- The customer owned segment is expected to be the fastest growing residential energy storage market, by ownership type, during the forecast period.
- The lithium-ion segment is expected to be the largest contributor during the forecast period.
- Asia Pacific dominated the global residential energy storage market.
The global residential energy storage market is projected to reach $17.5 billion by 2024 from an estimated $6.3 billion in 2019, at a CAGR of 22.88% during the forecast period. This growth can be attributed to factors such as declining cost of batteries, regulatory support and financial incentives, and the need for energy self-sufficiency from consumers. Residential energy storage systems provide power backup during power outages, and therefore, play a vital role in the energy industry.
The 3–6 kW segment is projected to be the fastest market during the forecast period. This is mainly because of the increase in the need for power backup during natural disasters. Furthermore, consumers and governments install small storage solutions that can be utilized in times of need to avoid a major electricity crisis, which is also contributing to the growth of the market.
The global residential energy storage market, by technology (lithium-ion, lead–acid). The lithium-ion segment is expected to hold the largest market share and be the fastest growing market with decreasing lithium-ion battery costs and high efficiency. Furthermore, environmental policies and regulations are also driving the growth of the lithium-ion energy storage market in the residential sector.
The customer owned segment is expected to account for the highest CAGR during the forecast period. The growth of this segment can be attributed to the increasing need for energy self-sufficiency and rising demand for power backup. This is expected to increase the demand for the residential energy storage market during the forecast period. In addition to this, there is a rising demand for modular energy storage infrastructure in residential areas in developed countries such as the US, the UK, Germany, Norway, and China, which is driving the growth of the residential storage market.
In this report, the residential energy storage market has been analyzed with respect to 5 regions, namely, North America, South America, Europe, Asia Pacific, and the Middle East & Africa. Asia Pacific dominated the global residential energy storage market in 2018, owing to the installation of storage solutions for residential end-users. Over the past few years, this region has witnessed rapid economic development as well as the growth of renewables and demand for energy self-sufficiency, which has resulted in an increase in the demand for energy storage options. Countries such as Australia and some parts of India and China are also providing subsidies and financial incentives to residential consumers. This movement toward solar and storage is resulting in grid stabilization and greener countries with lower carbon emissions, thereby driving the residential energy storage market.
Companies covered in he residential energy market are are Huawei (China), Samsung SDI Co. Ltd. (South Korea), Tesla (US), LG Chem (South Korea), and SMA Solar Technology (Germany). The leading players are adopting various strategies to increase their share in the residential energy storage market.