Growth Opportunities in the Commercial & Industrial Battery Energy Storage Systems (BESS) Industry
Solar-plus-storage, Charging Sites, and New Service Models Propel Market Growth
Battery energy storage systems (BESS) have rapidly become the fastest-growing clean energy technology driven by the growth of wind and solar and the need for grid flexibility.
While commercial and industrial (C&I) BESS installations have traditionally lagged behind grid-scale and residential deployments, the sector holds considerable opportunity, especially in the present context of increasing electrification and decreasing battery costs. In 2023, the market was estimated at $3.18 billion, with newly installed capacity reaching 2.36 GW/4.86 GWh. Frost & Sullivan forecasts the global C&I BESS market to grow to $10.88 billion by 2030, more than triple its size today, and reach $21.64 billion by 2035. BESS's annual power capacity will register a CAGR of 20.1% from 2023 to 2035, achieving 122.97 GW of cumulative capacity.
The business case for C&I BESS typically requires a combination of applications to drive cost savings and revenues. This highlights a demand for advanced software and controls for co-optimization across applications, typically peak shaving, load shifting, RE self-consumption, and backup. In more advanced energy markets, the possibility of enrolling C&I BESS in DR programs or VPPs or providing grid services through aggregators further improves the business case, expediting the adoption of batteries and market growth.
This study provides a regional-level forecast and analysis of how C&I BESS capacity and investments will evolve by 2035. It discusses the main drivers and trends in the battery value chain, technology, business models, and applications. In addition, it highlights growth opportunities and action points for industry participants to reap the benefits of this developing market.
Strategic Imperatives
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8TM
The Impact of the Top 3 Strategic Imperatives on the Grid-scale BESS Industry
Growth Opportunities Fuel the Growth Pipeline EngineTM
Growth Opportunity Analysis
Scope of Analysis
Regional Segmentation
Key Findings
Trend Analysis
Key Trends Shaping the C&I Battery Energy Storage Industry
Trend #1: AI Revolutionizing the BESS Value Chain
Trend #2: Carrots and Sticks to Foster Self-consumption with Batteries
Trend #3: C&I Batteries to Support Electromobility
Trend #4: The Perfect Match: Solar-plus-storage and EV Charging
Trend #5: VPPs to Unlock Extra Value from BTM Storage
Trend #6: Higher Transparency and ESG Accountability for Batteries
Trend #7: Increasing Demand for C&I BESS Optimization