Investment Rating - The report provides a positive outlook on the energy storage industry, highlighting significant growth potential in both demand and supply aspects. Core Viewpoints - The global energy storage market is experiencing robust growth, with a cumulative installed capacity of 372GW in 2024, representing a year-on-year increase of 28.6% [4][9] - New energy storage installations are expected to continue rising, particularly in emerging markets, driven by energy transition goals and aging grid infrastructure [4][46] - The industry is currently facing a low-price environment due to oversupply, which is expected to persist in the short term [4][50] Summary by Sections Global Market Overview - The global energy storage market is projected to grow significantly, with new installations reaching 82.8GW in 2024, a year-on-year increase of 59.2% [4][9] - The share of new energy storage installations is increasing, with 165.4GW of new energy storage capacity installed by the end of 2024, up 81.2% year-on-year [4][9] Regional Insights - China: The domestic energy storage market reached a cumulative installed capacity of 137.9GW by the end of 2024, a 59.4% increase year-on-year, with new energy storage accounting for over half of this capacity [11][16] - United States: The U.S. energy storage market added 12.3GW in 2024, reflecting a 32.8% increase, driven by a release of pent-up demand and favorable policy changes [4][31] - Europe: The European market saw a 15.3% increase in new energy storage installations, totaling 21.9GWh in 2024, with a shift towards larger storage systems expected [36][38] Price Dynamics - The industry is currently characterized by an oversupply, leading to a continued low-price environment, with the average price of lithium iron phosphate battery cells dropping to 0.34 CNY/Wh by the end of 2024, a decrease of 22.7% from the beginning of the year [4][50] Performance Review - The energy storage sector reported total revenue of 683.31 billion CNY in 2024, a decline of 5.1% year-on-year, while net profit increased by 6.5% to 75.06 billion CNY [4][59] - Specific segments such as PCS and thermal control saw revenue growth of 6.8% and 23.6% respectively, indicating a recovery trend within the industry [4][59] Investment Recommendations - The report suggests focusing on leading companies with strong risk resilience and those that have established a competitive advantage in global markets, such as CATL and Sungrow [4][59]