In addition, some emerging markets are expected to accelerate the growth of installed capacity driven by multiple factors such as energy transition strategies, power shortages, rising electricity prices, etc. Emerging energy storage markets are positive, with the strongest growth in the Middle East and Africa.TrendForce expects that the Middle East and Africa will have installed energy storage capacity of 2.8GWh/8.6GWh in 2024/2025, representing a year-on-year growth of 43 percent /24%.
Analysis of Large Scale Storage, Household storage, and Industrial and Commercial Storage Segmentation Scenarios
In the marketization process of the energy storage industry, the products of each market segment have a certain degree of variability, which greatly affects the market positioning, resource investment, product mode and development mode of enterprises related to the energy storage industry chain.
TrendForce said, looking forward to 2025, large sacle energy storage is still the main type of new installed capacity in the world. Besides, European household storage is expected to pull back, while Asia, Africa and Latin America and other emerging markets household storage market start to grow.
Figure: Global New Energy Storage Subcategory Installed Capacity Share Forecast
From the current point of view, large storage is still the main type of global energy storage new installations.TrendForce expects that in 2025 the global large storage installations will reach 72GW/188GWh, accounting for about 84%/85% of the proportion of new energy storage installations. China and the United States are the main markets for large storage, while Europe and the Middle East gradually start develop the industry. In order to gradually improve the large storage business model and increase the installations, China takes measures such as the mandatory distribution of storage policy and power market-oriented construction, while overseas choose subsidies incentives and market-oriented returns.
Household storage is the second largest type. It is expected that the installation will decline slightly in 2025 compared with 2024, with different regional performances differentiated. Due to the double fall of electricity prices and gas prices, the urgency of the European installation weakened and the growth rate is expected to be adjusted back. The United States and emerging markets (Asia, Africa and Latin America) are expected to usher in growth driven by high electricity prices and power shortages and other factors.
The volume of commercial and industrial energy storage installed capacity is relatively small. Through time-sharing tariff mechanism, China encourage the growth of C&I storage installed capacity with rapidl speed. Due to the lower industrial and commercial electricity prices in Europe and the United States, the incentive mechanism is not enough. Therefore, overseas industrial and commercial storage market has great potential with large untapped space.
With the rapid development of the industry, the energy storage market is rapidly expanding. The diversification of technology and cost reductions are seen as key factors driving market development. In addition, the current market competition has intensified, and Chinese companies are facing different opportunities and challenges in different markets, thus they need to continuously improve their competitiveness in order to occupy a larger share of the global energy storage market.
Reading More: TrendForce: Global Installations Outlook for Energy Storage Market in 2025 (Part One)
