What's Happening?
The global commercial and industrial energy storage market is projected to grow significantly, reaching a value of $293.7 billion by 2034, up from $87.3 billion in 2024. This growth is driven by a compound
annual growth rate (CAGR) of 12.9% from 2025 to 2034. North America currently holds a dominant market position, capturing over 38.4% of the market share. The increase in market size is attributed to the rising demand for power reliability, the adoption of renewable energy, and the expansion of global battery supply chains. In 2024, global battery manufacturing capacity reached 3 TWh, supported by a decrease in lithium prices, which has eased cost pressures for energy storage projects. The International Energy Agency (IEA) reported a significant increase in battery storage deployment, with 42 GW of capacity added globally in 2023. In the U.S., utility-scale battery storage saw rapid growth, with 10.3 GW added in 2024 and an expected 18.2 GW in 2025.
Why It's Important?
The expansion of the commercial and industrial energy storage market is crucial for managing the variability of renewable energy sources like solar and wind. As electricity systems incorporate more variable renewables, energy storage provides a critical 'shock absorber' for balancing short-duration power fluctuations. The IEA's Net Zero scenario predicts a 35-fold increase in installed grid-scale battery storage capacity by 2030, indicating sustained demand for batteries and related technologies. This growth is further supported by government initiatives aimed at reducing project risks and accelerating investment. In the U.S., the Department of Energy's Long-Duration Storage Shot aims to cut the cost of grid-scale long-duration storage by 90% by 2030, potentially expanding the use cases for commercial and industrial energy storage.
What's Next?
The market is expected to continue its growth trajectory, driven by declining battery costs and increased government support. The U.S. Department of Energy's initiatives to demonstrate long-duration energy storage technologies will likely enhance the commercial readiness of these systems, providing more options for industrial buyers. Additionally, the expansion of microgrid systems, which integrate storage with on-site generation, is becoming a standard for commercial and industrial facilities. This trend is supported by federal resilience funding and state grant programs, which make initial projects more feasible and encourage repeatability across multiple sites.
