Residential Battery Global Market Report 2024

Residential batteries are energy storage systems designed for in-home use, capable of storing energy supplied from the power grid or generated from renewable sources such as solar and wind. Among the various battery technologies available in the market, lithium-ion technology is the most commonly used. Lithium-ion batteries operate as rechargeable batteries, charging when connected to a power source and discharging when disconnected based on residential energy usage.

The main types of residential batteries include lithium-ion batteries, lead-acid batteries, and other types. Lithium-ion batteries, also known as Li-ion batteries, are rechargeable batteries composed of cells where lithium ions move from the negative electrode to the positive electrode through an electrolyte during discharge and then back again during charging. These residential batteries can be utilized in standalone systems, solar and storage configurations, with power ratings typically ranging from 3 to 6 kW or 6 to 10 kW. They are used by industrial, commercial, and residential users.

The residential battery market research report is one of a series of new reports that provides residential battery market statistics, including residential battery industry global market size, regional shares, competitors with a residential battery market share, detailed residential battery market segments, market trends and opportunities, and any further data you may need to thrive in the residential battery industry. This residential battery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The residential battery market size has grown rapidly in recent years. It will grow from $8.5 billion in 2023 to $9.82 billion in 2024 at a compound annual growth rate (CAGR) of 15.4%. The growth observed in the historical period can be attributed to various factors, including the integration of renewable energy sources, the use of energy storage for backup and grid stability, declining costs of batteries, government incentives and subsidies promoting energy storage adoption, and the rise in power outages

The residential battery market size is expected to see rapid growth in the next few years. It will grow to $16.39 billion in 2028 at a compound annual growth rate (CAGR) of 13.7%. The anticipated growth in the forecast period can be attributed to factors such as the pursuit of energy independence and self-sufficiency, advancements in battery management systems, the expansion of microgrid and off-grid systems, integration with smart home technologies, the transition to electric heating and cooling systems, and a focus on energy efficiency and carbon footprint reduction. Key trends expected in the forecast period encompass the increasing use of lithium-ion and solid-state batteries, the emergence of virtual power plants and peer-to-peer energy trading models, a growing emphasis on recycling and sustainable battery materials, the adoption of advanced grid integration solutions, the exploration of mobile and modular battery solutions, and the application of artificial intelligence for predictive maintenance in residential battery systems.

The residential battery market is poised for growth, primarily driven by the increasing adoption of solar power generation. With the cost-effectiveness of solar panels, many individuals are incorporating solar energy systems into their residences and commercial spaces. To store the energy harnessed by solar panels, residential batteries are employed. The Solar Energy Industries Association (SEIA) reported that in 2021, the United States installed 4.6 GW of solar community energy. Community solar enables equitable access to the economic and environmental advantages of solar energy, irrespective of property ownership. Over the next five years, the USA's community solar sector is anticipated to install over 4.3 gigawatts of total capacity, fueling the demand for residential batteries.

The residential battery market is also expected to benefit from the decreasing prices of lithium-ion batteries. Renowned for their high energy density, lightweight structure, and extended cycle life, lithium-ion batteries have become popular for residential solar and home inverter battery storage systems. BloombergNEF reported that in 2021, the price of lithium-ion batteries was USD 123/kWh, marking an 81.58% decline from USD 668/kWh in 2013. This decline in prices is a significant driver for the residential batteries market.

Technological advancements represent a prominent trend in the residential battery market. Leading companies are actively investing in new technologies, research, and development to enhance their product offerings. For instance, SolarEdge, based in Israel, launched a residential battery and inverter in October 2021, boasting 11.4 KW of power and 10.3 KW of backup power. The device, connectable to a local grid or photovoltaic system, features three power conversions from DC to AC and wireless connectivity, providing homeowners with control and monitoring capabilities.

Major players in the residential battery market are exploring innovative products like lithium iron phosphate (LFP) batteries to stay competitive and improve their product portfolios. Duracell, a US-based manufacturer of high-performance alkaline batteries, introduced an LFP battery compatible with residential PV systems in November 2021. With a power rating of 5 kW and storage capacity of 14 kWh, the battery offers efficiency, exceeding 85.7%, and a guaranteed performance of over 6,000 cycles.

In September 2021, LG Energy Solutions, a South Korea-based storage battery manufacturing company, acquired NEC Energy Solutions to bolster its presence in the North American energy storage sector. This acquisition positions LG Energy Solutions as a comprehensive energy storage solutions provider, offering a full spectrum of solutions for energy storage systems.

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

Asia-Pacific was the largest region in the residential battery market in 2023. The regions covered in the residential battery market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the residential battery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The residential battery market consists of sales of rechargable batteries, solar batteries, lead-acid, lithium-ion, flow batteries, sodium nickel chloride, and vented batteries. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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