EV and BESS company Tesla has taken the top spot from inverter and BESS company Sungrow, as seen in the left infographic above. The third largest supplier is energy and industrial solutions company CRRC, followed by pure-play BESS integrators Fluence and HyperStrong. Sungrow, CRRC and HyperStrong are based in China, while Tesla and Fluence are headquartered in the US. Six of the top 10 global suppliers are based in China.
Kevin Shang, senior research analyst for energy storage technology and supply chain at Wood Mackenzie, said: “The global BESS integrator market is becoming increasingly competitive, particularly in China, resulting in decreasing market concentration. As a sector with relatively low barriers to entry, the BESS integrator industry has attracted a significant number of new players.”
The company’s data includes both grid projects and commercial and industrial (C&I) projects. Energy-Storage.news has reported extensively on the falling prices for BESS due to increasing competition.
However, Wood Mackenzie’s research showed that the regional energy storage markets in North America and Europe are actually more, no less consolidated by the three largest players. In Europe, energy solutions companies Nidec, Tesla and BYD – Tesla’s biggest competitor, also based in China – increased their market share from around 54% in 2022 to 68% in 2023.
The same trend was observed in the US: Tesla, Sungrow and Fluence remained market leaders, increasing their share to 72% compared to 60% in 2022.
Wood Mackenzie also said Chinese companies had strengthened their position in the Asia-Pacific market, but did not provide any figures in its press release.
“Tesla has the most vertically integrated supply chain in the energy storage industry, from manufacturing hardware to delivering energy storage solutions. This enables Tesla to rapidly deliver continuous improvements and new features to its customers and helps them maintain their storage assets over their entire lifetime,” Shang added.
“Importantly, established companies have also strengthened their competitiveness in terms of price, performance of products and solutions in all regions.”
As competition in the BESS space increases, vendors are increasingly moving toward the same 20-foot form factor with over 5 MWh as a standard product, as explained in a recent article (Premium Access).
