Residential Energy Storage Market Forecasts to 2030 – Global Analysis By Ownership (Utility Owned, Customer Owned and Third-party Owned), Connectivity Type (On-grid and Off-grid), Power Rating, Technology and By Geography

Residential Energy Storage Market Forecasts to 2030 – Global Analysis By Ownership (Utility Owned, Customer Owned and Third-party Owned), Connectivity Type (On-grid and Off-grid), Power Rating, Technology and By Geography

According to Stratistics MRC, the Global Residential Energy Storage Market is accounted for $15.2 billion in 2024 and is expected to reach $55.6 billion by 2030 growing at a CAGR of 24.2% during the forecast period. Residential energy storage refers to systems designed to store electrical energy at a home for later use. These systems, commonly employing batteries, capture and store energy from various sources like solar panels, the electrical grid, or wind turbines. By storing excess energy produced during peak generation times, homeowners can use it during periods of high demand or when generation is low, such as at night or during power outages. This capability enhances energy reliability and can reduce electricity costs by allowing users to shift their consumption to off-peak times when rates are lower.

According to the International Energy Agency (IEA), global renewable capacity additions are estimated to soar by 107 Gigawatts (GW), to more than 440 GW in 2023.

Market Dynamics:

Driver:

Rise of smart home technologies

The rise of smart home technologies is significantly enhancing residential energy storage by integrating advanced control systems with energy management solutions. Smart home devices, such as intelligent thermostats, energy-efficient lighting, and connected appliances, work seamlessly with home energy storage systems to optimize energy use. These technologies collect and analyze data on energy consumption patterns, allowing homeowners to adjust their usage in real-time and store excess energy when it’s most economical. For instance, smart meters and energy management systems can predict peak demand times and automatically adjust storage and usage strategies, ensuring that stored energy is utilized efficiently.

Restraint:

Grid integration issues

Grid integration issues are a significant barrier to the widespread adoption of residential energy storage systems. These systems, which store excess energy from sources like solar panels for use during peak demand or outages, face challenges in seamlessly interfacing with the existing power grid. One major issue is the lack of standardized protocols and communication systems between storage units and the grid, leading to inefficiencies and potential disruptions. The intermittent nature of renewable energy sources can cause fluctuations that complicate grid management and strain infrastructure. Inadequate grid capacity and outdated infrastructure can further exacerbate these problems, making it difficult for residential energy storage to contribute effectively.

Opportunity:

Rising need to reduce electricity costs

As energy prices fluctuate and the demand for electricity increases, homeowners are seeking ways to mitigate expenses and gain greater control over their energy usage. Residential energy storage, such as home batteries, allows users to store excess energy generated from renewable sources like solar panels or during off-peak times when electricity rates are lower. This stored energy can then be used during peak hours when prices are higher, reducing overall energy costs and providing a buffer against price volatility.

Threat:

Market fragmentation

Market fragmentation is a significant barrier to the growth of the residential energy storage sector. This fragmentation occurs when the market is divided into numerous small, disparate segments, often due to varying regional regulations, standards, and incentives. Inconsistent policies and a lack of standardized practices can create confusion among consumers and hinder widespread adoption. For instance, different states or countries may have unique requirements for energy storage systems, making it challenging for manufacturers to produce and market solutions that comply universally.

Covid-19 Impact

The COVID-19 pandemic significantly impacted the residential energy storage market, both positively and negatively. During the pandemic, there was a marked increase in the adoption of home energy storage systems, driven by heightened awareness of energy security and the desire for self-sufficiency amid grid uncertainties. Homeowners sought reliable backup power solutions due to frequent power outages and interruptions in service. The shift towards remote work and more time spent at home boosted energy consumption, further fueling interest in residential storage. Conversely, the pandemic also disrupted supply chains, causing delays and increasing costs for critical components like batteries.

The customer owned segment is expected to be the largest during the forecast period

Customer owned segment is expected to be the largest during the forecast period. The enhancement of Residential Energy Storage through customer-owned segments is transforming how households manage and utilize their energy resources. This innovation empowers homeowners to take greater control over their energy consumption by integrating advanced battery storage systems into their residences. These systems store excess energy generated from renewable sources, such as solar panels, for later use, which can lead to significant cost savings and increased energy independence. Additionally, advanced storage solutions offer improved efficiency and reliability, ensuring that homes have a steady power supply even during grid outages or peak demand periods.

The lead-acid batteries segment is expected to have the highest CAGR during the forecast period

Lead-acid batteries segment is expected to have the highest CAGR during the forecast period by providing a reliable and cost-effective option for homeowners looking to optimize their energy usage. These batteries, known for their robustness and affordability, are increasingly being integrated into residential energy systems to store excess energy generated from solar panels or other renewable sources. Their ability to handle deep discharge cycles and provide steady, reliable power makes them ideal for balancing energy supply and demand in homes. As a result, lead-acid batteries are becoming a key component in residential energy storage systems, helping homeowners reduce reliance on the grid, lower energy costs, and contribute to a more sustainable energy future.

Region with largest share:

Asia Pacific region commanded the largest share of the market over the extrapolated period. As more households adopt solar technology, there's a rising demand for effective energy storage solutions to maximize the benefits of solar power. This trend is driving innovation and investment in residential energy storage systems, such as advanced batteries and smart grid technologies, which help store excess energy generated during the day for use during nighttime or cloudy periods. The increased deployment of solar panels not only contributes to energy independence and cost savings for homeowners but also supports regional efforts to reduce carbon emissions and transition to cleaner energy sources.

Region with highest CAGR:

Europe region is poised to witness profitable growth during the projected period. In Europe, government incentives and rebates are significantly advancing the residential energy storage sector by making it more financially accessible to homeowners. These programs often include direct subsidies, tax credits, and low-interest loans, which reduce the upfront costs of purchasing and installing energy storage systems like home batteries. By lowering financial barriers, these incentives encourage more homeowners to invest in technologies that enhance energy efficiency and sustainability. The increased adoption of residential energy storage contributes to grid stability, helps in the integration of renewable energy sources and supports energy independence.

Key players in the market

Some of the key players in Residential Energy Storage market include ABB Ltd, BYD Company Limited, Eaton Corporation, Eguana Technologies Inc, Eos Energy Enterprises, Generac Power Systems, Inc, LG Energy Solution, Panasonic Corporation, Samsung SDI, SunPower Corporation and Tesla, Inc.

Key Developments:

In August 2022, Tesla partnered with Green Mountain Power (GMP) for the deployment of Powerwalls, Tesla’s home battery pack, in a decentralized way with electric utilities. The relatively small electric utility operating in Vermont was one of the earliest adopters of Tesla Powerwall.

In June 2022, Toyota entered the energy storage market with the launch of the O-Uchi Kyuden System, a residential battery product. Toyota launched a rated output of 5.5 kWh and rated capacity of 8.7 kWh battery storage system, which uses the company's electric vehicle battery technology. When connected to a photovoltaic rooftop system, the system can power a home day and night. Initially, the company aims to sell the storage system in Japan.

In May 2022, Mango Power launched Mango Power M Series at the Intersolar Munich 2022. The system can be used with a solar PV, with a 10-20 kWh battery for daily and emergency use. The system supports single and triple-phase connections with 8-14 kW output capability. The system can be used in various applications, including a built-in inverter, backup gateway, and EV charger. The company launched different versions for the United States and Europe markets.

In February 2022, Enphase Energy announced a partnership with Swell Energy that, Enphase Energy Systems powered by IQTM Microinverters and IQTM Batteries will be able to participate in Swell's distributed, virtual power plant (VPP) programs in California, New York, and Hawaii as a result of the collaboration.

Ownerships Covered:
• Utility Owned
• Customer Owned
• Third-party Owned

Connectivity Types Covered:
• On-grid
• Off-grid

Power Ratings Covered:
• 3 to 6 KW
• 7 to 10 KW

Technologies Covered:
• Lead-acid Batteries
• Lithium-ion Batteries
• Other Technologies

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
Market share assessments for the regional and country-level segments
Strategic recommendations for the new entrants
Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
Strategic recommendations in key business segments based on the market estimations
Competitive landscaping mapping the key common trends
Company profiling with detailed strategies, financials, and recent developments
Supply chain trends mapping the latest technological advancements