Commercial And Industrial Energy Storage Market Size and Share
Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Market Size (2025) | USD 91.99 Billion |
| Market Size (2030) | USD 164.23 Billion |
| Growth Rate (2025 - 2030) | 12.29% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Commercial And Industrial Energy Storage Market Analysis by Mordor Intelligence
The Commercial And Industrial Energy Storage Market size is estimated at USD 91.99 billion in 2025, and is expected to reach USD 164.23 billion by 2030, at a CAGR of 12.29% during the forecast period (2025-2030).
Demand is shifting from back-up applications toward grid-optimization, as sub-USD 90/kWh lithium-ion pricing and synthetic PPAs unlock profitable energy arbitrage even where utility tariffs remain at USD 0.12/kWh. Falling battery costs, robust policy incentives, and corporate RE100 targets are expanding the addressable universe of sites that can monetize storage through demand-charge management, frequency regulation, and renewable matching. Data-center load growth, fleet electrification, and peak-demand charges reinforce investment, while alternative chemistries such as sodium-ion gain traction amid critical-mineral volatility and evolving fire-safety codes. Competitive dynamics are intensifying as Chinese vertically integrated suppliers widen cost advantages and Western integrators focus on software-enabled differentiation and domestic-content strategies.
Key Report Takeaways
- By technology, lithium-ion retained 80.2% of the commercial industrial energy storage market share in 2024, whereas sodium-ion is projected to surge at a 37.8% CAGR through 2030.
- By application, peak shaving led with 21.9% revenue share in 2024; EV fast-charging support is advancing at 28.5% CAGR to 2030.
- By end-user, commercial buildings accounted for 31.5% of the commercial industrial energy storage market size in 2024, while EV-fleet operators and charging hubs exhibit the fastest expansion at 29.0% CAGR through 2030.
- By geography, North America commanded a 36.3% share of the commercial industrial energy storage market size in 2024, and Asia-Pacific represents the fastest growing region with a 23.6% CAGR to 2030.
Global Commercial And Industrial Energy Storage Market Trends and Insights
Drivers Impact Analysis
| Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Li-ion cost curve approaching sub-USD 90/kWh | +2.3% | Global (North America, China lead) | Short term (≤ 2 years) |
| Global renewable mandates & corporate RE100 targets | +1.8% | EU, North America, APAC | Medium term (2-4 years) |
| Stand-alone storage ITC and parallel global incentives | +1.2% | Primarily North America | Short term (≤ 2 years) |
| Rising C&I peak-demand charges | +0.9% | High-tariff markets worldwide | Medium term (2-4 years) |
| Hyperscale data-center grid-deferral demand | +0.7% | North America, APAC | Long term (≥ 4 years) |
| Surge in synthetic PPAs needing dispatchable load-shifting | +0.6% | North America, EU, emerging APAC | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Li-ion Cost Curve Approaching Sub-USD 90/kWh
Battery-pack prices dropped 20% in 2024 and are tracking toward USD 56/kWh, making commercial installations viable wherever retail tariffs exceed USD 0.12/kWh. Sub-USD 90/kWh costs unlock lucrative frequency-regulation and grid-service revenue streams, broadening adoption by facilities with 500 kW-plus demand peaks. Containerized BESS now costs USD 148/kWh, down from USD 180/kWh in 2023, driving payback periods below four years in several U.S. ISO territories.
Global Renewable Mandates & Corporate RE100 Targets
Record corporate procurement in 2024 is forcing 24/7 clean-energy matching, making storage mandatory rather than optional for PPA compliance(1)Source: RE100, “RE100 Progress and Insights 2024,” re100.org . India’s waiver of transmission charges for BESS until mid-2028 and Thailand’s 994 MW of solar-plus-storage contracts underline how policy shifts create bankable offtake frameworks for developers.
Stand-alone Storage ITC & Equivalent Global Incentives
The U.S. Inflation Reduction Act trimmed the levelized storage cost for 100 MW, 4-hour systems to USD 124/MWh and eliminated co-location requirements, prompting a wave of standalone commercial projects. Fluence’s USD 4.5 billion backlog illustrates how tax incentives translate into supplier order books.
Rising Global C&I Peak-Demand Charges
Demand charges comprise up to 70% of large-facility electricity bills, enabling storage systems that shave 15-25% of monthly peaks to achieve sub-five-year paybacks in California, Japan, and Germany. AI-enabled dispatch algorithms maximize savings beyond static TOU schedules.
Restraints Impact Analysis
| Restraint | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High CAPEX versus diesel gensets | −1.1% | Developing markets with low tariffs | Short term (≤ 2 years) |
| Critical-mineral supply-chain volatility | −0.8% | Lithium-dependent regions | Medium term (2-4 years) |
| Fragmented interconnection & permitting rules | −0.6% | North America, EU | Long term (≥ 4 years) |
| Urban fire-code compliance costs for indoor BESS | −0.4% | OECD cities | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High CAPEX vs Diesel Gensets
Installed costs of USD 280-580/kWh still exceed a diesel generator’s USD 500-1,000/kW upfront, deterring smaller enterprises lacking low-cost finance, despite superior lifetime economics. Energy-as-a-service contracts help mitigate capital barriers but add transaction complexity.
Critical-Mineral Supply-Chain Volatility
Lithium demand jumped 30% in 2024, while new-mine investment grew only 5%, driving price swings that complicate multi-year storage PPAs. Recycling capacity lags near-term needs, prompting interest in sodium-ion and vanadium technologies.
Segment Analysis
By Technology: Sodium-Ion Disrupts Lithium Dominance
Lithium-ion retained an 80.2% share of the commercial industrial energy storage market in 2024, but sodium-ion is forecast to expand at a 37.8% CAGR to 2030 as buyers prioritize supply-chain security over energy density. CATL’s 175 Wh/kg sodium-ion pack, now in pilot-scale production, underpins USD 5 billion in projected sodium-ion sales by 2030(2)Source: Andy Colthorpe, “What Goes Up Must Come Down: A Review of Battery Energy Storage System Pricing,” Energy Storage News, energy-storage.news .
Lower mineral exposure, inherent safety, and compatibility with existing production lines position sodium-ion to erode lithium’s dominance in the stationary segments with a less critical footprint. Vanadium flow and lead-acid chemistries persist in long-duration and cost-sensitive niches, while hybrid supercapacitor systems capture high-cycle, high-power applications.
Note: Segment shares of all individual segments available upon report purchase
By Application: EV Infrastructure Reshapes Demand Patterns
Peak shaving generated 21.9% of 2024 revenue, anchoring early commercial value propositions; however, EV fast-charging support is pacing the market at 28.5% CAGR, catalyzed by fleet electrification that concentrates localized grid stress. Ancillary-services participation and microgrid stabilization join demand-charge management to create multi-stream revenue stacks optimized by AI-enabled controllers.
Load-shifting tied to synthetic PPAs is becoming mainstream among Fortune 500 buyers, while data-center operators integrate long-duration storage to flatten mission-critical demand peaks. Backup power remains steady but is increasingly delivered by batteries rather than gensets, reflecting ESG priorities.
By End-user: Fleet Operators Drive Market Evolution
Commercial buildings contributed 31.5% of 2024 demand, mainly for demand-charge mitigation and sustainability reporting. EV-fleet operators and charging hubs will compound at 29.0% CAGR, supported by municipal electrification mandates and depot-scale charging needs. Industrial facilities adopt batteries for production scheduling flexibility, whereas hyperscale data centers invest in grid-deferral solutions that monetize battery asset flexibility in wholesale markets. Telecom tower operators deploy distributed batteries that double as virtual-power-plant nodes, while healthcare complexes favor chemistries with strong safety profiles to secure critical loads.
Geography Analysis
North America accounted for 36.3% of the commercial industrial energy storage market in 2024, buoyed by the Inflation Reduction Act’s standalone ITC that trims levelized costs to USD 124/MWh and amplifies domestic-content advantages for U.S. manufacturers(3)Source: International Energy Agency, “Executive Summary – Southeast Asia Energy Outlook 2024,” iea.org . Organized markets enable revenue stacking across capacity, ancillary, and demand-response programs, propelling commercial deployments beyond 30 GW of cumulative capacity by year-end 2025.
Asia-Pacific, forecast to expand at a 23.6% CAGR, benefits from China’s manufacturing scale—expected to ship 180 GWh of storage batteries in 2025—and India’s viability-gap-funding schemes that underwrite project risk. Southeast Asian utilities, such as Thailand’s PEA, have signed MOUs for nearly 1 GWh of solar-plus-storage pilot projects, indicating accelerating regional momentum.
Europe leverages the Green Deal, capacity markets, and 24/7 corporate procurement to stimulate commercial storage revenue streams. The UK targets 24 GW by 2030, Spain plans 20 GW, and Germany’s trading reforms reward flexibility, fostering stable cash flows for asset owners even as wholesale-price volatility rises.
Competitive Landscape
The commercial industrial energy storage market exhibits moderate concentration: the top five integrators control roughly 55% of 2024 shipments, led by Tesla, Sungrow, and Fluence(4)Source: InfoLink Consulting, “Global Energy Storage Cell, System Shipment Ranking 1H24,” infolink-group.com . CATL and BYD extend influence through vertical integration, supplying cells to in-house and third-party systems, while Western players pivot to software-centric value and domestic-content compliance.
Strategic alliances blur traditional competitive lines. BYD’s FinDreams supplies Tesla’s Shanghai Megafactory, and ABB partners with Samsung SDI on European industrial microgrids. Long-duration startups such as ESS Inc. and Eos Energy commercialize iron-flow and zinc hybrid systems targeting eight-hour discharge windows, challenging lithium-ion incumbency in specific use cases.
Software and service layers are increasingly decisive. With a USD 4.5 billion backlog, Fluence embeds AI optimization to capture ancillary-service premiums, and Powin integrates third-party chemistries under a unified EMS to accelerate deployment cycles. Second-life battery aggregators enter the fray, addressing waste regulations and asset-value retention.
Commercial And Industrial Energy Storage Industry Leaders
-
Tesla Inc.
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Fluence Energy
-
LG Energy Solution
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BYD Co. Ltd.
-
CATL
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- January 2025: Tesla completed a USD 556 million Shanghai grid-scale battery factory to serve both Chinese and export markets.
- December 2024: Stryten Energy and Largo formed a long-duration storage joint venture focused on vanadium flow batteries.
- October 2024: CATL unveiled a 175 Wh/kg sodium-ion battery aimed at stationary storage.
- September 2024: A 63 MWh second-life EV battery project entered commercial service on the Texas grid.
Global Commercial And Industrial Energy Storage Market Report Scope
| Lithium-ion (LFP, NMC/NCA, LCO) |
| Sodium-ion |
| Lead-acid (VRLA, Flooded) |
| Flow Batteries (Vanadium-Redox, Zinc-Bromine) |
| Hybrid Super-capacitor Systems |
| Other Emerging Chemistries (Solid-state, Metal-air) |
| Peak Shaving |
| Load Shifting |
| Backup Power/UPS |
| Renewable Integration |
| Ancillary Services (Frequency Regulation) |
| Demand-charge Management |
| EV Fast-charging Support |
| Microgrid Stabilisation |
| Commercial Buildings (Retail, Offices) |
| Industrial Facilities (Manufacturing, Warehousing) |
| Data Centres |
| Educational Institutions |
| Healthcare Facilities |
| Telecom BTS and Edge Sites |
| EV-fleet Operators and Charging Hubs |
| Public Infrastructure (Airports, Rail) |
| North America | United States |
| Canada | |
| Mexico | |
| Europe | United Kingdom |
| Germany | |
| France | |
| Spain | |
| Nordic Countries | |
| Russia | |
| Rest of Europe | |
| Asia-Pacific | China |
| India | |
| Japan | |
| South Korea | |
| ASEAN Countries | |
| Australia and New Zealand | |
| Rest of Asia-Pacific | |
| South America | Brazil |
| Argentina | |
| Colombia | |
| Rest of South America | |
| Middle East and Africa | United Arab Emirates |
| Saudi Arabia | |
| South Africa | |
| Egypt | |
| Rest of Middle East and Africa |
| By Technology | Lithium-ion (LFP, NMC/NCA, LCO) | |
| Sodium-ion | ||
| Lead-acid (VRLA, Flooded) | ||
| Flow Batteries (Vanadium-Redox, Zinc-Bromine) | ||
| Hybrid Super-capacitor Systems | ||
| Other Emerging Chemistries (Solid-state, Metal-air) | ||
| By Application | Peak Shaving | |
| Load Shifting | ||
| Backup Power/UPS | ||
| Renewable Integration | ||
| Ancillary Services (Frequency Regulation) | ||
| Demand-charge Management | ||
| EV Fast-charging Support | ||
| Microgrid Stabilisation | ||
| By End-user | Commercial Buildings (Retail, Offices) | |
| Industrial Facilities (Manufacturing, Warehousing) | ||
| Data Centres | ||
| Educational Institutions | ||
| Healthcare Facilities | ||
| Telecom BTS and Edge Sites | ||
| EV-fleet Operators and Charging Hubs | ||
| Public Infrastructure (Airports, Rail) | ||
| By Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Europe | United Kingdom | |
| Germany | ||
| France | ||
| Spain | ||
| Nordic Countries | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| India | ||
| Japan | ||
| South Korea | ||
| ASEAN Countries | ||
| Australia and New Zealand | ||
| Rest of Asia-Pacific | ||
| South America | Brazil | |
| Argentina | ||
| Colombia | ||
| Rest of South America | ||
| Middle East and Africa | United Arab Emirates | |
| Saudi Arabia | ||
| South Africa | ||
| Egypt | ||
| Rest of Middle East and Africa | ||
Key Questions Answered in the Report
How large is the commercial industrial energy storage market in 2025?
The commercial industrial energy storage market size reached USD 91.99 billion in 2025 and is projected to grow to USD 164.23 billion by 2030.
What is the expected growth rate for commercial and industrial battery storage through 2030?
The sector is forecast to post a 12.29% CAGR between 2025 and 2030, supported by falling battery costs and supportive policy incentives.
Which technology is gaining fastest in commercial applications?
Sodium-ion batteries are scaling at a 37.8% CAGR through 2030 as firms seek supply-chain security and cost advantages in stationary storage.
Why are EV fleets important to storage demand?
Fleet electrification drives localized grid stress, making depot-based batteries vital for demand-charge mitigation and fast-charging support, contributing a 29.0% CAGR in the segment.
How does the Inflation Reduction Act influence U.S. commercial storage economics?
The standalone ITC drops levelized cost of storage for 100 MW, 4-hour systems to about USD 124/MWh, enabling batteries to compete with gas peakers in most U.S. markets.
Which region will expand fastest in commercial storage deployments?
Asia-Pacific is expected to grow at 23.6% CAGR through 2030, propelled by Chinese manufacturing scale and Indias renewable integration mandates.
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