“Growing government regulatory support and financial initiatives will boost the market”
The global residential energy storage market is growing competently, expected to grow at a CAGR of 16.0% during the estimated period from 2023 to 2030, starting from US$ 8.86 Bn in 2021.
The growth of residential battery storage in the power sector has engrossed attention for a wide-scale application in the residential and commercial sectors. Most of the attention is focused towards utility-scale batteries and for commercial and industrial customers. In addition, the large batteries are precarious segments for the energy-storage market, along with the swift growth of residential energy storage and household systems will expand the battery market on a global scale. Furthermore, government initiatives and action towards grid reliability and resilience, administer the demand-response program, declining cost of batteries, and need of self-sufficient energy from consumers projected to drive the demand for residential energy storage market over the forecast period.
The global market for residential energy storage is poised to grow promptly, owing to improved performance and reduced cost of batteries, embarking of grid modernizations, extensive support towards renewables and emissions reduction. According to broadly publicized forecast, the storage market for residential batteries could reach around US $26 billion by 2025. Grid digitization, predictive maintenance, and use of 3 intelligent system configuration is paving ways and creating opportunities for batteries for an improved power quality on a global scale.
“Declining cost of batteries and increasing trend towards new storage technology to boost the market globally”
Residential energy storage is growing rapidly, owing to new deployment incentives, falling costs and adoption of short-term energy storage technology are fuelling a recorded investments towards energy storage. Rising uptake and increasing growth of renewable energy will drives down the cost through innovation and scale, thereby driving the growth of residential energy storage globally. According to International Energy Agency (IEA) shows in 2019, the lithium-ion batteries dominates the storage technologies among other renewable like pumped hydro.
Low-cost energy storage through increased competition and economy of scale has dropped the costs of energy storage systems globally. Growing demand for electric vehicles, consumer electronics, and government-supported low-cost financing for renewables will spur investments in battery pack manufacturing, thereby expanding the market for battery storage over the forecasted period. The upcoming latest technology like “vanadium redox/flow battery” projected to grab the market especially because their fully containerized, reduced cost, compact, reusable over semi-infinite cycles, nonflammable, do not degrade for more than 20 years, and 100% discharge of stored energy than other V-flow batteries.
“Europe to hold a dominance in residential energy storage market due to government initiatives and policy framework towards energy storage”
The ongoing dual-price method, increasing cash-out incentives and prices for flexible capacity investments, is potentially expanding the demand for the use of energy storage technologies. Government plays a vital role in steering the transition to clean energy solutions by forming the necessary market regulations, policy framework, financial incentives for private sector, and direct investment on clean energy projects. Furthermore, as a part of green energy initiatives the European Investment Bank Group (EIB) cover equity-type funding, loans, and guarantees to demonstrate the “InnovFin Energy” projects by providing loans, and equity-type financing for energy storage. In addition, in 2017 the transformation of energy mix in Germany have accounted rooftop solar for around 74% of the total solar energy across the country, largely due to advanced supporting mechanisms like grants and loans for roof-top programs.
Moreover, the government of the UK is promoting the adoption of energy storage batteries to meet carbon emission control on a global scale. In 2017, the government of the UK agreed to decrease tax by 5% for the installation of a solar-powered battery system. The aforementioned factors are expected to boost the demand for residential energy storage market over the forecast period.
List of Companies Covered:
Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Residential Energy Storage market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
