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The market for residential energy storage systems (RESS) is expected to grow at a CAGR of more than 19% during the forecast period of 2021 – 2026, reaching a market value of more than USD 8.5 billion by 2026 from USD 2.2 billion in 2019. The market has been affected significantly by the outbreak of COVID-19. Increasing trade restrictions due to the spread of the COVID-19 affected the supply chain globally. Major companies like BYD, CATL cut down production due to lower demand in 2020. However, widespread acceptance of solar PVs in Europe, Asia-Pacific, and North America has driven the residential energy storage demand. Factors such as increasing demand for uninterrupted and reliable power supply and the rise in adoption of solar rooftop systems by the residential sector are expected to be the major drivers for the market studied. Government initiatives, such as net metering, have been one of the major factors in the adoption of rooftop solar, which is expected to drive the demand for residential energy storage systems in the future. However, the high installation cost for solar plus battery systems is expected to hinder the growth of the residential energy storage systems market in the emerging and underdeveloped economies in the coming years.
- Lithium-ion battery-based energy storage systems (ESS) accounted for the highest market share in 2019 and are expected to dominate the market during the forecast period.
- The residential energy storage systems market is majorly dominated by developed nations such as Germany, the United States, and Australia. However, several other countries, such as Brazil, Saudi Arabia, Thailand, and Bangladesh have introduced the net metering program and have made certain amendments to the program to encourage solar PV in the residential sector. This, in turn, is expected to create an ample amount of opportunities for the residential energy storage systems market in the future.
- At the regional level, Europe has dominated the RESS market in 2019 with the majority of the demand coming from the countries such as Germany, the United Kingdom, and France.
Scope of the Report
The global residential energy storage systems market report include:
|Middle-East and Africa|
Key Market Trends
Increasing Demand for Lithium–ion Battery-based ESS
- The lithium-ion-based energy storage systems accounted for more than 50% of the market share in 2019 and are expected to continue their dominance over the forecast period. 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 5000 times, in comparison to lead-acid batteries that last around 400-500 times.
- The adoption of Li-ion batteries has been increasing, primarily due to their property of being the most energetic rechargeable batteries available. Also, the use of Li-ion batteries is increasing, as it is replacing conventional batteries due to its techno-economic benefits.
- Battery manufacturers are working to reduce the cost of Li-ion technology. The price of lithium-ion batteries has fallen steeply in the past 10 years. In 2019, the lithium-ion battery price was USD 156 per kWh, 13% lower than the price in 2018 and more than 80% compared to the prices in 2012. This sharp and sustained cost reduction is expected to help cement lithium-ion as the battery chemistry of choice in all energy storage markets, including residential energy storage.
- Furthermore, the decline in average lithium-ion battery prices is expected to continue and reach approximately USD 100/kWh by 2025, which, in turn, would make it much more cost-competitive, concerning other battery types. This, in turn, would result in an increased application of lithium-ion batteries in new and exciting markets, such as energy storage systems (ESS), paired with renewables like solar, wind, or hydro, for both residential and commercial applications, during the forecast period.
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Europe to Dominate the Market
- Europe has dominated the RESS market in 2019 and is expected to continue its dominance in the coming years. The demand for RESS in the region is witnessing high growth, owing to the rapid adoption of rooftop solar power.
- The residential energy storage system market has grown rapidly in Germany since 2015, supported by an incentive scheme granting a 30% investment subsidy for the battery system.
- Transformation in Germany’s energy mix has been taking place for the past few years. Rooftop solar accounted for a significant share of the total solar energy generation in Germany, mainly due to advanced supporting mechanisms introduced in the past such as grants and loans for roof programs.
- Moreover, the government of the United Kingdom is also promoting the adoption of battery energy storage to meet local, regional, and international carbon emission reduction goals.
- To boost the adoption of the residential energy storage system, the government of United In the residential market, Nissan announced in January 2018, about providing a system of solar panels and batteries to the homes in the United Kingdom, stating that customers may save up to 66% on energy bills through their service.
- The RESS market in the region is also driven by the import of low-cost solar panels from China, which is helping in making photovoltaic technology more competitive.
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The global residential energy storage systems market is moderately consolidated. Some of the major players in this market include LG Chem Ltd, Samsung SDI Co. Ltd, Panasonic Corporation, Sonnen GmbH, and Saft Groupe SA.
- The residential sector creates ample opportunity for the energy storage system, as South Korea plans to convert Seoul to a Solar City with an estimated investment of about USD 1.56 billion.
- In November 2020, Sonnen launched an “all-in-one” system in the United States at a retail price of USD 9,500. The company brought out sonnenCore, a home energy storage system (HESS) that comes with a free 10 year or 10,000 cycle warranty to an expected lifetime throughput of 58MW.
- In January 2021, Siemens partnered with United Kingdom’s first lithium-ion battery gigafactory, providing it with its Digital Enterprise Technology. Britishvolt will have access to Siemens’ electrification solutions, automation, and Digital Twin manufacturing execution technology.
Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2026
4.3 Investment Opportunities
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes Products and Services
4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Technology Type
5.1.1 Lithium-ion Batteries
5.1.2 Lead-acid Batteries
5.2.1 North America
5.2.4 Middle-East and Africa
5.2.5 South America
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 Company Profiles
6.3.1 LG Chem Ltd
6.3.2 Hitachi Chemical Co. Ltd
6.3.3 Panasonic Corporation
6.3.4 Saft Groupe SA
6.3.5 Sonnen GmbH
6.3.6 Sunverge Energy LLC
6.3.7 Tesla Inc.
6.3.8 Deutsche Energieversorgung GmbH (SENEC)
6.3.9 Samsung SDI Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Residential Energy Storage Systems Market market is studied from 2018 - 2026.
What is the growth rate of Residential Energy Storage Systems Market?
The Residential Energy Storage Systems Market is growing at a CAGR of >19% over the next 5 years.
Which region has highest growth rate in Residential Energy Storage Systems Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Residential Energy Storage Systems Market?
Europe holds highest share in 2019.
Who are the key players in Residential Energy Storage Systems Market?
- Samsung SDI Co. Ltd
- Panasonic Corporation
- Sonnen GmbH
- Saft Groupe SA
- LG Chem Ltd
Are the major companies operating in Residential Energy Storage Systems Market.