The global residential battery market size 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)
Electric energy is kept in residential batteries for later use. Residential batteries are typically made of lithium-ion or lead-acid composition to handle charging and discharging cycles effectively. These are applied in several industries, such as smart meters and electric vehicles. These are discovered to be incredibly helpful in remote locations lacking a reliable grid connection. With more homes installing rooftop solar power, the market for these batteries is anticipated to grow. These rooftop solar installations allow users to store energy for use during blackouts. Similarly, these batteries are also charged during power outages using the regular grid connection network.
This significant and ongoing cost decrease is anticipated to further solidify lithium-ion as the preferred battery chemistry in the residential energy storage and consumer electronics markets. To meet their electricity needs, many governments worldwide are turning to renewable energy sources like solar and wind, gradually reducing their reliance on coal and diesel. Rooftop solar is regarded as one of the best alternatives because urban areas lack land and must meet the rising electricity demand. The rooftop solar PV power generation process relies heavily on battery storage because solar energy is sporadic and unavailable at night. The BESS stores the electricity produced by the rooftop solar PV system and uses it later for self-consumption. The increasing adoption of rooftop solar and related battery storage systems has been primarily attributed to government initiatives like tax credits and subsidies from countries like China, India, the United States, and others.
Lead-acid residential batteries raise some environmental issues. Lead is released during lead-acid battery disposal and is considered hazardous waste for the environment and human health. Such batteries may negatively impact the human brain and kidneys and cause hearing issues if they are not correctly disposed. Even though many countries have lead-acid battery recycling facilities, there are still several operational and environmental issues with the lead recycling process. The smelting step in recycling lead-acid batteries uses much energy because it operates at high temperatures, and using carbon as fuel results in the production of CO2. Lead smelting has a relatively high potential for global warming due to the high energy demand and CO2 production. As a result, during the forecast period, lead-acid batteries for residential applications are likely to experience a decline in demand.
Clean energy is in high demand. As renewable energy technologies like solar become more popular, battery energy storage solutions are expected to grow. As of 2020, lithium-ion batteries are preferred due to their high energy density, high output voltage, and low self-discharge rate. New lithium-sulfur batteries have a 2-volt open-circuit voltage and 2600 Wh/kg higher energy density than conventional lithium-ion batteries. The lithium-sulfur battery has a lithium-negative pole and a sulfur-positive pole. Lithium's negative pole dissolves in the electrolyte during discharge, and lithium ions move to sulfur's positive pole to form polysulfide ions (Li2Sx). The lithium-ion shifts to its negative pole as the polysulfide ion breaks down during charging. With continued reaction, polysulfide ion solubility decreases. Li2S2 and Li2S are separate from the solution as the reaction nears completion, forming a solid residue that reduces the positive pole sulfur's mobility and the battery's capacity. A company called Lyten unveiled a next-generation lithium-sulfur battery in September 2021. Such innovations are expected to increase lithium-sulfur batteries' market share.
The global residential battery market is segmented by 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. For example, rechargeable Li-ion batteries offer cycles of more than 5,000 times, while lead-acid batteries often only last 400–500 cycles. Li-ion batteries do not require as much maintenance or replacement as lead-acid batteries. In contrast to lead acid batteries, which consistently lose voltage during the discharge cycle, lithium-ion batteries maintain their voltage, allowing for higher and longer-lasting electrical component efficiency. Li-ion batteries have a higher initial cost, but when lifespan and performance are considered, their actual cost is significantly lower than lead-acid batteries.
More than 60% of the market for automotive applications' lead acid batteries is accounted for by these batteries. Battery energy storage systems are the primary use for lead-acid batteries in the residential sector. The preferred battery type for traditional battery inverter systems is lead-acid batteries. Due to their low price, lead-acid batteries are the most practical option for residential battery-based systems. Flood lead-acid batteries are the most cost-effective option when balancing cost, capacity, and product cycle life.
On the other hand, AGM & GEL VRLA options are also available to offer solutions in cases where a sealed maintenance-free product is needed. Additionally, using lead-acid batteries in residential applications does not carry the same fire and explosion risks as using lithium batteries, provided they are installed correctly. Additionally, because lead-acid battery charging is much simpler than charging lithium cells, there is no requirement for more expensive and sophisticated battery monitoring systems.
By regions, the global residential battery market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
Residential battery markets and battery systems have expanded in the US recently, coupled with increased investments in renewable energy infrastructure. Residential electricity consumption is expected to rise due to rising disposable incomes and the growing work-from-home trend. Energy storage systems keep homes powered during peak outages. In 2020, residential energy storage capacity increased by more than 70% to 420 MW. In addition, the US incentive programs support the residential energy storage market. California's Self-Generation Incentive Program (SGIP), which supports new and existing distributed energy resources, focuses on residential storage. The widespread adoption of small-scale renewable energy sources and the advancement of energy storage technology is expected to boost the residential battery energy storage market.
China has one of the most significant energy storage capacities in the Asia-Pacific residential battery market. The Chinese market is expected to grow due to government regulations and policies. The Chinese government has shown it can increase domestic demand for solar equipment through subsidies and installation goals. Some of the largest battery manufacturers, including BYD and Amperex Technology, are based in China, where they receive preferential treatment over Japanese and Korean rivals. The country wants to expand battery production. The nation controls 80% of the world's raw material refining, 77% of the world's cell capacity, and 60% of the world's component manufacturing. Due to low battery prices, batteries are used more often in residential markets. China installed 2.14 GW of residential rooftop solar capacity in September 2021, up 64.61 percent from the previous year and bringing the total to 7.41 GW for the first nine months of 2021. Despite excellent market growth, the Chinese government reduced solar power system subsidies across market segments.
Germany is a global and European leader in residential energy storage. Energy storage has seen a recent uptick due to the nation's ambitious energy transition plans and goal of reducing greenhouse gas emissions by 80% by 2050. The country plans to phase out nuclear power plants by 2023, which should spur the development of renewable energy sources. A residential battery storage system has an average capacity of 8.5kWh, which is higher than the 2019 average of 8kWh, and 70% of these systems are battery-powered. According to BSW-Solar, 88,000 new home storage systems were installed in Germany in 2020. By 2020, 272,000 systems existed and country also installed 60,000 residential batteries in 2019 and 40,000 in 2018, and demand rose 47% in 2020. Several public and private initiatives are developing energy storage technologies. The federal government offers low-interest loans and investment grants for PV battery systems.
Compared to Argentina, Colombia, Chile, and other countries in South America, Brazil has the highest GDP growth. The nation's overall GDP in 2019 was USD 1.84 trillion, up 2.1% from USD 1.802 trillion in 2015. The nation's Final Consumption Expenditure (FCE) in 2019 was USD 1.568 trillion, or about 85.21 percent of its total GDP, which included domestic spending. But like most nations worldwide, the country's GDP declined significantly in 2020, which had a detrimental effect on the residential battery market. Most domestic appliances in the nation use residential batteries, including remote controls for TVs and air conditioners, laptops, mobile phones, home inverters, and UPS systems for personal computers. People in the nation have a lot of disposable income to spend on the items listed above that require various types of batteries to operate. Additionally, during the forecast period, a rise in the number of internet and smartphone users in the nation is anticipated to drive up demand for residential batteries.
Saudi Arabia is one of the Middle East's most developed and significant economies. The nation's gross domestic product (GDP) fell by 11.7% from SAR 2.974 trillion in 2019 to SAR 2.625 trillion in 2020. The private sector contributed 51.0% of the GDP in 2020, followed by the public sector with a share of 25.6% and the oil sector with a share of 23.3%. During the forecast period, it is anticipated that this significant GDP contribution to home spending will continue, providing its citizens with more disposable income to invest in the residential battery market. Additionally, Saudi Arabia is one of the region's nations with a high GDP per capita, giving its citizens access to a wide range of battery-powered household items like inverters, remote controls, toys, watches, and trimmers. The nation planned several projects involving the growth of upscale hotels and residential areas during the previous ten years.
The global residential battery market’s major key players are
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