Insights on the Competitive Landscape of Industrial and Commercial Energy Storage: Unpacking Industry Transformation through Key Players

Industrial and Commercial Energy Storage Competition Insights: Understanding the Underlying Logic of Industry Transformation through Energy Storage Companies

As 2025 begins, the industrial and commercial energy storage market in China is already experiencing fierce competition, resembling a “red sea” environment. Although the market size is expected to reach trillions, issues such as product homogeneity, price wars, and immature business models are significant challenges for the industry. The battle for market share has commenced, with leading companies like Trina Storage and Singularity Energy employing differentiated strategies to capture a larger portion of the market. So, who will uncover the fundamental logic behind industrial and commercial energy storage and seize the market advantage?

The continuous advancements in energy storage technology and the ongoing reduction in costs have significantly enhanced the performance and economic viability of industrial and commercial energy storage systems in recent years. The design and development of industrial and commercial energy storage products are evolving towards greater precision and specialization, with new products such as large-capacity storage cabinets, modular storage solutions, industrial and commercial photovoltaic-storage direct coupling designs, and integrated mobile storage vehicles being introduced. According to statistics from Polaris Energy Storage Network, in regions like Guangdong and Zhejiang, the equivalent price difference for daily two-charge and discharge cycles has exceeded ¥1.2 per kWh, with a theoretical internal rate of return (IRR) surpassing 15%, indicating excellent investment returns. It is anticipated that by 2025, the new capacity in China’s industrial and commercial energy storage market could reach 4 GW/10 GWh. With policy support and continuous market maturation, the prospects for the industrial and commercial energy storage market in China are promising.

The Competitive Race in a Red Sea Environment

As 2025 commenced, the first shot in the price war within the industrial and commercial energy storage sector was fired. At the brand launch event of Bosideng Energy, a massive price of ¥0.499 per Wh was displayed on the big screen. To put this into perspective, the average industry price was still around ¥1 at the beginning of 2024, marking a dramatic decline in just one year. Behind the chaotic and relentless price competition lies the disorderly expansion of the energy storage industry. The biggest challenge facing players in the industrial and commercial energy storage sector is how to transform uncertainty into certainty amidst unpredictable project revenues, long-term operations, and power plant safety.

Approximately 90% of industrial and commercial energy storage applications involve peak-valley arbitrage, where charging occurs at lower electricity prices, and discharging takes place when prices are higher. However, data from the China Electricity Council indicates that in 2023, over 57% of energy storage power stations experienced unplanned outages, with more than 80% of these outages attributed to equipment defects, system anomalies, or subpar integration. At the World Energy Storage Conference hosted by CATL at the end of 2023, it was reported that early operational power-type storage solutions claimed a lifespan of 10 years, but many were decommissioned in less than three years. The potential for “zombie power stations” raises concerns about equipment quality, which is a significant hurdle for industrial and commercial energy storage.

Currently, Trina Solar utilizes its proprietary A-grade automotive-grade 314Ah battery cells, combined with Pack Pro battery module fire safety designs, to enhance safety from the core to the system. Additionally, the liquid cooling temperature control system reduces system losses and extends cycle life. The operational capabilities of storage software are equally vital. As artificial intelligence (AI) integration increases, Trina is leveraging smart management through its AI Energy Cloud platform to predict electricity prices and loads in real-time, dynamically optimizing charging and discharging strategies to maximize project returns. Industrial and commercial energy storage projects face a myriad of segmented scenarios, which require higher efficiency and operational strategies to meet increasingly diverse requirements and complex electricity usage patterns.

Trina Storage responds to diverse needs from industrial and commercial users, offering flexible energy storage system configurations for integrated photovoltaic-storage solutions, virtual power plants, and zero-carbon parks. The new generation of Trina’s industrial and commercial integrated cabinets achieves a balance between efficiency and product performance, reducing land usage by 38.1% while increasing energy density by over 55.9%, significantly shortening the return on investment period and accelerating the compounding returns throughout the system’s lifecycle. The Sunshine Intelligent Energy Cloud platform provides panoramic monitoring, while Sunshine Power’s proprietary Energy Management System (EMS) employs a unique En-grow algorithm, utilizing hundreds of terabytes of deep learning to generate optimal scheduling strategies. Sunshine Power’s EMS also supports collaborative scenarios involving photovoltaics, energy storage, and charging stations, coordinating site-side strategies with optimal economic models and power load forecasts.

Envision’s EnPower smart energy storage system integrates AI big data analysis capabilities, supporting various trading products and optimizing electricity trading strategies and efficiency. Behind the low-price competition and vicious internal rivalry lies a struggle to capture market resources with low-quality, low-priced products, while the competition for new market shares will depend on specific strategies.

The Battle of Technological Pathways

According to predictions from the China Chemical and Physical Power Sources Industry Association, by 2025, the global cumulative installation of industrial and commercial energy storage could reach 11.5 GW, with a market size ranging between ¥19 billion and ¥24 billion. In China, approximately 2.2 GW/5.5 GWh of growth potential exists by 2025, with a cumulative market size estimated at ¥6.5 billion to ¥8 billion. It is evident that while the market size for industrial and commercial energy storage is not as large as that for large-scale energy storage, the number of players is increasing, leading to more intense competition. Owners often face challenges in project decision-making and contracting due to various factors such as costs, policies, safety, and operations. This situation compels energy storage companies to accelerate technological iteration and introduce products that better meet owner needs. Currently, the energy storage industry is highly competitive, with a focus on quality, pricing, and technology. Trina Storage has adopted a comprehensive strategy of “scenario-based customization + technological innovation + customer value cultivation + global service” to secure a competitive position in the industrial and commercial energy storage market, while leveraging its AI platform and long-term service agreements to build differentiated competitive advantages that assist clients in achieving low-carbon transformations and maximizing profits.

The company continuously builds a unique advantage through a “fully self-researched + global delivery” dual-drive approach. By optimizing battery cell structure and manufacturing processes, Trina has developed high-safety, high-performance, long-life, zero degradation in the first year, and high energy density 314Ah energy storage-specific battery cells with a cycle life exceeding 12,000 times. In response to different regional demands, Trina offers flexible combinations, using modular energy storage systems in land-scarce areas to reduce land occupation and employing component upgrades in extreme climate zones to ensure equipment stability. Singularity Energy’s differentiated approach focuses on “modularization.” The company’s user-side energy storage product, eBlock-230, achieves a discharge depth of 100% and an AC-side conversion efficiency of ≥90%, significantly enhancing energy density while reducing associated costs by 12% and auxiliary power losses by 8%, resulting in a 3% increase in internal return rates. While the technological advantages of modular solutions are evident, the complexity of deploying large-scale energy storage systems using modular approaches remains a challenge. To promote modular solutions or products, new application fields must be explored beyond large-scale and industrial energy storage, showcasing technological advantages and economic viability across the full lifecycle.

Other manufacturers are also mapping out their technological innovations. Kstar employs both liquid cooling and air cooling systems, with a 125kW/233kWh liquid cooling system powered by CATL cells and a fully self-developed 3S system, optimizing revenue models through time-of-use pricing strategies, with coverage across multiple European countries. Haibos’s liquid-cooled outdoor cabinet features an “extreme safety” design, integrating smart fire prevention and diagnostic systems to meet fast deployment needs for distributed energy storage. As the policies for electricity spot trading improve and virtual power plant development progresses, industrial and commercial energy storage will gradually participate in the electricity market and provide ancillary services, potentially leading to further innovations in technological pathways.

From Disorder to Order

According to Sunshine Power, “In the second half of energy storage, including industrial and commercial sectors, the focus is on health.” The key factors for the sustainable and healthy development of industrial and commercial energy storage include safety, efficiency, and long-termism. The company’s solutions encompass a diverse range of green energy combinations, employing three electrical technologies and AI to enhance returns, safety, and user experience in industrial and commercial energy storage. The advantages of individual product performance are no longer sufficient for success. Companies must build full-chain capabilities encompassing “scenario insight – solution design – operational optimization,” evolving from product sales to ecosystem co-construction as the ultimate commercial model evolution. Trina has established a global service system that integrates “technology output + localized operations,” with three major system integration centers in China, Europe, and North America, providing one-stop services from solution design to operations and maintenance.

Innovation in business models determines the ceiling for profitability. The Zhejiang Provincial Energy Bureau predicts that in 2024, the volume of electricity traded in the Zhejiang electricity market is expected to reach approximately 330 billion kWh, marking a year-on-year increase of about 6.45%, with the number of market users further increasing. In the context of the electricity spot market model, the market not only presents multiple pricing points but also exhibits wide fluctuations in price limits, making predictions challenging due to the high frequency and magnitude of price fluctuations. Some domestic energy storage system integration companies have proactively recognized this significant market opportunity and have developed energy storage products with predictive and trading capabilities. In terms of profitability, Trina is exploring the integration of frequency modulation revenues with trading in ancillary services to overcome the limitations of single peak-valley arbitrage. Singularity Energy has introduced an “Energy Storage as a Service” (ESaaS) model, allowing users to choose financing leases or revenue sharing, thereby lowering initial investment barriers. Industry-wide innovations are also emerging, with companies like Trina and Kubo Energy promoting a “source-network-load-storage” dual-sharing model that aggregates decentralized energy storage resources through cloud platforms to facilitate electricity trading across different entities. Kstar collaborates with NARI Technology to develop a cloud platform that connects industrial and commercial energy storage systems to regional virtual power plants, enabling participation in spot market arbitrage and ancillary service bidding.

Against the backdrop of carbon neutrality, low-carbon transformation is an essential challenge faced by both countries and enterprises. Whether it is balancing the instability of power grids with a high proportion of renewable energy or deeply engaging in electricity market trading, industrial and commercial energy storage plays a crucial role in the new power system, with many application scenarios still hidden beneath the surface, waiting to be developed. The key turning point for moving this market from disorder to order relies on whether one or more companies can break through, adhere to long-term value orientation, and lead the industrial and commercial energy storage sector towards a healthier and more sustainable ecosystem.

Conclusion

The reshuffling of the industrial and commercial energy storage industry is inevitable. Trina Storage, with its technological depth and global layout, occupies a leading position, while Singularity Energy opens up medium and small markets through modular innovation. Manufacturers like Kstar and NARI Technology are building competitive moats in niche fields. In the future, the winning companies will be those that can deeply integrate technological iteration, scenario understanding, and business model innovation, becoming versatile players in this energy revolution. For industry participants, stepping out of homogenized competition and reconstructing value in differentiated niches is essential to gaining a competitive edge in this energy transformation.