Last year marked a significant rebound for the sector, with 36 gigawatt-hours of new capacity representing a 48% increase over 2024. Projections indicate this momentum will accelerate further, with annual additions expected to exceed 50 gigawatt-hours in 2025. While the European Union anticipates a six-fold capacity increase to 470 gigawatt-hours by the end of the decade, industry analysts warn that this remains below the 600 gigawatt-hour threshold deemed necessary for long-term competitiveness.

Germany, the UK, and Italy remain the dominant players, yet the market is broadening as Ukraine and Bulgaria emerge as high-growth participants. This shift toward smaller markets helped diversify the deployment landscape, with the top five nations accounting for 62% of installations in 2025, down from 80% the previous year. Parallel to this, the co-location of renewables with battery systems is gaining traction; Aurora Energy Research expects such capacity to climb from 6 gigawatts in 2025 to 35 gigawatts by 2030, with Germany, Great Britain, and Bulgaria identified as the most attractive regions for these investments.