The key to the rapid success and growth of the energy storage industry in the U.S., China and other maturing markets, research shows, is the tireless efforts of energy storage system manufacturers.
The global energy storage industry continues to grow rapidly, creating more opportunities for new entrants and incumbents in the market. As the market grows, many energy storage system manufacturers are developing their business models to build a stronger competitive foundation.
In order to achieve long-term investment, as the hybrid battery energy storage system market accelerates, different stakeholders are focusing on market share growth. While this puts competitive pressure on incumbents in the market, both upstream component suppliers and downstream developers are looking for ways to diversify and secure profits.
As more capital pours into the energy storage industry, this creates an ideal platform for different competitive scenarios and exploring the development of the energy storage industry.
1. Rapid growth and capital influx in the energy storage industry lay the foundation for an evolving competitive landscape
Despite some recent market consolidation, the energy storage sector has attracted significant investment. Energy storage system manufacturers, battery and component manufacturers, and a growing number of large energy companies and technology groups are joining the competitive energy storage market.
At the same time, many investors are seeking to diversify into the clean energy technology industry, which is promoting market incumbents and new entrants to compete for market share in the rapid growth phase of the clean energy technology industry.
Research shows that the competitive landscape of the energy storage market is diversifying. As a large project pipeline dwarfs the scale of existing deployments, storage inverter (energy storage PCS) manufacturers are expanding their business targeting solar power facilities and storage applications, while new entrants to the market are challenging incumbents Integrators.
There is still a large degree of regional diversity in the energy storage market. With the energy storage market initially growing in certain countries, many local energy developers and new entrants are joining the energy storage space.
While the landscape of energy storage system manufacturer remains diverse, market share is becoming more concentrated and signs of consolidation are emerging.
Globally, the future market landscape of energy storage system manufacturers will further diversify, mainly due to the expansion of the business scope of energy storage inverter manufacturers (for solar + energy storage applications) and the joint efforts of existing competitors strategic opportunities brought about by development.
2. Regional diversity in the energy storage industry remains important
Because the energy storage market is highly price-sensitive, most energy storage integrators have launched lithium iron phosphate (LFP)-based energy storage systems in the United States.
The upstream supply chain of China’s energy storage market is highly diversified, while the downstream energy storage system manufacturers are more consolidated. Because of the huge base of battery manufacturers, especially lithium iron phosphate (LFP) battery manufacturers and inverter manufacturers.
The result is a highly diversified battery supply chain, with many market players looking to profit from the growing stationary energy storage market.
3. What is an energy storage system manufacturer?
Energy storage system manufacturers are companies that specialize in combining component subsystems and ensuring that these subsystems function as a whole.
In the energy storage industry, energy storage system manufacturers offer complete battery energy storage systems (BESS). So usually responsible for procuring individual components, mainly battery modules/racks, power conversion systems (PCS) and other equipment;
Assembles systems; provides comprehensive warranties; integrates control and energy management systems (EMS); typically provides project design and engineering expertise; and provides operations, monitoring, and maintenance services.
As the industry continues to evolve, many energy storage system manufacturers have varying levels of upstream and downstream integration, and specific responsibilities often vary by contract and customer requirements.