Tesla overtakes Sungrow as world leader in energy storage in 2023

The global market for battery energy storage systems (BESS) is becoming increasingly competitive.Tesla takes the lead in the battery energy storage systems (BESS) market with a 15% market share in 2023, according to the latest report from Wood Mackenzie.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

In 2023, Tesla overtook Sungrow to become the world’s leading producer of battery energy storage systems (BESS).
According to Wood Mackenzie’s “Global battery energy storage system integrator ranking 2024” report, Tesla has captured 15% market share, marking a key milestone in an increasingly fragmented market.
The combined market share of BESS’ top five global integrators fell from 62% in 2022 to 47% in 2023, underlining a significant decline in market concentration.
The emergence of several Chinese companies has profoundly altered market dynamics.
Six of the world’s top ten BESS suppliers are now based in China.
This change is partly explained by the fact that the Chinese BESS market is almost exclusively supplied by domestic companies, which also installed the world’s largest BESS capacity in 2023.

The rise of Chinese integrators in Asia-Pacific

In the Asia-Pacific region, Chinese companies strengthened their dominant position in 2023. CRRC is now the leading BESS integrator in this region, benefiting from its cost-competitiveness, while Hyperstrong takes second place.
XYZ Storage and Envision share third place.
This development reflects a regional consolidation in favor of Chinese players, underpinned by lower production costs and an aggressive market penetration strategy.

Increased market concentration in Europe

In Europe, the BESS integrator market has shown the opposite trend, with further concentration in 2023.
The three main players – Nidec, Tesla and BYD – now control 68% of the European market, an increase of 26% on the previous year.
This centralization indicates a growing preference for suppliers able to offer integrated, reliable solutions, thus consolidating their positions on the European market.

Tesla leads in North America

In North America, Tesla, Sungrow and Fluence continue to dominate the BESS market in 2023.
Together, these three suppliers hold 72% of the regional market share, marking a 20% growth over 2022.
Tesla stands out in particular, with a 60% increase in annual market share.
This performance is largely due to Tesla’s vertically integrated supply chain, which enables it to produce energy storage solutions efficiently and respond rapidly to market needs.
Tesla’s strategy is based on a complete integration of its processes, from equipment manufacturing to storage system maintenance, giving it a decisive competitive edge.
Tesla’s Megapack plant in Lathrop, California, has played a crucial role in increasing its production capacity, consolidating its position in the North American market.
The global BESS market in 2023 illustrates growing fragmentation with intense competition, particularly between Chinese players and established leaders like Tesla.
This dynamic reflects an evolving market, where the ability to innovate and offer complete solutions will be decisive for future industry leaders.

Ameresco has completed a 50 MW battery storage system to support Nucor’s expansion in Arizona, marking one of the largest behind-the-meter industrial projects in the United States.
Rondo Energy has launched commercial operations of the world’s largest industrial heat battery, delivering 24-hour steam from off-grid solar power.
SUNOTEC expands in the Bulgarian market with seven projects combining battery and solar, totalling 763 MWh of storage and 115 MWp of photovoltaic capacity.
Danish fund Copenhagen Infrastructure IV transfers half of its stake in the UK-based Coalburn 2 project to AIP Management, strengthening AIP's energy storage portfolio in the United Kingdom.
Lyten has completed the acquisition of the Northvolt Dwa site in Poland, Europe’s largest energy storage system factory, and plans to deliver its first commercial units before the end of 2025.
SNG Holdings launched trial operations of a 2MW/6MWh energy storage facility in Gotemba, backed by Digital Grid and PHOTON, ahead of commercial commissioning scheduled for November.
The Winchester project will combine 160 MW of storage with two 80 MW solar plants in Cochise County, with delivery expected in early 2027.
Greenflash Infrastructure has acquired a 200 MW standalone storage project in Texas, marking a strategic asset transfer aimed at reinforcing local grid reliability.
Gotion High-Tech presented in Saudi Arabia a modular 20 MWh storage solution aimed at strengthening the country's energy capacity under its Vision 2030 strategy.
The Japanese developer has commissioned a storage unit in Karatsu and plans to deploy 80 facilities by the end of 2026, relying on agreements with local governments and industrial partners.
Energy Plug, Malahat Battery Technology and Quantum eMotion sign strategic agreement to develop quantum-secured energy storage systems, including a NATO-aligned defence initiative.
Greenflash Infrastructure has finalised the acquisition of Rock Rose, a 200 MW energy storage project located in Fort Bend County, to strengthen its ERCOT market portfolio.
SALA Energy commissions its first grid-scale battery storage facility using sodium-sulfur batteries, supported by both public and private financing.
Utility-scale battery storage system costs continue to fall across Asia-Pacific, but the pace of reductions is expected to slow significantly by 2029, according to Wood Mackenzie projections.
StarCharge has secured a 500MWh energy storage order through a strategic agreement with ENERGY INVESTMENT LLC, strengthening its position in rapidly evolving Eastern European markets.
The Vilvoorde site in Belgium now hosts 400 MWh of operational capacity on a total 800 MWh project, marking a key milestone for electricity storage on the continent.
Idemitsu Kosan has commissioned a 15MW/48MWh energy storage facility in Himeji, marking the start of its deployment in grid-scale storage with Japanese public funding.
The Australian government awarded contracts to 20 renewable and storage projects, surpassing the initial 6GW goal under the fourth round of the Capacity Investment Scheme.
The Padua Complex will deliver 400 MW/1.8 GWh capacity with Tesla's support, at a strategic node of the Texas grid, following legislative action to strengthen energy reliability.
Salt River Project will partner with ESS to install a 50 MWh long-duration energy storage system in Pinal County as part of its capacity expansion plan to meet rising demand.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.