CandI Energy Storage Market Size, Share, Growth, and Industry Analysis, By Type (Batteries Storage , Thermal Storage, Mechanical Systems Storage), By Application (Commercial , Industrial), and Regional Forecast to 2032

Last Updated: 09 January 2025

CANDI ENERGY STORAGE MARKET OVERVIEW

The global CandI Energy Storage market size was USD 5.84 billion in 2024 and is projected to touch USD 17.12 billion by 2028, exhibiting a CAGR of 16.61% during the forecast period.

Indeed, the Commercial and Industrial (C&I) energy storage has become a point solution to the energy revolution. It refers to the use of ESS in the commercial and industrial buildings for managing problems such as energy cost, demand management, and integration of renewables. This market is useful for businesses involved in energy production and management and those seeking better energy efficiency, energy security and sustainability.

C&I scale energy storage systems include batteries especially lithium-ion, energy control and transfer systems, converters and other related devices. These systems assist the facilities on dealing with peak demand charges which are part of the charges that tone might incur while using energy. They also supply electricity back up in the event of a blackout and facilitate the co-ordination of renewable sources as a solar or wind power. North America, Europe, and Asia-Pacific hold the highest positions on the grid modernization scale, owing to regulatory pressures, supportive policies by policymakers, and transition towards grid upgrade programs.

GLOBAL CRISES IMPACTING CANDI ENERGY STORAGE MARKETCOVID-19 IMPACT

CandI Energy Storage Industry Had a Negative Effect Due to supply chain disruption during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic negatively impacted the CandI Energy Storage market share place by disrupting global delivery chains. Disruptions on supply chains at the beginning of the pandemic led to slow project launches, particularly during 2020. Battery and related components manufacturing facilities were closed or operated a limited schedule, which resulted in backlogs on projects. Also, due to the flickering about the financial position in the economy, a lot of the invested opportunities in energy storage systems were delayed or miniaturized because the flow of money was the primary concern. But the pandemic also pointed firmly to energy resilience. Also, several governments allocated funds to the promotion of renewable energy and energy storage sector through stimulus packages during the year.

LATEST TREND

"Hybrid Energy Systems to Drive Market Growth:"

Recent traits inside the CandI Energy Storage industry include a growing hybrid energy systems. The use of hybrid energy systems as a system of energy storage along with the energy sources is a trend for development. Selling excess electricity back to the grid is not as lucrative as utilizing it within the organization and therefore most companies are installing solar photovoltaic (PV) along with batteries. These systems are mostly used in those areas where the price of electricity is high and the authorities provide many incentives to use renewable energy sources.

CANDI ENERGY STORAGE MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Batteries Storage , Thermal Storage, Mechanical Systems Storage:

• Battery Energy Storage Systems (BESS):A battery storage is considered as one of the most recognizable technologies for the C&I Energy Storage market. Everyone uses Lithium-ion batteries in this segment due to the high energy density and efficiency, and steadily reducing costs. Of the other chemistries, flow batteries are now also finding greater appeal due to the benefits of scalability and longer cycle life. Such systems discharge electricity when needed with enhancements to consumption, peak demand, and integration of renewable resources and reliability of the electric grid.
• Thermal Energy Storage (TES):Thermal storage may be used to mean storing energy in the form of heat or cold with the intention of using it later. Typical practices for thermal energy storage are chilled water systems, the use of molten salt storage systems, and ice storage systems. This type of storage is especially popular for Heating Ventilation and Air Conditioning systems in commercial and industrial structures and it enables load control and consequently cut the cost of electricity used by these systems during peak periods.
•  Mechanical Energy Storage:Storage through Mechanical systems comprises flywheels, CAES and pumped hydro storage whereby energy is stored mechanically. They are extremely reliable and have very fast cycle times, meaning they are perfect for applications that need short pulse energy, or high power.

BY APPLICATION

Based on application, the global market can be categorized into Commercial , Industrial

• Commercial:In commercial applications, energy storage is mainly used for electricity cost control issue and for increasing energy security. Customers like retail shops and outlets, hotels, and offices, offices stands to benefit from battery systems for peak shaving which allows them to minimize demand charges. Further, energy storage was found to align with sustainability objectives because it encourages on-site renewable generation including solar.
• Industrial:Energy storage solutions help industrial facilities to continue their operations and minimize expenses. Battery technologies are used in manufacturing plants, data centers, and warehouses where power usage is high and energy consumption is unpredictable during demand response or power outages. Due to the inconstant demand of thermal energy the process of thermal storage is commonly used in the industries which require frequent heating and cooling, for example in food industry or chemical industry.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.        

DRIVING FACTORS

"Growing Demand for Renewable Energy Integration to Boost the Market:"

A factor in the CandI Energy Storage market growth is the rising focus on Growing Demand for Renewable Energy Integration. Another factor that is really pushing the C&I energy storage market is the drive towards renewable energy integration. Wind and solar based generation systems are inherently stochastic and present numerous challenges with respect to grid stability. Companies are using energy storage to store excess energy which is generated in times of low power that is useful during high energy demand.  Also, governmental policies and subsidies for renewable energy usage are also working fast in catalyzing the market rate.

"Rising Energy Costs and Demand Charges to Expand the Market"

The Rising Energy Costs and Demand Charges is another key aspect of the CandI Energy Storage market. Especially concerning demands for ongoing energy increase and demand charges, businesses turn to efficient energy solutions. C&I energy storage systems allow organizations to carry out DSM, peak shaving, and load shifting. Offering a real and quantifiable economic incentive, they lower peak demand charges while also increasing energy efficiency, which makes these systems increasingly appealing to industries and commercial buildings.

RESTRAINING FACTOR

"High Initial Investment Costs of Raw CandI Energy Storage to Potentially Impede Market Growth"

A restraining element within the growth of the CandI Energy Storage market is the High Initial Investment Costs. While the long-term returns are important, the costs that are involved in determining where to source the storage units, as well as hiring experts to install them pose massive hurdles. While many offices and companies, especially small and medium-sized ones, are facing difficulties in funding these systems because of shortage of funds, or lack of confidence in its ROI. This restraint is compounded by a scarcity of inexpensive sources of finance.

OPPORTUNITY

"Expansion in Emerging Markets To Create Opportunity for the Product in the Market:"

Growth in the C&I energy storage market is expected to open up rubs in the Asia-Pacific, Africa, and Latin America due to increasing opportunities in emerging markets. These regions are currently experiencing industrial and urban growth the two activities being primary producers of energy. Also, many developing countries have issues like unstable grid networks as well as regular blackouts.  There is also a boost from favorable polices and incentives in these regions which add to the growth factors.

CHALLENGE

"Side Effects of CandI Energy Storage Could Be a Potential Challenge for Consumers"

The primary challenge aligning with regional C&I energy storage market is the low stringency of unified regulations and policies. Issues of property rights regarding energy storage, connection to the grid, and participation in the market remain rather blurry, which makes a business worried about the future. Addressing this challenge require harmonizing policies and offering the most appropriate regulation environment in order to support the growth of the technology

CANDI ENERGY STORAGE MARKET REGIONAL INSIGHTS

•  NORTH AMERICA (U.S. COMPULSORY)

 North America is the fastest-growing region in this market. The C&I, especially in North America but predominantly in the US, has increased considerably due to government incentives, state policy support, and grid reliability. Out of all the markets in the United States, seven major states are considered leading markets mainly because California, New York, and Texas have some of the progressive Renewable Portfolio Standards, high electricity rates, and demand for well-designed DSM programs. They also add that modern federal programs such as IRA 2022, which promise incentives in form of tangible tax credits for battery storage have enhanced patronage. The U.S. market also derives benefits from increasing installation of renewable energy sources which requires better energy storage technologies due to the problems of variability and uncertainty.

•  EUROPE

The C&I energy storage market in Europe is growing due to the stringent target for decarbonisation and relatively high electricity costs. Finally, major players include Germany, the UK, and Spain together with the backing of the European Green Deal and national renewable energy action plans. The EU likewise has provided investments to energy storage technologies after heightened focus on energy security due to geopolitical concerns. European companies are opting to use energy storage systems for demand response, energy trading and as backup power due to high energy costs and carbon copies.

• ASIA

Asia offers an interesting market for C&I energy storage with the progress of related projects differently in each state. Out of all the regional players China stands out due to its governmental support, manufacturing presence and its ambitious goal to reach carbon neutrality by 2060. Japan is also another established market due to high energy demands and disaster prone solutions. India and South East Asia is already seeing a push towards adoption of energy storage due to instability in the grid and increasing scale of renewable energy. Among the enablers in these emerging markets, the major are Government and the decline in battery cost. Still, it is clear that infrastructure issues, as well as regulatory restraints, are still a worrying factor in some quarters.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Key enterprise players are shaping the CandI Energy Storage marketplace through strategic innovation and marketplace growth. Prospective players are making significant investments in evolving technologies that include the lithium-ion battery that comes with higher energy density; longer durability, and faster charging system. Along with this development, flow batteries and solid-state batteries have been developing as a viable competitor for long duration energy storage solutions to the issues of the conventional technologies. Market development is driving factors such as rising collaborations, mergers & acquisitions, and strategic ventures between battery makers, energy service companies & utilities. For instance, firms are venturing into new geographical locations because of policy incentives for regional production of renewable energy. Advent of new-age energy management software, where end users can monitor energy usage in real-time, make predictions, and use artificial intelligence for optimizing usage, has also upped the value proposition for centralized & interconnected (C&I) energy storage systems. In addition, energy storage as an element of supporting VPPs and providing other services in the grid is gradually transforming into an essential resource. This creates and enables new revenues for industrial players as part of participating centrally in energy markets. With a gradual decline in battery storage system costs trending upwards in energy prices and the international emphasis of sustainable energy sources, research and market development of storage systems will remain active and a driving force toward growth in the storage market. These advancements make C&I energy storage acting as the key player in the global energy transition process.

LIST OF TOP CANDI ENERGY STORAGE COMPANIES

• Fraunhofer (Germany).
• Huawei (China).
• Anesco (U.K).
• LG Energy Solution Vertech (South Korea)
• Black & Veatch (US)

KEY INDUSTRY DEVELOPMENT

February 2024- LG Energy Solution agreed with WesCEF to expand and strengthen its lithium supply chain for competitive procurement. As per the agreement,  WesCEF is poised to supply up to 85,000 tons of lithium concentrate, a crucial raw material for cathodes.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

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