Tesla Overtakes Sungrow As Leading Global BESS Integrator In 2023 – Report

Tesla has overtaken Sungrow to become the leading producer in the global battery energy storage system (BESS) integrator market, capturing a 15% market share in 2023, according to Wood Mackenzie’s “Global Battery Energy Storage System Integrator Ranking 2024” report.

The report indicates a significant shift in the market landscape, with the combined market share of the top five global BESS integrators shrinking from 62% in 2022 to 47% in 2023, marking a 24% year-on-year decline. This shift is largely attributed to the entrance of several China-based companies into the market. Six of the top ten global vendors are now based in China, where the domestic BESS market is predominantly supplied by local companies. China also led the world in BESS installations in 2023.

Kevin Shang, principal research analyst for energy storage technology and supply chain at Wood Mackenzie, noted, “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, the dominance of Chinese companies in the BESS integrator market grew stronger in 2023. CRRC rose to the top position among BESS integrators in the region, largely due to cost competitiveness, followed by Hyperstrong. XYZ Storage and Envision tied for third place, as noted in the report.

In Europe, market concentration increased in 2023 compared to the more fragmented situation in 2022. The top three players—Nidec, Tesla, and BYD—accounted for 68% of the European market share in 2023, a 26% year-on-year increase.

North America saw Tesla, Sungrow, and Fluence maintaining their positions as market leaders in 2023. These three vendors captured 72% of the region’s BESS shipments, growing 20% year-on-year. The North American BESS integrator market has seen significant consolidation over the past year, mainly driven by Tesla, whose market share surged by 60% year-on-year.

Shang emphasized Tesla’s advantage in the energy storage industry, stating, “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.” Tesla has also been increasing production at its 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.

As the BESS integrator market continues to evolve, the entrance of new players and the strategies of established companies like Tesla will shape the future landscape of energy storage worldwide.