Global Residential Energy Storage Markets Report 2023-2028: Declining Costs of Lithium-Ion Batteries to Drive Growth with North America Spearheading Expansion

News provided by

Nov 14, 2023, 10:45 ET

DUBLIN, Nov. 14, 2023 /PRNewswire/ -- The "Global Residential Energy Storage Market by Power Rating (3-6 kW, 6-10 kW, 10-20 kW), Connectivity (On-Grid, Off-Grid), Technology (Lead-Acid, Lithium-Ion), Ownership (Customer, Utility, Third-Party), Operation (Standalone, Solar), and Region - Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.

At a CAGR of 18.3% over the forecast period, the global residential energy storage market is anticipated to increase from an estimated USD 898 million in 2023 to USD 2.08 billion by 2028.

This report offers valuable insights for leaders and newcomers in the market, providing approximate revenue figures for both the overall market and its sub-segments.

Residential energy storage systems provide homeowners with uninterrupted power during outages, facilitating the integration of renewable sources, especially solar, at the residential level. These systems enhance energy reliability by optimizing the balance between supply and demand. Moreover, they contribute to grid safety, cost-effectiveness, and resilience, reducing power consumption during peak demand, integrating renewables, and regulating voltage and frequency while creating backup power sources.

Stakeholders can leverage this report to gain a competitive edge, refine their business strategies, and navigate the relay market effectively. It furnishes valuable insights into market dynamics, including key drivers, restraints, challenges, and opportunities.

The growth of the residential energy storage market is propelled by factors such as the decreasing cost of lithium-ion batteries, supportive regulatory policies promoting clean energy adoption, and a rising consumer demand for energy self-sufficiency.

A handful of prominent players, boasting extensive regional coverage, dominate the residential energy storage market. These industry leaders include Tesla (US), VARTA AG (Germany), Enphase Energy (US), BYD Company Ltd (China), Sonnen GmbH (Germany), LG Energy Solution (South Korea), along with other notable companies.

6-10 kW, by power rating, is expected to be the largest and the fastest-growing market from 2023 to 2028

The residential energy storage market is categorized by application into three segments: 3-6 kW, 6-10 kW, and 10-20 kW. Among these segments, the 6-10 kW segment is projected to hold the largest market share and exhibit a high CAGR during the forecast period.

This dominance can be attributed to the reduced reliance on grid supply enabled by energy storage systems, which serve as backup power sources in the event of grid outages. By offering backup capabilities, the 6-10 kW segment provides homeowners with increased energy security and resilience.

The lithium-ion segment, by technology, is expected to be the fastest-growing market from 2023 to 2028

Lithium-ion and lead-acid batteries make up the two technology segments of the residential energy storage market. The market for lithium-ion batteries is expected to grow most rapidly. The strong growth rate can be due to the rising number of lithium-ion battery manufacturing facilities and high expenditure in their R&D.

Customer-owned, by ownership type, is expected to be the largest and the fastest-growing market from 2023 to 2028

The residential energy storage market is categorized based on ownership type, including customer-owned, utility-owned, and third-party-owned systems. Among these segments, the customer-owned segment is projected to experience the highest growth rate during the forecast period, closely followed by the utility-owned segment.

This dominance can be attributed to the advantages customers gain, such as lower energy bills and increased energy independence, through the implementation of residential energy storage solutions. By owning their energy storage systems, residential customers can optimize their energy usage, store excess energy, and rely less on external energy sources, leading to greater cost savings and enhanced self-sufficiency.

Premium Insights

Declining Costs of Lithium-Ion Batteries to Drive Residential Energy Storage Market Growth in Coming Years
North America to Witness Highest Growth in Residential Energy Storage Market During Forecast Period
6 to <10 kW Segment Dominated Residential Energy Storage Market in 2022
Customer-Owned Residential Energy Storage Systems Held Largest Market Share in 2022
On-Grid Segment Accounted for Larger Market Share in 2022
Lithium-Ion Technology Accounted for Larger Market Share in 2022
Solar and Storage Systems Held Larger Market Share in 2022

Case Study Analysis

CMEEC Aims to Energize Customers and Ensure Community Prosperity by Providing Lower-Cost Energy Solutions
BYD Company Ltd. Launched New Battery Box System Compatible with All PV Solar Inverters
E3/DC Fulfilled Demand of Homeowner Who Wanted to Achieve 80% of Energy Self-Sufficiency with Solar Power

Market Dynamics

Drivers

Government Initiatives Pertaining to Energy Storage Projects
Significant Demand for Electric Vehicles
Increased Investments in R&D of Lithium-Ion Batteries

Restraints

Lack of Battery Disposal and Recycling Standards
High Initial Investment

Opportunities

Rising Demand for Grid Energy Storage Systems
Increasing Installation of Solar PV Modules

Challenges

Safety Concerns for Lithium-Ion Batteries
Aging of Lithium-Ion Batteries
Trends/Disruptions Impacting Customers' Businesses
Revenue Shift and New Revenue Pockets for Residential Energy Storage System Providers

Supply Chain Analysis

Raw Material Suppliers
Battery Manufacturers
Software Suppliers
Energy Storage System Suppliers

Ecosystem Analysis

Trade Analysis
Market Map

Technology Analysis

Lithium-Ion
Lead-Acid
Technological Advancements

Company Profiles

Key Players

Tesla
Panasonic Holdings Corporation
BYD Company Ltd.
Enphase Energy
Sonnen GmbH
Varta AG
Delta Electronics, Inc.
Huawei Technologies Co. Ltd.
Eaton
SMA Solar Technology AG
LG Energy Solution
GoodWe
E3/DC
Alpha ESS Co. Ltd.
RCT-Power
Solarwatt
Senec
Shanghai Pytes Energy Co. Ltd.

Other Players

Pylon Technologies Co. Ltd.
Victron Energy
Dyness
Tesvolt AG
Turbo Energy - Solar Innovation
BST Power (Shenzhen) Limited
WECO Srl
Powervault

For more information about this report visit https://www.researchandmarkets.com/r/7bkicx

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]

For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg

SOURCE Research and Markets