Global Residential Energy Storage System Market Insights Forecasts to 2033

• The Global Residential Energy Storage System Market Size was Valued at USD 8.68 Billion in 2023
• The Market Size is Growing at a CAGR of 17.61% from 2023 to 2033
• The Worldwide Residential Energy Storage System Market Size is Expected to Reach USD 43.95 Billion by 2033
• North America is Expected to Grow the fastest during the forecast period.

The Global Residential Energy Storage System Market Size is Anticipated to Exceed USD 43.95 Billion by 2033, Growing at a CAGR of 17.61% from 2023 to 2033.

Market Overview

A residential energy storage system is a technology that allows homeowners to store electricity generated from renewable energy sources, like solar panels or wind turbines, or from the grid during off-peak hours when electricity rates are lower. The primary purpose of these systems is to provide backup power during power outages, reduce reliance on the grid, and minimize energy costs by using stored energy during peak demand periods. The most common type of residential energy storage system is a battery-based system, typically using lithium-ion batteries. These systems can be connected to the home's electrical system and work in conjunction with solar panels or other renewable energy sources. Homeowners can use the stored energy during periods of high electricity demand, at night when solar panels are not generating power, or when grid electricity is not available.

For instance, In February 2024, Residential BESS are now exempt from VAT in the United Kingdom when installed either new or retroactively in conjunction with rooftop solar systems. Previously, VAT relief was only available for domestic BESS if installed together with a new solar energy system. As of Feb. 1, a VAT zero rates will also apply to retrofitted residential BESS. The VAT relief also applies to BESS when installed in charitable buildings.

Report Coverage

This research report categorizes the market for residential energy storage systems based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the residential energy storage systems market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the residential energy storage systems market.

Driving Factors

The growth in residential energy storage system market is mainly attributed to the increasing uptake of renewable energy sources, especially solar power, as homeowners aim to decrease reliance on the grid and cut down on energy expenses. Concerns about energy security and power failures are also driving the demand for energy storage solutions. Furthermore, advancements in battery technologies, such as lithium-ion batteries, have enhanced efficiency, cost-effectiveness, and lifespan, making energy storage more attainable for consumers. Government incentives and supportive policies focused on promoting clean energy are additionally contributing to market growth. The growing emphasis on reducing carbon footprints and attaining energy self-sufficiency is also a significant driver of the market.

Restraining Factors

The market for residential energy storage systems is constrained by several factors, such as the significant upfront costs involved in purchasing and installing these systems, which can be a barrier for many homeowners. Moreover, the absence of standardized energy storage technologies and varying levels of efficiency across different systems introduce uncertainties for consumers. Limited awareness and comprehension of the advantages of energy storage further impede market expansion. Additionally, reliance on government incentives and policies means that any reduction or discontinuation of these subsidies could impede market uptake. Finally, concerns regarding the long-term dependability and safety of battery technologies, especially in extreme weather conditions, present challenges to widespread adoption.

Market Segmentation

The residential energy storage systems market share is classified into technology and application.

• The lithium-ion battery segment is estimated to hold the highest market revenue share through the projected period.

Based on the technology, the residential energy storage systems market is classified into lithium-ion battery, lead acid battery, and others. Among these, the lithium-ion battery segment is estimated to hold the highest market revenue share through the projected period. Lithium-ion batteries are becoming more popular with homeowners as they are efficient, have a high energy density, and their costs are decreasing. Homeowners are increasingly looking for reliable and sustainable energy solutions and lithium-ion batteries are a great option for storing solar energy and optimizing energy usage. They can release energy quickly and are suitable for applications like load shifting and backup power, making them even more attractive. Furthermore, advancements in battery technology and the increasing focus on renewable energy sources are anticipated to lead to substantial investments and innovations in this sector, securing its position as the leading source of market revenue in the coming years.

• The on-grid segment is anticipated to hold the largest market share through the forecast period.

Based on the application, the residential energy storage systems market is divided into on-grid, and off-grid. Among these, the on-grid segment is anticipated to hold the largest market share through the forecast period. The seamless integration with existing electrical grids allows for efficient energy flow, making on-grid solar energy systems a popular choice among homeowners. These systems enable users to store surplus energy generated during peak sunlight hours and access the grid during lower production times, maximizing energy savings and contributing to grid stability. The increasing awareness of energy costs and the advantages of net metering programs are expected to drive the adoption of on-grid systems, consolidating their position as the dominant choice for consumers.

Regional Segment Analysis of the Residential Energy Storage System Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Europe is anticipated to hold the largest share of the residential energy storage systems market over the predicted timeframe.

Europe is anticipated to hold the largest share of the residential energy storage systems market over the predicted timeframe. Europe is strongly committed to renewable energy and sustainability, leading to the implementation of ambitious policies to reduce carbon emissions and improve energy efficiency. This has resulted in increased investments in solar and wind energy technologies. Homeowners in Europe are becoming more aware of the advantages of energy independence and cost savings through energy storage solutions, especially in countries with high electricity prices. Government incentives and subsidies further drive adoption, positioning Europe as a significant player in the growth of residential energy storage systems. With the maturation of the market, technological innovations and heightened consumer awareness are likely to strengthen Europe's leading position.

North America is expected to grow at the fastest CAGR growth of the residential energy storage systems market during the forecast period. The growth of the residential energy storage market in North America is driven by both technological advancements and the increasing demand for renewable energy solutions. The region's ample sunlight and supportive policies for solar energy adoption play a significant role in fueling this expansion. Moreover, escalating electricity costs and the necessity for energy resilience, particularly in areas vulnerable to power outages, encourage homeowners to invest in energy storage systems. The presence of prominent industry participants and continual innovations in battery technology further enrich market dynamics, positioning North America as a swiftly developing center for residential energy storage solutions.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the residential energy storage systems market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Tesla, Inc.
• Panasonic Holdings Corporation
• BYD Company Ltd
• Enphase Energy, Inc.
• Sonnen GmbH
• VARTA AG
• Delta Electronics, Inc.
• Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
• Eaton Corporation PLC
• LG Energy Solutions Ltd
• ABB Ltd.
• EOS Energy Storage
• Evapco, Inc.
• Maxwell Technologies, Inc.
• General Electric Company
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In September 2024, FranklinWH Australia Pty Ltd. (FranklinWH), a pioneer in advanced home energy management, entered into a strategic partnership with AC Solar Warehouse, a leading distributor of solar and energy storage solutions across Australia and New Zealand. This alliance aims to redefine the landscape of sustainable energy solutions in the region.

• In August 2024, in an important leap for residential energy storage, German manufacturer Energiekonzepte Deutschland (EKD) unveiled the Ampere.StoragePro (ASP) system, a home battery system.

• In April 2024, Huawei announced LUNA S1 residential energy storage solution. The company’s new product series is now part of the FusionSolar “One-Fits-All” residential smart PV solution.      

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the residential energy storage systems market based on the below-mentioned segments: 

Global Residential Energy Storage System Market, By Technology

• Lithium-Ion Battery
• Lead Acid Battery
• Others

Global Residential Energy Storage System Market, By Application

• On-Grid
• Off-Grid

Global Residential Energy Storage System Market, By Regional Analysis

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