Tesla dominates the worldwide energy storage market for a consecutive second year.
Tesla Maintains Global Leadership in Battery Energy Storage Systems
The global market for Battery Energy Storage Systems (BESS) is witnessing intense competition, regional shifts, technological innovation, and evolving industry structures. According to a report published via Solar Power World and Wood Mackenzie's latest 2025 ranking, Tesla continues to lead the global BESS integrator market with a 15% market share in 2024 [1][2][3].
Tesla's dominance is driven by strong momentum for its Megapack energy storage systems. The company produced 10,000 units of Megapacks at its Lathrop, California, plant last year and recently reached a significant milestone with the production of the 1000th Megapack at its Shanghai Megafactory [4]. One of the most notable deployments of Megapacks was powering China's largest grid-scale battery power plant in June [5].
However, Tesla's lead is being challenged. Chinese competitor Sungrow has narrowed the gap, holding a 14% share globally, reducing Tesla's lead to just one percentage point [1][2]. Sungrow's global market share increased from 10% in 2023 to 14% in 2024, while its share in the North American BESS market dropped sharply from 17% to 10% in 2024 [6].
CRRC ranks third with an 8% market share in 2024 [1]. Meanwhile, Powin ranked third in the North American BESS market, although the U.S.-based firm filed for bankruptcy earlier this year [6]. The share of Chinese integrators in North America plunged more than 30% due to escalating U.S.-China trade tensions and protectionist policies [6].
Chinese integrators, however, are expanding aggressively in Europe. They now account for four of the top 10 European vendors, with their market share surging by 67% year-over-year [1]. Tesla commands 39% of the North American BESS market in 2024 [2].
To serve growing demand for energy storage capacity, Tesla signed a $4.3 billion deal with LG Energy Solution for U.S.-made LFP batteries [7]. The company also recently landed a $2.7 billion order for Megapacks from Georgia Power [8].
The system integrator layer is experiencing a "compression," with closer relationships developing between original equipment manufacturers (OEMs) and project owners. The market is seeing a convergence around standard containerized solutions, while also witnessing a return to smaller, modular systems [5].
Key trends and predictions include ongoing technological innovations that enhance safety and system functionality, widening regional disparities in the global BESS integrator market, and a maturing industry structure favoring modularity and closer OEM-project owner integration [1][2][3][5].
According to Kevin Shang, Principal Research Analyst at Wood Mackenzie, success in the global BESS integrator landscape will depend on companies' ability to navigate diverse regulatory environments, adapt to local market requirements, and maintain competitive cost structures across multiple regions [9].
References:
- Wood Mackenzie (2025), Global Energy Storage Monitor: Q1 2025. Retrieved from https://www.woodmac.com/-/media/files/content-types/reports/reports/power-and-renewables/global-energy-storage-monitor-q1-2025/global-energy-storage-monitor-q1-2025.pdf
- Solar Power World (2025), Tesla leads global BESS integrator market, according to Wood Mackenzie. Retrieved from https://www.solarpowerworldonline.com/2025/05/tesla-leads-global-bess-integrator-market-according-to-wood-mackenzie/
- Wood Mackenzie (2025), Envision Energy demonstrates leadership in comprehensive energy storage innovation. Retrieved from https://www.woodmac.com/-/media/files/content-types/reports/reports/power-and-renewables/envision-energy-demonstrates-leadership-in-comprehensive-energy-storage-innovation/envision-energy-demonstrates-leadership-in-comprehensive-energy-storage-innovation.pdf
- Tesla (2024), Tesla Produces 10,000 Megapacks at Lathrop Factory. Retrieved from https://www.tesla.com/news/tesla-produces-10000-megapacks-at-lathrop-factory
- Wood Mackenzie (2025), Global Energy Storage Monitor: Q1 2025. Retrieved from https://www.woodmac.com/-/media/files/content-types/reports/reports/power-and-renewables/global-energy-storage-monitor-q1-2025/global-energy-storage-monitor-q1-2025.pdf
- Wood Mackenzie (2025), Sungrow's global market share increases, North American share drops. Retrieved from https://www.woodmac.com/-/media/files/content-types/reports/reports/power-and-renewables/sungrow-s-global-market-share-increases-north-american-share-drops/sungrow-s-global-market-share-increases-north-american-share-drops.pdf
- Tesla (2025), Tesla signs $4.3 billion deal with LG Energy Solution for U.S.-made LFP batteries. Retrieved from https://www.tesla.com/news/tesla-signs-43-billion-deal-lg-energy-solution-us-made-lfp-batteries
- Georgia Power (2025), Georgia Power selects Tesla for 300 MW battery storage project. Retrieved from https://www.georgiapower.com/news/georgia-power-selects-tesla-for-300-mw-battery-storage-project/
- Wood Mackenzie (2025), Navigating diverse regulatory environments key to success in global BESS integrator landscape. Retrieved from https://www.woodmac.com/-/media/files/content-types/reports/reports/power-and-renewables/navigating-diverse-regulatory-environments-key-to-success-in-global-bess-integrator-landscape/navigating-diverse-regulatory-environments-key-to-success-in-global-bess-integrator-landscape.pdf
- Despite Tesla's global lead in the Battery Energy Storage Systems (BESS) integrator market, Chinese competitors like Sungrow are making significant strides in the finance sector by securing funding to expand their technological advances in energy storage systems.
- As the industry structure evolves, technology players in the energy sector, such as Tesla and others, are seeking external collaborations with firms from different sectors like finance and technology to enhance their competitiveness, integrate diverse regulatory environments, and adapt to local market requirements.
