The Global Residential Energy Storage Market size is expected to reach $2.8 billion by 2030, rising at a market growth of 18.0% CAGR during the forecast period.
The combination of solar and storage systems can substantially positively impact microgrids and small-scale applications, such as portable power units. Hence, the Solar & Storage System segment is anticipated to capture more than 55% share of the market by 2030. Solar PV modules and energy storage systems are useful resources in times of power outages because they can supply backup power. Their functionality guarantees the ongoing operation of crucial infrastructure, enabling necessary services like communication and device charging (for mobile phones and laptops) and preserving summer air conditioning. The quickening adoption of residential energy storage systems can be linked to the rising demand for solar PV systems. These systems help reduce energy costs and support beneficial government initiatives, ensuring a steady electricity supply in the event of power outages.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2023, Enphase Energy, Inc. partnered with Natec to distribute IQ® Microinverters and IQ™ Batteries in Europe. Additionally, In February, 2023, Eaton came into an agreement with IES for developing approaches that would help building owners accelerate the sustainability of their buildings and maintain them for the energy transition.
Based on the Analysis presented in the KBV Cardinal matrix; Tesla, Inc. are the forerunners in the Market. In May, 2023, Tesla came into collaboration with BayWa r.e. Solar Systems. Through this collaboration, BayWa r.e. would deliver Tesla's residential solar battery system. Additionally, BayWa r.e. would add Tesla Powerall in California and would work with Tesla to broaden availability to various U.S. states. Companies such as BYD Company Ltd., Panasonic Holdings Corporation and Enphase Energy, Inc. are some of the key innovators in the Market.
The market is booming primarily due to the rising demand for electric vehicles and the widespread use of virtual power plants. Electric vehicles, representing a sizable application area, could spur the broad adoption of energy storage solutions in residential settings. The use of electric vehicles is increasing, which increases the demand for residential energy storage systems in Europe and North America. An imbalance in the grid services market disadvantages solar-battery-electric vehicle (EV) systems. This market provides incentives for producing and storing power, which are essential for real-time network demand and supply balancing. As a result, there is a focus on developing battery-based charging infrastructure for EVs, which in turn encourages the expansion of the market.
The market is expanding significantly due to the rising frequency of power outages. Additionally, the frequency and severity of extreme phenomena like hurricanes, tornadoes, snowstorms, and wildfires are being significantly impacted by climate change. Power outages could result from these strong weather conditions damaging power lines and other infrastructure. Moreover, the electrical grid in many nations, mainly developed nations, is aging and needs enhancements. As a result, the length of power interruptions is a key factor affecting the demand for domestic energy storage systems. As a result of the rising number of power outages, the market is estimated to grow.
Despite notable improvements and breakthroughs, the aging problem is a significant disadvantage of lithium-ion battery technology. Lithium-ion batteries lose some of their ability to store energy with time and with use, which lowers their performance. This aging phenomenon can be observed in the batteries of electronic devices such as mobile phones and laptops. Although this degradation is annoying for portable electronics, electric vehicles are more seriously affected. Electric vehicles' available driving range is directly impacted by battery cell aging, reducing their effectiveness and usability. Lithium-ion batteries naturally age due to chemical interactions between the negative electrode and electrolyte. Furthermore, it is critical to comprehend the underlying aging mechanisms linked to new cell chemistries.
By technology, the market is categorized into lead-acid and lithium-ion. The lithium-ion segment held the highest revenue share in the market in 2022. In comparison to other battery technologies, it is anticipated that lithium-ion technology will increase at the fastest rate. The higher energy density of lithium-ion batteries, which outperforms lead-acid batteries, is responsible for this growth. As a result, the lithium-ion segment is anticipated to experience a significant increase throughout the anticipated period, propelling market expansion.
Based on power rating, the market is fragmented into 3 kW to 6 kW, 6 kW to 10 kW, and 10 kW to 20 kW. The 10 kW to 29 kW segment acquired a substantial revenue share in the market in 2022. The energy storage segment ranging from 10 kW to 29 kW appealed to homeowners seeking greater energy independence and resilience. These systems' greater storage capabilities enable them to offer backup power during grid outages or periods of high demand. Energy storage systems became more necessary to store the extra energy as more houses started using solar panels and other renewable energy sources. These devices assist homeowners in increasing their level of independence and lowering their reliance on the grid.
On the basis of connectivity type, the market is divided into on-grid and off-grid. In 2022, the on-grid segment dominated the market with maximum revenue share. In residential structures, on-grid systems are employed more commonly. The extra energy produced can be sent to the relevant power provider, which owns the grid, using on-grid devices, allowing the person to build up credit that can be withdrawn at the end of the year. Moreover, being grid-connected eliminates the need for a costly battery backup system to store excess energy. These factors will increase demand for on-grid household energy storage systems over the projection period.
By ownership type, the market is segmented into customer-owned, utility-owned, and third-party owned. In 2022, the customer-owned segment registered the maximum revenue share in the market. This development can be attributed to its capacity to handle issues with overvoltage and unbalanced energy supply and demand. Customer-owned energy storage systems enable residential users to efficiently regulate their energy consumption, resulting in a more reliable and adequate energy distribution within their premises.
Based on operation type, the market is bifurcated into standalone systems, solar & storage system. In 2022, the standalone systems segment registered the maximum revenue share in the market. Standalone energy storage systems provide a dependable backup power source during grid disruptions. To use the energy stored during peak demand or power disruptions, homeowners can keep electricity during off-peak times or when renewable energy production is high. This increases the residential energy infrastructure's resilience and homeowners' capacity to maintain power under challenging circumstances.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 745.8 Million |
| Market size forecast in 2030 | USD 2.8 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 18% from 2023 to 2030 |
| Number of Pages | 310 |
| Number of Table | 503 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Connectivity, Power Rating, Technology, Operation, Ownership Type, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the market analyzed across North America, Europe, Asia Pacific and LAMEA. In 2022, the Europe region led the market by generating the highest revenue share. Adopting energy-efficient and clean technology and strict government restrictions relating to decarbonization will improve the business outlook in this region. The combination of favorable government subsidies and a decline in the price of solar systems has made these technologies increasingly desirable for homeowners. Additionally, the regional market for these systems will be fueled by strict demands to optimize energy and a favorable regulatory attitude for deploying practicable solar technologies.
Free Valuable Insights: Global Residential Energy Storage Market size to reach USD 2.8 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Tesla, Inc., Panasonic Holdings Corporation, BYD Company Ltd., Enphase Energy, Inc., Sonnen GmbH, VARTA AG, Delta Electronics, Inc., Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Eaton Corporation PLC and LG Energy Solutions Ltd.
By Connectivity
By Power Rating
By Technology
By Operation
By Ownership Type
By Geography
This Market size is expected to reach $2.8 billion by 2030.
A substantial demand for electric vehicles are driving the Market in coming years, however, Aging Lithium-Ion Battery restraints the growth of the Market.
Tesla, Inc., Panasonic Holdings Corporation, BYD Company Ltd., Enphase Energy, Inc., Sonnen GmbH, VARTA AG, Delta Electronics, Inc., Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Eaton Corporation PLC and LG Energy Solutions Ltd.
The Solar & Storage System segment acquired the maximum revenue share in the Market by Operation in 2022, thereby achieving a market value of $1.6 billion by 2030.
The Lead-Acid market has shown the high growth rate of 21% during (2023 - 2030).
The 6-10 kW segment is leading the Market by Power Rating in 2022 thereby achieving a market value of $1.4 billion by 2030.
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