Analysis of the Market Pattern of Pre meter Energy Storage in the United States
Currently, there is a clear trend of vertical integration in the energy storage industry, with a typical feature of upstream and downstream entering the integration stage one after another.
The competition in the energy storage industry is intensifying, and there is a trend of vertical integration in multiple links. The energy storage industry chain, from upstream core equipment enterprises such as batteries and PCS to downstream developers, generally shows a trend of vertical integration. The competition and cooperation relationship between the upstream and downstream of the industry chain is more complex and diverse. This article mainly introduces the situation of the upstream and midstream of the energy storage industry chain in the United States.
Upstream of market pattern:
Domestic energy storage industry chain enterprises accelerate US exports
The domestic battery industry has obvious competitive advantages, and high-quality battery enterprises are expected to receive more large orders. The safety and price competitiveness of lithium iron phosphate batteries are fully demonstrated, and domestic enterprises continue to place large orders. Previously, leading overseas integrators represented by Fluence and Tesla mainly collaborated with Japanese and Korean battery companies specializing in ternary batteries. However, in recent years, they have turned to domestic battery companies such as CATL, which mainly focuses on the iron lithium route.
Compared to ternary batteries, domestic lithium iron phosphate batteries continue to highlight their price competitiveness and safety advantages, and mainstream overseas integrators are expected to accelerate their shift towards the lithium iron route. Apart from CATL, battery companies such as Yiwei Lithium Energy, Nandu Power, Haichen Energy Storage, and Penghui Energy are also accelerating their expansion.
Quality is the primary factor for domestic battery exports, and factors such as price, supply, and battery qualifications are also important considerations for overseas cooperation.
Due to the fact that the US energy storage market is mainly driven by economic factors, the quality of energy storage batteries has a more prominent impact on the safe and economical operation of energy storage. From Powin's requirements for battery supplier cooperation, it can be seen that American energy storage customers prioritize quality over cost, supply, as well as company funding and battery qualifications.
Apart from indirectly going overseas through domestic integrators, it is expected that direct overseas expansion will be an important opportunity for other links in the domestic energy storage industry chain. Although following domestic integrators to indirectly export to the United States is an important path for the domestic energy storage industry chain, this path is also relatively more competitive.
Considering that the overall pattern of integrators in the US energy storage market is still dominated by overseas enterprises, domestic energy storage enterprises in areas such as PCS and temperature control are expected to encounter more opportunities by actively exploring overseas integrator customers.
Mid Market Landscape:
Intense competition among integrators, domestic integrators may welcome new opportunities
Integrators are important entry points for domestic enterprises to participate in the US energy storage market, which can be divided into two paths: domestic integrators and overseas integrators.
Domestic enterprises participating in the US energy storage market are concentrated in equipment supply, and integrators are an important entry point into the US energy storage market. It is expected that due to various factors such as policies, domestic enterprises will find it difficult to participate in downstream links such as energy storage project investment and EPC in the United States, and most of them will supply equipment. Integrators are the ultimate link in the assembly and debugging of energy storage equipment, and therefore also the entry point for domestic enterprises to participate in the downstream energy storage market in the United States.
The market structure of national energy storage integrators is relatively concentrated, with different backgrounds of top enterprises. According to IHS data, in 2021, the share of global energy storage integrators ranked by power capacity was 43% for CR3 and 71% for CR10.
The top three companies, Fluence, NextEra Energy, and Tesla, have all entered this track through their renewable energy development business. W ä rtsil ä, NEC, and Nidec ASI tend to focus on grid technology and equipment companies, while Sungrow and SMA Sunbelt excel in power electronics technology. Powin Energy used to be software centric.
Overseas top integrators generally have advantages in customer resources, and some companies fill their technological gaps through mergers and acquisitions. NextEra Energy, AES (Fluence parent company), Tesla, and also leading energy storage developers, have a deep connection with FlexGen and developer Broad Reach Power. Powin Energy and LGES have improved their technological capabilities, especially in power electronics, through mergers and acquisitions. In addition, overseas integrators generally emphasize their own research and development capabilities in energy management systems.
Domestic integrators are known for their technological and cost-effectiveness advantages, and are expected to benefit from the increasing number of new developers entering the US market and the trend of disintermediation by integrators.
Except for Sungrow, domestic integrators such as BYD, Kelu Electronics, Dongfang Risheng (Shuangyili), Trina Solar, and Kehua Data have all conducted business in the United States. Benefiting from the domestic industrial chain and cost competitive advantages, domestic energy storage integrators have a competitive relationship with overseas integrators, and also provide OEM services for some overseas integrators.
With the increasing number of new developers in the US market and the trend of disintermediation among integrators, domestic energy storage integrators are expected to face more opportunities.
Analysis of the Market Pattern of Pre meter Energy Storage in the United States
Currently, there is a clear trend of vertical integration in the energy storage industry, with a typical feature of upstream and downstream entering the integration stage one after another.
The competition in the energy storage industry is intensifying, and there is a trend of vertical integration in multiple links. The energy storage industry chain, from upstream core equipment enterprises such as batteries and PCS to downstream developers, generally shows a trend of vertical integration. The competition and cooperation relationship between the upstream and downstream of the industry chain is more complex and diverse. This article mainly introduces the situation of the upstream and midstream of the energy storage industry chain in the United States.
Upstream of market pattern:
Domestic energy storage industry chain enterprises accelerate US exports
The domestic battery industry has obvious competitive advantages, and high-quality battery enterprises are expected to receive more large orders. The safety and price competitiveness of lithium iron phosphate batteries are fully demonstrated, and domestic enterprises continue to place large orders. Previously, leading overseas integrators represented by Fluence and Tesla mainly collaborated with Japanese and Korean battery companies specializing in ternary batteries. However, in recent years, they have turned to domestic battery companies such as CATL, which mainly focuses on the iron lithium route.
Compared to ternary batteries, domestic lithium iron phosphate batteries continue to highlight their price competitiveness and safety advantages, and mainstream overseas integrators are expected to accelerate their shift towards the lithium iron route. Apart from CATL, battery companies such as Yiwei Lithium Energy, Nandu Power, Haichen Energy Storage, and Penghui Energy are also accelerating their expansion.
Quality is the primary factor for domestic battery exports, and factors such as price, supply, and battery qualifications are also important considerations for overseas cooperation.
Due to the fact that the US energy storage market is mainly driven by economic factors, the quality of energy storage batteries has a more prominent impact on the safe and economical operation of energy storage. From Powin's requirements for battery supplier cooperation, it can be seen that American energy storage customers prioritize quality over cost, supply, as well as company funding and battery qualifications.
Apart from indirectly going overseas through domestic integrators, it is expected that direct overseas expansion will be an important opportunity for other links in the domestic energy storage industry chain. Although following domestic integrators to indirectly export to the United States is an important path for the domestic energy storage industry chain, this path is also relatively more competitive.
Considering that the overall pattern of integrators in the US energy storage market is still dominated by overseas enterprises, domestic energy storage enterprises in areas such as PCS and temperature control are expected to encounter more opportunities by actively exploring overseas integrator customers.
Mid Market Landscape:
Intense competition among integrators, domestic integrators may welcome new opportunities
Integrators are important entry points for domestic enterprises to participate in the US energy storage market, which can be divided into two paths: domestic integrators and overseas integrators.
Domestic enterprises participating in the US energy storage market are concentrated in equipment supply, and integrators are an important entry point into the US energy storage market. It is expected that due to various factors such as policies, domestic enterprises will find it difficult to participate in downstream links such as energy storage project investment and EPC in the United States, and most of them will supply equipment. Integrators are the ultimate link in the assembly and debugging of energy storage equipment, and therefore also the entry point for domestic enterprises to participate in the downstream energy storage market in the United States.
The market structure of national energy storage integrators is relatively concentrated, with different backgrounds of top enterprises. According to IHS data, in 2021, the share of global energy storage integrators ranked by power capacity was 43% for CR3 and 71% for CR10.
The top three companies, Fluence, NextEra Energy, and Tesla, have all entered this track through their renewable energy development business. W ä rtsil ä, NEC, and Nidec ASI tend to focus on grid technology and equipment companies, while Sungrow and SMA Sunbelt excel in power electronics technology. Powin Energy used to be software centric.
Overseas top integrators generally have advantages in customer resources, and some companies fill their technological gaps through mergers and acquisitions. NextEra Energy, AES (Fluence parent company), Tesla, and also leading energy storage developers, have a deep connection with FlexGen and developer Broad Reach Power. Powin Energy and LGES have improved their technological capabilities, especially in power electronics, through mergers and acquisitions. In addition, overseas integrators generally emphasize their own research and development capabilities in energy management systems.
Domestic integrators are known for their technological and cost-effectiveness advantages, and are expected to benefit from the increasing number of new developers entering the US market and the trend of disintermediation by integrators.
Except for Sungrow, domestic integrators such as BYD, Kelu Electronics, Dongfang Risheng (Shuangyili), Trina Solar, and Kehua Data have all conducted business in the United States. Benefiting from the domestic industrial chain and cost competitive advantages, domestic energy storage integrators have a competitive relationship with overseas integrators, and also provide OEM services for some overseas integrators.
With the increasing number of new developers in the US market and the trend of disintermediation among integrators, domestic energy storage integrators are expected to face more opportunities.
