Industrial Energy Storage System Market

Industrial Energy Storage System Market Size

The industrial energy storage system market was estimated at USD 8.2 billion in 2025. The market is expected to grow from USD 9.9 billion in 2026 to USD 55.9 billion in 2035, at a CAGR of 21.2% according to latest report published by Global Market Insights Inc.

Increasingly the pressure on businesses in all industrial sectors to fulfill global commitments relating to climate change and companies' sustainability goals is growing. As governments across the globe enforce stricter mandates on industries to reduce their carbon emissions, along with increasing costs of fossil-fuel-based business these costs will become significantly more expensive as both carbon pricing and creating emission trading schemes take effect. As businesses transition from using fossil fuels to using electricity through the electrification of its processes, and as they use renewable sources of energy, energy storage systems will become increasingly important as a balancing mechanism for intermittent generation and continued operations. This transition to electric vehicles, renewable energy and energy storage systems will allow industrial energy storage systems to become strategic assets for businesses in meeting their net zero emissions target and providing sustainability advantages in the low-carbon economy.

In addition to meeting compliance requirements with the decreasing price of clean technology, businesses are making significant investments in clean technologies and creating a favorable environment for the adoption of energy storage systems. In addition to the sustainability advantages energy storage systems provide companies, they are also viewed by many of the companies in the industrial sector as cost-effective tools for cost savings in operations. Energy storage systems provide industrial companies with a cost-effective means to shave peak demand, reduce demand charges, and improve energy efficiencies. As ESG reporting has become an important metric used by investors and other stakeholders, companies that incorporate energy storage systems as part of their energy management strategy will be viewed as highly reputable and able to obtain green financing on a quicker basis, thus allowing for faster growth in this market.

The use of on-site renewable energy sources will significantly increase the use of energy storage by industrial companies. Not only do this energy sources save money and produce fewer carbon emissions; however, they also create issues with providing steady power to industrialized companies due to fluctuations in supply and demand. Utilizing energy storage within an industrial facility allows the facility to capture excess output through energy storage so that they have adequate amounts of energy when renewable outputs are low; thus, providing stable and reliable energy to all energy-intensive processes.

Furthermore, integrating renewables with storage improves the self-consumption of renewable resources and allows industrial entities to participate in demand response programs and reduce their need for curtailment. Hybrid systems of renewables and storage are becoming increasingly popular in industrial microgrid systems because of their ability to provide resiliency against losses in electrical supply due to blackouts on the grid and the ability to optimize energy flows. As renewables continue to be increasingly deployed into the grid and new rules and regulations regarding these products become more stringent, storage technologies will become necessary for compliance purposes, allow for operational flexibility and create new opportunities for maximizing the economic potential of any renewable asset.

Industrial Energy Storage System Market Trends

The Industrial Energy Storage System (IESS) marketplace is rapidly evolving due to technological advancements, regulatory support, and the increasing demand for energy resilience. There is a growing trend among industries to adopt storage solutions to help minimize energy costs while facilitating the integration of renewable resources plus ensuring that operations can continue uninterrupted. Thus, the trend of utilizing storage has transitioned from being primarily used as an insurance policy for backup purposes to being recognized as a highly strategic asset for companies wanting to remain competitive through sustainability and operational efficiencies.

Storage has transitioned from its original purpose of being simply a backup power source to being an integral part of an overall energy strategy for most manufacturers. Storage is being utilized by most industries for peak shaving, reducing demand charges, and optimally using time-of-use pricing to ultimately reduce operational costs. In addition, energy storage is now being used to provide ancillary services to the electric grid, where regulations allow for this service, reinforcing the idea that energy storage is a means to financial optimization and sustainability tool, rather than just a risk management solution.The increased number of onsite renewable energy installations has driven the need for storage to become vital to any Industrial operation, as renewables are not constant sources of energy, therefore without the availability of energy storage systems, industrials must deal with maintaining their quality and reliability of service. The use of energy storage systems will allow for the stored use of excess renewable energy created during the highest generation times and used during periods of low generation; thus, providing for continuous operation. Industrial Microgrids, where both renewable and storage resources are combined, are becoming increasingly popular due to their ability to provide resiliency and provide independent operations in many locations that do not have good grid access or are too far from the electrical grid.At this time, lithium-ion batteries are the only energy storage technology used. However, their limitations in providing energy discharge at various points in time may present an opportunity for other technologies such as flow batteries, sodium-ion battery technology, or thermal storage. These technologies each provide benefits including lower degradation of storage devices over time, providing for improved safety and scalable capabilities to accommodate larger industrial loads. Additionally, the increasing interest in using hydrogen as an energy storage medium to provide seasonal energy requirements is further evidence of the growing trend towards diversification of energy storage portfolios to meet industrial energy needs.Through digitalization of Energy Storage technologies and Advanced Energy Management Systems (EMS), powered by Artificial Intelligence (AI) and Machine Learning, we are now able to optimize energy storage in real time, provide load forecasting and predictive maintenance for improved asset performance and extended lifecycle. In addition, digitalization enhances the ability to implement dynamic dispatch strategies, enabling industries to quickly respond to price signals and dynamic grid conditions.

Industrial Energy Storage System Market Analysis

Based on storage system, the market is divided into mechanical systems, thermal systems and battery-based systems. In 2025, battery-based systems held the major market share, generating a revenue of USD 6.3 billion.

• As industrial energy storage continues to grow, so does the importance of battery-based energy storage systems in providing solutions for balancing energy consumption with operations. These battery technologies include advanced lithium-ion, lead acid, and newer solid-state construction, which provide a way to capture excess renewable energy production and/or energy supply generated during off-peak times, thereby enabling companies to defer their use of grid-supplied energy during peak demand hours while simultaneously reducing energy prices, increasing operational efficiency, and leveraging the advantages of battery-based systems’ modular designs that allow scaling from the smallest level of manufacturing to the largest U.S. manufacturers.
  
• The primary advantages of using battery-based energy storage systems for energy supply security in industry are twofold: first, they can respond to demand spikes quickly, and second, they have high-load, high-power, and quick-discharge rates, thereby allowing industrial applications to operate continuously even during power outages or momentary disconnections from the grid. Furthermore, battery-based energy storage systems can leverage the capabilities of smart energy management systems, such as predictive analytics, algorithms that manage the load during peak hours, and automated load-balancing technology, extending the lifespan of battery storage.
  
• Due to the versatility of spray systems and their adaptability for multiple coating applications, they are an essential option for many industries. Spray systems provide an essential service to the aerospace sector about the fabrication of turbine blades and landing gear; the automotive sector by providing a coating option for the fabrication of engine components; and the energy sector about coating boiler tubes and turbine parts as well as for the manufacture of molds and tools. As manufacturers strive for maximum efficiency, maximum life of their components and eco-friendly solutions to their coating needs, the use of spray systems also continues to expand in each industry. Because spray systems can be used to apply custom coatings designed to meet the individual environmental and mechanical needs of the component or part to be coated, they are an important technology in today's surface engineering world.
  

Based on power range, the industrial energy storage system market is segmented into low power (>200kW), medium power (200kW-5MW) and high power (<5MW). The medium power segment held the largest share, accounting for 45.6% of the global market share in 2025.

• Medium power battery-based systems (200kW to 5MW) play an important role in the segment of energy storage solutions for industry. They fill a niche between small storage systems and large utility scale storage facilities. medium power battery-based systems are a good fit for mid-sized industrial facilities, manufacturing plants, and commercial complexes because they have enough capacity to manage peak load demand, assist in the integration of renewable energy sources and provide operational reliability with less investment in infrastructure as compared to larger systems.
  
• One of the most common uses of medium-powered energy systems is for load shifting and peak shaving, which allows industries to achieve more efficient use of energy and cheaper electrical rates. By storing energy that would otherwise go unused during non-peak time and then discharging it during high-demand times, medium powered systems help to decrease the load on the electrical grid and increase the energy efficiency of your business. Medium power systems also provide back-up power for your business during bad weather or brownouts, which is critical for businesses where downtime is not an option.
  
• Medium power battery systems offer more flexibility and scalability in a business' energy plan. Medium power battery systems can be used as stand-alone units, or they can be combined with renewable energy resources (solar / wind) in a Microgrid for greater efficiency, reliability and resiliency. With new innovations in technology being developed for batteries (like Lithium-Ion), medium power battery systems will provide higher energy densities, faster response time, and better safety features than previous generations of batteries, enabling your industry to find the right balance between sustainable and operational performance.
  

Based on end use industry, the industrial energy storage system market is segmented into mining, oil & gas, food & beverage, pharmaceutical, automotive and others. In 2025, others segment held the largest market share generating a revenue of USD 3 billion.

• Automatic thermal spray systems are considered the highest level of development and efficiency within the Industrial Energy Storage System field. These systems are designed to provide excellent levels of consistency, precision, and throughput. These systems utilize robotic systems, programmable logic controllers (PLCs), and real-time monitor technology to perform an entire coating process with very little human operation. In addition, by automating this process, precise control can be achieved over the parameters for producing spray distance, temperature, feed rate, and motion path, etc., thus guaranteeing a uniform quality of the coatings produced across complex geometries. Due to the increasing demand for coatings to perform well within defined tolerances, the use of completely automated systems has become the preferred method of providing repeatability, minimizing errors, and maximizing productivity.
  
• The others category of the market for industrial energy storage systems contains a diverse mixture of different industries in addition to those in the larger segments of mining, oil and gas, food and beverage, pharmaceuticals and automotive. These other segments of the market will typically consist of many different types of industries such as data centers, chemicals, textiles, electronic manufacturing and logistics.
  

North America Industrial Energy Storage System Market

In 2025, the U.S dominated the North America industrial energy storage system industry, accounting for around 79.7% share and generating around USD 2.1 billion revenue in the same year.

• The U.S. market for industrial energy storage systems is driven by decarbonization commitments, strong growth in onsite renewable installations, as well as a growing need to manage high demand charges and volatility in electricity pricing. Large industrial companies are using battery energy storage to maximize the value of their time-of-use pricing, protect themselves from price volatility, and improve the quality of their electricity supply. Additionally, more industrial sites are building out microgrids that will support increased operational resilience and lower their costs due to reduced downtime. As the market continues to evolve, new ways of participating in the market for energy storage systems are emerging that will facilitate stacking multiple types of value for behind-the-meter resources in regulatory environments where such practices are permitted.
  
• The industrial storage market in all of North America is a combination of mature economies and new resiliency standards. In Canada, industrial users utilize storage to provide grid-interactive capabilities; enhance power quality during cold weather; and take part in new flexibility programs as they are developed. As provinces in Canada shift from regulated electricity markets to competitive markets, and as renewables become more prevalent in Canada, microgrid deployments will continue to grow. Many companies are installing storage along with on-site solar in order to help them stabilize their operations and to reduce peaks in their demand for electrical services. Across the region, many installations will include combinations of hybrid systems with storage; mid-voltage, containerized deployments; digital control layers that will increase the ability to service multiple end-uses with one station; and long-duration technologies that will be used in conjunction with lithium-ion battery systems for applications requiring long-term shifting, greater cycle life, and superior safety.
  

Europe Industrial Energy Storage System Market

European market for industrial energy storage system held 17.8% share in 2025 and is expected to grow at 20.8% CAGR during the forecast period.

• Europe's aggressive climate policy focus and ambitious renewable energy goals, as envisioned by the EU Green Deal, have led to Europe leading adoption of energy storage systems by the industrial sector. As a result, many large German, UK, and French industrial firms have invested in energy storage to reach carbon neutral goals, lower energy costs, and adhere to rapidly changing grid codes. Each country has established regulatory frameworks that allow industrial companies to monetize their energy storage assets. The presence of substantial financial incentives has produced large-scale industrial microgrid projects along with hybrid renewable-storage technologies across all three countries.
  
• Europe also emphasizes a sustainable and circular economy approach, which has created a lot of interest in repurposing and recycling used batteries. In addition, Europe has seen massive integration of energy storage systems within most of its industrial sectors including the chemical, manufacturing and automobile sectors, due to the ability to become more resilient against rising energy costs and instability on the grid. With the emergence of digital technologies, such as Artificial Intelligence (AI) based energy management systems that provide predictive dispatch capabilities and dynamic load balance; the combination of these forces has positioned Europe as a developed, innovative and continuously evolving market for the energy storage industry.
  

Asia Pacific Industrial Energy Storage System Market

The Asia Pacific leads the market with a share of around 42.6% in 2025 and is anticipated to grow with a CAGR of around 21.6% from 2026 to 2035.

• The Asia-Pacific region is rapidly growing as a key market for industrial energy storage systems due to the rapid industrialization, growth of energy needs, and deployment of rich amounts of renewable energy. Countries such as China, India, Japan and South Korea all have high levels of investment in solar and wind projects, which in turn create a pressing need for storage to support the stability of intermittent generation as well as provide reliability to the national grid. Industrial companies, particularly those in the manufacturing, mining and heavy engineering sectors, are increasingly using storage systems to help manage peak loads and reduce their operational expenses because of fluctuating electricity rates.
  
• The growth of APAC is attributed to the combination of three areas: Policy support, innovation in technology and growing need for resilience. The declining price of apps for batteries with the capability of local manufacturing in China has decreased the cost of storage for industrial users. The region also experiences high levels of grid instability and poor quality of power supply in many emerging economies, which therefore leads to a greater demand for backup/optimization solutions. In addition to being important tools for managing the supply/demand within the grid, hybridized systems that combine solar or renewable energy sources with storage are beginning to be developed in industrial parks and remote areas, whereas digital energy management technologies provide users with the capability of optimizing costs through predictive dispatch.
  

Latin America Industrial Energy Storage System Market

Latin America industrial energy storage system is growing at a CAGR of 19.1% during the forecast period.

• Latin America has a large growth opportunity for industrial energy storage due to both the need for reliable grids and the growing amount of renewable energy coming online throughout the region. Many countries throughout Latin America are experiencing frequent power outages and fluctuating voltages. Energy-intensive sectors, such as mining, are required to have energy storage systems to provide operational continuity. The rapid development and growth of solar and wind energy projects in Brazil, Chile, and Mexico is driving demand for energy storage to stabilize intermittent generation and reduce the amount of renewable energy that is curtailed from the generation process.
  
• Due to the continued development of regulatory frameworks for energy storage systems, governments throughout Latin America are beginning to create policies that will support the deployment of distributed energy resources and microgrids. In many instances, the need for resilience and cost reductions is the main driver for companies to adopt energy storage systems in Latin America. As battery prices fall and new financing arrangements, such as energy as a service, become available, more options for commercial companies are opening. Hybrid energy systems are starting to gain momentum in large industrial areas, especially in mining operations. As clarity around policies continues to increase and renewable energy investment expands, energy storage systems will likely become one of the fastest-growing segments of industrial energy storage systems in Latin America.
  

Industrial Energy Storage System Market Share

Contemporary Amperex Technology is leading with 11% market share. Contemporary Amperex Technology, BYD, LG Energy Solution, Tesla Energy, Samsung SDI collectively hold around 25%, indicating moderately fragmented market concentration. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions, facility expansions & collaborations, to expand their product portfolios, extend their reach to a broad customer base, and strengthen their market position.

Atlas Copco has a history of excellence in providing industrial consumers around the globe with innovative and energy-efficient technologies for their compressed air systems, power generation, and industrial automation. Atlas Copco has taken its vast experience in supporting industrial sectors and applied it to the growing battery sector by incorporating battery systems with power and compressor solutions to provide an improved method of improving both reliability and sustainability of operations. Atlas Copco's unique ability to provide modular, centralized, and scalable storage solutions for managing peaks in electrical loads and integrating renewable energy into an electrical grid gives Atlas Copco a strong competitive advantage as more companies look to incorporate renewable energy into their operations.

CATL is leader of battery manufacturing for automotive & industrial applications, including Electric Vehicle (EV) & utility/industrial energy storage solutions. They are known for their innovative battery chemistry & high-performance energy density. They also play a large role in developing solutions for Large Scale Storage (LSS) and micro-grid applications. An integral part of CATL's success is the considerable investment in R&D to improve the lifecycle, safety and cost efficiency of Lithium-Ion batteries, thus making them one of the primary driving forces responsible for the advancement of industrial energy storage systems around the globe.

Industrial Energy Storage System Market Companies

Major players operating in the industrial energy storage system industry are:

• Atlas Copco
• BYD
• Caterpillar
• Contemporary Amperex Technology
• Cummins
• ESS
• Fluence Energy
• LG Energy Solution
• Northvolt
• Powin Energy
• Samsung SDI
• Sumitomo Electric Industries
• Tesla Energy
• Wärtsilä Energy
  

Cummins is best known as a manufacturer of power generation products including engines and generators; they are transitioning into the industrial and utility hybrid (battery) energy storage marketplace. Cummins' industrial energy storage product line offers an integrated battery and generator to provide businesses with dependable, robust, renewable energy. The company is committed to integrating energy storage solutions with renewable energy and smart grids to position industry to achieve energy-efficiency & sustainable development.

LG Energy Solution is one of the largest manufacturers of batteries in the world and specializes in advanced lithium-ion battery technologies for automotive, grid and industrial applications. In the area of industrial energy storage, LG Energy Solution has developed high-quality performing energy storage systems that are designed for safety and durability and for scalability. In developing these systems, LG Energy Solution has focused on developing advanced thermal management and increasing energy density systems in order to allow industries to adopt these types of energy storage solutions efficiently and to support the adoption of renewable energy while reducing the operational costs of these industries.

Industrial Energy Storage System Industry News

• In May 2025, Contemporary Amperex Technology Company released its TENER Stack Ultra-Large battery energy storage system. This container-based storage system can store up to nine megawatt hours (MWh) of energy per unit, which is 150% greater than the previous generation of battery storage systems. The TENER Stack supports both centralized and string inverter configurations, enabling the user to connect multiple systems to a single power grid using either technology. A modular design allows for easy transport and installation of systems in the field at an economical cost.
  
• In March 2025, Atlas Copco introduced the ZBC 1000-1200, a battery energy storage system in a containerized format, with a power rating of 1MW and an energy capacity of up to 1200kWh. It has liquid cooling, integrated fire suppression, and is modular, which means that up to 16 units can be connected in parallel to achieve a maximum total power output of 16MW. This energy storage system has been designed for use in mining, construction sites, harbor locations, and for providing emergency backup power.
  
• In March 2025, Cummins developed a new line of modular battery energy storage systems that come in either a 10-foot or a 20-foot containerized housing. Systems have energy capacities that range between240-600 kWh or 600 kWh-2 MWh, and all of Cummins' modular storage systems utilize lithium iron phosphate (LFP) chemistries with liquid cooling capabilities to maintain thermal stability and reliability of the batteries. Each Cummins modular energy storage system has been engineered for the commercial, industrial, and mission critical facility markets and has been designed for applications ranging from peak shaving operations to backup power for renewable integrated facilities.
  
• In January 2025, LG Energy Solution launched the manufacturing of Lithium Iron Phosphate (LFP) battery modules for energy storage systems out of its facility in Holland, Michigan. This initiative was undertaken to satisfy a 7.5 GWh major supply agreement with excelsior energy capital. The new product line is designed to provide high energy density, improved thermal management and long-life cycle performance for grid scale and industrial applications throughout North America.
  

The industrial energy storage system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) & volume (Thousand Units) from 2022 to 2035, for the following segments:

Market, By Storage System

• Mechanical systems
• Compressed air energy storage
• Pumped hydro power
• Thermal systems
• Battery-based systems

Market, By Power Range

• Low power (>200kW)
• Medium power (200kW-5MW)
• High power (<5 MW)

Market, By Application

• Energy arbitrage & time-shifting
• Peak shaving & load leveling
• Renewable integration & firming
• Grid stability & voltage support
• Transmission & distribution deferral

Market, By End Use Industry

• Mining
• Oil & gas
• Food & beverage
• Pharmaceutical
• Automotive
• Others (data center etc.)

Market, By Distribution Channel

• Direct sales
• Indirect sales

The above information is provided for the following regions and countries:

North America

• U.S.
• Canada

Europe

• Germany
• UK
• France
• Italy
• Spain

Asia Pacific

• China
• India
• Japan
• Australia
• South Korea

Latin America

• Brazil
• Mexico
• Argentina

Middle East and Africa

• South Africa
• Saudi Arabia
• UAE