Residential Battery Market Is Estimated To Witness High Growth Owing to Rising Adoption of Renewable Energy Technology

The residential battery market is estimated to be valued at USD 11.08 billion in 2023 and is expected to exhibit a CAGR of 18.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Residential batteries are energy storage systems installed in homes that store electricity generated by rooftop solar panels or from the grid. These batteries allow homeowners to use self-generated solar power even when the solar panels are not generating electricity, either due to night time or overcast weather conditions. Residential batteries range from smaller battery backups for homeowners to larger battery storage systems for whole-home use. They provide backup power during outages and time-of-use management to reduce electricity costs.

Market Dynamics:
Rising adoption of renewable energy technologies is a major driver for the residential battery market. The growing use of solar power in homes has created a demand for battery storage to utilize solar power during non-sunny hours. Government support through various subsidies and tax incentive programs is also boosting adoption of residential battery storage. Additionally, increasing power outages due to aging electric grid infrastructure are compelling homeowners to opt for battery backups to ensure uninterrupted power supply during emergencies. All these factors are fueling market growth over the forecast period.
Segment Analysis
The Global Residential Battery Market is dominated by the lead-acid battery segment. Lead-acid batteries are preferred for residential use due to their cost-effectiveness and high reliability. The flooded lead-acid batteries are the most widely adopted type for residential backup and off-grid applications as they have lower upfront costs compared to other battery chemistries.

PEST Analysis
Political: Favourable government policies and regulations supporting the deployment of renewable energy at residential premises is driving the demand for battery storage solutions. Various nations have developed net metering policies and incentives for residential solar panel installation.
Economic: Declining lithium-ion battery prices and increasing electricity costs from traditional utilities is making residential battery systems more economically viable. The payback period for residential storage is decreasing.
Social: Rising environmental awareness among homeowners and growing adoption of roof-top solar panels is fuelling the need for stationary battery storage to optimize self-consumption of green energy.
Technological: Advancements in battery management technology, battery chemistries, and integration with smart home solutions are enhancing the efficiency and feasibility of residential battery storage. Lithium-ion battery costs and sizes are declining rapidly.

Key Takeaways
The global residential battery market is expected to witness high growth, exhibiting CAGR of 18.6% over the forecast period, due to increasing adoption of roof-top solar panels among households. The Asia Pacific region dominated the global market in 2023 attributed to high installation of residential solar PV systems in China, Japan, and India. Local battery manufacturers such as BYD Co. Ltd, LG Energy Solution, Ltd. and Tesla Inc. are gaining prominence.

The residential battery market in North America and Europe is also expanding steadily due to stringent climate change regulations and supportive green policies. Countries like the US, Germany, UK, and France are emerging as major markets.

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. Manufacturers are investing in R&D to develop innovative, durable, and energy-dense battery solutions for residential storage applications. Collaboration with solar EPC players and integration with home energy management systems are the key strategies adopted.

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