Global Energy Storage System Market Overview 2025

Energy Storage Systems Market Analysis

AnEnergy Storage System (ESS) is a device or system that converts electricalenergy into chemical energy for storage and then converts it back to electricalenergy when needed. It primarily consists of battery cells, a Battery ManagementSystem (BMS), an Energy Management System (EMS), and power electronicconversion devices (such as Power Conversion Systems, or PCS). ESS is widelyapplied in power systems, electric vehicles, communication base stations, andother fields. These systems are critical for balancing supply and demand,enhancing grid stability, and promoting the efficient use of renewable energy.

Electrochemicalenergy storage stores energy through chemical reactions that convert betweenchemical and electrical energy. Depending on the materials used, it can becategorized into lead-acid batteries, sodium-sulfur batteries, flow batteries,and lithium-ion batteries. On the one hand, battery storage systems featurehigh energy density and conversion efficiency, with rapid response times,effectively meeting the needs of power systems for peak shaving and frequencyregulation. On the other hand, their power and energy capacities can beflexibly configured based on application needs and are largely unaffected byexternal climatic and geographic factors.

Therapid growth of the market is mainly driven by the fast development ofrenewable energy, increased demand for energy storage in electricity markets,cost reductions due to technological advancements, growing needs for energystorage and transport, and a global push to reduce carbon emissions and achieveenergy transition. Additionally, policy support from governments worldwideaimed at transforming energy structures and promoting energy storagetechnologies also provides strong backing for the expansion of the ESS market.

Key DevelopmentTrends

Source:Secondary Sources and LOOKWHOLE INSIGHT,2025

Energy StorageSystems Supply Chain Analysis

TheESS industry chain covers the entire process from raw material supply to finalapplication, with each link closely interconnected to drive the industry'srapid development.

Upstream:Raw materials and base materials form the core support of ESS production. Thisstage primarily includes the supply of battery materials such as cathodematerials (lithium cobalt oxide, lithium iron phosphate, nickel cobaltmanganese oxide, etc.), anode materials (graphite, silicon-based materials,etc.), electrolytes, and separators. The quality of these materials directlyaffects battery performance and cost. Lithium-ion batteries still dominate thedeployed electrochemical energy storage technologies. According to data fromChina Business Intelligence Network, as of the end of 2023, cumulativeoperational lithium-ion battery projects accounted for 48.77 GWh, or 95.89% ofthe total; lead-acid/lead-carbon batteries accounted for 2.26%; and flow batteriesaccounted for 1.02%. Key upstream companies include lithium material supplierslike Ganfeng Lithium and Tianqi Lithium, as well as lithium salt producers likeAlbemarle and SQM.

Midstream:This is the core segment of the ESS industry chain and includes batterymanufacturing, system integration, and performance testing. Batterymanufacturing encompasses both cell production and battery packaging. Companieslike CATL, LG Chem, and Samsung SDI use advanced technologies (such aslithium-ion) to produce high-performance cells. Battery packaging involvesassembling cells into modules or packs to suit various application needs.System integrators combine battery systems with PCS, BMS, and other componentsto deliver complete storage solutions. Performance testing is conducted byspecialized firms such as DEKRA and TÜV Rheinland, ensuring the safety andreliability of ESS across various application scenarios.

Downstream:This mainly involves project operations and end-use applications. Projectoperators apply ESS in grid storage, new energy vehicles, residential andcommercial storage, and industrial storage. According to the InternationalEnergy Agency (IEA), global cumulative electrochemical energy storage capacityreached about 25 GW in 2021 and is expected to surpass 90 GW by 2025.Automakers such as Tesla, BYD, and NIO use power batteries in mass-produced EVsto realize electrification and intelligent features. End users—power companies,industrial firms, and households—create demand in the downstream market,driving the circular development of the industry chain.

Global EnergyStorage Systems Market: Competitive Landscape

Accordingto a report by LookWhole Insight, the ESS market exhibits a dual trend ofglobalization and regionalization. International giants dominate in advancedtechnology and market share, while regional players are emerging with localadvantages. This multi-layered competition injects vitality into the market andaccelerates technological innovation.

Internationally,Tesla, LG Chem, and Samsung SDI lead the ESS field. Tesla's Powerwall andPowerpack products hold a strong position in the residential and commercialstorage markets, expanding globally with brand influence and innovation. LGChem and Samsung SDI showcase strong competitiveness in both utility-scale andcustomer-side storage markets, particularly in large-scale projects.

InChina, domestic players like CATL and BYD have rapidly emerged to compete withinternational brands. As one of the world’s largest battery manufacturers,CATL’s products are widely used in grid storage and EVs, gaining recognitionfor their high cost-effectiveness and local support. BYD has advanced domesticbattery technology through independent R&D, particularly increasing itsmarket share in lithium iron phosphate (LFP) batteries. These local innovationsmeet domestic demand while creating new competitive advantages globally.

Inthe ESS integration field, key players include Sungrow Power Supply and others.Although the market concentration among domestic integrators is stillrelatively low, the industry is trending toward consolidation around leadingfirms. Sungrow, HyperStrong, and CRRC Zhuzhou Institute are emerging asindustry leaders, gradually gaining competitive positions through technologicalinnovation and market expansion.

FromJanuary to June 2024, global shipments of energy storage cells reached 114.5GWh, a 33.6% year-over-year increase. Large-scale storage cells accounted for101.9 GWh, while small-scale storage cells reached 12.6 GWh. Among the top tenglobal ESS cell suppliers in H1 2024, nine were Chinese companies. The topfive—CATL, EVE Energy, REPT Battero, Hithium, and BYD—remained unchanged from2023, collectively accounting for 73.2% market share, up 1.8 percentage pointsfrom Q1. The top ten companies together held 91% of the global market share,maintaining historically high levels.

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