Main vendors in Battery Energy Storage Systems (BESS) Integrator Market

By Editor


The global Battery Energy Storage Systems (BESS) integrator market witnessed significant growth and intensifying competition in 2022, with the top five global system integrators accounting for 62 percent of the total BESS shipments in megawatt-hours (MWh), as reported by Wood Mackenzie, a leading energy industry analysis firm.

Market Leaders

Sungrow, a prominent industry player, emerged as the leader in the BESS market, claiming 16 percent of the global market share by shipment (MWh). This was closely followed by Fluence and Tesla, both with 14 percent market share, and then Huawei and BYD, each holding 9 percent of the global BESS market share.

Transformer Supply Bottleneck

While the global battery supply situation improved in 2023 compared to the previous year, the industry grappled with a new bottleneck in the form of transformer supply. Shortages and price spikes of transformers have led to a minimum lead time of over a year for transformers of all sizes. This scarcity of transformers is particularly impactful for system integrators as these components are vital for grid connections.

North America Leading the Way

The North American BESS integrator market exhibited concentration, with the top five players holding a significant 81 percent of the region’s market share in 2022. Tesla dominated the North American market with a substantial 25 percent market share, followed by Fluence at 22 percent. Sungrow, the Chinese company, secured the third position with a 13 percent market share in the North American market. Sungrow’s success is attributed to its cost competitiveness and advanced liquid-cooling products.

Driving Factors

The Inflation Reduction Act (IRA) and state-led clean energy policies are expected to be key drivers for growth in the US storage market, supporting the expansion of BESS integrators.

Asia Pacific

In the Asia Pacific region, China led the BESS integrator market with a dominant 86 percent market share in 2022. However, the market in China is becoming increasingly competitive, as it faces pressure from both upstream and downstream supply chain participants. Having manufacturing capacity in crucial components, such as cells, PCS, BMS, and EMS, has become a necessity, given the detailed and stringent bid requirements for energy storage projects. In this region, price has become the most significant distinguishing factor and a key element in winning bids.

A price war among system integrators has ensued in China, with some players willing to sacrifice profits to gain market share, which has, in turn, impacted the overall industry’s profitability.

Report Methodology

Wood Mackenzie’s BESS Integrator market share rankings are based on the number of BESS shipments in megawatt-hours (MWh) in 2022. Only shipments with recognized revenue in the reporting year are counted toward market share calculations, encompassing both grid-scale and CCI (commercial, industrial, and institutional) sectors.

The BESS integrator market remains dynamic, marked by fierce competition, emerging challenges, and evolving strategies as the industry continues to shape the future of energy storage and sustainability worldwide.

Latest News