Large Paragraph: Residential batteries or home energy storage systems enable users to store electricity from renewable energy sources like solar for use when grid power is unavailable or costly. They help reduce dependence on utility providers and lower electricity bills. These batteries consist of lithium-ion or lead-acid battery packs and power inverters to convert the stored DC power to AC. The global residential battery market is estimated to be valued at US$ 17.96 billion in 2024 and is expected to exhibit a CAGR of 9.7% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising demand for energy storage systems from the residential sector is one of the key factors driving the growth of the residential battery market. With increasing awareness about clean and renewable energy sources, many homeowners are opting for rooftop solar panels and battery storage to fulfill their electric needs. Residential batteries help capture excess solar energy during the day and use it in the evening through stored electricity. This has increased the adoption of residential batteries and further strengthened market growth over the forecast period.
Strength: Residential battery systems provide off-grid power backup during power outages and help reduce electricity bills by time-shifting solar power usage. They enable homeowners to go green and reduce their dependence on fossil fuels.
Weakness: High upfront installation and equipment costs pose a barrier for widespread adoption. Relatively lower energy densities necessitate larger battery footprints. Concerns regarding life cycle, safe disposal, and reuse/recycling of aging batteries.
Opportunity: Growing emphasis on renewable energy integration at the residential level and support through government subsidies. Rapid declines in battery costs and improvements in energy densities are making residential storage more viable. Increasing power outages due to extreme weather events are raising awareness.
Threats: Delays in setting up of favorable regulatory frameworks for consumers to sell stored solar power back to the grid. Technological advances in newer battery chemistries pose threat of existing technologies becoming obsolete. Stringent fire safety standards increase production costs.
The global residential battery market demand is expected to witness high growth over the forecast period of 2024 to 2031.
Regional analysis: North America currently captures over 35% of the global market led by the US. Major states like California offer lucrative rebates and subsidies for residential batteries. The Asia Pacific region is expected to grow at a CAGR of 11.2% during the forecast period, led by China, Japan, South Korea, India and Australia. Greater electrification initiatives, growing reliance on renewables and urbanization are major drivers in the region.
Key players operating in the residential battery market are Svenska Cellulosa Aktiebolaget SCA, BTG Biomass Technology Group, Eni S.p.A., Fulcrum BioEnergy, SOCOTEC Group, Drax Biomass Inc., Aggregated Micro Power Holdings plc, PVM Environmental Products, VGrid Energy Systems, and Vattenfall AB. These companies are investing in R&D to improve product offerings, lower costs through innovations and expand into new markets through strategic partnerships
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it