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 used to store energy from renewable energy sources like solar panels for use during power outages or to reduce energy bills. They are installed in homes to store excess energy produced from solar panels during the day and use it in the evenings or at night. They provide backup power during power outages and allow users to take advantage of time-of-use electricity pricing by charging the battery when rates are low and powering the home when rates are high.
Market Dynamics:
The residential battery market is driven by the increasing investments in renewable energy sources like solar and wind energy across the globe. Solar panels installed in homes produce more energy during the day which can be stored in residential batteries for use later. Governments of many countries are providing various incentives and subsidies for installing rooftop solar panels. For instance, the U.S. government provides a 26% tax credit for solar energy systems.
Another major driver is the rising demand for energy storage applications and the need for backup power solutions. Power outages have increased significantly over the last few years due to extreme weather conditions caused by climate change. Residential batteries provide backup power during outages and help reduce dependency on electric grids. They allow users to power essential appliances and lights even when the power grid is down.
SWOT Analysis
Strength: Residential Battery has three main benefits – it provides backup power during power outages, helps consumers reduce their electricity bills by time-shifting their solar power usage, and provides an environmentally friendly energy source. Residential Battery allows houses to store excess solar energy and use this stored energy during nighttime or when renewable energy production is low.
Weakness: Residential Batteries have high upfront costs which impacts their mass adoption. Additionally, the technology used in batteries like lithium-ion also has limitations in terms of lifetime and disposal concerns.
Opportunity: Increasing global focus on renewable energy sources and the need to reduce dependence on fossil fuels will boost demand for residential batteries. Government policies and subsidies promoting solar rooftop installations also indirectly boost the residential battery market.
Threats: Fluctuations in raw material prices directly impact the battery industry. Changes in government regulations and policies related to renewable energy adoption can affect market growth. Advancements in other energy storage technologies pose competition to the residential battery market.
Key Takeaways
The Global Residential Battery Market is expected to witness high growth, exhibiting a CAGR of 18.6% over the forecast period, due to increasing global focus on renewable energy sources. Residential batteries play a key role in efficient utilization of solar power generated from rooftop panels.
Regional analysis: North America dominates the global residential battery market owing to high solar panel installation and supportive government policies in the US and Canada promoting renewable energy adoption. Asia Pacific exhibits the fastest growth in the residential battery market led by countries like China, Japan and India. China is the largest market for residential batteries globally supported by the governments focus on achieving carbon neutrality by 2060.
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. Players are focused on product development to introduce lower cost and higher performance batteries to drive mass adoption of residential storage solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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