Author: 24Chao Industry Research Institute; Editors: Chao Yi, Du Peng, Shui Jing, et al.
The global residential energy storage (RESS) sector is entering an epic growth cycle.
According to the latest analysis report from CSC Financial, using residential electricity prices as a reference indicator for the economic payback period of RESS, and considering the higher electricity demand in developed countries, high-electricity-price regions, villas, and power-deficient areas, the cumulative global RESS installed capacity could reach 2,842 GWh. This is calculated based on a per-household capacity of 20 kWh for developed regions, 5-10 kWh for emerging markets and regions with low-to-medium electricity prices, an average RESS product price of 1.5 RMB/Wh in developed countries, and 1.2 RMB/Wh in developing and underdeveloped countries.
Based on preliminary statistics, the cumulative global RESS installed capacity was approximately 79 GWh by 2025. According to the long-term cumulative installed capacity projection, the corresponding penetration rate is about 2.8%, indicating highly promising prospects.
In terms of national development potential, the RESS market space in 9 countries/regions exceeds 100 billion RMB. China is the only country with a market potential exceeding 1 trillion RMB, reaching 1.61 trillion RMB. The United States ranks second at 855 billion RMB, followed by Japan in third place with a market space of 236.2 billion RMB.
However, we have also noticed that alongside the frantic influx of capital and cross-industry players, risks are accelerating behind the rapid surge of the global RESS market.
According to incomplete statistics, there are currently over 300,000 registered energy storage enterprises in China alone (not limited to RESS companies). Over the past three years, the price of energy storage systems in China has dropped by approximately 80%, and recently, the winning bid prices for some energy storage projects have severely deviated from costs.
Considering that the global RESS market may continuously enter a game-theory interval at both the market and policy levels in the future, the global RESS sector, and even the entire energy storage industry, may usher in a new round of brutal reshuffling cycle in the near future. Robin Zeng, founder and chairman of CATL (Contemporary Amperex Technology Co., Limited), once stated that the energy storage industry is currently at a critical stage of transformation, facing five major challenges, including safety hazards, fierce price competition, and disorderly expansion.
In fact, as an increasing number of companies expand overseas, markets in Europe, Southeast Asia, and the Middle East have begun to show a strong trend of price wars. Low prices inevitably lead to quantity and configuration reductions, planting hidden quality and safety risks in the industry. According to our understanding, in order to seize market share, some individual companies have taken orders at low prices and begun to substitute Grade B cells for Grade A products. In high-temperature and extreme environments, the battery life decays faster. Once a safety accident occurs, it will affect the brand image of all Chinese companies.
Looking at the development history of the energy storage industry, almost every iteration of industry cycles has led to the bankruptcy, restructuring, or decline of a batch of well-known enterprises, or even industry leaders. The recent bankruptcy and restructuring of a leading UK RESS company is highly representative. According to an announcement published in The London Gazette on April 10, GivEnergy Ltd., a leading UK residential energy storage company, has officially entered bankruptcy administration. It is understood that at its peak, the company installed 5,000 systems per month, holding a market share of up to 40% in the UK RESS market, with business covering more than 50 countries and regions.
Market analysis suggests that the biggest blow to GivEnergy came from the fierce price war by competitors. According to a report by 36Kr, in order to maintain market share, GivEnergy was forced to follow the price cuts. However, this move continuously compressed the company's profit margin, resulting in a net loss of up to 5.4 million GBP in the 2024 fiscal year. On the eve of bankruptcy, the company had only slightly over 40,000 GBP in cash on hand, with a complete breakdown in cash flow and a precarious capital chain.
According to multiple media reports, the controlling shareholder of this UK RESS leader is a Chinese-funded enterprise—Shenzhen Gevon New Energy Technology Co., Ltd. Tianyancha shows that the company was established in 2021 with a registered capital of only 7.02 million RMB.
Based on long-term observations of industrial changes by the Energy Storage Research Institute, the 24Chao Industry Research Institute (TTIR) analyzes that in the future, only enterprises that establish core capabilities such as a "globalized sales system and manufacturing capacity, financial health and strong capital accumulation, continuous technological innovation capability, and leading global brand influence" will possess the genes and potential to navigate through cycles and achieve sustained growth.
To provide readers with a more intuitive understanding of the global competitiveness of core industry players, starting from 2026, the 24Chao Industry Research Institute (TTIR) has continuously and prominently launched the "Top 10 Most Globally Competitive Chinese Residential Energy Storage (System) Companies Ranking". It attempts to comprehensively evaluate the global competitive strength of China's listed energy storage companies from 6 primary dimensions, 23 secondary dimensions, and 42 tertiary dimensions, including "Global Industrial Influence", "Global Sustainable Development Capability", "Global Technological Innovation Capability", "Global Asset Management and Operation Capability", "Global Capital Control Capability", and "Global Market Development Capability". It focuses on the driving role of leading high-quality enterprises on the energy storage industry, as well as the structural advantages and sustainable development trends of the industrial chain explored through data at the industrial end, for readers' reference. Please refer to the table below for details: