BERNSTEIN : Global Energy Storage 2026 Outlook
On January 7th, the world’s top equity research and brokerage firm, BERNSTEIN, released a 60-page report titled ” Global Energy Storage 2026 Outlook.” The core of this report contains five key predictions.
Today I’ll tell you in detail the five core predictions of this report, which may overturn your current views. Be sure to read to the end.
Prediction 1: Will energy storage demand rise or fall in 2026?
Bernstein predicts: Energy storage demand growth is expected to reach 50% in 2026. Although lower than the 85% in 2025, it will remain the fastest-growing segment in the battery industry. Global total battery demand will reach 2.4 terawatt-hours, with energy storage now acting as the core growth engine for the sector.
Energy storage will continue its rapid surge in 2026, with demand growth projected at 50%. What does this mean? While slightly slower than 2025’s 85%, it is still unequivocally the fastest-growing Sector in the entire battery industry.
One line from the report is particularly emphatic: “Power storage set to continue to drive the battery rally.” Global total battery demand is forecast to grow 32% to 2.4 TWh in 2026, but commercial vehicles and energy storage are the true engines behind this.
Especially as the EV markets in Europe and the US face policy headwinds, energy storage is the one “shining hope” carrying the banner. So, if your business is in utility-scale or commercial & industrial energy storage, congratulations—in 2026, you will still be standing right at the epicenter of this trend. Even if you feel the competition is fierce now, the growing market is there; the pie is still getting bigger.
Prediction 2: Energy storage prices will rise in 2026.
A reversal in price trends: Battery supply chain prices are expected to increase by about 10% in 2026. This stems from leading Chinese companies reaching 97% capacity utilization, lagging capital expenditures, and a rebound in raw material prices.
This next prediction might surprise many friends still engaged in price wars. Over the past two years, everyone has been tormented by “de-stocking and price reductions.” However, Bernstein’s report makes a very counterintuitive judgment: the price of the global battery industry chain is expected to rise by about 10% in 2026. That’s right, it will rise, not fall.
Why? The logic is robust, mainly based on three points:
1.Capacity utilization is nearing its limit.
Report data shows that the average capacity utilization rate of leading Chinese battery cell makers reached 97% in the first half of 2025. The previous concerns about “overcapacity” have turned into a supply shortage for these leading, high-quality manufacturers.
2.Lagging capital expenditure.
Due to thin profits in the past two years, companies have been hesitant to invest in expansion. The result is that while demand has grown 30-50%, new capacity hasn’t kept up. Once this supply-demand relationship reverses, prices naturally rise.
3.Raw material prices are recovering:
lithium and electrolyte prices are both rising. The report specifically mentions that with the recovery in demand, upstream material prices are strongly supported. Therefore, those responsible for procurement who are still waiting for battery prices to continue to fall in 2026 to reduce costs may be disappointed.
The current recommendation is: Lock in orders, lock in volumes, and even re-evaluate your inventory strategy. The window for profit margin recovery may truly be arriving.
Prediction 3: The Breakthrough of Sodium-Ion and Solid-State Batteries
The cost of sodium batteries has dropped by more than 30% by 2025, and their cost-performance advantage will be further amplified in 2026; all-solid-state batteries are expected to achieve large-scale production in China in 2027.
The report highlights two names: sodium-ion batteries and all-solid-state batteries (ASSBs).
Let’s start with sodium batteries: 2025 was a turning point for sodium batteries, with costs dropping by over 30%. Previously, people thought sodium batteries were only suitable for low-speed vehicles or household storage, but reports show they’ve begun penetrating the electric vehicle market. With lithium prices recovering in 2026, the cost-effectiveness advantage of sodium batteries will further amplify. This year is a good time to start considering investing in sodium batteries. All-solid-state batteries (ASSBs) are expected to achieve large-scale production in China by 2027.
Prediction 4: Clear Divergence in Regional Markets
The US energy storage market is expected to grow at 45%, primarily driven by data center power demand. Europe’s growth is expected at 64%, benefiting from negative electricity price arbitrage mechanisms.
Prediction 5: Chinese battery companies will continue to expand their market share advantage over Korean counterparts.
Leveraging cost and technology, they are building competitiveness across multiple global regions. Particularly under US policy risks, the weakness of Korean companies’ over-reliance on a single market is becoming more pronounced.
To all our brothers in the energy storage sector: In 2025, we fought and won the “battle for survival.” In 2026, we are fighting the “battle for resurgence.” The industry is shifting from simply “price wars” to “technology wars, overseas expansion wars, and profit wars.” Opportunities exist for both giants and SMEs, but the logic has changed.
Finally, We wish you all a 2026 where orders keep pouring in and profits never stop rising!
Choosing HOTSON not only helps reduce procurement costs but also accelerates product iteration cycles through its flexible collaboration models, effectively addressing future challenges of high-voltage and smart system integration.
DC contactors with CE and UL approvals are the first choice for energy storage developers. Hotson EVHA series: such as EVHA200,EVHA400, EVHA1000,etc. The load voltage of this series of products is 12-1000 / 12-1500Vdc, and there are a variety of current specifications to meet the application requirements of different energy storage systems.
Hotson is committed to providing efficient, safe high-voltage dc contactors for ESS solutions.HOTSON is your trusted partner in energy storage system solution. For consultation or more information, please visit our website or contact our sales team directly. We look forward to working with you to promote industry development together!
References
Notice: The above images are from Bernstein’s report.
