Residential Battery Market Forecasts to 2028 - Global Analysis By Type (Lead Acid Battery, Lithium Ion Battery and Other Types), By Power Rating (3-6 kW and 6-10 kW), By Operation (Solar, Standalone and Other Operations) and By Geography

According to Stratistics MRC, the Global Residential Battery Market is accounted for $13.22 billion in 2022 and is expected to reach $38.24 billion by 2028 growing at a CAGR of 19.36% during the forecast period. Residential batteries store electric energy for future use. Lithium-ion or lead-acid batteries are frequently used in residential batteries because of their ability to tolerate charging and discharging cycles. They are used in a variety of industries, including electric vehicles and smart metres. They have shown to be tremendously beneficial in outlying areas without a dependable grid connection. The market for these batteries is expected to expand as more homeowners install rooftop solar electricity. Users can store energy for use during outages thanks to these rooftop solar arrays. Similar to how they are charged during power outages, these batteries are also charged utilising the standard grid connection network.

According to BSW-Solar, 88,000 new home storage systems were installed in Germany in 2020. According to the Solar Energy Industries Association (SEIA), a national non-profit trade association of the solar-energy industry in the United States, the United States of America has installed a 4.6 GW of solar community energy in the year 2021.

Market Dynamics:

Driver:

Increasing residential rooftop solar installations

Lithium-ion is expected to continue to hold its position as the favoured battery chemistry in the residential energy storage and electronic goods markets as a result of this large and continued cost reduction. Several countries all around the world are gradually reducing their dependency on coal and diesel by using renewable energy sources like solar and wind to meet their electrical needs. With the shortage of land in metropolitan areas and the need to fulfil the expanding demand for electricity, rooftop solar is thought to be one of the best solutions. Due to the intermittent nature of solar energy and its lack throughout the night, the rooftop solar PV power generation process significantly relies on battery storage. Government programmes like tax credits and subsidies from developing nations have been primarily blamed for the rising adoption of rooftop solar and related battery storage systems.

Restraint:

Disadvantages of lead-acid batteries

Residential lead-acid batteries bring up certain environmental concerns. Lead is a hazardous waste for the environment and human health that is released through the disposal of lead-acid batteries. If these batteries are not properly disposed of, they may harm a person's brain, kidneys, and cause hearing problems. Even though lead-acid battery recycling facilities are present in many nations, the lead recycling process still has a number of operational and environmental problems. As a result, it is expected that demand for lead-acid batteries for residential applications would decrease throughout the course of the projection period.

Opportunity:

Future trend for lithium-sulfur battery technologies

Demand for clean energy is high. Battery energy storage options are anticipated to expand as renewable energy technologies like solar gain popularity. In comparison to traditional lithium-ion batteries, new lithium-sulfur batteries feature a 2 volt open circuit voltage and a 2600 WH/kg higher energy density. A lithium-negative pole and a sulfur-positive pole make up the lithium-sulfur battery. During discharge, lithium's negative pole dissolves in the electrolyte, and lithium ions migrate to the positive pole of sulphur to produce polysulfide ions (Li2Sx). As the polysulfide ion disintegrates while being charged, the lithium-ion transfers to its negative pole. The solubility of polysulfide ions diminishes over time. A new type of lithium-sulfur battery was revealed by a company called Lyten. These developments should boost the market share of lithium-sulfur batteries.

Threat:

Environmental concerns

Lead acid batteries used for residential use pose little environmental problems. When lead acid batteries are disposed of, lead is released into the environment, which is hazardous waste and is known to be dangerous to human health. If such batteries are not properly disposed of, it could have a negative impact on the human brain and worsen hearing issues. Even if several countries provide recycling services for lead acid batteries, there are still drawbacks to the lead recycling processes, initially those related to environmental and neighbourhood concerns. Because lead acid batteries operate at extremely high temperatures, recycling them involves a significant energy requirement.

COVID-19 Impact:

The COVID-19 pandemic had a minimal impact on the market because of decreased electricity and energy demand as well as decreased global economic growth. Continuous R&D aimed at improving battery materials, lowering non-active material and material costs, improving cell design and production yield, and accelerating production has led to a steady increase in battery performance. The market will therefore probably be fuelled by the decline in lithium-ion battery prices throughout the course of the projected period. However, concerns about complexity, a short life span that must be taken into account, failure because of deep and continuous cycle, etc., are anticipated to impede the market's expansion during the projected time.

The lithium-ion segment is expected to be the largest during the forecast period

The lithium-ion segment is estimated to have a largest share, due to the superior efficiency compared to competing options Cost reductions have recently spurred the market for lithium-ion batteries. Based on power ratings, the market is split into two groups: 3kW to 6kW and 6kW to 10kW. The 3-6 kW sector is probably going to hold the largest market share due to residential consumers' preference for high-capacity batteries.

The standalone segment is expected to have the highest CAGR during the forecast period

The standalone segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the introduction of solar electricity, stand-alone type batteries were being installed in residential areas. As a result, a sizeable section of the market is made up of these standalone batteries. The development of solar-connected battery installations has recently been spurred by the introduction of solar energy; this growth is anticipated to continue at a healthy rate and have a positive effect on the overall home battery sector.

Region with largest share:

Because the fastest-urbanising nations are based in Asia Pacific, it is predicted that there will be a considerable increase in demand for residential batteries for a variety of uses, including consumer electronics, backup power supply systems, and other things. Therefore, it is projected that the region will have largest share over the forecast period. The China residential battery market is anticipated to expand throughout the forecast period as a result of the government's policy and regulatory assistance. The Chinese government has already demonstrated its capacity to increase domestic demand for solar-related technology through subsidies and installation goals.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period. China has one of the largest installed capacities for developed energy storage in the world. The official announcements, support, and assistance are expected to help the Chinese home battery market flourish throughout the anticipated period. The Chinese government and regulatory bodies have already acknowledged their power to spur a significant increase in local demand for solar-related technology.

Key players in the market:

Some of the key players profiled in the Residential Battery Market include: ABB Ltd, Amara Raja Batteries Ltd, Delta Electronics Ltd, Duracell Inc, Energizer Holding Inc., Hitachi , LG Energy Solution Ltd, Luminous Power Technologies Pvt. Ltd, NEC Corporation, Panasonic Corporation, Samsung SDI Co. Ltd, Siemens AG and Tesla Inc.

Key Developments:

In March 2021, The Panasonic Corporation declared the signing of a share transfer deal with the Germany based AURELIUS Group under which all the shares of the Panasonic energy, Belgium N.V, Panasonic Energy Europe N.V., and the Panasonic Energy Poland S.A will be transferred to the German investment firm.

In October 2020, Panasonic Corporation being the first Japanese company to share or to transfer the cumulative total of 200 billion dry batteries globally post the achievement of 100 billion milestones in 2001 since the start in house production of the dry cells in the year 1931.

In October 2021, The Delta electronics Inc. adopted the Infinova Ltd. it aims to reinforce or to strengthen the Delta's presence in the rising video surveillance market and the complement in its building automation solutions.

In April 2021, the Delta Electronics Inc. partnered with the BMW group and the Microsoft joints the open manufacturing platform. It focuses to gain the high effective, less cost and sustainable innovative energy solutions brought by the digital changes from the cutting edge technologies.

Types Covered:

• Lead Acid Battery
• Lithium Ion Battery
• Other Types

Power Ratings Covered:

• 3-6 kW
• 6-10 kW

Operations Covered:

• Solar
• Standalone
• Other Operations

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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