TrendForce, an analyst in Taiwan Province, predicts that the global energy storage capacity will reach 362 GWh by 2025. China will surpass Europe, while the United States will become the fastest growing energy storage market in the world.
In recent years, the installed capacity of global wind energy and solar energy has increased steadily, and the energy storage market is expected to follow closely. According to TrendForce, an analyst in Taiwan Province, compared with other technologies, Ferrous lithium phosphate (LFP) battery energy storage technology has obvious advantages and is becoming the main installed capacity of new energy storage in the world.
This is consistent with the earlier research results of American analyst Wood Mackenzie, who predicted that the market share of Ferrous lithium phosphate (LFP) will surpass that of nickel cobalt manganese (NCM) in 2028. Last year, nickel cobalt manganese (NCM) battery still occupied half of the market share, but LFP battery began to emerge because of its competitive cost, long life cycle and high safety performance.
According to TrendForce's data, the cumulative installed capacity of renewable energy in the world in 2021 is 3064 GW, which highlights the urgent demand for energy storage to balance the intermittent supply.
In 2021, the global energy storage market maintained a rapid growth. TrendForce said that the newly added installed capacity reached 29.6 GWh, a year-on-year increase of 72.4%. Looking ahead, the global energy storage market will expand rapidly, reaching 362 GWh by 2025.
It is expected that China will soon surpass Europe and the United States. According to TrendForce's forecast, by 2025, China's energy storage market will exceed 100 GWh.
In the United States, due to the stagnant capacity of newly installed pumped storage, the future growth will focus on electrochemical energy storage. It is estimated that by 2025, the new installed capacity in the United States will reach 136 GWh. Meanwhile, TrendForce said that driven by various geopolitical forces, Europe expects to add 54 GWh of installed capacity by 2025.
In the battery storage market, TrendForce pointed out that the dominant position of Korean manufacturers such as Samsung and LG has declined to some extent. To some extent, this is due to the accelerated expansion of China battery manufacturers that are still loyal to LFP battery technology, such as BYD and Contemporary Amperex Technology Co., Limited.
When it comes to energy storage power conditioning systems (PCS), most of them come from solar inverter manufacturers. For established manufacturers such as SMA and Sungrow and newcomers, the competition in this market segment is expected to become increasingly fierce.
