Energy is a significant operational expense and a critical resource for your organization. To optimize energy use, it's important to stay current on the latest innovations and developments. Here are some key energy trends and technology advances that will impact your facility in 2026 and beyond.
Battery energy storage becomes a business essential
Battery energy storage systems (BESS) were once a niche backup power solution. These days, they're a key power management solution for many energy-intensive industries, and the market is growing fast. The U.S. Energy Information Administration projects that BESS capacity in the commercial and industrial sectors will rise from 100 megawatts in 2024 to about 300 megawatts by the end of 2026, and the cost per unit has decreased by over 75% since 2014.
BESS stores electricity, whether sourced from the grid or onsite renewable systems, so that it can be deployed when needed. Unlike fossil-fueled generators, BESS works silently and without emissions. Organizations are using them for peak demand management, renewable integration and increased power reliability.
Recent technology innovations have also fueled the growth in BESS applications. Advances in battery chemistries and the integration of artificial intelligence (AI) and machine learning (ML) have resulted in lower costs, improved performance and more tailored, efficient solutions.
Digital twins come of age
Digital twin technology has been around for a while, but it seems to be having a moment. The global digital twins market is expected to grow from $36 billion in 2025 to $155 billion in 2030, according to Grand View Research. The U.S. market alone is projected to have a combined annual growth rate of roughly 31% in that time frame.
A digital twin is a virtual replica of a physical asset, such as process equipment or a building, that integrates historical information with real-time data to mirror its structure and conditions. It enables the simulation, monitoring and testing of building systems and equipment to improve operations, maintenance and performance.
The growth in digital twins is driven partly by the rise of the Internet of Things (IoT) and AI. IoT sensors provide the real-time data that forms the backbone of digital twin virtual blueprints. AI algorithms leverage this data to analyze patterns, predict outcomes and optimize processes or building operations.
Smart lighting shines brighter
Smart lighting systems use technologies like sensors, automation and connectivity to optimize lighting based on real-time conditions and user needs. The smart lighting market is large and growing. Market research firm IMARC Group expects the North American market to more than triple, from $7 billion in 2025 to over $24 billion in 2033.
Energy efficiency and sustainability remain key factors in the growth of smart lighting. Businesses are looking for lighting solutions that minimize waste while maintaining functionality. There's also an increased awareness of the importance of lighting in indoor environmental quality. Human-centric lighting adjusts light color and intensity to support circadian rhythms and improve health and well-being.
IoT forms the basis of smart lighting technology by connecting lighting fixtures to networks, enabling remote control and data collection. AI has been another game-changer. AI-powered smart lighting solutions can analyze usage patterns, predict needs and optimize settings without human intervention.
Don't get left behind. By staying focused on these and other energy industry innovations, you can optimize efficiency and performance and reduce your operating costs now and in the future.