Amidst the swift advancement of renewable energy, the downstream demand for energy storage is experiencing rapid growth, propelling market expansion. In the future shaping of China’s energy landscape, energy storage is poised to assume an increasingly pivotal role. Currently, the energy storage sector is witnessing significant growth, with a multitude of enterprises making strategic inroads within the industry. These include power battery manufacturers, players in the wind power and photovoltaic sectors, as well as those in the inverter industry. The resulting landscape is one of fierce competition. However, the precise competitive dynamics within the various segments of the industry chain have yet to be definitively established.
Battery Market Dynamics: CATL’s Continuous Advancements, Alongside Industry-Wide Production Expansion
Over the past few years, the global landscape for energy storage batteries has undergone a significant transformation, with China emerging as a pivotal hub in global energy storage battery supply. Notably, battery manufacturers are intensifying their expansion efforts, with CATL leading the way with notable advantages. The hierarchy of esteemed energy storage battery brands is rapidly taking shape, with promising new entrants such as REPT and Hithium. Data indicates that the energy storage industry is poised to witness a demand surge, projecting to reach 250~260GWh in 2023. Meanwhile, global energy storage battery shipments are estimated to surge from 2022 to 2023, reaching 141.6/320.4GWh, equating to impressive year-on-year growth rates of 130% and 126% respectively. Notably, CATL’s shipments accounted for around 50/90GWh, marking a striking year-on-year increase of 199% and 80%, and constituting 35.3% and 28.1% of the total shipments respectively.
Global energy storage battery shipments and forecast from 2022 to 2023 (GWh)
Beyond the notable surge in shipments, energy storage batteries are facing steadily escalating expectations regarding aspects such as substantial production capacity, safety performance, and cycle life. Additionally, tailored batteries are emerging to cater to specific energy storage application scenarios.
On the demand side, the adoption rate for 280Ah large-size batteries has exceeded 50%, while certain customers are increasingly focused on the 300Ah battery variant. In fact, battery procurement announcements stipulate a minimum single battery capacity of 280Ah. As a result, several companies have secured corresponding orders.
Inverter Dynamics: Large-Scale Energy Storage Emphasizes Quality and Service, while Household Energy Storage Exhibits Regional Variation
Within the sphere of large-scale energy storage, the prime considerations for inverters revolve around product quality and service, consequently resulting in a substantial degree of engagement. Sungrow Power holds the leading position in this sector, benefiting from its large-scale advantage and thereby yielding enhanced profitability. On the other hand, the landscape for household storage inverters displays distinct regional characteristics, with intense competition observed among manufacturers. In the United States, a preference for all-in-one machines or the integration of inverters and batteries from the same brand is discernible. In Europe, elevated demands center around distribution channels and product suitability. Leading enterprises are witnessing notable growth in shipments. Projections indicate that by 2023, the shipments for Sungrow Power, Ginlong Technology, Goodwe, and Deye Technology will exceed 600,000, 400,000, 400,000, and 800,000 units, respectively.
Shipment Planning of Part of Enterprises In Energy Storage Products
The advantages of large-scale energy storage are experiencing robust growth, while the domain of industrial and commercial energy storage is evolving at an even more rapid pace.
In 2023, the momentum of large-scale storage development is intensifying, and simultaneously, industrial and commercial storage is gaining prominence. Notably, major domestic manufacturers in the field of large-scale energy storage and industrial and commercial storage are witnessing significant growth in their shipments. For instance, Sungrow Power and Sineng are seeing their large-scale energy storage shipments double, while Narada Power and Sinexcel anticipate growth rates exceeding 1.5 times.
In the realm of large-scale energy storage, advancements have been made in full charging and discharging technology, leading to an expected increase in cycles from 5000 to 7000-8000, and even as high as 12000-15000 times. This enhancement contributes to a 20% to 30% reduction in electricity costs. Over the next 2 to 3 years, energy storage’s economics is set to further improve, accompanied by ongoing enhancements in industry standardization.
Shipments and Growth Rate of Domestic Large-scale Energy Storage and Industrial and Commercial Energy Storage
The landscape of commercial and industrial storage is rapidly evolving, presenting a multitude of opportunities within the domestic market. Moreover, ample scope remains for electricity prices to climb within this sector. On the international stage, the European Union has taken decisive steps to bolster carbon taxation, and underlined the importance of green power certification for industrial and commercial enterprises. Numerous businesses are poised to witness substantial order growth this year, with expectations of sustained upward momentum in the foreseeable future.
