The European market for battery energy storage is expected to enter a new phase of expansion in 2026, with annual installations projected to reach 57 GWh, compared to 32 GWh recorded in 2025.
The increase represents a growth of 78% in just one year, according to the most recent edition of the EES Report Europe H1 2026, prepared by EUPD Research, a specialized division of the EUPD Group focused on producing analyses and certifications based on primary data in the areas of social sustainability, corporate health, diversity, equity, and inclusion.
The projected leap signals a shift in the role assigned to energy storage in the European energy system. Batteries are no longer seen merely as a complement to solar generation, but are beginning to occupy space as infrastructure to expand the integration of renewable sources, offer flexibility to the grid, and keep pace with the advancement of electrification in different consumer segments.
Five markets in focus
Germany, Bulgaria, Italy, the United Kingdom, and Spain appear as the main European markets projected for 2026.
Germany and Italy have well-established installer networks and policies, while the United Kingdom and Spain are experiencing rapid growth, especially due to the expansion of front-of-the-meter projects and those focused on the operation of the electrical system.
Bulgaria's entry among the most prominent markets is linked to resources from the European Union's recovery funds, a movement that, according to the survey, highlights the expansion of storage in Central and Southeastern Europe.
Among the factors supporting this growth are the drop in battery prices and the rise in electricity prices. This combination favors the adoption of systems that allow for the storage of solar energy and the expansion of self-consumption, reducing the need to purchase energy from the grid.
Residential property ahead
The residential segment remains among the main drivers of the market. Projections indicate that installations will increase from 11 GWh in 2025 to 15 GWh in 2026, a growth of 36%. Germany continues to be the largest market for this type of system, closely followed by Italy, the Netherlands, the United Kingdom, and Austria.
Energy storage is also gaining traction among commercial and industrial consumers. In these cases, the motivation includes reducing energy costs and optimizing the use of local generation.
At the same time, large-scale projects move forward as better market opportunities and more favorable regulatory frameworks emerge.
This movement, however, occurs alongside existing obstacles, mainly related to connection to the electrical grid and licensing processes.
Dispute between manufacturers
The growth of the residential market is also altering the competition between manufacturers. By 2025, BYD, Huawei, Sungrow, and Fox ESS formed the group of leading brands, with BYD and Huawei maintaining prominent positions and together accounting for more than 30% of the market.
In the first half of 2026, the composition of the top four group changed to Fox ESS, Huawei, BYD, and Sigenergy.
The change indicates accelerated growth for Fox ESS and Sigenergy, while BYD and Huawei maintain significant market positions. According to EUPD Research, the smaller gap between the four brands points to a more balanced and competitive market.
The competition is also beginning to extend beyond the equipment itself. The market is shifting towards integrated solutions that combine modular storage, intelligent energy management, and different products within a single ecosystem.
If the current shipping rate is maintained, the projection presented in the study is that Fox ESS and Sigenergy will occupy the top two positions among residential storage brands in Europe by the end of 2026.
This possibility reflects the changing competitive dynamics of the sector and the advancement of suppliers who are expanding their market share.
To estimate suppliers' market share in the European residential market, the methodology used in the survey considers shipment data, information provided by manufacturers, independent analyses, installer data, and prosumer information. Ukraine is outside the scope of the study.
New phase of storage
The survey concludes that the European market is entering a more competitive phase. While mature markets tend to show greater stability as electricity market reforms advance, emerging markets accelerate primarily through large-scale projects.
The next edition of the report, covering the second half of 2026, is expected to reflect new regulatory reforms, market changes, and the evolution of competition throughout the storage value chain. This topic will also be highlighted at the European Sustainability Week 2026 / ESG Summit, scheduled to take place from November 23-25.
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