Residential Energy Storage Market To Generate $3,099.8 Million by 2030

The global residential energy storage market is projected to generate USD 3,099.8 million by 2030, advancing at a CAGR of 18.2% during 2022–2030. This is explained by the burgeoning use of renewable energy sources, the increasing demand for efficient power sources, and the rising battery integration rates in homes. The spike in the usage of renewable energy sources is itself partly due to the implementation of government programs to reduce carbon emissions.

Lithium-Ion Batteries Contribute More Revenue

Based on technology, the market is bifurcated into lead–acid and lithium-ion. Of them, the lithium-ion category accounted for the larger revenue share, over 80%, in 2022, and it is further expected to maintain its dominance during the forecast period. This is due to the strict environmental laws and regulations supporting the usage of such batteries, to lower carbon emissions, the technical and economic benefits of these variants over conventional batteries, and the increasing R&D spending by the industry players to offer more-affordable products.

The market is bifurcated into on-grid and off-grid, based on connectivity type. Of them, the on-grid category contributed the majority of the revenue to the market in 2022, and it is expected to maintain its position in the coming years. This can be because such systems are connected to the utility’s power grid, which allows the additional energy produced to be sent to the relevant power provider who owns the grid. This further enables the user to build credit, which can be redeemed at the year end.

Based on ownership type, the market is divided into customer-owned, utility-owned, and third-party-owned. Among these, the customer-owned category accounted for the highest revenue in 2022, and it is further expected to maintain its dominance in the coming years. This is due to the rising need to resolve the overvoltage issue and balance the power supply, increasing consumption of energy, and surging requirement for cost-efficient energy solutions.

The 6 to 10 kW category, based on utility, will witness the fastest growth in the coming years. This would be a result of the escalating demand for power, faulty grid systems, and prolonged power outages in emerging economies.

Geographically, Europe will register the fastest growth during the forecast period. This would be due to the initiatives taken by governments, such as incentive-based schemes, to promote the installation of energy storage systems; rising need for energy-efficient solutions for home use, and increasing consumer spending. Moreover, Germany contributes the majority of the revenue to the regional market, owing to the high rate of urbanization, presence of established players, and supportive clean-energy-related legislations.

Furthermore, APAC will register significant growth during the prediction period. This can be ascribed to the presence of a significant number of market players, rise in the urbanization rate, growth in the population and the surge in its spending, and increase in the consciousness of individuals about the negative environmental impact of non-renewable resources.

Moreover, North America held a significant revenue share in 2022 in the market. This is due to the mounting need for ESS owing to the high energy consumption, depletion of non-renewable resources, and surging demand for uninterrupted power supply.

Some of the major players in the residential energy storage market are Tesla, Panasonic Industry Co. Ltd., sonnen GmbH, VARTA AG, Enphase Energy Inc., Samsung SDI Co. Ltd., Saft Groupe SAS, and LG Energy Solution Ltd.