Residential Battery Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 17.89 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Residential Battery Market Analysis
The global residential battery market is expected to reach USD 13.01 billion by the end of the current year, and it is projected to register a CAGR of 17.89% during the forecast period.
Although the market studied was affected by COVID-19 in 2020, it recovered and reached pre-pandemic levels.
The declining prices of lithium-ion batteries are expected to drive the growth of the market studied during the forecast period. However, the environmental disadvantages of lead-acid batteries are expected to hamper the growth of the market studied during the forecast period. An increase in off-grid solar utilization is expected to create lucrative growth opportunities for the global residential battery market during the forecast period.
Asia-Pacific is dominating the market studied, and it is expected to witness the highest CAGR during the forecast period. This growth is attributed to the increasing investments and the adoption of residential rooftop solar installations in China, India, and Japan.
Residential Battery Market Trends
This section covers the major market trends shaping the Residential Battery Market according to our research experts:
Lithium-ion Battery Segment Expected to Dominate the Market
Lithium-ion (Li-ion) batteries offer various technical advantages over other technologies, such as lead-acid batteries. Rechargeable Li-ion batteries, on average, offer cycles more than 5,000 times compared to lead-acid batteries that last around 400-500 times.
Li-ion batteries do not need as frequent maintenance and replacement as lead-acid batteries. Li-ion batteries maintain their voltage throughout the discharge cycle, allowing greater and longer-lasting efficiency of electrical components, whereas the voltage of lead-acid batteries drops consistently throughout the discharge cycle. Despite the higher upfront cost of Li-ion batteries, the true cost is much lesser than lead-acid batteries when considering lifespan and performance.
Batteries play a crucial part in energy storage systems and are responsible for a major portion of the total cost of the system, especially used in residential energy storage systems. The total installed capacity of renewable energy sources is increasing at a significant rate worldwide, and so is the installation of solar rooftops on residential buildings.
The increase in solar rooftop capacity is likely to foster an increase in the demand for battery energy storage. Therefore, the emergence of new energy storage systems (ESS) for residential applications is expected to boost the demand for lithium-ion batteries during the forecast period. Properties of lithium-ion batteries, such as less weight, low charging time, a higher number of charging cycles, and declining cost, make it preferable for this application.
Due to their declining prices, lithium-ion batteries have recently gained popularity as battery storage systems for residential solar and home inverters. In 2021, the price of the lithium-ion battery was USD 123/kWh, which declined by 81.58% from USD 668/KWh in 2013. The residential energy storage policies to date are quite nascent. However, countries, like the United States and Germany, through state policy action and regulatory action, are creating opportunities in the local energy storage markets.
For instance, in October 2022, as part of the President's Bipartisan Infrastructure Law, the US Department of Energy (DOE) announced the first set of projects to expand domestic manufacturing of batteries, materials, and components imported from overseas. A total of USD 2.8 billion will be awarded to the 20 companies for building and expanding commercial-scale facilities in 12 states for extracting, processing, and demonstrating new approaches, such as manufacturing components from recycled materials, lithium, graphite, and other components battery materials. In November 2021, Duracell launched a lithium iron phosphate (LFP) battery compatible with new or existing residential PV systems in the United States. The battery has a power rating of 5 kW and a storage capacity of 14 kWh. It has a voltage range from 44.5 to 53.5 V and a maximum charge and discharges current of 74.0 A. The roundtrip efficiency is over 85.7%, with a guaranteed performance of over 6,000 cycles.
Therefore, owing to the above-mentioned factors, the lithium-ion battery segment is expected to dominate the market during the forecast period.
Asia-Pacific Expected to Dominate the Market
Asia-Pacific has multiple growing economies with substantial natural and human resources. The region holds the majority share in revenue, with China and India being the major contributors. These countries are anticipated to exhibit immense growth potential during the forecast period.
Due to the government's policy and regulatory support, the Chinese residential battery market is expected to grow during the forecast period. The Chinese government has already shown its ability to stimulate high growth in domestic demand for solar-related equipment through subsidies and installation targets.
In the first nine months of 2020, China's total residential rooftop solar capacity installed stood at 7.41 GW, which increased by 64.61% in 2021. The country added 2.14 GW of residential rooftop solar capacity in September 2021. In February 2022, Bslbatt unveiled a modular lithium-ion battery for off-grid solar energy storage in China. The battery has a storage capacity ranging from 5.1 to 30.7 kWh and can provide steady operation for up to 6,000 charge cycles. Thus, such new battery technologies in the residential sector are anticipated to increase the growth of the market studied during the forecast period.
Another important country in the region is India, which accounts for the world's fifth-largest power generation capacity, with an installed capacity of 393.83 GW, as of December 2021. However, India faces power outages. The Government of India aimed to supply electricity 24 hours a day by significantly adding to renewable energy generation capacity, including rooftop solar power, which is anticipated to increase the demand for residential batteries.
With the government of India pushing to install lithium-ion battery manufacturing plants in India and start production in 2022, the cost of lithium-ion batteries is expected to drop. For instance, in October 2022, the Central Electrochemical Research Institute (CECRI) started building an indigenously-developed lithium-ion battery manufacturing plant in Chennai, India, with the capacity to produce 1,000 batteries per day. The facility will be completed by 2024 at the Council of Scientific and Industrial Research (CSIR) Madras Complex at Taramani.
Asia-Pacific is home to the fastest urbanizing countries, which is anticipated to create a significant demand for residential batteries for various applications, including consumer electronics, backup power supply systems, etc.
Residential Battery Industry Overview
The residential battery market is fragmented. Some of the major companies in the market (in no particular order) include FIMER SpA, Amara Raja Batteries Ltd, Samsung SDI Co. Ltd, NEC Corporation, and LG Energy Solution Ltd.
Residential Battery Market Leaders
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Amara Raja Batteries Ltd
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LG Energy Solution, Ltd.
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FIMER SpA
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Samsung SDI Co., Ltd.
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NEC Corporation
*Disclaimer: Major Players sorted in no particular order
Residential Battery Market News
In May 2022, Solar Energy Development Centre (SEDC) decided to provide local and federal government tax incentives in Washington DC and Connecticut to install residential and commercial battery energy storage systems. It will provide ongoing maintenance for the next 20 years.
In March 2022, Green Cell launched its new 5 kWh residential battery named GC PowerNest with a voltage of 51.2 V, and it is scalable to an eight-stack configuration reaching up to 40 kWh. The residential battery is based on lithium iron phosphate cells, and the product comes in a black casing with a 50 kg weight.
Residential Battery Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2027
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
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4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Lithium-ion Battery
- 5.1.2 Lead-acid Battery
- 5.1.3 Others Types
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5.2 By Geography
- 5.2.1 North America
- 5.2.2 Asia-Pacific
- 5.2.3 Europe
- 5.2.4 South America
- 5.2.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Market Share Analysis
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6.4 Company Profiles
- 6.4.1 Duracell Inc.
- 6.4.2 Energizer Holding Inc.
- 6.4.3 BYD Co. Ltd
- 6.4.4 FIMER SpA
- 6.4.5 LG Energy Solution Ltd
- 6.4.6 Panasonic Corporation
- 6.4.7 Samsung SDI Co. Ltd
- 6.4.8 Siemens AG
- 6.4.9 Luminous Power Technologies Pvt. Ltd
- 6.4.10 Amara Raja Batteries Ltd
- 6.4.11 Delta Electronics Ltd
- 6.4.12 NEC Corporation
- 6.4.13 Tesla Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityResidential Battery Industry Segmentation
The battery technologies considered in this report include lithium-ion, lead-acid, and other batteries (including nickel-cadmium, nickel metal hydride, zinc-carbon, and alkaline batteries) consumed across the global residential sector for different applications.
The residential battery market is segmented by type and by geography. By type, the market is segmented into lithium-ion batteries, lead-acid batteries, and other types. The report also covers the market size and forecasts for the residential battery market across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
| By Type | Lithium-ion Battery |
| Lead-acid Battery | |
| Others Types | |
| By Geography | North America |
| Asia-Pacific | |
| Europe | |
| South America | |
| Middle East and Africa |
Residential Battery Market Research FAQs
What is the current Residential Battery Market size?
The Residential Battery Market is projected to register a CAGR of 17.89% during the forecast period (2024-2029)
Who are the key players in Residential Battery Market?
Amara Raja Batteries Ltd , LG Energy Solution, Ltd., FIMER SpA, Samsung SDI Co., Ltd. and NEC Corporation are the major companies operating in the Residential Battery Market.
Which is the fastest growing region in Residential Battery Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Residential Battery Market?
In 2024, the Asia Pacific accounts for the largest market share in Residential Battery Market.
What years does this Residential Battery Market cover?
The report covers the Residential Battery Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Residential Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the future opportunities for the Residential Battery Market?
The future opportunities for the Residential Battery Market are a) Growing demand for energy independence and sustainability b) Government incentives bringing down battery prices c) Integration with smart home technology and energy management systems
Residential Battery Industry Report
The residential battery market is experiencing significant growth driven by the increasing demand for green energy, grid stability, and energy independence among homeowners. The market is segmented by battery type, power output, and operation type, with lithium-ion batteries leading due to their superior energy density and cost advantages. Mid-range power output batteries, particularly those in the 6-10 kW range, are popular for their balance between cost and application versatility, making them suitable for most single-family homes. Standalone systems dominate the market as they offer a cost-effective solution for energy self-sufficiency and reliability during power outages. The market is also influenced by the rise of smart home appliances and electric vehicles. The residential battery market is poised for robust growth, driven by technological advancements, favorable economics, and increasing consumer awareness of sustainable energy solutions. This growth is mirrored in the battery storage inverter market share and the solar battery market, both of which are experiencing similar upward trends due to the same underlying factors. Statistics for the residential battery market share, size, and revenue growth rate are provided by Mordor Intelligence™ Industry Reports, which include a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
