Tesla takes Sungrow’s crown as lead global producer of battery energy storage systems in 2023

Telsa has overtaken Sungrow as lead producer in the battery energy storage system (BESS) integrator market with a 15% market share in 2023, according to Wood Mackenzie’s ‘Global battery energy storage system integrator ranking 2024’ report.

The market share of the global top five BESS integrators shrank to 47% in 2023 from 62% in 2022, with a 24% Year-on-Year (YoY) decline, stated the report.

The global BESS integrator market is becoming less concentrated, mainly due to multiple China-based companies entering the market, with six of the global top 10 vendors China-based. This is partially because the country’s BESS market is exclusively supplied by domestic companies. In addition, China installed the most BESS globally in 2023.

Wood Mackenzie’s Kevin Shang, principal research analyst, energy storage technology and supply chain, said: “The global BESS integrator market is becoming increasingly competitive, especially in China, resulting in declining market concentration. As a sector with a relatively low entry barrier, the BESS integrator industry has attracted a significant number of new players.”

In the Asia Pacific region, Chinese companies’ dominance in the regional BESS integrator market strengthened in 2023, with CRRC jumping to the top among BESS integrators in APAC largely due to cost competitiveness, followed by Hyperstrong. While XYZ Storage and Envision tied at third place, stated the report.

For Europe, energy storage system integrator market concentration was on the rise in 2023, compared with the relatively fragmented situation in 2022. The top three players, Nidec, Tesla and BYD, accounted for 68% of the European market share in 2023, increasing by 26% YoY.

In North America, Tesla, Sungrow and Fluence remained market leaders in 2023. The three vendors captured 72% of the region’s market share for BESS shipments in 2023, growing 20% YoY in the percentage.

According to the report, market concentration has increased significantly in the North American BESS integrator market in the past year, mainly driven by Tesla, whose market share surged by 60% YoY.

“Tesla has the energy storage industry’s most vertically integrated supply chain, from manufacturing hardware to providing energy storage solutions. This enables Tesla to deliver continued improvements and new features to clients quickly and helps customers maintain storage assets for their entire lifespan,” Shang added. In addition, Tesla has been ramping up production at a 40-GWh Megapack factory in Lathrop, California.

“Importantly, established companies have also been bolstering their competitiveness in terms of price, performance of products and solutions across all regions,” Shang concluded.

ENDS

Reporting metrics:

Wood Mackenzie ranks vendors by the number of shipments in megawatt-hour (MWh). Only shipments with revenue recognised in the reporting year are counted towards the market share.