Chan Ye Xin Xi Wang·2025-11-21 01:07Core Insights - The distributed energy storage industry is experiencing explosive growth driven by national policy support and increasing demand for renewable energy, with projections indicating that by 2024, new energy storage installations will account for over 40% of the global total [1][6] - The industry is transitioning from policy-driven growth to market-driven and economic viability, with a clear delineation of the supply chain from upstream materials to downstream applications [1][5] Industry Overview - Distributed energy storage systems are deployed close to energy consumption points, enabling local production, storage, and consumption of electricity, which helps stabilize the output fluctuations of renewable energy sources [2][4] - The industry is characterized by various technologies, including lithium-ion batteries and mechanical storage systems, and is categorized based on application scenarios such as user-side, grid-side, and power-side storage [2][3] Policy Landscape - A series of national policies have been introduced to support the development of distributed energy storage, including guidelines for enhancing grid peak-shaving capabilities and plans for high-quality development of new energy storage manufacturing [5][6] Supply Chain Structure - The supply chain of the distributed energy storage industry is well-defined, with upstream focusing on core materials and components, midstream on system integration and EPC services, and downstream covering applications across generation, grid, and user sides [5][6] Current Market Dynamics - The industry has seen a significant increase in installations, with projections for 2024 indicating a cumulative installed capacity of 73.76 million kilowatts, representing an annual growth rate exceeding 130% [6][7] - The market is dominated by lithium iron phosphate batteries, which hold nearly 90% market share due to their mature technology and cost advantages [6][7] Application Scenarios - The application landscape is evolving, with grid-side storage becoming the main contributor to new installations, expected to account for 60% of the market by 2025 [7][8] - Distributed photovoltaic systems are also gaining traction, with cumulative installed capacity reaching 370 million kilowatts by the end of 2024, significantly enhancing the energy structure transition [7][8] Competitive Landscape - The industry is characterized by leading companies such as CATL and BYD dominating the manufacturing sector, while others like Sungrow and Huawei lead in PCS technology [8][9] - The competitive landscape features a mix of large enterprises and smaller firms focusing on niche markets, with significant clusters in regions like the Yangtze River Delta and the Pearl River Delta [8][9] Future Trends - The industry is moving towards diversified, market-driven, and intelligent development, with applications expanding beyond simple energy storage to integrated solutions that enhance energy efficiency and reliability [9][10] - Technological advancements are expected to shift from a lithium-dominated landscape to a more diversified approach, incorporating long-duration storage technologies [10][11] - The business model is transitioning from policy-driven to market-oriented, with distributed energy storage expected to participate more actively in electricity markets and auxiliary services [11]