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.
