|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The global residential battery market is expected to reach USD 12.48 billion by the end of this year and is projected to register a CAGR of over 17.09% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.
- Over the long term, declining prices of lithium-ion batteries are expected to drive the growth of the market studied.
- On the other hand, environmental disadvantages of lead-acid batteries are expected to hamper the growth of residential batteries during the forecast period.
- Nevertheless, an increase in off-grid solar utilization is likely to create lucrative growth opportunities for the global residential battery market in the forecast period.
- The Asia-pacific region dominates the market and is also likely to witness the highest CAGR during the forecast period. This growth is attributed to the increasing investments, coupled with the adoption residential rooftop solar installations in the countries of this region, including China, India, and Japan.
Scope of the Report
The battery technologies considered in this report include lithium-ion, lead-acid, and other batteries (including nickel-cadmium, nickel metal hydride, zinc-carbon, and alkaline batteries) consumed across the global residential sector for different applications. The residential battery market is segmented by type and by geography. By type, the market is segmented into lithium-ion battery, lead-acid battery, and other types. The report also covers the market size and forecasts for the residential battery market across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
|Middle-East and Africa|
Key Market Trends
Lithium-ion Battery Segment Expected to Dominate the Market
- Lithium-ion (Li-ion) batteries offer various technical advantages over other technologies, such as lead-acid batteries. Rechargeable Li-ion batteries, on average, offer cycles more than 5,000 times, in comparison to lead-acid batteries that last for around 400-500 times.
- Li-ion batteries do not need as frequent maintenance and replacement as lead-acid batteries. Li-ion batteries maintain their voltage throughout the discharge cycle, allowing greater and longer-lasting efficiency of electrical components, whereas the voltage of lead-acid batteries drops consistently throughout the discharge cycle. Despite the higher upfront cost of Li-ion batteries, the true cost is much lesser than that of lead-acid batteries when considering lifespan and performance.
- Batteries play a crucial part in the energy storage systems and are responsible for a major portion of the total cost of the system, especially used in residential energy storage systems. The total installed capacity of the renewable energy sources is increasing at a significant rate worldwide, and so is the installation of solar rooftops on the residential buildings.
- The increase in solar rooftop capacity is likely to foster an increase in the demand for battery energy storage as well. Therefore, the emergence of new energy storage systems (ESS) for residential applications is expected to boost the demand for lithium-ion batteries during the forecast period. Properties of lithium-ion batteries, such as less weight, low charging time, a higher number of charging cycles, and declining cost, make it preferable for this application.
- In recent times, owing to their declining prices, lithium-ion batteries gained popularity as battery storage systems for residential solar and home inverters. In 2021, the price of the lithium-ion battery was USD 123/kWh, which declined by 81.58% from USD 668/KWh in 2013.
- The residential energy storage policies to date are quite nascent. However, countries, like the United States and Germany, through state policy action and regulatory action, are creating opportunities in the local energy storage markets.
- For instance, in June 2021, the United States Department of Energy (DOE) announced an immediate policy to scale up the domestic manufacturing supply chain for advanced battery materials and technologies. Similarly, India is promoting the manufacturing of batteries domestically to drive the battery market in the country, and it increased the tax on lithium-ion cell imports.
- Therefore, owing to the above points, the lithium-ion battery segment is expected to dominate the market during the forecast period.
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Asia-Pacific Expected to Dominate the Market
- Asia-Pacific has multiple growing economies with substantial natural as well as human resources. The region holds the majority share in terms of revenue, with China and India being the major contributors. These countries are likely to exhibit immense growth potential during the forecast period.
- The Chinese residential battery market is expected to grow during the forecast period, led by the government’s policy and regulatory support. The Chinese government has already shown its ability to stimulate high growth in domestic demand for solar-related equipment through subsidies and installation targets.
- China added 2.14 GW of residential rooftop solar capacity in September 2021, witnessing an increase of 64.61% as compared to the previous year taking the total capacity installed in the first nine months of the year to 7.41 GW.
- In February 2022, Bslbatt unveiled a modular lithium-ion battery for the off-grid storage of solar energy in China. The battery has a storage capacity ranging from 5.1 to 30.7 kWh and can provide steady operation for up to 6,000 charge cycles. Thus, such new battery technologies in the residential sector are anticipated to increase the studied market during the forecast period
- Another important country in the region is India, which accounts for the fifth largest power generation capacity in the world, with an installed capacity of 393.83 GW, as of December 2021. However, India faces power outages, and the Indian government has aimed to supply electricity 24 hours a day by making a significant addition of renewable energy generation capacity, including rooftop solar power, which is likely to increase the demand for residential batteries.
- With the Indian government pushing for the installation of lithium-ion battery manufacturing plants in India, which are expected to start production in 2022, the cost of lithium-ion batteries is expected to drop.
- For instance, in June 2021, LNJ Bhilwara formed a joint venture with Replus Engitech to create lithium battery solutions for the residential and commercial sectors. The venture aims to have 1 GWh of capacity operational in Pune by mid-2022, with plans to scale up the production to 5 GWh by 2024. Thus, the residential and commercial buildings are expected to take up battery distributed power generation to decrease the reliance on the grid electricity supply.
- Asia-Pacific is home to the fastest urbanizing countries, and this, in turn, is likely to create a significant demand for residential batteries for a wide range of applications, including consumer electronics, backup power supply systems, etc.
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The residential battery market is fragmented. Some of the major companies in the market (in no particular order) include FIMER SpA, Amara Raja Batteries Ltd, Samsung SDI Co. Ltd, NEC Corporation, and LG Energy Solution Ltd.
- In March 2022, Green Cell launched its new 5 kWh residential battery named GC PowerNest with a voltage of 51.2 V, and it is scalable to an eight-stack configuration reaching up to 40 kWh. In addition, the residential battery is based on lithium iron phosphate cells, and the product comes in black casing with 50 kg weight.
- In May 2022, Solar Energy Development Centre (SEDC) announced that it is going to provide local and federal government tax incentives in Washington D.C and Connecticut to install residential and commercial battery energy storage systems, and will provide ongoing maintenance for the next 20 years.
Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Lithium-ion Battery
5.1.2 Lead-acid Battery
5.1.3 Others Types
5.2.1 North America
5.2.4 South America
5.2.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Duracell Inc.
6.4.2 Energizer Holding Inc.
6.4.3 BYD Co. Ltd
6.4.4 FIMER SpA
6.4.5 LG Energy Solution Ltd
6.4.6 Panasonic Corporation
6.4.7 Samsung SDI Co. Ltd
6.4.8 Siemens AG
6.4.9 Luminous Power Technologies Pvt. Ltd
6.4.10 Amara Raja Batteries Ltd
6.4.11 Delta Electronics Ltd
6.4.12 NEC Corporation
6.4.13 Tesla Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Residential Battery Market market is studied from 2019 - 2027.
What is the growth rate of Residential Battery Market?
The Residential Battery Market is growing at a CAGR of 17.09% over the next 5 years.
Which region has highest growth rate in Residential Battery Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Residential Battery Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Residential Battery Market?
Amara Raja Batteries Ltd , LG Energy Solution, Ltd., FIMER SpA, Samsung SDI Co., Ltd., NEC Corporation are the major companies operating in Residential Battery Market.