After looking back at the past year, it’s now time to look ahead to 2026. Because the battery sector never stops evolving: in Europe and around the world, innovation cycles, growth waves, geopolitical tensions, and market shifts follow one another at high speed. This outlook explores the trends and challenges that will define the coming year, from technological developments to broader market forces.

Technology integration

When it comes to dominant battery technology, the conclusion remains unchanged: in 2026, lithium-ion will continue to reign supreme. Although alternative chemistries are gaining traction, none can yet match lithium-ion’s combination of scalability, cost-efficiency, and reliability.

Instead of a technological revolution we notice significant refinement within existing technologies. Hybrid approaches - combining multiple cell chemistries to optimise peak power and long-duration capacity - might become increasingly common.

Another important element is the integration of the Energy Management System (EMS) with the battery. What used to be an add-on is now becoming a seamless, intelligent ecosystem. Flexibility in control strategies and interoperability with different energy providers will be essential for improving profitability.

Under current market conditions, relying on a single revenue stream rarely results in a payback period under eight years. Advanced EMS solutions - capable of stacking multiple revenue streams - can reduce that period by half.

A market in expansion

According to recent EU projections, total European market capacity is expected to reach 400 GWh by 2029, representing an impressive 553% increase in just five years. The distribution of this growth across segments is equally revealing.

The C&I segment, which covers SMEs and mid-sized installations, will expand from 10 to 47.9 GWh, maintaining roughly an 11% market share. The residential market, by contrast, is set to decline to 25%, while utility-scale storage will surge to 63%, firmly establishing itself as the main driver of Europe’s battery capacity expansion.*

This trend highlights the growing importance of large-scale, grid-oriented applications in the energy transition.

At the same time, Asian manufacturers - with significant financial power, vast production capacity, and mature technologies - will continue to strengthen their foothold in Europe. The region’s structural dependence on China for lithium-ion cell pricing, quality, and availability remains a strategic vulnerability. While sweeping import tariffs are not a viable option, more targeted measures on fully assembled systems, electronics, or specific high-impact components are increasingly being considered.

Fortunately, Europe is also raising the bar. Stricter ESG requirements, material traceability, more demanding safety and cybersecurity standards, and clearer rules on recycling and end-of-life management are all underway. All developments that favour companies prioritising quality, repairability, and transparency.

On the customer side, the decision criteria are evolving just as quickly. ROI still matters, but so do local anchoring, sustainability, and long-term support from manufacturers and installers.

Our plans for 2026

Within this shifting landscape, we are taking a major step forward in 2026 with the launch of a new platform. Our next-generation modules offer  exceptional energy density alongside high reliability and long lifetime. Compared with the more common cells in today’s market, the difference is substantial; positioning us at the forefront of European players focused on scalable, high-performance storage solutions.

This new platform is fully optimised for our outdoor portfolio and forms the technological foundation for our next growth phase. In a market where quality, safety, flexibility, and European integration are becoming increasingly critical, we believe this platform will strengthen our position and allow us to keep pace with, if not exceed, European market growth.

We are ready for what lies ahead.

On to 2026!

*Source: https://www.solarpowereurope.org/insights/outlooks/european-market-outlook-for-battery-storage-2025-2029, SolarPower Europe, European Market Outlook for Battery Storage 2025-2029