A new report from Navigant Research, Market Data: Commercial & Industrial Energy Storage, examines the global market for commercial and industrial (C&I) energy storage, with a focus on advanced lead-acid, flow, and lithium ion (Li-ion) batteries, including market forecasts for capacity and revenue, through 2025.
The landscape of vendors offering C&I energy storage systems (ESSs) is growing increasingly diverse and competitive, with vendors approaching the market from different angles and forming partnerships to help companies leverage their strengths. Incumbent building energy management providers are also competing with startups in this market to offer compelling solutions for various customers. According to the report, annual revenue for the C&I energy storage industry is expected to grow from $968.4 million in 2016 to $10.8 billion by 2025.
“Despite early challenges, global C&I ESS power capacity deployments are expected to grow from 499.4MW in 2016 to 9.1GW in 2025,” says Alex Eller, research analyst with Navigant Research. “The industrial building segment is expected to be the largest, deploying an estimated 9.3GW of cumulative new capacity over the coming decade, followed by the office and education building segments.”
Despite substantial market growth and momentum in the past two years, the C&I energy storage market remains in its infancy throughout most of the world, according to the report. Ongoing challenges include poor understanding and undervaluation by stakeholders; however, regulatory reforms and technological advances are expected to help bring C&I energy storage into the mainstream.