This report summarises Transforma Insights’ views on the ‘Connected Batteries’ IoT market, found in the Transforma Insights Connected Things IoT forecast.
The report covers details on the evolution of battery technology, beginning with traditional batteries with no communication technologies, up to current batteries with built-in connectivity. It covers different sizes of batteries, from large grid-scale batteries to small portable batteries.
Mostly concentrated in developed regions such as North America and Europe, the market for batteries is typically triggered by local electricity utility providers in the case of grids and microgrids, and consumers in the case of in-building and portable batteries. The report also describes the reasons for the increasing adoption of batteries, such as increasing usage and cost of electricity, focus on renewable energy sources, the rise of AI and data centres requiring infrastructure for power backup and storage, as well as the war between Russia and Ukraine, and the resulting impact on natural gas use in European countries.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
This section first explains why remote monitoring of remaining battery capacity is becoming common for IoT hardware. It then describes the major types of connected batteries (based on their size) - grid-scale batteries; microgrid and in-building batteries; and portable batteries, and describes their function. It then explores connectivity technologies (like LPWA) is also one of the big contributors to the expanding battery market, and explains how other cellular solutions are performing in this context.
It also discusses the other factors (like the falling cost of lithium batteries and clearer incentives by various governments) that have significantly contributed towards their growing adoption. It also touches upon the global regional disparity in terms of the market for battery energy storage (especially China, which installed around 42GW of grid-connected capacity in 2025, accounting for 54% of global installation), and then examines key factors that are influencing the development of the market, including:
This section of the report discusses the usage of grid-scale batteries (such as allowing utilities and power system operators to store energy for later use) and their working mechanism. It then explains what BESS (Battery Energy Storage System) is, its benefits (like being one of the fastest sources which can provide additional power), and drawbacks (such as significant cost of constructing these systems). It then focuses on VPPs (or virtual power plants) as a viable alternative solution and charts their advantages, such as their ability to address grid challenges and manage flexible loads. It also explains how integrating electric vehicles and vehicle-to-grid technology supports the grid’s ability to influence power demand and supply simultaneously. Finally, it explores the connectivity technologies suitable for installing grid-scale batteries.
This sub-section of the report explains how rapid industrialisation in developing countries, coupled with the depletion of non-renewable energy sources and an innate desire to reduce harmful emissions will propel the market for connected batteries (rising from the increasing dependence on alternative renewable energy sources and subsequent need for energy storage).
It also explains how the introduction of a battery energy storage system (BESS) is encouraging initiatives by various governments for large-scale energy storage projects. It further takes into account the ongoing war between Ukraine and Russia, along with the ongoing tension regarding the Strait of Hormuz (which has particularly strained Asian countries), indirectly increasing the adoption of connected batteries. It also mentions how the drastically changing weather patterns around the world are resulting in more cases of grid failures (like in Texas in 2021) and how it will increase the adoption of batteries and other smart grid technologies.
This sub-section of the report talks about how decreasing dependence on nuclear energy will also accelerate the usage of renewable resources (such as connected batteries) and make load balancing even more critical. Case in point, in May 2025, Taiwan closed the Maanshan-2 nuclear reactor, adhering to its 2026 mandate of becoming a nuclear-free country.
This sub-section argues that the rapid rise of AI is significantly accelerating electricity demand from data centres, often in the range of 10-100MW per facility, which, in turn, generates unpredictable demand spikes. Therefore, operators are increasingly adopting on-site generation, hybrid energy systems, and energy storage solutions, such as BESS and second-life EV batteries, to enhance resilience and reduce dependence on the grid during peak periods.
This sub-section first highlights the geographical disparity when it comes to the deployment areas of grid-scale batteries (being dominated by countries like the US, China, and South Korea), and then, in a tabular format, it lists various government initiatives across countries, including Australia, Botswana, India, and the US. For instance, the World Bank offered a loan of USD88 million to Botswana for the deployment of the first grid-scale battery energy storage system in Africa.
This section also lists a few examples of relevant IoT deployments in this application, including Rolls-Royce Power Systems Division deploying CATL Tener grid-scale battery energy storage projects.
This section of the report defines microgrid and their usage (such as energy generation and storage for a defined area or boundary). It also talks about the reasons behind their increased adoption in rapidly developing nations (including unreliable or underdeveloped national grids) and explains how they integrate distributed generation and energy storage units to fulfil local energy demands. It then explains that most microgrid deployments result from government funding or incentives and then, in a tabular format, lists some examples of microgrid grants and funds. For instance, in 2025, Connecticut launched a USD45 million Climate Resilience Fund, combining state and federal funding to support projects including microgrids, flood protection, and energy resilience.
It then discusses how the proliferation of microgrids has stimulated widespread deployment of BESS for a range of applications (like rapid spinning reserve) and how BESS can be deployed for short-term, mid-term, and long-term usage. It also mentions the connectivity technologies that they use to pass monitored data between the batteries and the communication gateways. It also charts a few relevant IoT deployments in this application, like Saudi Arabia’s Red Sea Project utilising Huawei Fusion Solar Smart String ESS solution for its Microgrids.
This section of the report takes into account the working mechanism of in-building connected batteries and their usage (like storing generated energy to reduce reliance on grid electricity). It then charts the advantages of in-building batteries (like providing complete or partial backup, depending on the user’s choice).
It also talks about how combining microgenerators with a battery system can enable the microgenerator to operate during adverse situations like a grid outage. It also explains how electric vehicles also serve as a source of energy storage through Vehicle to Home (V2H) charging and how they can make in-building batteries redundant, as they can offer their own battery storage to homeowners without them spending extra money on batteries.
This section also has a few examples of relevant IoT products in this application, like the Tesla Powerwall, which is an integrated battery system that stores solar energy for backup protection during power outages. The system detects outages and automatically recharges with sunlight to keep the appliances running.
This section of the report begins with a short definition of portable batteries and their utilities (such as powering small electrical household equipment as well as charging AC inverters – if their capacity is up to 1,000Wh). It also talks about some of the battery companies that are operating in developing countries of Asia and Africa (since there is a lack of continuous electricity supply in such regions) and their business models. It also discusses the reasons behind the adoption of portable batteries in developed nations (including leisure activities such as camping).
It also adds that electric vehicles have started offering an alternative to portable batteries as newer models can serve as a source of energy storage and charging, using Vehicle to Load (V2L) charging. Lastly, a few examples of relevant IoT products in this application have also been included in this section. For instance, D. light works on a pay-as-you-go technology model and its products are GPS and Bluetooth-enabled and can be tracked by the organisation through the firm’s mobile application.
The key vendors section lists some of the main providers of products and services related to the market, such as Tesla, Enel X, Fluence Energy, CATL, BYD, Alpha ESS, M-Kopa, LG Chem, and Generac PWRcell. The report provides profiles of the various vendors, including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of connected devices, which will grow from 22.3 million in 2025 to 268.4 million in 2035.
Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.
This section discusses which technologies will be used in the connected batteries application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the Connected Batteries Application Group will grow at a CAGR of 22%.
