Residential Energy Storage Market by Power Rating (10-29 kW, 3–6 kW, 6–10 kW), Technology (Lead–Acid, Lithium-Ion), Connectivity Type, Operation Type, Ownership Type - Global Forecast 2024-2030

Residential Energy Storage Market by Power Rating (10-29 kW, 3–6 kW, 6–10 kW), Technology (Lead–Acid, Lithium-Ion), Connectivity Type, Operation Type, Ownership Type - Global Forecast 2024-2030

The Residential Energy Storage Market size was estimated at USD 5.18 billion in 2023 and expected to reach USD 5.54 billion in 2024, at a CAGR 7.51% to reach USD 8.60 billion by 2030.

Residential energy storage refers to using energy storage systems or devices within homes and residential properties to store electricity for later use. These systems are developed to reserve excess electricity generated from various sources, such as solar panels, wind turbines, or the grid, and then release that stored energy when needed. The primary goal of residential energy storage is to increase energy independence, improve energy efficiency, and provide backup power during outages. Increasing awareness regarding environmental conservation and climate change has led to consumers' rising need for clean, sustainable energy solutions. Government policies and investments promoting renewable energy adoption contribute to market growth. Incorporating residential energy storage solutions into the smart grid network can further enhance its functioning while providing additional revenue streams for businesses operating within this space. However, high capital costs associated with installing these systems, lack of standardization, and related technical issues hamper the market demand. Advancements in lithium-ion battery technologies and the development of smart grid infrastructure that integrates information technology with power generation create a lucrative market opportunity in the residential energy storage market.

Regional Insights

The Americas has a significant landscape in the residential energy storage market owing to federal government initiatives and funding for innovative home battery projects to support renewable energy integration and grid reliability. Increased occurrences of natural disasters have heightened concerns around grid resilience, contributing to higher demand for energy storage solutions. The EMEA region has seen significant growth in residential energy storage deployment due to the push for renewable energy adoption and efforts to improve grid stability. European countries offered financial incentives, subsidies, and tax credits to encourage homeowners to invest in residential energy storage systems. These incentives varied by country and were often designed to promote self-consumption of solar energy and enhance grid stability. In the APAC region, the presence of significant players in the residential energy storage market, government incentives, and subsidies have played a crucial role in driving the adoption of residential energy storage. The government launched a subsidy program to encourage homeowners to install lithium-ion battery systems, contributing to overall market expansion in the APAC region.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Residential Energy Storage Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Growing demand for non-interrupted and reliable power supply
Rising adoption of solar rooftop systems coupled with increasing awareness regarding environmental conservation
Favorable regulatory support and financial incentives for renewable energy adoption

Market Restraints

High cost of installation of solar plus battery systems

Market Opportunities

Rising development of smart grid infrastructure and the advancement of lithium-ion battery technology
Surge in integration of smart energy management systems

Market Challenges

Dearth of standards and interoperability and associated technical issues

Market Segmentation Analysis

Power Rating: 10-29 kW power rating providing highest capacity and performance
Technology: Proliferating use of lead-acid batteries to provide cost-effective and short-term energy storage solutions
Connectivity Type: Penetrating utilization of on-grid connectivity systems to efficiently manage electricity consumption
Operation Type: Solar & storage systems provide energy independence and reduce greenhouse gas emissions

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Residential Energy Storage Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Residential Energy Storage Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

LG Energy Solution Launches Prime+ ESS in the U.S.

LG Energy Solutions has introduced its Prime ESS residential energy storage product in the United States. This product showcases an advanced lithium iron phosphate battery and is accompanied by a 10-year warranty. This energy storage system allows customers to enjoy reduced electricity bills and take advantage of potential incentives.

Lunar Energy Announces New Residential Energy Storage System

Lunar Energy has introduced a cutting-edge residential energy storage cabinet system to provide homeowners with a highly efficient and dependable electricity and heating solution while reducing reliance on peak grid usage. This innovative system incorporates multiple batteries, an inverter, advanced battery-management electronics, and convenient connection points for solar PV arrays, generators, and other renewable energy sources.

JinkoSolar Signs Strategic Distribution Agreement for Residential Storage Solution with V. Kafkas SA

Jinko Solar has entered into a strategic distribution agreement with V. Kafkas SA in residential energy storage. This agreement allows Jinko Solar to provide a top-notch solution for residential energy storage. This agreement aims to reinforce the market presence and influence of both companies in the residential energy storage sector.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Residential Energy Storage Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Residential Energy Storage Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Alpha ESS Co., Ltd., BYD Company Limited, Consolidated Electrical Distributors, Inc., Covestro AG, Delta Electronics, Inc., East Penn Manufacturing Co. Inc., Eaton Corporation, EDF Energy Group, Generac Power Systems, Inc, HAIKAI, Hitachi Chemical Co. Ltd., Huawei Technologies Co. Ltd., LG Chem Ltd., Panasonic Corporation, Samsung SDI Co., Ltd., Schneider Electric SE, Siemens AG, Sonnen GmbH, Sungrow Deutschland GmbH, SunPower Corporation, Sunrun Inc., Tesla, and TotalEnergies.

Market Segmentation & Coverage

This research report categorizes the Residential Energy Storage Market to forecast the revenues and analyze trends in each of the following sub-markets:

Power Rating
10-29 kW
3–6 kW
6–10 kW
Technology
Lead–Acid
Lithium-Ion
Connectivity Type
Off-Grid
On-Grid
Operation Type
Solar & Storage Systems
Standalone Systems
Ownership Type
Customer Owned
Third-Party Owned
Utility Owned
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year