With the acceleration of global energy transformation, continuous reduction in battery costs, and the growing global demand for stable energy prices and supply, the global electrochemical energy storage industry continues to develop positively. With the development of energy storage technology and distributed energy storage, fully modular energy storage systems have emerged. Through optimized management at the battery pack level and stackable design, these systems improve control accuracy, flexibility, and safety. They are particularly suitable for residential scenarios and can also be widely applied in industrial and commercial settings.
The fully modular energy storage system reduces the complexity of wiring between devices through highly integrated stackable design and modular expansion solutions. It enables lightweight and rapid installation, flexible space adaptation, and ensures fault isolation and efficient maintenance with a battery pack-level independent management architecture. This solution significantly enhances the convenience, safety, flexibility, reliability, and capacity utilization of energy storage systems, demonstrating tremendous market potential.
On June 12, 2025, Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') officially released the 'White Paper on the Development of the All-in-One Module Energy Storage Industry in 2024'. Based on the global carbon neutrality strategy background, this report systematically sorts out the technical path, core advantages, and future development prospects of the all-in-one module energy storage industry.
As the global energy transition accelerates, battery costs continue to decline, and the demand for stable energy prices and supplies increases, the global electrochemical energy storage industry is witnessing steady growth. With advancements in energy storage technologies and distributed energy storage, fully modular energy storage solutions have emerged. By optimizing management at the battery pack level and employing a stackable design, these systems enhance control precision, flexibility, and safety. They are particularly well-suited for residential applications and can also be widely applied in commercial and industrial scenarios.
The fully modular energy storage solution features a highly integrated, stackable design and modular expansion solutions. These reduce complex wiring between devices, enable rapid installation, and offer adaptable spatial configurations. In addition, the independent battery pack management architecture ensures fault isolation and efficient maintenance. This solution significantly improves the convenience, safety, flexibility, reliability, and capacity utilization of energy storage systems, demonstrating enormous market potential.
Starting from the energy storage sector, the report provides a comparative analysis of current mainstream energy storage technologies, examines the development status and trends of the electrochemical energy storage industry, and further explores the innovative technological advantages and commercialization scenarios of fully modular energy storage as a next-generation solution in the field.
PART.01
Global Solar Photovoltaic Market Overview
The Importance of Global Energy Transition and Renewable Energy
Renewable energy refers to energy derived from naturally replenishing sources that are virtually inexhaustible. The main sources of renewable energy include solar energy, wind energy, and hydropower. Addressing the challenge of climate change has become a shared international goal. Countries around the world are adopting policies and measures to make renewable energy a priority, with the ultimate goal of achieving carbon neutrality.
Current Development Status of Solar Photovoltaic Industry and Its Critical Role in Global Energy Structure
As the clean energy transition progresses, the cumulative installed capacity of global renewable energy is expected to increase from 4,552 GW in 2024 to 9,091 GW in 2029, with a CAGR of 14.8%. Furthermore, the capacity of solar power is growing faster than other major renewable energy sources. From 2019 to 2023, the installed capacity of solar power increased from 586 GW to 1,467 GW, reflecting a CAGR of 25.8%, and is expected to reach 5,365 GW in 2029.
Source: IEA, IRENA, Frost & Sullivan
PART.02
Global Energy Storage System Market Overview
Application of Distributed Energy Storage System
Electrochemical energy storage systems can be categorized as centralized ESS or distributed ESS (DESS) based on the applicable scenarios. Centralized ESS is widely used in power generation, enabling peak load levelling, renewable energy grid connection, and reserve electric generating capacity. Moreover, in power transmission and distribution, it supports system frequency modulation, alleviates power grid congestion, and delays extensive T&D equipment upgrades. Distributed ESS includes commercial and household applications and manages electricity on a temporal basis by peak shaving, valley filling, and peak valley spread arbitrage. It smooths out electricity demand and helps end-users save on their electricity costs.
Source: Frost & Sullivan
Integrated DESS Solution Market Development History
In the early stages of industry development, solar PV as a renewable energy source grew rapidly. As the scale of solar PV power generation expanded, the trend of integrating solar PV with DESS emerged to address the instability of solar power. Currently, due to high investment costs, installation and maintenance challenges, and limited application scenarios of standalone solar PV and DESS, the market for integrated DESS solutions is growing rapidly. In the future, with the rapid development of the new energy vehicle market and artificial intelligence technology, integrated DESS solutions equipped with AI and charging modules will become one of the main trends.
Source: Frost & Sullivan
Energy Storage System Market Size
With the ongoing expansion of global large-scale renewable power projects, the annual shipment of global centralized energy storage systems (ESS) is expected to increase from 125.5 GWh in 2024 and 461.3 GWh in 2029, with a compound annual growth rate (CAGR) of 29.7%. In addition, to improve the efficiency of electricity consumption in commercial and living scenarios, as well as to enhance the stability and sustainability of urban electricity consumption, the annual shipment of distributed energy storage systems is expected to reach 331.7 GWh in 2029, with a CAGR of 33.2% from 2024 to 2029.
Source: Frost & Sullivan
Application of Artificial Intelligence in ESS Solution
The establishment of cloud platform systems is one of the keys to integrating the ESS (Energy Storage System) with AI technology. Cloud platform systems, based on cloud-native technologies, possess characteristics such as high concurrency, high reliability, large capacity, and low latency. They are capable of interfacing with a vast number of distributed photovoltaic power generation devices and processing massive amounts of data from energy scenarios such as photovoltaics, energy storage batteries, and charging/discharging. Cloud platform systems can clean and process data from millions of devices, laying a solid foundation for applications in energy security, energy planning, intelligent customer service, and power trading.
AI can improve the safety and stability of the system through real-time monitoring, fault early warning and intelligent diagnosis. At the same time, it can provide intelligent optimization suggestions for energy use based on user behavior, which can reduce costs and increase efficiency in many dimensions, and empower the development of the energy storage industry.
Source: Frost & Sullivan
PART.03
Global Fully Modular Energy Storage Solution Market Development
The fully modular energy storage system is an upgraded energy storage solution based on the modular design concept. Early large-scale energy storage stations (typically grid-side installations) mostly used non-modular systems, where multiple battery clusters were consolidated under centralized inverter control. These systems have fixed structures and lack the adaptability to adjust storage capacity according to demand. With advancements in energy storage technology and the rise of distributed energy storage, modular solutions—dividing systems into independent units—have become the mainstream for C&I use due to their flexibility, scalability, and safety. Fully modular energy storage systems achieve further optimization through battery pack-level management and stackable design, which improve control accuracy, minimize fault impact, and simplify O&M efforts.
Source: Frost & Sullivan
The fully modular energy storage system adopts battery pack-level management. Building upon traditional modular energy storage systems, the fully modular solution represents a significant upgrade—shifting from battery cluster-level management to battery pack-level management. By integrating optimizers with each battery pack, the system achieves pack-level management and safety protection, as well as more precise cluster-level control. Stackable battery pack design eliminates external wiring requirements.
Source: Frost & Sullivan
Advantages of Fully Modular Energy Storage Solution
●Easy installation and space optimization:
The fully modular design integrates energy storage inverter, battery and management system to form a fully functional and compact independent unit with a small footprint suitable for space-constrained application scenarios. The stackable design reduces the complex wiring between equipment, and at the same time, the equipment is lighter, making the transportation and installation process easier and faster, reducing the difficulty and time cost of construction.
●Safety：
Fewer connection points between devices reduces the risk of failure. Battery pack-level management supports multiple protections, including overcharge, over discharge, overcurrent, overheating, and short circuit.
●Scalability and flexibility：
With a highly flexible design and low initial capacity, it supports gradual expansion based on actual demand, avoiding high upfront investment. Modular stackable design enables easy and quick battery replacement and upgrades. Battery pack-level optimization enables better compatibility between new and old batteries.
●Reliability：
With a parallel battery pack design, faulty modules can be isolated without affecting others, minimizing fault impact. In a stackable design, failed modules can be quickly replaced, reducing maintenance time.
●Efficiency：
Battery pack-level management reduces mismatch issues in series connections, greatly improving system capacity utilization. In PV scenarios, DC coupling is typically used to minimize energy loss.
Source: Frost & Sullivan
Market Size of Fully Modular Energy Storage System Solutions
In C&I energy storage applications, systems are typically deployed as integrated cabinets with battery packs fixed on racks. These packs are non-stackable and typically employing series-connected packs within battery clusters and parallel connections between clusters. While this conventional approach offers reliability, it faces limitations in flexibility and scalability. The rapid growth of energy storage demand among small and medium-sized C&I users has driven the emergence of fully modular solutions with enhanced adaptability.
Global shipments of fully modular C&I energy storage systems are expected to reach 8.0 GWh in 2025. With rising awareness and ongoing tech advancements, shipments may grow to 36.8 GWh by 2029, showing strong market potential.
Source: Frost & Sullivan
PART.04
Global Fully Modular Energy Storage Market Case Studies
Analysis of Typical Case —— Sigenergy Technology
Sigenergy Technology Co., Ltd. is a forward-thinking company focusing on developing cutting-edge home and business energy solutions, including energy storage systems, solar inverters, and EV chargers. Its world-class R&D team of hundreds of industry talents shares the vision of making the world greener through continuous innovation. By integrating the latest power electronics, digital, and AI technologies, the company builds next generation energy products with optimum safety features. With global sales and services, the company aims to become its customers' most trusted partners on their journey to a more sustainable future.
Sigenergy's main products cover 5-in-one SigenStor, C&I modular ESS SigenStack, C&I inverter, energy gateway and Sigen Cloud. Sigenergy's products feature a concise and efficient modular design. Through flexible modular configurations, a single product adapts flexibly to diverse applications. In residential, commercial, and industrial settings, Sigenergy's solutions leverage modularity for rapid adjustments, meeting varying customer needs while delivering efficient and intelligent energy solutions.
Source: Sigenergy Website, Frost & Sullivan
Source: Sigenergy Website, Frost & Sullivan
