Global wind and solar capacity has grown steadily in recent years, and the energy storage market is expected to follow. Compared with other technologies, lithium iron phosphate (LFP) battery energy storage technology has significant advantages and is becoming the main installed capacity of new energy energy storage in the world.
Analysts predict that the market share of lithium iron phosphate (LFP) will surpass that of nickel cobalt manganese (NCM) by 2028. Nickel-cobalt-manganese (NCM) batteries still accounted for half of the market last year, but LFP batteries are starting to emerge due to their competitive cost, long life cycle and high safety performance.
The data shows that the cumulative global installed capacity of renewable energy in 2021 is 3,064 GW, which highlights the urgent need for energy storage to balance the supply gap.
In 2021, the global energy storage market will maintain rapid growth. According to TrendForce, the newly 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.
China is expected to overtake Europe and the United States soon. It is predicted that by 2025, China's energy storage market will exceed 100 GWh.
In the U.S., future growth will focus on electrochemical energy storage as new pumped hydro capacity is currently stagnant. The US is expected to add 136 GWh of new capacity by 2025. Meanwhile, Europe is expected to add 54 GWh of installed capacity by 2025, driven by various geopolitical forces.
In the battery storage market, the dominance of South Korean manufacturers such as Samsung and LG has declined to some extent. This is partly due to the accelerated expansion of Chinese battery makers still loyal to LFP battery technology, such as BYD (BYD) and CATL (CATL).
When it comes to storage power conditioning systems (PCS), most of them come from solar inverter manufacturers. Competition in this segment is expected to intensify for both established players such as SMA and Sungrow as well as newcomers.
