Europe's Battery Storage Market to Grow 78% in 2026
EUPD Research forecasts Europe will install 57 GWh of battery storage this year, a 78% increase from 2022. Residential storage is the strongest driver, with Chinese suppliers like BYD and Huawei dominating the market.
Europe is expected to install 57 gigawatt-hours (GWh) of battery storage in 2026. This projection comes from EUPD Research's latest Electrical Energy Storage (EES) Report.
That figure represents a 78% increase from the 32 GWh installed across the continent in 2025. The leading national markets are Germany, Bulgaria, Italy, the United Kingdom, and Spain.
Market Drivers and Regional Variations
Different factors are propelling growth in each leading country. According to EUPD Research, Germany and Italy benefit from mature installer networks and established policy frameworks. In contrast, growth in the United Kingdom and Spain is primarily driven by front-of-the-meter projects. For Bulgaria, the analysts credit European Union economic recovery programs for creating major momentum across Central and Southeastern Europe.
Overall demand is rising due to falling battery costs and high electricity prices. Many consumers and businesses are installing PV-plus-storage systems to maximize self-consumption and reduce costs. This trend is especially strong in the residential and commercial sectors. Large-scale projects still face grid connection and permitting hurdles. However, EUPD Research notes improving market opportunities and supportive policies are also driving growth in that segment.
Residential Storage Leads Growth
Residential battery storage remains the strongest growth driver in Europe. Installed capacity in this segment is forecast to jump from 11 GWh to 15 GWh this year. That is growth of approximately 36%.
Germany is expected to add the most residential storage capacity in Europe. It is followed by Italy, the Netherlands, the United Kingdom, and Austria.
Supplier Landscape and Market Shift
Chinese suppliers dominate the European residential storage market. BYD and Huawei together account for more than 30% of demand. Sungrow and Fox ESS are also identified as leading brands.
The first half of 2026 saw particularly strong growth from Fox ESS and Sigenergy. EUPD Research expects both companies to be among Europe's top residential storage suppliers for the full year.
The market is evolving. Competition is moving beyond just battery hardware. It is shifting toward integrated and intelligent energy solutions. In the first six months of 2026, Fox ESS, Huawei, BYD, and Sigenergy held the largest market shares.
| Company | Market Position Note |
|---|---|
| BYD | Over 30% of demand combined with Huawei |
| Huawei | Over 30% of demand combined with BYD |
| Sungrow | Identified as a leading brand |
| Fox ESS | Identified as a leading brand; strong H1 2026 growth |
| Sigenergy | Strong H1 2026 growth |
The report outlines a rapidly expanding market shaped by policy, economics, and technological integration.
