Residential Battery Market Report 2026

The residential battery market size has grown rapidly in recent years. It will grow from $10.92 billion in 2025 to $12.28 billion in 2026 at a compound annual growth rate (CAGR) of 12.5%. The growth in the historic period can be attributed to early adoption of lithium-ion systems in residential backup, increasing demand for renewable-powered home storage, reliance on traditional grid-connected storage, growth in residential solar installations, initial development of lead-acid alternatives.

The residential battery market size is expected to see rapid growth in the next few years. It will grow to $19.33 billion in 2030 at a compound annual growth rate (CAGR) of 12%. The growth in the forecast period can be attributed to rising demand for high-capacity home batteries, expansion of virtual power plant integration, development of solid-state residential batteries, rising adoption of solar-plus-storage systems, increasing need for home energy resilience. Major trends in the forecast period include adoption of sustainable residential storage solutions, advancement of electrification-driven battery technologies, deployment of IoT-enabled home energy management, expansion of cloud-based battery monitoring, development of intelligent manufacturing for battery systems.

The increasing deployment of solar power generation is expected to drive the residential battery market. Solar power generation refers to producing electricity by converting sunlight into usable energy. The growing use of solar power is driven by rising energy demand, government incentives, and the push for cleaner, more sustainable energy sources. Residential batteries support solar power generation by storing excess energy for later use when sunlight is unavailable, ensuring a consistent and reliable power supply. For example, in October 2025, according to the International Energy Agency Photovoltaic Power Systems Programme (IEA-PVPS), a France-based intergovernmental research and development program, the world’s cumulative installed PV capacity surpassed 2,260 GW by the end of 2024, representing a 29% year-on-year increase. Therefore, the rising adoption of solar power generation is driving the residential battery market.

Major companies in the residential battery market are introducing products such as lithium iron phosphate (LFP) batteries to strengthen their competitive position and expand their product portfolios. A lithium iron phosphate (LFP) battery is a type of rechargeable lithium-ion battery that uses lithium iron phosphate as its cathode material. For instance, in April 2024, Greenfuel Energy Solutions Pvt. Ltd., an India-based manufacturing company, launched wall-mounted lithium batteries designed for residential power backup needs. Greenfuel’s residential lithium batteries, built with prismatic LFP cells, offer a lightweight solution - 55% lighter than traditional lead-acid batteries of comparable capacity. These batteries provide improved convenience, reliability, and efficiency by delivering high usable energy while minimizing energy loss during charge-discharge cycles.

In May 2023, Winnebago Industries, a U.S.-based motorhome manufacturer, acquired Lithionics Battery for an undisclosed amount. This acquisition is expected to improve Winnebago’s margin profile in both the near and long term, create value for shareholders, employees, and customers, and enable the company to explore new market applications using Lithionics’ advanced energy solutions. Lithionics Battery is a U.S.-based manufacturer of residential batteries, battery management systems, and integrated circuit products.

Major companies operating in the residential battery market are Amara Raja Batteries Limited, Samsung SDI Co. Ltd., LG Chem Ltd., BYD Company Ltd., Tesla Inc., Luminous Power Technologies Ltd., Contemporary Amperex Technology Co. Limited (CATL), 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, Blue Planet Energy, Electrovaya Inc., Enphase Energy Inc., Evergen Energy Solutions Inc., Gotion High-tech Co. Ltd., Redflow Limited, SimpliPhi Power Inc.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have influenced the residential battery market by raising costs for imported lithium cells, inverters, battery management systems, and power electronics essential for home storage solutions. Residential and commercial installations in North America, Europe, and Asia-Pacific experience price increases and extended project timelines. However, tariffs are supporting the growth of regional battery assembly, domestic material sourcing, and innovation in cost-efficient lithium-ion and next-generation battery technologies, strengthening long-term energy independence.

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.

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.Asia-Pacific was the largest region in the residential battery market in 2025. The regions covered in the residential battery market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the residential battery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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