Commercial and Industrial Energy Storage Market Size, Share, Growth, and Industry Analysis, By Type (Lithium-Ion Batteries, Lead-Acid Batteries, Flow Batteries, Sodium-Ion Batteries, Compressed Air Energy Storage), By Application (Commercial Buildings, Industrial Plants, Utilities, Renewable Energy Systems), Regional Insights and Forecast to 2033

Commercial and Industrial Energy Storage Market Overview

The Commercial and Industrial Energy Storage Market size was valued at USD 5.72 million in 2025 and is expected to reach USD 12.56 million by 2033, growing at a CAGR of 9.13% from 2025 to 2033.

The global commercial and industrial energy storage market reached approximately 145 MW of new installations in 2024, marking notable expansion within the broader battery energy storage sector. In the U.S., commercial and industrial storage capacity totaled 145 MW, with the top three states—California, Massachusetts, and New York—accounting for 88 % of that. Worldwide, grid-scale battery storage achieved a cumulative deployment of around 205 GWh in 2024, more than doubling the 2023 total by 53 %, with 98 % comprised of lithium-ion systems.

In Asia‑Pacific alone, commercial systems over 500 kWh represent 26 % of deployments, while China, Japan, South Korea, and Australia make up 27 % of the global commercial storage market. Industrial users hold nearly 49 % of total commercial storage deployments, particularly in logistics and automotive sectors. Globally, commercial solar‑linked storage applications represent 42 % of installations, while 38 % focus on peak‑load shaving. These metrics highlight the increasing role of storage in commercial and industrial settings, driven by large-scale rollouts across multiple countries and significant capacity gains year‑over‑year.

Key Findings

DRIVER: Rising commercial demand for solar‑paired storage to cut peak‑grid usage and improve load shaving efficiency.

Top Country/Region: The United States leads commercial and industrial energy storage deployment, with 145 MW added in 2024, 88 % located in California, Massachusetts, and New York.

Top Segment: Grid‑scale lithium‑ion dominated, comprising 98 % of commercial deployments globally, and representing 160 GWh out of 205 GWh total storage installed in 2024.

Commercial and Industrial Energy Storage Market Trends

2024 witnessed accelerated adoption of commercial and industrial (C&I) storage systems, with global deployments exceeding 205 GWh, driven primarily by grid‑scale lithium‑ion technology. The C&I segment in the U.S. installed 145 MW during the year—a 22 % increase over 2023—with 88 % capacity concentrated in California, Massachusetts, and New York. This trend underscores the increasing integration of energy storage in commercial portfolios to manage electricity costs and support solar self‑consumption. In the second quarter of 2024 alone, U.S. C&I storage capacity reached 238 MW of distributed storage systems, with a record 510 MWh deployed across all distributed segments. Lithium-ion battery technologies continue to dominate, accounting for 98 % of grid‑scale storage deployments worldwide. In Asia‑Pacific, systems over 500 kWh represent 26 % of commercial deployments, reflecting rapid adoption among industrial firms. Globally, 42 % of C&I storage is connected to commercial solar installations, while 38 % is deployed primarily for peak‑load shaving. These deployment patterns signify a strategic shift toward decentralized energy management and resilience.

In the U.S., grid-scale storage installations totaled 12,314 MW (12.3 GW) in 2024, accompanied by 37,143 MWh of energy storage—marking respective year‑over‑year increases of 33 % and 34 %. While grid-scale dominates, distributed C&I systems are playing a growing role: 238 MW of distributed storage was deployed in Q2 2024, a 74 % climb over the same period in 2023. Rapid capacity gains in distributed infrastructure indicate that commercial settings—offices, factories, retail sites—are increasingly incorporating storage solutions for operational flexibility. Globally, grid-scale BESS deployments rose from 96 GWh in 2023 to 160 GWh in 2024—a 68 % surge—making grid storage the leading growth driver. China alone accounted for 67 % of that increase. In contrast, the U.S. and Canada contributed roughly 40 GWh, with California contributing half of the North American total. Drivers behind these trends include declining storage costs—system prices halved from 2022 to 2024—with grid-scale storage averaging $139/kWh in 2023, down from $780/kWh a decade ago. While cost curves support larger deployments, commercial and industrial installations benefit from tailored configurations and project scales that are nimble and suited for on-site utility-backups and demand prioritization. As industrial users comprise 49 % of commercial-scale storage deployments globally, the market is evolving to accommodate enterprise-level electrical flexibility.

Commercial and Industrial Energy Storage Market Dynamics

DRIVER

Rising demand for solar‑paired commercial systems

The increasing installation of solar-plus-storage solutions is driving business adoption. In Asia-Pacific, 42 % of commercial storage systems are solar-linked. In the U.S., operators deployed 145 MW in 2024 across commercial and industrial facilities, 88 % of which are sited in solar-rich states. Globally, businesses are investing in storage to manage on-site generation and reduce grid dependency. Industrial users account for 49 % of deployments—particularly in sectors with high electricity usage like logistics and automotive. Deployments over 500 kWh make up 26 % of commercial systems in Asia-Pacific, reflecting energy-intensive operations. These figures indicate that solar‑paired storage is not only technically viable but increasingly preferred for energy cost control in commercial and industrial environments.

RESTRAINT

Grid connection delays and upfront costs

One of the key market restraints is project delays due to grid interconnection queues. In the U.S. Q4 2024, grid‑scale deployments fell 20 % from Q4 2023 as approximately 2 GW of projects shifted to 2025. Additionally, China’s projected 30.1 GW addition in 2024 dropped from 34.5 GW in 2023 due to lower profitability and high upfront costs. In the U.S., although battery prices fell to $139/kWh in 2023, developers face rising BOS, labor, and permitting costs. These factors combine to create slower ramp-up, making some businesses hesitate before committing to large C&I storage investments.

OPPORTUNITY

Policy incentives and industrial decarbonization

Tax incentives such as the U.S. Inflation Reduction Act deliver a 30 % tax credit for clean power projects with domestic content and additional benefits for low-income and transition-area installations. In Europe, battery storage capacity is projected to rise fivefold by 2030, reaching over 50 GW. Companies like Shell and TotalEnergies are expanding projects to support renewables integration and grid services. Corporate industrial users—near 49 % of deployments—are seeking storage to reduce CO₂ and meet sustainability targets, presenting opportunities for scaled C&I adoption. Furthermore, Asia-Pacific, with 27 % of commercial storage market share, offers growth potential in countries like China, Japan, and South Korea as industrial firms update infrastructure.

CHALLENGE

System degradation and operational complexity

Commercial lithium-ion battery systems face degradation issues over storage cycles, creating a need for ongoing maintenance and operational management. In Germany, home storage systems averaged 1,200 €/kWh, while large-scale systems reached 310–465 €/kWh in 2022; this disparity feeds into C&I planning. Liquid‑air long‑duration systems like Highview Power’s 300 MWh facility demonstrate technological alternatives, but remain in early stages. Integrating storage into industrial operations adds layers of control, software interoperability, and workforce training. Grid integration regulations differ across regions, impeding standardized C&I rollouts. These hurdles elevate the risk and complexity of deploying advanced storage systems at scale in industrial environments.

Commercial and Industrial Energy Storage Market Segmentation

The market segments by type and application, focusing on six key storage technologies and four deployment environments. Each type offers unique performance and deployment scales, while applications span across commercial buildings, industrial plants, utilities, and renewable systems.

By Type

• Lithium‑Ion Batteries: comprise around 98 % of commercial and grid‑scale deployments globally. In commercial installations, systems range from 500 kWh units up to multi‑MWh facilities. Their energy density enables compact system footprints for rooftop and on‑site battery backup in both office and industrial parks. In Europe, declining lithium‑ion pack costs have catalyzed C&I market entries, with companies investing in ancillary services and trading through frequency response contracts. The U.S. C&I segment added 145 MW of lithium‑ion capacity in 2024. Additionally, Asia‑Pacific systems over 500 kWh constitute 26 % of deployments, reflecting high‑density usage by industrial players.
• Lead‑Acid Batteries: retain niche positions in cost‑sensitive standby use. While less energy-dense, they are employed for systems under 100 kWh in low‑demand scenarios like UPS backup in retail and small industrial settings. Typical deployment sizes range from 10 kWh to 200 kWh, mainly in emerging markets or as secondary backup. Though their performance limits cycling capacity, their low maintenance costs enable prolonged use in settings without high depth-of-discharge needs.
• Flow Batteries: such as vanadium redox flow—support long-duration applications and are featured in some commercial storage pilots in the U.S. and Australia, with capacity ranging between 100 kWh and 1 MWh. Highview Power's liquid‑air plant is 300 MWh for grid‑scale use . Commercial installations typically range from hundreds of kWh to single-digit MWh scales, providing discharge durations of 4–8 hours. Their long lifetimes and minimal degradation suit peak‑shifting applications in commercial and industrial facilities, especially where daily cycling is high.
• Sodium‑Ion Batteries: are emerging alternatives expected to complement lithium‑ion. Although 2024 deployments remain limited (<1 MWh), sodium‑ion batteries are being tested in Europe for cold climates due to stable thermal performance. They provide cost‑effective storage options for C&I settings with moderate to high self‑consumption needs. Near-mature pilot projects include capacities ranging from 100 kWh to 500 kWh, offering 4‑hour discharge durations.
• Compressed Air Energy Storage: while rare in commercial scenarios, offer long‑duration bulk storage ranging from 1 MWh to 100 MWh. Industrial plants in remote or microgrid environments sometimes pair CAES with renewables to meet continuous power demands. These systems involve turbines, compressors, and storage caverns or tanks and are typically >1 MW in size, offering discharge durations exceeding 8 hours. However, few commercial installations have been documented under the C&I segment.

By Application

• Commercial Buildings: Large office complexes, retail centers, malls, and data centers deploy battery systems ranging from 500 kWh to 10 MWh. In Texas, data‑center-driven solar and storage adoption has increased commercial-sector electricity demand by 13 TWh between 2019–2023. Data centers across Dallas–Fort Worth require large backup systems; typical commercial systems span 1–5 MWh, with emerging solar plus storage facilities sized at 128 MW solar / 100 MW storage. Shell Energy Australia’s commercial/storage project pipeline includes a 500 MW / 1000 MWh system. These installations support energy resilience, peak shaving, and enable commercial buildings to participate in demand‑response markets.
• Industrial Plants: Manufacturing, logistics, and automotive plants are responsible for 49 % of C&I storage deployments. Systems typically range from 500 kWh up to several MWh, configured for onsite power management. Asia‑Pacific accounts for 27 % of global commercial storage installations. Industrial use cases include load shifting, resilience for production-critical processes, and self-consumption. Systems over 500 kWh account for 26 % of deployments. German industrial installations are growing, leveraging declining costs to adopt battery systems for backup and frequency services.
• Utilities: primarily rely on grid‑scale systems, some develop commercial projects sized between 1 MWh and 50 MWh to support microgrids, substation buffering, or distributed energy resources. Projects like the 300 MWh liquid‑air plant by Highview Power and Shell Energy Australia’s 500 MW / 1000 MWh battery demonstrate utility‑scale capability but can also serve commercial loads. Utilities often integrate storage to enhance grid flexibility and support renewables-heavy portfolios.
• Renewable Energy Systems: Commercial renewable installations—solar or wind farms—often incorporate storage systems ranging from 1 MWh to 10 MWh. In Chile, the Oasis de Atacama hybrid project includes 11 GWh of storage, with individual phases from 250 MWh to 800 MWh using lithium‑ion batteries. In Asia‑Pacific, 42 % of commercial storage systems are directly tied to solar installations. Shell Energy Australia’s 500 MW / 1000 MWh battery supports solar integration. These pairings improve dispatchability and enable renewables operators to generate revenue through arbitrage and grid services.

Commercial and Industrial Energy Storage Market Regional Outlook

• North America

the U.S. dominates: commercial and industrial installations totaled 145 MW in 2024, led by California, Massachusetts, and New York with 88 % of that capacity. U.S. grid-scale storage hit 12,314 MW and 37,143 MWh, a 33–34 % increase. In Q2 2024 alone, distributed storage deployments reached 238 MW/510 MWh, rising 74 %/86 % over Q2 2023. Texas and California account for 61 % of Q4 2024 capacity. The data center boom in Texas drove a 13 TWh increase in commercial power demand between 2019–2023.

• Europe

battery storage capacity is projected to reach over 50 GW by 2030—a fivefold increase. Corporate investors like Shell and TotalEnergies are launching storage projects that leverage negative-price arbitrage and ancillary services. The German storage sector included 220,000 home systems (1.9 GWh/1.2 GW), 1,200 industrial systems (0.08 GWh/0.04 GW), and 47 large-scale systems (0.47 GWh/0.43 GW) installed in 2022. Costs for home systems averaged €1,200/kWh, while large systems ranged €310–465/kWh. These developments reveal diversified storage deployments across home, industrial, and grid-scale segments.

• Asia‑Pacific

accounts for 27 % of the global commercial storage market, with significant traction in China, Japan, South Korea, and Australia. Industrial deployments form 49 % of this share. Systems exceeding 500 kWh represent 26 % of total installations. In India, captive power generation capacity reached 79,340 MW in FY 2023–24 with 214,581 GWh produced, creating opportunities for on-site battery systems amid industrial expansion. Hybrid projects like Gujarat’s plan to build 14 GWh grid-scale battery storage alongside 30 GW of solar-wind power drive integrated growth.

• Middle East & Africa

In MENA and Africa, commercial storage remains nascent but expanding. Global grid-scale deployments—160 GWh out of a 205 GWh total—include contributions from these regions. In South Africa, commercial solar farms are increasingly coupled with storage to ensure supply during evening hours. In the UAE, pilot C&I storage systems of 100–200 kWh are emerging in free‑zone industrial clusters. Long-duration technologies like liquid‑air LAES are being explored as future options. Backed by renewable growth, regional storage investments are drawing interest from international players including Highview Power, with plans for 300 MWh capacity in Europe.

List of Top Commercial and Industrial Energy Storage Companies

• Tesla Inc. (USA)
• BYD Company Ltd. (China)
• LG Energy Solution Ltd. (South Korea)
• Panasonic Corporation (Japan)
• Samsung SDI Co. Ltd. (South Korea)
• ABB Ltd. (Switzerland)
• Siemens AG (Germany)
• Hitachi Ltd. (Japan)
• General Electric Company (USA)
• NEC Corporation (Japan)

Tesla: Megapack and Powerpack were deployed in projects totaling over 3 GW globally

BYD: DaaS commercial systems crossed 1 GW in combined capacity across China and Asia-Pacific in 2024.

Investment Analysis and Opportunities

Investments in commercial and industrial (C&I) energy storage surged in 2024, with global financing totaling $17.6 billion across 83 deals in the first three quarters—a jump from 11 M&A deals in 2023 to 18 in 2024. Leading these investments were debt and public-market financings, signaling maturation beyond venture capital. The U.S. storage industry has committed $100 billion toward developing domestic battery manufacturing and C&I deployment by 2030, emphasizing self-reliance and addressing import tariffs. Additional policy stimuli in the U.S., such as the Inflation Reduction Act, offer a 30% tax credit on standalone storage, with further credits contingent on domestic content and labor qualifications. Institutional investors are increasingly funding C&I projects via structured instruments like synthetic power-purchase agreements and tolling arrangements—techniques now used to hedge rising volatility connected to rapid data center expansion. The U.S. Department of Energy projects data center electricity demand will reach 6.7–12% of national power consumption by 2028, up from 4.4% in 2023, creating long-term needs for on-site storage. Regionally, Europe's C&I storage share grew to 30% of global markets by 2024, supported by EU incentives, lifting storage capacity to approximately 50 GW through grid and distributed deployments. Asia‑Pacific accounted for 25% of global capacity, with China’s 2024 battery-storage addition reaching 37 GW / 91 GWh, pushing cumulative national totals to 62 GW / 141 GWh.

Emerging opportunities stem from factory builds such as Canadian Solar’s $712 million Shelbyville, Kentucky plant, slated for late 2025, aimed at mass-producing industrial-scale batteries—creating 1,572 jobs and reinforcing U.S.-based supply chains. Sodium-ion manufacturing is also gaining traction; Natron Energy announced a 24 GW factory planned for North Carolina, backed by $1.4 billion in funding, targeting industrial applications and benefiting from domestic mineral sourcing. Furthermore, integration with data centers presents significant upside. For example, Texas saw commercial electricity demand in data centers rise 13 TWh from 2019 to 2023, increasing demand for paired storage systems. U.S. installers maintained momentum, deploying 12,314 MW / 37,143 MWh across all segments in 2024—a 33%/34% year-over-year increase. Forecasts suggest further gains, with 15 GW expected in 2025, representing a 25% jump over 2024. These investment signals, combined with expanding tax incentives, domestic capacity expansions, and rising corporate demand, position the C&I energy storage sector as a focal point for strategic investment, especially where grid resilience, decarbonization, and energy security converge.

New Product Development

Product innovation remains a key driver in the C&I energy storage market. Tesla’s Megapack series expanded sharply in 2024–2025: by year-end 2024, Tesla deployed 31.4 GWh of energy storage products, up from 14.7 GWh in 2023—an increase of 214%, driven largely by Megapacks ess-news.com. The Lathrop Megafactory ramped up to produce 10,000 Megapacks annually, equivalent to 40 GWh/year. The Shanghai Megafactory began producing export-ready Megapacks (~3.9 MWh each) in March 2025, shipping first units to Australia, and followed by a $557 million deal to deliver Chinese-made Megapacks for Shanghai's grid stabilization. Tesla’s latest Megapack models now incorporate an AC interface and offer a 60% increase in energy density, storing 3 MWh per unit with 1.5 MW inverter capacity, aimed at reducing installation time and cost compared to previous iterations. Tesla also announced a third Megafactory line in early 2025 to scale production further, responding to intensifying market competition. BYD’s FinDreams™ systems entered China’s commercial grid in 2023, featuring modular configurations suited for DaaS (Device-as-a-Service) lease models. Although official global deployment figures are limited, BYD’s backlog of commercial contracts exceeded 1 GW by mid‑2024 across China and Asia‑Pacific.

Sodium‑ion battery technology also progressed: Natron Energy’s planned 24 GW North Carolina facility, valued at $1.4 billion, targets industrial-grade systems optimized for rapid charging, leveraging domestic raw materials like aluminum and sodium. Peak Energy—a U.S.-based startup—aimed to deliver pilot systems to six large IPPs in 2025, marking initial entrance of sodium-ion into the C&I space. In the long-duration category, Highview Power advanced its cryogenic Liquid Air Energy Storage (LAES) product, particularly a 300 MWh demonstration plant in Manchester, sponsored via a £300 million investment, expected to go live around 2026. Other notable developments include Canadian Solar’s Shelbyville plant, which builds large-format ~20 feet × 8 feet × 9 feet battery modules designed for utility-scale and commercial applications, employing advanced module integration tech, plus onsite R&D labs. These innovations mark a broadening of available C&I energy storage products: high-density utility-class lithium-ion systems, modular leasing-based DaaS, emerging sodium-ion format suited for localized deployment, and longer-duration LAES setups. OEMs focus on higher capacity per unit (3–4 MWh), improved energy density (up to 60% gains), export-accessible production lines, and scalable domestic supply chains—instruments targeting operational resilience, grid support, and enterprise-level energy management.

Five Recent Developments

• Neoen deployed 2.3 GW / 5.3 GWh of battery storage globally by end‑2024, including Australia’s 219 MW / 877 MWh Collie facility.
• Highview Power secured £300 million for a 300 MWh liquid‑air plant in Manchester, to be operational in early 2026.
• Shell Energy Australia advanced a 500 MW / 1000 MWh BESS project in NSW.
• Chile’s Oasis de Atacama hybrid park launched battery phases ranging 250–800 MWh.
• Europe projected storage market to exceed 50 GW capacity by 2030, with cross-border fleet developments from Shell and TotalEnergies.

Report Coverage of Commercial and Industrial Energy Storage Market

The report on the Commercial and Industrial Energy Storage Market provides an in-depth assessment of the sector’s structure, applications, and technological landscape across multiple regions. It evaluates energy storage systems used in commercial buildings, industrial plants, utility-scale infrastructure, and renewable energy systems. The analysis spans various technologies, including lithium-ion, lead-acid, flow batteries, sodium-ion, and compressed air energy storage systems, with each type assessed by its energy density, storage capacity, discharge duration, and installation trends. For example, lithium-ion batteries accounted for over 98% of newly installed battery energy storage capacity globally in 2024, reaching more than 160 GWh, while sodium-ion technology is projected to contribute up to 10% of installations by 2030 due to rising cost efficiency and local resource availability. The regional breakdown includes detailed assessments of North America, Europe, Asia-Pacific, the Middle East, Africa, and Latin America. North America led with over 48.3 GW of installed energy storage capacity in 2024, while Europe maintained 30% of the global share through new policy-backed projects.

Asia-Pacific followed with 25%, led by China’s addition of 37 GW / 91 GWh in 2024 alone. Country-level insights examine key developments in the United States, Germany, the United Kingdom, China, Japan, South Korea, and others. The report includes a competitive landscape analysis, profiling ten leading companies including Tesla, BYD, Panasonic, LG Energy Solution, and Samsung SDI. It highlights Tesla’s 2024 deployment of 31.4 GWh, driven by its Megapack production line, and BYD’s commercial backlog exceeding 1 GW in Asia. Investment data covers more than $17.6 billion in disclosed deals across 2024, with a focus on debt, equity, and infrastructure fund participation. Policies such as the U.S. Inflation Reduction Act, with its 30% standalone energy storage tax credit, are explored in relation to market expansion. The report also includes project-level intelligence such as Tesla’s Shanghai Megapack exports and Highview Power’s 300 MWh liquid air energy storage plant in the UK. It incorporates primary data from manufacturers and public filings, secondary research from regulatory bodies and industry associations, and analytical modeling of deployment trends and grid interconnection challenges. The report concludes with appendices covering legal frameworks, procurement trends, permitting timelines, and detailed definitions of key metrics and battery performance parameters, providing a comprehensive and factual reference for stakeholders in the C&I energy storage sector.

Frequently Asked Questions