Listing Success | Frost & Sullivan Assists Shenzhen Yuanxin Energy Storage Technology Co., Ltd. in Its Successful Listing in Hong Kong (9621.HK)

The global new installed capacity of energy storage systems increased from 23.6 GWh in 2021 to 324.1 GWh in 2025, achieving an annual compound growth rate of 92.5%. With continued policy support and growing market demand, it is projected that the global new installed capacity of energy storage systems will reach 2,005.6 GWh by 2030, with an annual compound growth rate of 41.4%. China occupies a pivotal position in the global market: its new installed capacity of lithium-ion energy storage systems increased from 4.8 GWh in 2021 to 193.1 GWh in 2025, with an annual compound growth rate of 151.3%. Looking ahead, continued policy improvement, technological innovation, and industrial breakthroughs are expected to drive China’s new installed capacity of lithium-ion energy storage systems to reach 1,139.9 GWh by 2030, with an annual compound growth rate of 40.2%.

Over the past five years, the European energy storage system market has been centered on the residential side. However, large-scale energy storage systems are expected to gradually replace residential energy storage systems and become the core driver of future growth. The new installed capacity of European energy storage systems is expected to increase from 49.3 GWh in 2026 to 230.0 GWh by 2030, with an annual compound growth rate of 47.0%. Driven by the surge in energy consumption in AI data centers, the North American energy storage market is also experiencing rapid growth, characterized by the dominance of large-scale energy storage systems. The new installed capacity of North American energy storage systems is expected to increase from 75.9 GWh in 2026 to 288.4 GWh by 2030, with an annual compound growth rate of 39.6%. The regions with the strongest growth potential for the energy storage system market are Asia-Africa-Latin America. These regions generally face the challenge of underdeveloped grid infrastructure, which prompts countries to actively promote the development of renewable energy and implement mandatory energy storage quota policies to improve the electricity market system. The new installed capacity of energy storage systems in Asia-Africa-Latin America is expected to increase from 40.1 GWh in 2026 to 226.7 GWh by 2030, with an annual compound growth rate of 54.2%.

Energy storage systems can be further subdivided into large-scale energy storage systems, industrial and commercial energy storage systems, and residential energy storage systems. Among them, large-scale energy storage systems play a key role in enhancing grid flexibility and promoting the absorption of renewable energy, maintaining their dominant position in the market. Yuanxin Energy Storage’s large-scale energy storage system solutions refer to energy storage projects deployed in large-scale applications, primarily serving the generation and grid operation sides.

From 2021 to 2025, China’s new installed capacity of large-scale energy storage systems increased from 3.8 GWh to 169.9 GWh, with an annual compound growth rate of 158.4%. Looking ahead, it is projected that the total new installed capacity will reach 880.6 GWh by 2030, with an annual compound growth rate of 36.3%. Meanwhile, the industrial and commercial energy storage system segment has also experienced significant expansion, with the new installed capacity increasing from 0.7 GWh in 2021 to 16.2 GWh in 2025. This segment is expected to accelerate further, reaching 199.5 GWh by 2030, with an annual compound growth rate of 62.2%—reflecting the increasing popularity of energy storage solutions in the manufacturing, commercial building, and industrial applications. Similarly, the residential energy storage system segment increased from 0.3 GWh in 2021 to 7.0 GWh in 2025 and is expected to grow to 59.8 GWh by 2030, with an annual compound growth rate of 50.4%, highlighting the growing importance of distributed energy storage in home energy management and peak shaving strategies.

Although residential energy storage systems support grid modernization by mitigating local distribution constraints and improving the self-use rate of distributed photovoltaics, large-scale energy storage systems play a crucial role at the macro level in ensuring system reliability and balancing power supply and demand. Given their broader application scope and larger project scale, large-scale energy storage systems are expected to account for a greater share of the installed capacity. Nevertheless, these two segments are essentially complementary and are expected to develop concurrently, jointly supporting the modernization and resilience of the global power system.

1. Deepening electrification enhances the absorption efficiency of renewable energy

The intermittency and volatility of renewable energy pose load imbalance and frequency regulation pressures on the power system, driving rapid growth in the demand for energy storage. Energy storage systems possess the ability to transfer energy and regulate power, enabling peak shaving and valley filling, smoothing the output of renewable energy, reducing the pressure on grid expansion, and enhancing system safety. In the future, energy storage will no longer merely serve as a supplementary facility in the power system but will become a fundamental component for the large-scale development and stable absorption of renewable energy. The system integration, EMS, and scheduling optimization capabilities surrounding energy storage systems will also be key supports for energy enterprises in building core competitiveness and scalable profit models.

2. Global carbon neutrality policy support drives the development of the energy storage industry

According to NetZero Tracker data, as of 2025, more than 130 countries and regions worldwide have set carbon neutrality goals, covering 74% of the world’s greenhouse gas emissions. National policies are accelerating the reform of the electricity market and the replacement of conventional energy sources. In China, the “No. 136 Document” issued in 2025 and the “Notice on Comprehensively Accelerating the Construction of the Electricity Spot Market” have promoted the deep integration of product operation, clarifying the path for electricity market reform. The “No. 136 Document” actively encourages energy storage systems to participate in market-based electricity transactions, requiring facilities to adapt to dynamic pricing and complex grid demands. The “Notice” exposes energy storage assets to volatile, high-frequency spot market pricing, forcing companies to deeply integrate their physical hardware products with intelligent, algorithm-driven operational systems to autonomously execute real-time, profit-maximizing trading strategies. Thus, these changes place stricter requirements on operation, necessitating robust hardware infrastructure and advanced software management systems that are highly intelligent and seamlessly integrated. In September 2025, the National Development and Reform Commission and the National Energy Administration issued the “Special Action Plan for the Large-Scale Construction of New-Type Energy Storage (2025–2027)” (the “Action Plan”), specifying that the new-type energy storage scale nationwide would reach at least 180 GW by 2027, expected to drive approximately RMB 250 billion in direct investment. As the projected annual demand now exceeds 180 GW, this high-growth period requires the entire market to shift toward higher product quality, performance, reliability, and safety. The EU is promoting the penetration of renewable energy through the “Renewable Energy Directive (RED III”), further stimulating the growth of energy storage demand. In the United States, more than half of the states have established renewable energy ratio standards or clean energy standards. Africa is leveraging energy storage combined with microgrids to achieve energy self-sufficiency in mining areas, commercial parks, and remote regions.

3. Application scenarios for energy storage systems are becoming diversified and asset-based

As the construction of modern power systems accelerates, energy storage application scenarios are expanding from the generation side to the grid, consumption, and off-grid applications, forming a full-chain, multi-scenario collaborative industry pattern. On the generation side, energy storage smooths the output of renewable energy, reduces the waste of wind and solar power, and provides frequency regulation and other ancillary services, ensuring the integration of a high proportion of renewable energy into the grid. On the grid side, energy storage is deeply involved in overall grid scheduling and local voltage regulation, enhancing system resilience and ensuring the safety of key nodes. On the consumption side, it enables peak-valley arbitrage, backup power, and green charging, resulting in reduced energy costs, lower carbon emissions, and improved power supply reliability. In off-grid scenarios, photovoltaic/wind-solar microgrids provide stable, autonomous power for remote areas, island operations, and emergency disaster response. With the expansion of application scenarios, energy storage is shifting from a single equipment configuration to asset-based operation and diversified business models. Enterprises and users can benefit from long-term value returns through multiple dimensions such as operation scheduling, electricity trading, spot market, ancillary services, and carbon asset management, not only through equipment sales.

4. Continued growth in the installed capacity of energy storage systems and increasing operational complexity drive the need for full-lifecycle operation and maintenance services

As the global installed capacity of energy storage systems continues to grow, the growing scale of installed assets is driving the continuous demand for full-lifecycle operation and maintenance services. Unlike one-time equipment purchases, energy storage assets require full-lifecycle operation and maintenance services throughout their entire life cycle to maintain system availability, safety, performance, and operational efficiency. At the same time, the increasing deployment of more complex charge and discharge operations raises the demand for system monitoring, battery health management, preventive maintenance, fault diagnosis, and performance optimization. As energy storage system owners increasingly prioritize safety and lifecycle management, professional full-lifecycle operation and maintenance services are becoming increasingly adopted to reduce downtime, minimize operational risks, extend asset life, and optimize project returns.

5. Power contract trading services accelerate the professional operation of energy storage system assets

As the power market mechanism matures, energy storage system asset owners increasingly need to engage in complex activities such as market participation, bidding strategies, scheduling, settlement, and revenue optimization, thus requiring higher levels of professional power market expertise and digital capabilities. For many renewable energy developers and owners of industrial, commercial, and residential energy assets, establishing an internal trading and operation team may not be economically viable, especially for smaller or more dispersed energy storage assets. This trend is driving the emergence of power contract trading services, under which professional energy service providers, based on the service or revenue-sharing arrangement agreed upon, manage market participation, trading decisions, and asset scheduling on behalf of the energy storage system owners. By combining market forecasting, algorithm-driven optimization, asset portfolio aggregation, and automated trading capabilities, service providers can enhance asset utilization and capture multiple revenue opportunities while reducing the operational burden on asset owners.