Global Residential Battery Market Grows at a Staggering CAGR of 17.36%

Introduction

Residential batteries store electric energy for future use. Lithium-ion or lead-acid batteries are the most common types, as they can handle charging and discharging cycles well. These batteries have proven incredibly beneficial in outlying areas without a dependable grid connection. The market for these batteries is expected to expand as more homes install rooftop solar power. Users can store energy for use during blackouts thanks to these rooftop solar installations.

Market Dynamics

Increasing Residential Rooftop Solar Installations Drives the Global Market

Due to this significant and ongoing cost reduction, lithium-ion is expected to continue to hold its position as the preferred battery chemistry in the residential energy storage and consumer electronics markets. Many governments worldwide are gradually reducing their reliance on coal and diesel by using renewable energy sources like solar and wind to meet their electricity needs. Given the lack of land in urban areas and the need to meet the rising electricity demand, rooftop solar is thought to be one of the best alternatives. Due to the intermittent nature of solar energy and its lack during the night, the rooftop solar PV power generation process heavily relies on battery storage. The rooftop solar PV system generates electricity stored by the BESS and later used for self-consumption.

Lithium-Sulfur Battery Technology Future Trend Creates Tremendous Opportunities

As solar power becomes more popular, battery storage solutions should grow. Lithium-ion batteries are preferred due to their high energy density, high output voltage, and low self-discharge rate. Lithium-sulfur batteries are new and have a 2-volt open circuit voltage and 2600 Wh/kg energy density than standard lithium-ion batteries. Lithium-sulfur batteries have a lithium-negative and sulfur-positive pole. Discharge dissolves lithium's negative pole in the electrolyte, and lithium ions move to sulfur's positive pole to form polysulfide ions (Li2Sx). The lithium-ion becomes negative as the polysulfide ion disintegrates during charging. Li2S2 and Li2S are separate from the solution as the reaction nears completion, forming a solid residue that reduces positive pole sulfur mobility and battery capacity.

Regional Analysis

Residential battery systems have expanded in the US in recent years, along with rising investments in infrastructure for renewable energy sources. Due to rising disposable incomes and the expanding work-from-home trend, residential electricity consumption is anticipated to increase. During times of high demand, energy storage systems keep homes powered. Residential energy storage capacity reached 420 MW in 2020, an increase of more than 70%. US incentive programs support residential energy storage. Residential storage is a critical component of California's Self-Generation Incentive Program (SGIP), which supports new and existing distributed energy resources. The market for residential battery energy storage is anticipated to grow due to the widespread use of small-scale renewable energy sources and the development of energy storage technology.

China has the most significant energy storage capacity in the Asia-Pacific residential battery market. The government's policies and regulations are expected to cause the Chinese market to expand. Through subsidies and installation targets, the Chinese government has demonstrated its ability to raise domestic demand for solar equipment. China is home to some of the biggest battery producers, including BYD and Amperex Technology, who are given preference over their competitors in Japan and South Korea. The country oversees 60% global component production, 77% global cell capacity, and 80% global raw material refining. Batteries are being used more frequently in residential markets as a result of the low battery prices. A total of 7.41 GW of residential rooftop solar capacity was added to China in the first nine months of 2021, an increase of 64.61 percent from the previous year and 2.14 GW. Despite solid market growth, the Chinese government reduced subsidies for solar power systems across all market segments.

European and international leaders in residential energy storage include Germany. Energy storage has increased recently due to the country's ambitious energy transition plans and target of reducing greenhouse gas emissions by 80% by 2050. By 2023, the nation intends to phase out nuclear power plants, encouraging the growth of renewable energy sources. In Germany, 88,000 new home storage systems were installed in 2020, according to BSW-Solar. Two hundred seventy-two thousand systems will be in use by 2020. In 2019, the nation installed 60,000 residential batteries, up from 40,000 in 2018, and in 2020, demand increased by 47%. Energy storage technologies are being developed through several public and private initiatives.

Key Highlights

• The global residential battery market was valued at USD 11.08 billion in 2021. It is expected to reach USD 46.79 billion by 2030, growing at a CAGR of 17.36% during the forecast period (2022–2030).
• Based on type, the global residential battery market is bifurcated into lithium-ion and lead-acid batteries. Lithium-ion (Li-ion) batteries have several technical advantages compared to alternative technologies like lead-acid batteries.
• Residential battery markets and battery systems have expanded in the US recently, coupled with increased investments in renewable energy infrastructure.

Competitive Players

1. FIMER SpA
2. Tesla Inc.
3. Duracell Inc.
4. Energizer Holding Inc.
5. BYD Co. Ltd.
6. Amara Raja Batteries Ltd
7. Samsung SDI Co. Ltd
8. Panasonic Corporation
9. Siemens AG
10. Luminous Power Technologies Private Limited
11. NEC Corporation
12. Delta Electronics Inc.
13. LG Energy Solution Ltd.

Recent Developments

• May 2024 - The world's top supplier of PV inverters and energy storage systems, Sungrow, held a launch event in Australia to present its most recent models of storage batteries and PV inverters for homes and businesses. Attracting over 120 attendees, the occasion demonstrated Sungrow's commitment to meeting the demands and preferences of its clients by providing state-of-the-art technology that improves their experience and ensures the dependability of their power plants.
• April 2024 - The lead acid home battery energy storage devices that ArcActive, a Christchurch firm, announced plans to manufacture and sell for half the price of Tesla Powerwalls have been revealed. In order to assist households who have solar panels in storing their energy, ArcActive built the device to be installed underneath the electricity meter.

Segmentation

1. By Type
   1. Lithium-ion Battery
   2. Lead-acid Battery
   3. Other Types
2. By Power Rating
   1. 3-6 kW
   2. 6-10kW
3. By Operation
   1. Standalone
   2. Solar
4. By Ownership :
   1. Customer-owned
   2. Utility-owned
   3. Third-party-owned
5. By Connectivity Type :
   1. On-grid
   2. Off-grid