourcing partner can add value.
Rather than working with multiple suppliers for every individual component, customers can use an experienced supply-chain partner to identify suitable products, coordinate sourcing and manage different purchasing requirements.
Looking Ahead
Europe’s energy storage market is moving into a broader phase of development.
Residential storage will continue to play an important role, but commercial, industrial and utility-scale applications are becoming increasingly important to the overall market.
For equipment manufacturers and project developers, this means more opportunities — but also greater requirements for product selection, sourcing, quality control and delivery.
As the European storage market continues to expand, reliable electrical component supply will remain an important part of bringing new energy projects and products to market.
Allblue provides electrical component sourcing and supply-chain support for customers developing EV charging, energy and other electrical equipment. If you are looking for specific components or need support sourcing products for a new project, contact our team to discuss your requirements.