Home > Energy & Power > Energy Storage Systems > China Energy Storage Market

China Energy Storage Market Size - By Technology (Pumped Hydro, Electro-Chemical, Electro-Mechanical, Thermal), By Application (Electric Energy Time Shift, Electric Supply Capacity, Black Start, Renewable Capacity Firming, Frequency Regulation) & Forecast, 2023 – 2032

  • Report ID: GMI2991
  • Published Date: May 2023
  • Report Format: PDF

China Energy Storage Market Size

China Energy Storage Market size surpassed USD 93.9 billion in 2022 and is anticipated to grow at CAGR of 18.9% from 2023 to 2032. The energy storage system market is expected to be positively impacted by fluctuations in energy consumption patterns caused by extreme peak load demand as well as increasing measures to electrify rural areas. Furthermore, the integration of renewable energy by government authorities will create additional demand for reliable and efficient backup power systems, thus further improving the industry growth.

China Energy Storage Market

The energy storage market dynamics are expected to be positively impacted by continuous investments aimed at increasing the proportion of clean energy sources in the electricity mix. Countries' ambitious targets to reduce emissions are expected to significantly boost the share of renewable energy by 2030. In addition, the implementation of regulatory, technical, economic, and policy frameworks that support the installation of renewables at scale is likely to encourage the adoption of various energy storage technologies.

COVID-19 Impact

The China energy storage market has witnessed the minimal impact of the widespread pandemic. The pandemic has caused disruptions to global supply chains and construction activities, leading to delays in the development and deployment of energy storage projects, which has resulted in a slowdown of the industry. However, the pandemic has also increased the demand for reliable and resilient energy systems. This has led to an increased focus on energy storage solutions that can help stabilize the grid and ensure continuity of power supply, particularly in the China with high levels of renewable energy generation.

China Energy Storage Market Trends

The growing adoption of renewable energy technologies, such as hydropower, solar, and wind, has created a significant energy storage market growth opportunity in China for energy storage EPC contractors. Governments worldwide are working to reduce carbon emissions, and funding for the deployment of these technologies has increased as a result. Additionally, as the costs of renewable energy generation decrease, traditional coal-fired power stations are being phased out.. Furthermore, ongoing investments in grid energy storage, smart grid development, and advanced technologies will optimize power delivery and enhance resilience, positively impacting the industry's development.

China Energy Storage Market Analysis

China Energy Storage Market Size, By Technology, 2021 - 2032 (USD Billion)

The electro-chemical segment held a market value of over USD 13 billion in 2022. ESS are well-suited for smoothing the variable renewables output and controlling the rapid ramping up & down of the solar and wind power generation. The renewable energy capacity installations and investments remained relatively small over the past decade. However, the industry is anticipated to witness a significant growth in the coming years as various large-scale projects are under development. Increasing demand for grid stability and electricity coupled with favorable government measures to provide uninterrupted power supply is anticipated to bolster the deployment of electro-chemical storage systems. In addition, renewable energy integration measures implemented by various governments across the globe along with the increasing demand for off grid electricity will further stimulate the growth of battery energy storage systems.

China Energy Storage Market Revenue Share, By Application, 2022

The renewable capacity firming application held 8% of the China energy storage market share in 2022. With the intermittent output from renewable sources, energy storage systems are crucial in renewable capacity firming by smoothing output and maintaining ramp rates, thereby eliminating power and voltage fluctuations in the grid. The growing global concern for environmental pollution and efforts to mitigate the anthropogenic causes of global warming have placed renewable energy sources at the forefront. This has resulted in a rising demand for flexible energy storage systems that can reliably and efficiently integrate clean energy sources.

China captured 21% share of the global energy storage systems industry in 2022. The rapid regional growth of manufacturing and industrial base has led to a significant increase in energy demand. To meet this demand while adhering to strict emission standards, renewable energy technologies with local energy storage systems are being increasingly deployed across utilities and manufacturing centers. Moreover, the espousal of ESS in commercial and residential establishments is being accelerated by growing consumer awareness and decreasing technology costs. The government has also introduced new policy initiatives and targets aimed at promoting the integration of clean energy technologies, which is expected to further propel industry growth throughout the country.

China Energy Storage Market Share

Some of the major players operating in the China energy storage market are:

  • General Electric
  • Exide Technologies
  • BYD Company Ltd
  • Toshiba Corporation
  •  Durapower Group
  • Samsung SDI Co Ltd
  • Panasonic Corporation
  • LG Energy Solution
  •  Narada Power Source Co. Ltd 
  • Siemens
  • SCHMID Group
  • ABB
  • Hitachi Energy Ltd
  • Johnson Controls
  • Sinohydro Corporation
  • McDermott
  • Burns & McDonnell
  • Voith GmbH & Co. KGaA

To expand their market share, these companies are focusing on mergers and strategic partnerships. Also, they are investing significantly in research and development activities, which allows them to introduce innovative services and generate maximum revenue in the market.

China Energy Storage Industry News:

  • In February 2021, Johnson Controls launched lithium-ion risk prevention solution to protect lithium-ion energy storage systems installed across wind and solar farms. The solution caters rapid off-gas detection, early warning for toxic vapors, battery stack disconnection with less response time. In addition, monitoring as well as mitigating battery failures before it gives a fire threat, the new technology offers immense safety value across energy storage industry.
  • In June 2022, LG Electronics merges with the management system from Fractal energy storage into LG’s commercial energy systems. The company made strategic investment into Fractal EMS for both commercial and industrial applications. It has further launched residential energy storage system products and LG investment is assumed to facilitate Fractal’s organic growth, at EMS leader position.

This China energy storage market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in MW and USD Million from 2019 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Technology

  • Pumped Hydro
  • Electro-Chemical
    • Lithium-Ion
    • Sodium Sulphur
    • Lead Acid
    • Flow Battery
    • Others
  • Electro-Mechanical
    • Flywheel
    • CAES
  • Thermal Energy Storage
    • Water
    • Molten Salt
    • PCM
    • Others

Market, By Application

  • Electric Time Energy Shift
  • Electric Supply Capacity
  • Black Start
  • Renewable Capacity Firming
  • Frequency Regulation
  • Others


Authors: Ankit Gupta

Frequently Asked Questions (FAQ) :

The market size of China energy storage surpassed USD 93.9 billion in 2022 and will progress at 18.9% CAGR during 2023 to 2032 propelled by fluctuations in energy consumption patterns caused by extreme peak load demand as well as increasing measures to electrify rural areas.

China energy storage industry size from the electro-chemical segment surpassed USD 13 billion in 2022 as a result of increasing demand for grid stability and electricity, coupled with favorable government measures in the country.

Renewable capacity firming applications accounted for a industry share of more than 8% in 2022 owing to growing concern for environmental pollution and efforts to mitigate the anthropogenic causes of global warming.

China held over 21% of the energy storage systems sector in 2022 due to growing consumer awareness and decreasing technology costs, along with the expansion of manufacturing and industrial base in the country.

General Electric, Exide Technologies, BYD Company Ltd., Toshiba Corporation, Durapower Group, Samsung SDI Co., Ltd, Panasonic Corporation, LG Energy Solution, Narada Power Source Co. Ltd , Siemens, SCHMID Group, ABB, Hitachi Energy Ltd and others.

China Energy Storage Market Scope

Buy Now

Premium Report Details

  • Base Year: 2022
  • Companies covered: 18
  • Tables & Figures: 217
  • Countries covered: 1
  • Pages: 150
 Download Free Sample