The latest IDTechEx analysis suggests the commercial and industrial (C&I) battery storage sector is on track to reach a value of US$21 billion by 2036.
As renewable energy continues to expand across global grids, demand for battery energy storage systems (BESS) is rising, with established Li‑ion suppliers still leading the grid‑scale market. This dominance, however, is opening space for emerging players to target less‑developed C&I segments.
According to the report Battery Storage for Data Centers, Commercial & Industrial Applications 2026‑2036: Market, Forecasts, Players, Technology, growth will span data centres, telecom towers and EV charging infrastructure across both on‑road and off‑road sectors, including construction, agriculture and mining. To unlock the projected market value, developers must respond to shifting application needs, particularly around cost, safety and degradation.
Demand is expected to rise sharply alongside US hyperscale data centre expansion, where GW‑scale facilities will require higher‑capacity, longer‑duration storage to ease grid strain. Meanwhile, 5G and 6G tower deployment in China, European factory‑level storage adoption, and future electrified machinery charging needs will reshape regional demand patterns through the mid‑2030s.
Li‑ion remains the dominant battery storage technology, but challenges such as flammability and accelerated degradation in AI‑driven data centre environments are prompting interest in alternatives. Redox flow batteries, sodium‑ion, second‑life EV systems, and VRLA technologies each offer advantages that could suit specific C&I applications.
