February 23, 2024

Rising Deployment of Residential Battery Systems to Boost the Growth of Residential Battery Market

The global residential battery market is estimated to be valued at US$ 15.59 Bn or in 2023 and is expected to exhibit a CAGR of 18.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Residential battery refers to battery storage systems installed in residential buildings. These systems capture and store onsite solar energy and provide power backup during outages. They integrate advanced lithium-ion battery technology and inverters to store energy and provide it when required. Residential batteries offer benefits such as reduced energy bills, energy security, emission reduction, and integration of renewable energy sources such as rooftop solar PV systems. With rising energy costs and focus on clean energy, residential battery systems are gaining popularity globally.

Market key trends:
One of the key trends in the residential battery market is growing integration of batteries with rooftop solar PV systems. As solar energy production varies during the day, the excess energy is stored in batteries for use later. This allows homeowners to use solar energy even after sundown or on overcast days. Another trend is the development of larger residential storage solutions with capacities beyond 10 kWh. These high-capacity batteries provide backup power for entire homes for extended durations and optimize solar self-consumption. Technological advances are also enabling the development of affordable and efficient lithium-ion battery chemistries specifically designed for residential use cases.

Porter’s Analysis:
Threat of new entrants: The threat of new entrants in the residential battery market is moderate as it requires large capital investments for setting up manufacturing units. However, advancements in technology may attract new players.

Bargaining power of buyers: The bargaining power of buyers in the residential battery market is high due to the presence of a large number of established players offering varied products at competitive prices. Buyers can easily switch between brands.

Bargaining power of suppliers: Suppliers of raw materials for manufacturing residential batteries have moderate bargaining power due to availability of alternative material suppliers. However, suppliers may negotiate prices amid rising input costs.

Threat of new substitutes: New energy storage technologies such as hydrogen fuel cells pose low-to-moderate threat currently to residential battery market. However, threat may intensify over the long-run with advancements.

Competitive rivalry: The global residential battery market witnesses high competition with major players launching new products with improved features regularly to gain market share.

Key Takeaways:
The global Residential Battery Market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing demand for standalone power storage solutions and integration of renewable energy sources in residential sector.

Regional analysis: Asia Pacific dominates the global residential battery market and is expected to continue its dominance, growing at a CAGR of over 19% during the forecast period. China, South Korea, India, and Japan are major markets in the region. Europe and North America are other major residential battery markets globally.

Key players: Key players operating in the residential battery market are FIMER SpA, Amara Raja Batteries Ltd, Samsung SDI, Energizer Holding Inc., Luminous Power Technologies Private Limited, LG Energy Solution, Ltd., Duracell Inc., Panasonic Corporation, Siemens AG, Tesla Inc., Delta Electronics Inc., BYD Co. Ltd and NEC Corp. Major players are focusing on new product launches and partnerships to gain market share.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it