The global solar battery market size was worth USD 148 million in 2021. It is expected to reach an estimated value of USD 540 million by 2030 at a CAGR of 15.5% during the forecast period (2022–2030).
The solar battery is generally utilized to store solar power and discharge the power as per need. It consists of lithium-ion or lead-acid. It is rechargeable and can usually store excess energy in solar cell frameworks. Several primary uses of solar batteries are solar charging stations and storage systems for off-grid and power plants. The growing demand for sustainable energy storage solutions is the primary factor driving the market growth. As governments globally promote sustainable energy sources, the demand for solar batteries is predicted to increase over the forecast period. The use of solar batteries can efficiently reduce the need for coal, oil, and other imported fossil energy resources. Additionally, the usage of solar battery storage systems will provide new employment, opening new investment opportunities in the economy.
|Fastest Growing Market||Europe|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
According to the US Solar Energy Industries Association (SEIA), the government has implemented laws, such as net metering and commonly solar, to promote photovoltaic technology to generate electricity. Consumers can utilize photovoltaic energy for their own electricity needs and sell the remaining solar power they do not use in countries like the US, Spain, and France. The Chinese solar photovoltaic industry has witnessed significant growth compared to other countries.
According to the China Photovoltaic Industry Association, China's capacity for photovoltaic energy grew by 34% year-on-year in 2018. Total installed PV capacity surpassed 170 gigawatts at the end of 2018 compared to 136 gigawatts in 2017. These regulations promote the use of photovoltaic technology. Therefore, these regulations are expected to impact the solar battery market positively. In addition, the demand for solar batteries is expected to rise significantly with the increased use of photovoltaic technology.
As per the International Energy Agency (IEA), the need for renewable energy has risen since 2015. For example, the annual solar PV capacity in 2017 reached 100 GW, showing an increase of 31% from 2016. The increased demand for PV technology is accredited to the rise in demand for sustainable energy resources, minimized carbon emission reduction, and dependency on conventional fuels. Furthermore, in 2019, solar PV witnessed a growth rate of 22% among other renewable energy sources like wind and hydro energy, owing to the rising demand for energy from developing countries like India, China, and Thailand. The increasing demand is attributed to rapid industrialization and urbanization.
In addition, the implementation of stringent government regulations to reduce carbon emissions produced due to the usage of conventional fuels has led to an increase in the performance of photovoltaic technology for electricity production. The need for solar energy is predicted to increase with the rise in demand for renewable energy. Therefore, the market for solar batteries is expected to increase.
Solar batteries are generally costly, which is a threat to the market. Solar power has to be used right away while stored in large batteries. These batteries, utilized in off-the-grid solar systems, can be charged throughout the day to use the energy at night. However, energy demand is generally higher during the day, and there is a need for installation and proper storage of solar energy. The cost of energy storage is relatively high and can quite quickly increase the cost of solar PV systems substantially. Therefore, installing an energy storage system depends on the consumption tariff rate.
Shortage of solar radiation and foggy weather can impact the efficiency of solar storage. However, the backup system as a part of the solar collector aids in the additional storage of solar heat during cloudy or foggy weather. It maintains the same performance as a solar battery even on cloudy days and overcast weather. Hence, such advancements are expected to create lucrative opportunities for market growth.
By region, the global solar battery market share is segmented by North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific dominates the regional market with more than 40% revenue share. It is estimated to reach an expected value of USD 215 million by 2030 at a CAGR of 17.5%. This is attributed to a rise in concern from governments across emerging nations, such as China, India, and South Korea, regarding zero-emission norms. However, China, the largest producer of solar power, is expected to foster the market's growth in Asia-Pacific further. In addition, the growing number of investment opportunities in new solar power projects will further influence the market growth in this region. For instance, in March 2021, VRB Energy signed an agreement with Xiangyang Municipal Government to build a 100 MW solar plant with a vanadium flow battery.
Europe accounts for the second-largest position in the regional market. It is estimated to reach an expected value of USD 175 million by 2030 at a CAGR of 15.8%. The Europe solar battery market is analyzed across France, Germany, the UK, Spain, Italy, and the rest of Europe. Intense Research and Development activities coupled with governing bodies, such as the European Commission, funding various solar power and energy storage projects will positively impact the market growth. Moreover, major manufacturers, such as LG Chem Europe GmbH, Victron Energy, and BMZ Group, providing a wide range of solar batteries for small, medium, and large projects will positively impact the market growth.
The renewable energy target is expected to have an essential role in boosting the solar battery market growth. European nations are delivering their 2020 renewable energy targets and initiating the implementation of 2030 National Energy and Climate Plans (NECPs) toward the 32% renewables target. This will permit many European countries to continue cost-effectively decarbonizing their power systems and transforming their energy framework. For example, in 2020, one of the battery storage operators in Italy was awarded a contract for 95 MW solar battery storage for 2022–2023 delivery. However, countries like the UK and Portugal encourage capacity auctions for solar battery storage. Such developments are anticipated to impact the market growth positively.
North America is the third-largest region and is estimated to reach an expected value of USD 40 million at a CAGR of 9% during the forecast period. North America is analyzed across the US, Canada, and Mexico. The North American solar battery market comprises the US, Canada, and Mexico. The US and Canada held more than 85% of the market share. Some significant players and component manufacturers include Tesla, US Battery Mfg. Co., and SUN-XTENDER. Ongoing infrastructural investments and innovative city projects are the major factors influencing the commercial solar battery market growth. New infrastructural investments and solar power projects are expected to impact this market growth positively.
The global solar battery market share is segmented across types, end-users, and regions.
By type, the global solar battery market is segmented into Lead Acid, Lithium-Ion, Flow Battery, and Others.
The Lithium-Ion segment holds the most dominant position in the market. It is estimated to reach an expected value of USD 455 million by 2030 at a CAGR of 15.7%. Significant players offering lithium-ion batteries for solar energy storage include Tesla, LG Chem, and CATL. Generally, a lithium-ion battery is preferred over other batteries due to its low weight (50–60% less than the lead-acid equivalent). The rising prominence of sustainable energy solutions is expected to surge the demand for lithium-ion solar batteries. Moreover, the energy density and efficiency of lithium-ion battery is very high than that of other solar batteries. Generally, the efficiency of a lead-acid battery can be up to 85%, whereas, for lithium-ion, it can be up to 95%. It is typically adequate to generate maximum power for commercial and industrial applications.
The lead-acid segment is the fastest growing. It is estimated to reach an expected value of USD 25 million by 2030 at a CAGR of 17.8%. A rise in the application of solar batteries in residential and commercial applications is expected to escalate the market growth for lead-acid batteries. Some lead-acid batteries, such as flooded lead-acid batteries, are ideal for small-scale applications. These are inexpensive and have a long lifespan (5–8 years) compared to lithium-ion batteries. In addition, a deep-cycle absorbent glass mat battery, a type of lead-acid battery, is effective in high vibration applications. Such battery design does not require regular testing and watering of lead batteries and has a 4–6 years lifespan, further reducing solar battery maintenance costs.
Others is the second-largest segment in the market, and it includes nickel-cadmium and nickel-iron. It is estimated to reach an expected value of USD 60 million by 2030 at a CAGR of 14%. Nickel-based batteries are generally suitable for industrial applications as these are suitable for a wide range of applications. Nickel-based batteries have strong demand as backup power systems for industrial and large commercial spaces. The system does not require regular installation, so it is a suitable option for rough usage. Moreover, the low cost of nickel-based batteries is a major driving factor for large-scale applications.
By end-user, the global solar battery market is segmented across Industrial, Commercial, and Residential.
The industrial segment holds the largest share in the market and is estimated to reach an expected value of USD 250 million by 2030 at a CAGR of 15.7%. Some of the major manufacturers of industrial solar batteries include SEC Battery Company, Exide Industries, and EnerSys. These solar battery systems are used for harsh environments in oil and gas, petrochemical, power generation, distribution, and transmission plants. These are effective for off-grid installation as a power backup device. The demand for a steady power supply in the industrial sector is expected to drive market growth. Industry players are trying to operate the electrical equipment with the same efficiency under blackouts, which is expected to enhance the market growth. In addition, the solar battery system used in industrial places can provide reduced maintenance and electricity cost.
The commercial segment is the fastest-growing and is estimated to reach an expected value of USD 195 million by 2030 at a CAGR of 16.2%. These are mainly used for light and heavy commercial areas such as small and medium data centers, shopping centers, ATMs, etc. In addition, data centers in banks, hotels, hospitals, and insurance companies often use solar batteries for IT applications. Significant manufacturers offering commercial grade uninterrupted power supply systems include Tesla, Sun Power, and SolarEdge. The growing prominence of high-performance and compact power solutions for commercial spaces will foster market growth.
The residential segment accounts for the second-largest position in the market and is estimated to reach an expected value of USD 115 million by 2030 at a CAGR of 14.2%. Growing disposable income and changing lifestyles are expected to drive the application of electrical appliances in residential areas. In addition, demand for smooth and steady power solutions is expected to boost market growth further. However, some solar batteries, such as lithium-ion batteries and nickel-cadmium batteries, are not economical for small-scale applications.