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), Region - Global Forecast to 20

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), Region - Global Forecast to 2028

At a CAGR of 18.3% over the forecast period, the residential energy storage market is anticipated to increase from an estimated USD 898 million in 2023 to USD 2,081 million by 2028. expanding demand for energy production from renewable sources, along with expanding investments in the renewables industry, are the main market drivers.

“The 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.

“The 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.

Breakdown of Primaries:

To gather and authenticate essential qualitative and quantitative information and evaluate future market prospects, comprehensive in-depth interviews have been conducted. These interviews involved key industry participants, subject-matter experts, C-level executives from prominent market players, industry consultants, and other relevant experts. The primary interviews were strategically distributed among these stakeholders to ensure a comprehensive and well-rounded understanding of the market dynamics, trends, and potential opportunities.

By Company Type: Tier 1- 65%, Tier 2- 24%, and Tier 3- 11%

By Designation: C-Level- 30%, Director Level- 25%, and Others- 45%

By Region: Europe – 35%, North America- 26%, Asia Pacific – 25%, Middle east & Africa – 8% and South America – 6 %.

Note: Others includes sales managers, marketing managers, product managers, and product engineers.

The tier of the companies is defined based on their total revenue as of 2018. Tier 1: USD 1 billion and above, Tier 2: From USD 500 million to USD 1 billion, and Tier 3:

A few key players with extensive regional coverage dominate the residential energy storage market. These leading market players include Tesla (US), VARTA AG (Germany), Enphase Energy (US), BYD Company Ltd (China), Sonnen GmbH (Germany), LG Energy Solution (South Korea), and other notable companies.

Research Coverage:

The report encompasses a comprehensive analysis of the residential energy storage market, covering various aspects such as power rating, connectivity type, operation type, ownership type, technology, and regional forecasts. It provides a detailed qualitative and quantitative assessment of the market, offering a thorough understanding of its dynamics. The report examines the key market drivers, restraints, opportunities, and challenges, offering valuable insights for stakeholders. Additionally, it delves into crucial aspects of the market, including a competitive landscape analysis, market dynamics, estimation of market value, and future trends in the residential energy storage sector.

Key Benefits of Buying the Report

The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the relay market and provides them information on key market drivers, restraints, challenges, and opportunities.

Analysis of key drivers (growing investments in R&D of lithium-ion batteries for renewable energy source, The growing adoption of renewable energy sources, such as solar power, is driving the demand for residential energy storage systems), restraints (high upfront cost of residential energy storage systems and Limited subsidies, tax credits, or rebate programs can make the systems less financially attractive for homeowners.), opportunities (Advanced software and control systems can optimize energy usage, intelligently manage charging and discharging, and enable participation in demand response programs.), and challenges (limited energy density and capacity which will impact the duration and power output during extended outages or high-demand periods.) influencing the growth of the residential energy storage market.

Product Development/ Innovation: Residential energy storage systems utilize rechargeable batteries to store energy from solar arrays or electric grids, enabling them to efficiently perform tasks like peak shaving and load shifting. Thanks to advanced technology-based batteries, these systems overcome the limitations of traditional methods and offer greater flexibility and efficiency in managing energy usage. Residential energy storage market lithium-ion (Li-ion) batteries have a lifespan ranging from 5 to 15 years and an efficiency range of 85% to 98%. Rapid technological advancements and significant cost reductions have made these batteries appear to be very promising. The production and development of electric vehicles (EVs), particularly those spearheaded by Tesla, is expected to have a significant impact on Li-ion battery prices. It is anticipated that this cost decrease will spread to other Li-ion battery uses, such as laptops, portable electronics, and power-generating electronics.

Market Development: The residential energy storage sector aim to increase the availability of energy storage systems in new geographic regions. Key players are actively expanding their market presence, both domestically and internationally, to access untapped customer bases and leverage regional incentives and policies. Sonnen, a company specializing in intelligent energy storage solutions for residential applications, offers products like the SonnenBatterie. These solutions are designed to seamlessly integrate with renewable energy sources and provide grid services, demonstrating their commitment to enhancing renewable energy adoption and grid integration.

Market Diversification: The residential energy storage market involves diversifying the range of products, services, and target customer segments to cater to a wider spectrum of consumer needs and preferences. Tesla holds a significant position in this market, offering the Powerwall product line, which includes various models with different capacities to meet diverse customer requirements. Enphase Energy, on the other hand, is recognized for its expertise in microinverter technology and provides residential energy storage solutions through the Enphase Encharge product line. Additionally, Enphase Energy offers comprehensive monitoring and maintenance services for their systems.

Competitive Assessment: An in-depth assessment reveals the market shares, growth strategies, and service offerings of key players in the residential energy storage market. Prominent companies such as Tesla (US), Sonnen GMBH (Germany), Enphase Energy (US), BYD Company Ltd. (China), and LG Energy Solution (South Korea) among others demonstrate notable positions in the residential energy storage market.