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The Energy Storage Market is Booming: Anticipated Surge in Growth Rates

published: 2023-07-31 13:52

The Energy Storage Market is Booming: Anticipated Surge in Growth Rates

In the past two years, the energy storage industry has witnessed a remarkable surge in popularity. Not only have traditional energy companies accelerated their development efforts, but the sector has also attracted companies from diverse fields, including home appliance, technology, and environmental protection companies. The impact of this growth has surpassed the industry’s expectations, with numerous offline exhibitions contributing to the heightened buzz and influence. As for the energy storage market, experts foresee a substantial increase in both China and the United States. Multiple forecasts project an anticipated growth rate ranging from 110% to 120%.

The installed capacity of energy storage in China, the United States and Europe and forecasts from 2016 to 2024 (Red stands for China, Pink for U.S. and the blue for Europe; The curve stands for growth rate)





Data Source: CNESA, EIA, BNEF and China Post Securities

Currently, global policies are increasingly supporting the development of energy storage, and this trend is particularly evident in the domestic market. Many provinces have already unveiled their 14th Five-Year Plan for new energy storage development, sparking a surge in large-scale storage projects. As of March 2023, an impressive 19 provinces and autonomous regions in China have released their 14th Five-Year Plan for new energy storage development, indicating the significant momentum behind this sector. Projections indicate that by 2025, the installed capacity of new energy storage in China could reach a substantial 57.25GW. This well-defined target for new energy storage installation is instrumental in mobilizing investment interest from various stakeholders, fostering a climate of stable investment and sustainable growth. Moreover, it plays a crucial role in advancing the overall development of new energy storage in China, facilitating its expansion on a large scale.
The 14th Five-Year Plan provinces new energy storage planning

In the U.S., the IRA ACT, which was passed last year, has significantly boosted subsidies in the energy storage sector. Both the amount and scope of these subsidies have experienced notable increases. Meanwhile, in Europe, the energy storage system economy remains positive, and the market is poised for further growth.
In summary, the convergence of higher demand and robust policy support indicates that the energy storage market is primed to exceed expectations in its development over the next three years.

Domestic Energy Storage Bidding: Popularity Skyrockets with Soaring Demand

The configuration requirements for energy storage are now prominent in the development programs of new energy projects. Thanks to the support from energy storage integration, the first half of 2023 has witnessed a remarkable surge in demand within the domestic energy storage market. Concurrently, energy storage bidding has experienced an unprecedented increment in demand. Compared to 2022, the actual demand for energy storage projects has surged considerably, resulting in a substantial increase in the scale of energy storage and contributing to an exceptionally rapid market growth. Notably, winning bids have seen a downward trend in the EPC energy storage system and energy storage system procurement prices, primarily due to the declining upstream lithium prices, which have led to a reduction in energy storage costs. As of now, the capacity of energy storage bidding in the first half of 2023 has far exceeded that of the same period last year.

Changes of Bidding Price of energy storage System in 2022 and the First Half of 2023 (yuan/ Wh)






The energy storage industry has been experiencing a period of remarkable growth since June, with expectations for a new round of rapid expansion in the installed capacity of large-scale storage and commercial and industrial energy storage. This boom in the energy storage market has caught the attention of numerous companies, prompting them to accelerate their investment and market presence in this burgeoning sector.

China, the United States, and Europe Leads the way in Global Energy Storage Market

The Global Energy Storage Market Demand Report by TrendForce predicts a substantial surge in new installed capacity for global energy storage, reaching an impressive 43.43GW/95.73GWh in 2023. This anticipated growth represents year-on-year increases of 90.4% and 111.7%.

Global Cumulative Installed capacity of Electrochemical Energy Storage (MW/MWh) from 2019 to 2023

The current global energy storage market is experiencing dynamic growth, with significant contributions from key players such as China, the United States, and Europe. Among these markets, China stands out with its dominance in large-scale storage, while the mandatory distribution of energy storage is expected to further fuel high-speed growth in the domestic sector. Moreover, the proliferation of wind and PV bases also plays a crucial role in driving incremental increases. Looking ahead to 2023, experts anticipate a substantial boost in the new installed capacity of energy storage, projected to reach approximately 14.59GW/31.90GWh.

Energy storage installed capacity in China, the United States and Europe from 2019 to 2023 (MW/MWh)


Based on TrendForce data for 2023, the U.S. energy storage market is poised for significant growth. The positive trend in PV installation capacity and the implementation of the ITC tax credit, which now includes independent energy storage, are expected to fuel a continued increase in energy storage installations. Projections indicate that the new installed capacity is set to reach approximately 11.98GW/30.07GWh in 2023.
In Europe, the installed capacity is also expected to experience growth, driven by the continued promotion of subsidy policies for PV storage installations. Household storage yields remain high, and it is estimated that the added new energy storage installed capacity could reach around 8.47GW/15.69GWh in 2023. The global energy storage market is currently in a phase of rapid expansion, with electrochemical energy storage emerging as a leading contributor to this growth. This trend is expected to persist, making electrochemical energy storage the primary incremental contributor in the future. China, the United States, and Europe continue to stand as the main global markets in the new energy storage sector.

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