This is an interesting visual. Of course there are many players missing but it gives a useful oversight into some of the key relationships at play today. It also raises the question of how the market will evolve and mature. As with the solar market we will see consolidation, start ups fail or get bought, and even some big names suffer (Think Yingli & SunEd). The Li-on battery market is about to enter a price reduction bloodbath. Who will survive! I love this market because it is so dynamic, it provides challenges to us, and to our clients. Acquiring top talent can be the best survival strategy, as much as the right partnerships.
The market for stationary energy storage is still small, though it is showing impressive potential – since 2011, Li-ion systems have grown at a compound annual growth rate (CAGR) of over 50%. Partnerships can provide better pathways to market for battery companies in the fledgling stationary space, eliminating the investment required to develop software and power electronics, while also avoiding the complexities of understanding project permitting and construction. However, it is important to note there is not only one pathway to success, and a weak partnership network doesn’t mean a company will fail. As the stationary market matures, companies which are vertically integrated will be able to offer the most competitive pricing and capture the greatest market share. .