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.
Author: Maria Benintende
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Grid-scale BESS Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Scope of Analysis
Regional Segmentation
Key Findings
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
Trend #8: BESS Design Improvements
C&I BESS Ownership Models
C&I BESS Value Chain
Major C&I BESS Manufacturers
Key Applications for C&I BESS
Growth Metrics
Growth Drivers
Growth Driver Analysis: Emissions Reduction Commitments
Growth Driver Analysis: Battery Production Capacity Expansion
Growth Driver Analysis: Cost Declines
Growth Driver Analysis: Supportive Policies, Incentives, and Market Rules
Growth Driver Analysis: Expansion of C&I Solar PV
Growth Restraints
Forecast Considerations
Cumulative Power Capacity Growth
Cumulative Power Capacity Forecast
Annual Power Capacity Forecast
Annual Energy Capacity Forecast
Annual Energy Capacity Forecast by Region
CAPEX Forecast
TOP 10 C&I BESS Countries and Applications
Capacity Forecast Analysis
Pricing Trends and Forecast Analysis
Regional Analysis—Europe
Regional Analysis—Europe (continued)
Regional Analysis—North America
Regional Analysis—North America (continued)
Regional Analysis—China
Regional Analysis—China (continued)
Regional Analysis—ANZ & Pacific
Regional Analysis—ANZ & Pacific (continued)
Regional Analysis—India & South Asia
Regional Analysis—India & South Asia (continued)
Regional Analysis—East Asia
Regional Analysis—East Asia (continued)
Regional Analysis—Latin America
Regional Analysis—Latin America (continued)
Regional Analysis—Middle East & North Africa
Regional Analysis—Middle East & North Africa (continued)
Regional Analysis—Sub-Saharan Africa
Regional Analysis—Sub-Saharan Africa (continued)
Regional Analysis—ASEAN
Regional Analysis—ASEAN (continued)
Regional Analysis—Russia & CIS
Regional Analysis—Russia & CIS (continued)
Growth Opportunity 1: Solar-plus-storage Retrofits
Growth Opportunity 1: Solar-plus-storage Retrofits (continued)
Growth Opportunity 2: C&I BESS to Fuel Electric Transportation
Growth Opportunity 2: C&I BESS to Fuel Electric Transportation (continued)
Growth Opportunity 3: Energy Storage-as-a-Service
Growth Opportunity 3: Energy Storage-as-a-Service (continued)
Growth Opportunity 4: BESS for Temporary Power Rentals
Growth Opportunity 4: BESS for Temporary Power Rentals (continued)
Growth Opportunity 5: One-stop Shop for C&I BESS
Growth Opportunity 5: One-stop Shop for C&I BESS (continued)
List of Exhibits
List of Exhibits (continued)
List of Exhibits (continued)
Legal Disclaimer
List of Figures- C&I BESS Manufacturers, Global, 2023
- C&I BESS: Growth Metrics, Global, 2023
- C&I BESS: Growth Drivers, Global, 2024?2035
- Cumulative Number of Companies with Validated Science-based Targets, Global, 2015?2023
- Companies with Validated Science-based Targets by Industry, Global, 2023
- Number of Gigafactories and Production Capacity, Global, 2022?2030
- Average Battery Cell Prices, Global, 2015?2030
- Supportive Policies and Market Rules Analysis, Selected Countries, 2023
- C&I Solar PV Cumulative Capacity, Global, 2023?2035
- C&I BESS: Growth Restraints, Global, 2024?2035
- C&I BESS: Cumulative Power Capacity, Global, 2020?2035
- C&I BESS: Cumulative Power Capacity (MW) by Country, Global, 2035
- C&I BESS: Annual Power Capacity Additions, Global, 2020?2035
- C&I BESS: Annual Energy Capacity Additions, Global, 2020?2035
- C&I BESS: CAPEX Forecast, Global, 2020?2035
- C&I BESS: Cumulative Energy Capacity in Top Countries, 2023
- C&I BESS: Cumulative Capacity, Europe, 2020?2035
- C&I BESS: Annual Additions, Selected Countries, Europe, 2020?2035
- C&I BESS: Cumulative Capacity, North America, 2020?2035
- C&I BESS: Annual Additions, North America, 2020?2035
- C&I BESS: Cumulative Capacity, China, 2020?2035
- C&I BESS: Annual Additions, China, 2020?2035
- C&I BESS: Cumulative Capacity, ANZ & Pacific, 2020?2035
- C&I BESS: Annual Additions, ANZ & Pacific, 2020?2035
- C&I BESS: Cumulative Capacity, India & South Asia, 2020?2035
- C&I BESS: Annual Additions, India & South Asia, 2020?2035
- C&I BESS: Cumulative Capacity, East Asia, 2020?2035
- C&I BESS: Annual Additions, East Asia, 2020?2035
- C&I BESS: Cumulative Capacity, Latin America, 2020?2035
- C&I BESS: Annual Additions, Latin America, 2020?2035
- C&I BESS: Cumulative Capacity, Middle East & North Africa, 2020?2035
- C&I BESS: Annual Additions, Middle East & North Africa, 2020?2035
- C&I BESS: Cumulative Capacity, Sub-Saharan Africa, 2020?2035
- C&I BESS: Annual Additions, Sub-Saharan Africa, 2020?2035
- C&I BESS: Cumulative Capacity, ASEAN, 2020?2035
- C&I BESS: Annual Additions, ASEAN, 2020?2035
- C&I BESS: Cumulative Capacity, Russia & CIS, 2020?2035
- C&I BESS: Annual Additions, Russia & CIS, 2020?2035
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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.
Author: Maria Benintende
| Deliverable Type | Market Research |
|---|---|
| Author | Maria Benintende |
| Industries | Energy |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Battery Energy Storage Systems |
| Keyword 2 | BESS Market Growth |
| Keyword 3 | Commercial Industrial Energy Storage |
| List of Charts and Figures | C&I BESS Manufacturers, Global, 2023~ C&I BESS: Growth Metrics, Global, 2023~ C&I BESS: Growth Drivers, Global, 2024?2035~ Cumulative Number of Companies with Validated Science-based Targets, Global, 2015?2023~ Companies with Validated Science-based Targets by Industry, Global, 2023~ Number of Gigafactories and Production Capacity, Global, 2022?2030~ Average Battery Cell Prices, Global, 2015?2030~ Supportive Policies and Market Rules Analysis, Selected Countries, 2023~ C&I Solar PV Cumulative Capacity, Global, 2023?2035~ C&I BESS: Growth Restraints, Global, 2024?2035~ C&I BESS: Cumulative Power Capacity, Global, 2020?2035~ C&I BESS: Cumulative Power Capacity (MW) by Country, Global, 2035~ C&I BESS: Annual Power Capacity Additions, Global, 2020?2035~ C&I BESS: Annual Energy Capacity Additions, Global, 2020?2035~ C&I BESS: CAPEX Forecast, Global, 2020?2035~ C&I BESS: Cumulative Energy Capacity in Top Countries, 2023~ C&I BESS: Cumulative Capacity, Europe, 2020?2035~ C&I BESS: Annual Additions, Selected Countries, Europe, 2020?2035~ C&I BESS: Cumulative Capacity, North America, 2020?2035~ C&I BESS: Annual Additions, North America, 2020?2035~ C&I BESS: Cumulative Capacity, China, 2020?2035~ C&I BESS: Annual Additions, China, 2020?2035~ C&I BESS: Cumulative Capacity, ANZ & Pacific, 2020?2035~ C&I BESS: Annual Additions, ANZ & Pacific, 2020?2035~ C&I BESS: Cumulative Capacity, India & South Asia, 2020?2035~ C&I BESS: Annual Additions, India & South Asia, 2020?2035~ C&I BESS: Cumulative Capacity, East Asia, 2020?2035~ C&I BESS: Annual Additions, East Asia, 2020?2035~ C&I BESS: Cumulative Capacity, Latin America, 2020?2035~ C&I BESS: Annual Additions, Latin America, 2020?2035~ C&I BESS: Cumulative Capacity, Middle East & North Africa, 2020?2035~ C&I BESS: Annual Additions, Middle East & North Africa, 2020?2035~ C&I BESS: Cumulative Capacity, Sub-Saharan Africa, 2020?2035~ C&I BESS: Annual Additions, Sub-Saharan Africa, 2020?2035~ C&I BESS: Cumulative Capacity, ASEAN, 2020?2035~ C&I BESS: Annual Additions, ASEAN, 2020?2035~ C&I BESS: Cumulative Capacity, Russia & CIS, 2020?2035~ C&I BESS: Annual Additions, Russia & CIS, 2020?2035~ |
| Podcast | No |
| Predecessor | ME56-01-00-00-00 |
| WIP Number | KAFC-01-00-00-00 |
Growth Opportunities in the Commercial & Industrial Battery Energy Storage Systems (BESS) Industry
Growth Opportunities in the Commercial & Industrial Battery Energy Storage Systems (BESS) Industry
Solar-plus-storage, Charging Sites, and New Service Models Propel Market Growth
RELEASE DATE
17-Sep-2024
17-Sep-2024
REGION
Global
Global
Deliverable Type
Market Research
Market Research
Research Code: KAFC-01-00-00-00
SKU: EG_2024_1023
$4,000.00
In stock
SKU
EG_2024_1023