Solar Battery Market Forecasts to 2030 - Global Analysis By Battery Size (Small-Scale Batteries, Medium-Scale Batteries and Large-Scale Batteries), Integration, Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Solar Battery Market is accounted for $4.32 billion in 2024 and is expected to reach $21.62 billion by 2030 growing at a CAGR of 25.6% during the forecast period. A solar battery is a device that stores energy generated from solar panels for later use. It enables solar power systems to provide electricity when sunlight is unavailable, such as during night time or cloudy days. By storing excess energy produced during peak sunlight hours, solar batteries enhance energy independence, ensure a consistent power supply, and can reduce reliance on the grid.

According to the China Photovoltaic Industry Association, China's capacity for photovoltaic energy grew by 34% year-on-year in 2018.

Market Dynamics:

Driver:

Increasing awareness and commitments to reduce carbon footprints

Increasing awareness and commitments to reduce carbon footprints encourages individuals, businesses, and governments to transition towards sustainable energy solutions. Solar batteries enable the storage of renewable energy, reducing reliance on fossil fuels and lowering carbon emissions associated with electricity generation. As more stakeholders prioritize environmental sustainability, there is a growing demand for reliable energy storage solutions like solar batteries. This trend is supported by policies, incentives, and initiatives aimed at promoting renewable energy adoption and achieving climate goals, further boosting market growth.

Restraint:

Intermittency of solar power

Solar panels generate electricity only when exposed to sunlight, resulting in varying output levels throughout the day and across seasons. This variability requires effective energy storage solutions to store excess energy produced during peak sunlight hours for use during periods of low or no sunlight. The need for reliable and efficient storage technologies increases costs and complexity. Therefore, intermittency of solar power, caused by factors like weather patterns and time of day, poses challenges for the growth of the solar battery market.

Opportunity:

Smart grid integration

Smart grid integration enhances the growth of the solar battery by enabling optimized energy management and grid stability. It facilitates real-time monitoring and control of energy flows, allowing solar batteries to store excess energy during low demand periods and discharge it during peak times. This capability reduces strain on the grid, improves efficiency, and supports higher penetration of renewable energy sources like solar. Additionally, smart grid technologies enable utilities to offer demand response programs, incentivizing consumers to use stored solar energy during peak demand, thereby promoting the adoption of solar batteries.

Threat:

High upfront investment

The high upfront investment in solar batteries primarily stems from the cost of the batteries themselves and the associated installation expenses. Solar batteries use advanced technology like lithium-ion cells, which are initially expensive to manufacture. Additionally, integrating these batteries into existing solar systems requires professional installation, further adding to costs. This high initial investment acts as a barrier to widespread adoption, particularly for residential and small-scale commercial consumers.

Covid-19 Impact

The covid-19 pandemic disrupted the solar battery market, causing supply chain delays and project postponements. However, it also highlighted the need for reliable energy storage as more people worked from home, driving increased residential demand. Government incentives and a growing emphasis on renewable energy recovery plans further supported the market's resilience and growth, despite initial setbacks and economic uncertainties.

The emergency backup segment is expected to be the largest during the forecast period

The emergency backup segment is estimated to have a lucrative growth. Solar batteries for emergency backup provide crucial power during grid failures or emergencies. These systems store energy harvested from solar panels during periods of sunlight, ensuring continuous electricity supply when traditional sources fail. By storing renewable energy, solar batteries enhance resilience and reduce reliance on fossil fuels, making them a sustainable choice for emergency preparedness and disaster response.

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

The commercial sector segment is anticipated to witness the fastest CAGR growth during the forecast period. In the commercial sector, solar batteries play a pivotal role by optimizing energy usage and reducing electricity costs. They also offer businesses greater energy independence, stability against power outages, and the ability to support sustainability goals by reducing carbon footprints through increased use of renewable energy sources.

Region with largest share:

The solar battery market in the Asia-Pacific region is experiencing rapid growth, driven by increasing investments in renewable energy, government incentives, and rising energy storage needs. Countries like China, Japan, and India are leading the charge with substantial solar infrastructure developments. The region's focus on reducing carbon emissions and ensuring energy security is propelling demand for efficient solar battery solutions, making the Asia-Pacific a key player in the global solar battery industry.

Region with highest CAGR:

The solar battery market in North America is expanding swiftly, driven by strong governmental incentives, such as tax credits and renewable energy mandates. The United States leads the region with significant investments in solar energy infrastructure and energy storage solutions. Residential, commercial, and utility sectors are increasingly adopting solar batteries for improved energy independence and resilience against grid disruptions. This growing adoption reflects North America's commitment to sustainable energy and reducing carbon footprints.

Key players in the market

Some of the key players profiled in the Solar Battery Market include Tesla, LG Chem, Panasonic, BYD, Samsung SDI, Sonnen, SimpliPhi Power, Enphase Energy, Pika Energy, SolarEdge, Aquion Energy, Blue Planet Energy, EnerSys, Trojan Battery Company, Alpha-ESS, Radiant Solar Technology, Bosch Solar Energy, BAE Batterien.

Key Developments:

In March 2023, LG Energy Solution announced an investment of USD 5.5 billion to build a battery manufacturing complex in Arizona (U.S.). It will consist of two manufacturing units one is for lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS), and the other is for cylindrical batteries for electric vehicle.

In January 2023, Enphase Energy, Inc. announced a partnership with Enerix to expand Enphase product offerings in Europe. Enerix will offer Enphase Energy Systems, powered by IQ Microinverters and IQ Batteries, to its network of more than 100 franchise partners across Germany and Austria through this partnership.

Battery Sizes Covered:

• Small-Scale Batteries
• Medium-Scale Batteries
• Large-Scale Batteries

Integrations Covered:

• Off-grid Systems
• Grid-tied Systems
• Grid Stabilization

Technologies Covered:

• Lithium-ion (Li-ion) Batteries
• Lead-acid Batteries
• Flow Batteries
• Nickel-based Batteries
• Other Technologies

Applications Covered:

• Emergency Backup
• Rural Electrification
• Electric Vehicle (EV) Charging
• Microgrids
• Other Applications

End Users Covered:

• Residential Sector
• Commercial Sector
• Industrial Sector
• Transportation
• Agriculture
• Other End Users

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 2022, 2023, 2024, 2026, and 2030
• 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

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances