What Transformation Has the Residential Battery Market Undergone?
The residential battery market has seen considerable growth due to a variety of factors.
• The size of the residential battery market has seen a quick improvement in the past few years. It is projected to increase from $9.66 billion in 2024 to $11.08 billion in 2025, with a compound annual growth rate (CAGR) of 14.6%.
Factors like integration of renewable energy, energy storage for backup and grid stability, reduction in battery costs, governmental incentives and subsidies, as well as increasing power outages have contributed to the growth seen in the previous period.
How Will The Residential Battery Market Size Evolve In The Foreseeable Future?
The residential battery market is expected to maintain its strong growth trajectory in upcoming years.
• There is an anticipation for a swift expansion in the residential battery market in the forthcoming years. By 2029, it is estimated to become a $17.96 billion industry, with a Compound Annual Growth Rate (CAGR) of 12.8%.
This anticipated surge in the time-frame can be owed to factors such as self-sufficiency and energy independence, improved battery management systems, the evolution of microgrid and off-grid systems, smart home technologies integration, the shift towards electric heating and cooling, as well as energy efficiency and decrease in carbon emissions. Rising trends within this period comprise of escalations in the usage of lithium-ion and solid-state batteries, virtual power plants and energy trading among peers, recycling and eco-friendly battery materials, sophisticated solutions for grid integration, transportable and modular battery solutions, and the utilization of AI for predictive maintenance.
Which Key Drivers Are Propelling The Residential Battery Market's Growth?
The residential battery market is expected to grow due to the increase in solar power generation. Solar panels, known for their cost efficiency, are becoming popular in residences and businesses. These panels produce energy that can be stored using residential batteries. In 2023, the United States set a new record according to the World Resources Institute, a US non-profit, with the installation of 31 gigawatts (GW) of solar energy capacity. This marked a 55% increase from the capacity installed in 2022, and surpassed the previous record set in 2021. Community solar allows for equitable access to solar energy's economic and environmental benefits, for homeowners, renters, and companies, regardless of their property's physical attributes or ownership status. The US's community solar sector is predicted to add more than 4.3 gigawatts to its total capacity in the next five years. This increasing demand for solar power generation fuels the growth of the residential batteries market.
What Are The Key Segments Within The Global Residential Battery Market?
The residential battery market covered in this report is segmented –
1) By Type: Lithium-ion Battery, Lead-Acid Battery, Other Types
2) By Operation Type: Standalone systems, Solar and storage
3) By Power Rating: 3–6 kW, 6–10 kW
4) By End-User: Industrial, Commercial, Residential
Subsegments:
1) By Lithium-Ion Battery: Lithium Iron Phosphate (LiFePO4), Lithium Nickel Manganese Cobalt (NMC), Lithium Nickel Cobalt Aluminum Oxide (NCA)
2) By Lead-Acid Battery: Flooded Lead-Acid Battery, Sealed Lead-Acid Battery (SLA), Gel Lead-Acid Battery
3) By Other Types: Flow Batteries, Sodium-Ion Batteries, Zinc-Based Batteries
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How Are New Trends Impacting The Size Of The Residential Battery Market?
The march of technology is a notable trend gaining traction in the residential battery market. Pioneer firms in the battery industry are progressing with their innovative technologies and research developments to supply a superior product to their clientele. For example, in March 2023, Qorvo, an American semiconductor enterprise providing solutions for communication industry, showcased two novel battery management systems, PAC22140 and PAC25140. These systems utilize singular battery management ICs to facilitate support for up to 20 battery pack cells.
Who Are the Key Players in the Residential Battery Market?
Major companies operating in the residential battery market include:
• Amara Raja Batteries Limited
• Samsung SDI Co. Ltd.
• LG Chem Ltd.
• BYD Company Ltd.
• Tesla Inc.
• ABB Ltd.
• Siemens AG
• Luminous Power Technologies Ltd.
• Contemporary Amperex Technology Co. Limited
• Panasonic Corporation
• Power-Sonic Corporation
• Lishen Battery Co. Ltd.
• China Baofeng Battery Technology Co. Ltd.
• Loom Solar Pvt. Ltd.
• Ruipu Energy Co. Ltd.
• China Aviation Lithium Battery Co. Ltd.
• Guoxuan High-tech Power Energy Co. Ltd.
• Sunwoda Electronic Co. Ltd.
• Farasis Energy Co. Ltd.
• Sonnen GmbH
• Fluence Energy LLC
• Bloom Energy Corporation
• Blue Planet Energy
• Electrovaya Inc.
• Enphase Energy Inc.
• ESS Inc.
• Evergen Energy Solutions Inc.
• FIMER SpA
• Gotion High-tech Co. Ltd.
• Murata Manufacturing Co. Ltd.
• NEC Corporation
• NextEra Energy Inc.
• Powin Energy Corporation
• Redflow Limited
• SimpliPhi Power Inc.
• Ultralife Corporation
What are the Regional Insights into the Residential Battery Market?
Asia-Pacific was the largest region in the residential battery market in 2024. The regions covered in the residential battery market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
