companies will likely need to take some risks to have a chance of gaining share and avoid being muscled out by bigger companies.
technology) could reduce the barriers to entry for many customers.
— Think big and move fast. With BESS in the spotlight and revenues starting to increase
rapidly, now is not a time to play it safe. While it’s true that the market is highly fragmented, it’s also true that some bigger players are starting to amass market share. This raises the stakes for all companies, especially for small ones that may have started a decade ago as research projects and now find themselves sitting on top of valuable intellectual property. These
The BESS market is in an explosive stage of development; players that don’t move now will miss out. The winners in the market will be the companies that exhibit the four things required for success. These winners will create value in a new market as the energy transition accelerates.
Gabriella Jarbratt is an engagement manager in McKinsey’s Stockholm office, where Erik Sparre is a partner. Sören Jautelat is a partner in the Stuttgart office, where Alexandre van de Rijt is an associate partner. Martin Linder is a senior partner in the Munich office. Quan Han Wong is a senior associate in McKinsey’s London office. The authors wish to thank Yujin An, Nicolò Campagnol, Jan Chhatwal, Jonathan Deffarges, Jose Luis Gonzales, Yves Gulda, Zarief Hasrat, Evan Horetsky, Emil Hosius, Luca Rigovacca, Giulia Siccardo, Christian Staudt, Godart van Gendt, and the McKinsey Energy Storage Insights team for their contributions to this article.
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