Tesla leads BESS integrator market in 2023 - WoodMac

US’ Tesla Inc (NASDAQ:TSLA) has outpaced China’s Sungrow Power Supply Co Ltd (SHE:300274) to become the top producer in the battery energy storage system (BESS) integrator market in 2023 with a market share of 15%, according to a report by Wood Mackenzie, announced today.

The analyst firm said that the market share of the top five BESS integrators declined to 47% last year from 62% in 2022 as the market is becoming less concentrated, mainly due to the entry of a number of Chinese companies. The top 10 includes six China-based suppliers.

“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,” said Wood Mackenzie’s Kevin Shang.

Regionally, Chinese companies strengthened their dominance in the Asia Pacific region, with CRRC emerging as the top player, mainly due to cost competitiveness, followed by Hyperstrong, and XYZ Storage and Envision both ranking third.

In Europe, market concentration increased, with the top three players, Nidec, Tesla and BYD, capturing 68% of the regional market.

In North America, Tesla, Sungrow and Fluence maintained their leadership in 2023. Market concentration in the region increased, mainly due to Tesla growing its market share.

Shang commented that Tesla has the energy storage industry’s most vertically integrated supply chain and has also been ramping up production at a 40-GWh Megapack factory in Lathrop, California.

Wood Mackenzie ranks companies by the number of shipments in MWh.

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