Published: July 2023 | Report Code: 12661 | Available Format: PDF | Pages: 220
The global residential energy storage market size was USD 815.2 million in 2022, and this number is expected to increase to USD 3,099.8 million by 2030, advancing at a CAGR of 18.2% during 2022–2030. This can be ascribed to the rampant infrastructure development, rising consumer spending on energy storage, mounting government and private investments in the production of renewable energy, increasing concern of individuals regarding environmental degradation, growing interest in attaining self-sufficiency, high R&D expenditure, and booming energy consumption in developing regions.
Furthermore, the market is expected to grow as a result of the increasing government and private spending for uninterrupted power supply, bolstered by residential owners’ initiatives to adopt solar energy, and government initiatives that are boosting the adoption of the adoption of energy storage systems in homes. Additionally, financial as well as self-credit programs for integrating renewable energy sources into the residential power supply are available in many countries.
The on-grid category accounted for the larger revenue share in 2022, and it is further expected to maintain its dominance during the forecast period. With on-grid systems, the additional energy generated can be transferred to the utility that owns the grid, allowing the individual to gather credit, which can be withdrawn at the end of the year.
On-grid residential ESS has also become more popular as a result of a number of benefits, including energy arbitrage; residential customers can integrate energy storage into their current solar PV system and utilize time-of-use on-peak and off-peak electricity prices to maximize the value of their solar energy storage system.
Furthermore, the off-grid category will witness significant growth. This can be attributed to the fact that such systems are considered optimal for homeowners who want to switch to 100% green energy and who reside in rural areas, where the current power supply may not be adequate or dependable.
Additionally, residential power storage allows for grid flexibility, so that users always have access to power whenever and wherever they need it. Both reliability and resilience depend on this flexibility. The benefit of improved dependability and resilience, likewise, rises as the price of outages continues to climb.
The customer-owned category accounted for the largest revenue share in 2022, and it is further expected to maintain its position during the prediction period. This will be because of the several advantages of customer-owned ESSs, such as reduced electricity cost per kilowatt-hour; burgeoning demand for rooftop PV solutions, and the rising focus on attaining self-sufficiency.
Furthermore, the utility-owned category held a significant revenue share. This can be ascribed to the rising need for grid-scale electrical energy storage technologies and government support for utility providers.
Report Attribute | Details |
Historical Years |
2017-2022 |
Forecast Years |
2023-2030 |
Market Size in 2022 |
USD 815.2 Million |
Market Size in 2023 |
USD 963.3 Million |
Revenue Forecast in 2030 |
USD 3,099.8 Million |
Growth Rate |
18.2% CAGR |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Technology; By Utility; By Connectivity Type; By Ownership Type; By Operation Type; By Region |
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Community energy storage (CES) is a cutting-edge smart grid technology that provides various benefits of distribution grids, in terms of reliability, quality, and control stability. This technique has become a vital part of contemporary microgrids as it offers benefits to both utilities and consumers. It eases the effects of the sporadic output of DERs, including PVs; and other smart grid components, including EVs, and integrates them into the smart grid. CES is mostly placed at the grid periphery, which is close to customers and DERs.
The core concept of CES, which was first applied in HV/MV substations equipped with CES batteries, can provide benefits that are far greater than those of traditional substation batteries. This kind of CES might be advantageous for regional control at the feeder/transformer level. Without the requirement for an OLTC at the substation, new types of substation CES units may provide voltage regulation through their four-quadrant inverters.
In recent years, this concept has expanded with the inclusion of DERs and the client side. The main motives fora having CES in distribution networks include smoothening of DERs’ intermittencies, such as output shifting/leveling, peak-shaving, and power quality enhancements, including voltage and reactive power support, frequency control, and islanding during outages. A CES contains a battery, typically a lithium-ion battery box; and a measurement/control system, which comprises a battery management system (BMS) and inverter monitoring/control. CES also features a fully dispatchable four-quadrant inverter, allowing for the swapping of active and reactive powers in both the directions, which is the key difference between CES and DGs.
In other words, CES has the ability to control frequency and voltage and add and subtract reactive power from the grid. The CES is quite easy to use. Due to system-active/reactive needs, such systems supply either active or reactive power from their batteries. As it can offer power for a short time while discharging, CES can be viewed as a backup power source for a particular set of houses.
The 6 to 10 kW category held the major revenue share, around 50%, in 2022, and it is expected to maintain its position during the prediction period. This is due to the rising energy consumption, increasing frequency of long power outages, faults in grid systems, and mounting demand for a greater amount of stable power.
The lithium-ion category accounted for the larger revenue share, over 80%, in 2022, and it is further expected to maintain its dominance in the coming years. This is due to the fact that such batteries are more reliable and stable and can be recharged numerous times. Additionally, compared to conventional rechargeable batteries, Li-ion variants have better energy densities, higher voltage capacities, and lower self-discharge rates, which enhance power efficiency by allowing a single cell to hold charge for longer periods.
Europe accounted for the largest revenue share, around 40%, in 2022, and it is further expected to maintain its dominance during the forecast period. This is due to the rapid adoption of rooftop solar power, a 30% government subsidy for the battery system, rise in the urbanization rate, and presence of a huge number of industry players.
Additionally, the increasing demand for EVs and rising implementation of virtual power plants raise the installation rate of such systems. The increasing usage of EVs creates a significant load on the current grid infrastructure, and to lessen the load, governments across the EU encourage EV owners to install energy storage solutions at home, which can be used to charge the vehicles.
In addition,
Moreover, APAC is a significant user of such systems due to the increasing population, surging demand for renewable energy, rising consumer spending, vast consumer base and its surging disposable income, and booming adoption of advanced technologies.
Moreover,
North America also held a significant revenue share in 2022, attributed to the increase in the pace of technological advancements in the energy sector, the growth in EV sales, and the rise in the need to equip the existing solar PV systems with storage systems.
This fully customizable report gives a detailed analysis of the residential energy storage market from 2017 to 2030, based on all the relevant segments and geographies.
Based on Technology
Based on Utility
Based on Connectivity Type
Based on Ownership Type
Based on Operation Type
Geographical Analysis
In 2030, the market for residential energy storage solutions will generate USD 3,099.8 million.
Customer-owned systems are the most popular in the residential energy storage industry.
Community energy storage is trending in the market for residential energy storage solutions.
Li-ion is the dominant technology in the residential energy storage industry.
Europe is the largest and fastest-growing market for residential energy storage solutions.
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