What Has Been the Growth of the Residential Energy Storage Market So Far?
The residential energy storage market has seen considerable growth due to a variety of factors.
• The size of the residential energy storage market has seen a speedy expansion over the past few years. The market is projected to rise from a valuation of $0.91 billion in 2024 to $1.08 billion in 2025, indicating a compound annual growth rate (CAGR) of 18.9%.
Factors contributing to this historical growth include improved infrastructure, heightened embrace of solar rooftop systems among residences, an increase in both governmental and private sector investment in renewable energy production, customer desire for autonomous energy sources, and reduction in the cost of batteries.
What Is the Forecasted Market Size and Growth Rate for The Residential Energy Storage Market Size In The Coming Years?
The residential energy storage market is expected to maintain its strong growth trajectory in upcoming years.
• Fast-paced expansion is predicted in the residential energy storage market over the coming years, escalating to $1.99 billion by 2029 with a compound annual growth rate (CAGR) of 16.4%.
This anticipated growth during the forecast period can be ascribed to the surging demand for electric vehicles, the enhanced installation of solar PV modules, the growing environmental consciousness among individuals, the accelerated energy consumption in burgeoning regions, and the soaring demand for renewable energy. The forecast period will also see major trends like the escalating necessity for large-scale energy storage technologies, augmented research and development, advanced technological strides, and growing proliferation of lithium-ion technology.
What Factors Are Driving Growth In The Residential Energy Storage Market?
The increasing need for renewable energy is projected to fuel the expansion of the residential energy storage market. Renewable energy includes power harnessed from continuously replenished natural resources such as sunlight, wind, rain, tides, and geothermal heat, presenting a sustainable and eco-friendly substitute to depleting fossil fuels. The surging call for renewable energy is due to the intention to limit the impact on climate change by moving towards eco-friendly and sustainable energy options. Renewable energy enhances residential energy storage by offering a power supply that's both renewable and intermittent. This enables homeowners to save the excess energy produced during peak generation periods for later consumption, thus improving the strength of the power grid and lessening the dependence on conventional energy sources. As an example, the Department for Energy Security and Net Zero, a UK government department, reported in December 2023 that renewable electricity production had achieved a record peak of 30.1 terawatt-hours in the third quarter of 2023, depicting a rise of 6.8% compared to the same timeframe in 2022. Consequently, the burgeoning demand for renewable energy is a significant contributor to the growth of the residential energy storage market.
What Are The Main Segments Of The Global Residential Energy Storage Market?
The residential energy storage market covered in this report is segmented –
1) By Technology: Lead-Acid, Lithium-Ion
2) By Utility: 3KW To < 6KW, 6KW To < 10KW, 10KW To 29KW
3) By Connectivity: On-Grid, Off-Grid
4) By Ownership Type: Customer Owned, Utility Owned, Third-Party Owned
5) By Operation: Solar And Storage System, Standalone Systems
Subsegments:
1) By Lead-Acid: Flooded Lead-Acid Batteries, Sealed Lead-Acid Batteries
2) By Lithium-Ion: Lithium Iron Phosphate (LiFePO4), Nickel Manganese Cobalt (NMC), Lithium Nickel Cobalt Aluminum Oxide (NCA)
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What Trends Are Reshaping The Future Of The Residential Energy Storage Market?
Leading businesses in the residential energy storage market, such as electrified vehicle battery technology, are working on creating cutting-edge home storage battery systems aimed at improving the energy storage capacity, productivity, and durability for household users. These technologies, which leverage EV battery capabilities, offer residential consumers dependable backup power, enable better utilization of energy from renewable sources like solar panels, and help lower electricity expenses via peak trimming and load shifting techniques. For instance, in June 2022, Japan's automotive manufacturer, Toyota Motor Corporation, unveiled a home storage battery system that represents principles of safety, durable service life, superior quality, cost-effectiveness, and outstanding performance. The O-Uchi Kyuden System, created based on the wealth of experience in electrified vehicle development and utilizing onboard components, provides customers with reliable power supply. With a rated capacity of 8.7 kWh and a rated output of 5.5 kWh, it uses Toyota's battery control technology to ensure safe and dependable power supply to the entire house even during power outages caused by natural calamities.
Who Are the Key Players In The Residential Energy Storage Market?
Major companies operating in the residential energy storage market are:
• Huawei Technologies Co. Ltd.
• Tesla Inc.
• Siemens AG
• Hitachi Energy Ltd.
• Panasonic Corporation
• BYD Company Limited
• ABB Ltd.
• Eaton Corporation plc
• LG Energy Solution Ltd.
• Samsung SDI Co. Ltd.
• Delta Electronics Inc.
• Enphase Energy Inc.
• SMA Solar Technology AG
• Saft Groupe SA
• VARTA AG
• Jiangsu GoodWe Power Supply Technology Co. Ltd.
• Sonnen GmbH
• Shanghai PYTES Energy Co. Ltd.
• Dyness Power Energy Limited
• Deutsche Energieversorgung GmbH
• Powervault Ltd.
• TESVOLT GmbH
• Turbo Energy Ltd.
• Alpha ESS Co. Ltd.
• Sunverge Energy LLC
• Eguana Technologies Inc.
What Is The Most Dominant Region In The Residential Energy Storage Market?
Europe was the largest region in the residential energy storage market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the residential energy storage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
