by 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 for purposes such as power backup, peak demand shaving, and integrating renewable energy generation from solar panels. They help store electricity generated from rooftop solar panels or wind turbines for use when power is needed. This reduces dependency on grid power and lowers electricity bills.
Market key trends:
The demand for residential battery systems is growing owing to the increasing investments in renewable energy projects across the globe. Countries are shifting from non-renewable to renewable sources of energy to reduce carbon emissions. For instance, according to the International Renewable Energy Agency, annual investment worldwide in renewable energy increased from $227 billion in 2010 to $308 billion in 2017. Growing awareness about benefits of renewable energy coupled with reducing costs of batteries is fueling adoption of residential battery storage systems. Governments in several countries also provide subsidies and incentives for installation of home battery systems to support clean energy goals.
Porter’s Analysis
Threat of new entrants: The Global Residential Battery Market has low threat of new entrants due to high investment required to acquire technological expertise and economies of scale.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and price sensitivity. However, demand for green energy is driving their preference.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of raw materials and components from various manufacturers globally.
Threat of new substitutes: Threat of substitutes is moderate as battery technologies are continuously evolving and improving renewable energy storage alternatives.
Competitive rivalry: High as key players compete on performance, features and pricing.
SWOT Analysis
Strengths: Rising adoption of renewable energy sources and government support for clean energy drives demand. Lithium-ion technology offers high energy density and Cycle life.
Weaknesses: High initial costs and lack of standardization. Potential safety issues related to overheating of batteries.
Opportunities: Growth in developing markets due to increasing electricity demand and supportive policies. Emerging VPP (virtual power plant) model creates new revenue streams.
Threats: Trade disputes and raw material price fluctuations impact supply chain. Slow growth of EV market could reduce economies of scale benefits.
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 demand for backup power solutions during power outages and growing investment in renewable energy integration at residential levels. Asia Pacific dominates the market currently, due to high demand from China, Japan and India. Stricter emission norms in the region are also propelling the residential battery installations.
Regional analysis North America is anticipated to be the fastest growing region owing to rising acceptance of battery storage in the US and Canada, driven by incentives and policies promoting distributed renewable generation.
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. Key players are focusing on new product launches and partnerships to develop innovative and cost-effective storage solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
