Residential Energy Storage Market Size Report, Industry Share, Analysis, Growth, 2032

Residential Energy Storage Industry Prospective:

The global residential energy storage market size was worth around USD 801.56 million in 2023 and is predicted to grow to around USD 4,625.12 million by 2032 with a compound annual growth rate (CAGR) of roughly 21.50% between 2024 and 2032.

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Residential Energy Storage Market: Overview

Residential energy storage is also known as home energy storage. The system deals with the series of batteries installed in a residential place. The system stores surplus energy to be used at a later time. When residential energy storage systems work in tandem with solar panels or solar power generators, the entire setup works towards storing energy that has been generated throughout the day. Residential energy storage systems optimize electrical usage.

Furthermore, they also help in optimizing home solar power technology. In case of temporary disruption resulting in a halt in the supply of continuous energy, residential energy storage solutions ensure that the residents have access to electricity supply. The technology also promotes the energy self-consumption trend as it greatly reduces the dependency on external sources of electricity such as power grids. The most commonly used residential energy storage systems consist of lithium-ion battery systems and are made of several parts including battery racks, battery cells, an inverter, and a battery management system (BMS). Residential energy systems can store energy ranging between 1 kWh over 10 kWh depending on the strength of the battery packs.

Key Insights:

• As per the analysis shared by our research analyst, the global residential energy storage market is estimated to grow annually at a CAGR of around 21.50% over the forecast period (2024-2032)
• In terms of revenue, the global residential energy storage market size was valued at around USD 801.56 million in 2023 and is projected to reach USD 4,625.12 million, by 2032.
• The market is projected to grow at a significant rate due to the increasing instances of load shedding across the globe
• Based on utility segmentation, above 10 kW was predicted to show maximum market share in the year 2023
• Based on ownership segmentation, customer-owned was the leading segment in 2023
• On the basis of region, Asia-Pacific was the leading revenue generator in 2023

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Residential Energy Storage Market: Growth Drivers

Increasing instances of load shedding across the globe will drive the demand for residential energy storage systems

The global residential energy storage systems are expected to witness high growth due to the growing instances of load shedding across the globe. Load shedding is the process of a deliberate halt in the supply of electricity from the main power grid to specific areas for a temporary period. Load shedding is extremely common in underdeveloped or developing nations especially when the stress on power grid systems rises sharply. This is mostly witnessed during the summer season and is a precautionary step toward the prevention of complete blackouts for longer hours. The energy crisis is one of the most pressing global concerns.

Energy needs are growing every day as a result of rapid industrialization and urbanization. On the other hand, constant energy supply has become an issue for energy-supplying companies due to the unpredictability associated with production, transport, and access to energy sources such as petrol, diesel, and gas. In some parts of the world, the load shedding frequency is extremely high and it affects the overall economic growth of the country. For instance, areas with a relatively higher frequency of load shedding are less likely to witness foreign investments since companies may not get access to uninterrupted power supply (UPS). In such situations, residential energy storage systems can be extremely helpful as they help residents to store energy in case of surplus supply and use it responsibly when the supply is broken.

Growing awareness among consumers will impact the market demand for residential energy storage devices

The demand for home energy storage technology is expected to be further impacted by the growing awareness among customers about the advantages associated with battery-powered energy-storing devices. The rising marketing tactics incorporated by businesses developing residential energy storage tools as well as the rising sale of the devices through retail chains such as supermarkets and hypermarkets have been crucial to the overall growth in the global residential energy storage market

Residential Energy Storage Market: Restraints

High initial cost of deployment may discourage buyers from adopting the technology

The global industry for residential energy storage systems is expected to be restricted due to the high initial cost of deploying home energy storage technology. As per market research, the average cost of deploying energy storage technology in the US is between USD 12000 to USD 18000. Moreover, the technology has limited energy storing capacity thus in some cases, it may be unable to justify the initial investment cost. Countries largely populated with low to middle-income families may not register high adoption of residential energy storage solutions.

Residential Energy Storage Market: Opportunities

Growing investments in solar energy devices may generate high-growth opportunities

The global residential energy storage market is expected to witness high growth opportunities due to growing installations of solar panels across the globe. The rising power costs have led to customers seeking more sustainable solutions for electricity generation and storage. As compared to 2022, India's year-on-year increase in solar capacity was reported to be around over 40%. Similar trends can be witnessed in other parts of the world. The rising improvements in solar panel technology and increasing government support to encourage the adoption of solar panels will drive the demand for residential solar technology in the coming years. In February 2024, Slenergy announced the launch of iShare-Home Rayvolution iShare-Home Rayvolution in the German market. The company is a leading provider of renewable energy and is highly committed to developing the residential solar sector. In March 2024, the European Union approved a new law that mandates installing solar panels in all buildings by the end of the decade.

Rising launch of new solutions will drive more customers toward home energy technology

The residential energy storage sector will gain growth momentum owing to the growing launch of new solutions with improved performance. In February 2024, LG announced the launch of two new residential energy storage devices in the form of the novel Enblock E storage system. Each system has a capacity of 15.5 kWh and 12.4 kWh and is ideal for small units as the new devices are 451 mm x 330 mm in size. Moreover, the growing investments toward exploring sodium-ion technology as an efficient alternative to lithium-ion hold high growth potential. The sodium-ion technology is considered more stable and cost-effective as compared to its counterpart thus providing the global residential energy storage market.

Residential Energy Storage Market: Challenges

Limited lifetime of the device and regular maintenance will challenge the market expansion rate

The global industry for residential energy storage faces challenges due to the limited lifetime of the technology. It requires constant maintenance work and frequent changes in damaged parts thus leading to increased operational expense. Additionally, if the projects deliver higher energy output, more investments will be required further causing hindrances in the market adoption rate.

Residential Energy Storage Market: Segmentation

The global residential energy storage market is segmented based on utility, technology, ownership, connectivity type, and region.

Based on utility, the global market divisions are above 10 kW, 6 to 10 kW, and 3 to 6 kW. In 2023, the demand was the highest in the 10 kW segment. These energy-storing variants offer higher energy-saving capacity and thus are considered ideal in areas that frequently witness a reduction in energy supply. Moreover, regions prone to severe climate conditions such as hurricanes and floods can benefit from the application of energy storage systems with a 10 kW utility range. These batteries can last up to 10 to 12 hours.

Based on technology, the global residential energy storage industry is divided into lithium-ion and lead-acid.

Based on ownership, the global market divisions are third-party-owned, utility-owned, and customer-owned. In 2023, the highest demand was observed in the customer-owned segment. In this type of ownership, the customers become 100% responsible for buying and owning the product. Additionally, they have complete rights over scaling the stored energy capacity. Third-party ownership deals with a different company operating the residential energy storage system installed in the premises of the service consumer’s property. South Africa was estimated to lose R 560 billion in 2022 due to frequent load shedding.

Based on connectivity, the global market segments are off-grid and on-grid.

Residential Energy Storage Market Report Scope

Residential Energy Storage Market: Regional Analysis

Asia-Pacific to register the highest growth rate during the forecast period

The global residential energy storage market will witness the highest growth in Asia-Pacific. China is one of the largest producers and exporters of residential energy storage systems. It is home to leading manufacturers of energy storage devices for residential and commercial applications. In March 2024, Energy Vault in China successfully connected its grid and its commercial EVx gravity-based energy storage system. The growing investments in solar energy installations and the rising number of suppliers of devices used in solar energy panels will be influential in driving regional demand.

In January 2024, the Indian government announced the launch of a new scheme for rooftop solar power. As per the new scheme, more than 1 crore homes in the country are expected to receive solar panel installations in the coming years. Europe is projected to register a significant growth rate during the forecast period. The growing energy crisis in the region along with increased focus on the deployment of solar solutions will aid the regional market expansion. In 2023, Europe was one of the leading regions in terms of revenue. North America to grow at a steady pace. The rise in consumer awareness and increased technological developments in residential energy storage systems will fuel the market demand.

Residential Energy Storage Market: Competitive Analysis

The global residential energy storage market is led by players like:

• LG Chem (RESU)
• Tesla Energy (Tesla Powerwall)
• Panasonic
• Sonnen
• Pika Energy
• Enphase Energy
• Blue Planet Energy
• Sunrun
• BYD
• SolarEdge
• Generac Power Systems
• Eguana Technologies

The global residential energy storage market is segmented as follows:

By Utility

• Above 10 kW
• 6 to 10 kW
• 3 to 6 kW

By Technology

• Lithium-Ion
• Lead-Acid

By Ownership

• Third-Party-Owned
• Utility-Owned
• Customer-Owned

By Connectivity Type

• Off-Grid
• On-Grid

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa