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| Global Residential Battery Market |
The global Residential Battery Market is estimated to be valued at US$ 11.08 billion in 2023 and is
expected to exhibit a CAGR of 18.6% over
the forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Overview:
The residential battery market consists of energy storage systems installed in
residential buildings to store energy produced from renewable sources such as
solar photovoltaic (PV) systems. Key advantages of residential batteries
include providing backup power during power outages, reduced dependency on grid
during peak hours and time-of-use tariff savings. With increasing adoption of
rooftop solar panels among homeowners and awareness about benefits of energy
independence and cost savings, the need for residential batteries is growing
substantially.
Market key trends:
One of the major trends in the residential battery market is the growing
adoption of lithium-ion batteries. Lithium-ion batteries are becoming popular
for residential energy storage owing to their high energy density, long cycle
life and low self-discharge rate compared to lead-acid batteries. Manufacturers
are focusing on developing more advanced and cost-effective lithium-ion battery
chemistries such as lithium iron phosphate and lithium nickel manganese cobalt
oxide for residential energy storage solutions. Another key trend observed is
the emergence of integrated home energy management systems that help optimize
self-consumption of solar power and provide ancillary grid services.
Porter’s Analysis
Threat of new entrants: High capital investments required to enter this market
and establish manufacturing facilities poses a barrier for new players.
Bargaining power of buyers: Presence of many established players provide buyers
with varied options to choose from, increasing their bargaining power.
Bargaining power of suppliers: Major battery cell suppliers possess strong
bargaining power over manufacturers due to requirement of specialized
components and limited number of suppliers.
Threat of new substitutes: Rapid technological advancement has increased the
threat of substitute products especially solar panels posing competition to the
residential battery market.
Competitive rivalry: Presence of numerous international and regional vendors
has led to high competitive rivalry.
Key Takeaways
The Global
Residential Battery Market is expected to witness high growth,
exhibiting a CAGR of 18.6% over the
forecast period, due to increasing demand for primary energy sources besides
grid electricity driven by power outages and incentivized solar panel
installations. Asia Pacific dominates the market currently due to high uptake
in China and Japan followed by Europe accounting for a major share due to
strict policies promoting use of renewable energy sources.
The global residential battery market size was valued at USD 11.08 billion in 2023.
The market is forecast to grow at a robust rate during the forecast timeframe
owing to rising governmental initiatives and fiscal incentives promoting
integration of renewable energy storage systems along with increase in installation
of rooftop solar panels. Residential battery solutions help households reduce
overdependence on conventional energy sources and contribute towards energy
security at smaller scale.
Key players operating in the residential battery market are FIMER SpA, Amara
Raja Batteries Ltd, Samsung SDI, Energizer Holding Inc., Luminous Power
Technologies Private Limited, LG Energy Solution, Ltd., Duracell Inc.,
Panasonic Corporation, Siemens AG, Tesla Inc., Delta Electronics Inc., BYD Co.
Ltd and NEC Corp. Notable trends witnessed include longer product warranties,
integration with AI and IoT based energy management systems and strategic
partnerships to strengthen product portfolio.