Registering the global revenue of around US$10 Bn in the year 2021, residential battery market is all set to exhibit an impressive outlook through the next five years. Battery storage systems capturing a massive market worldwide warrant the accelerated growth of residential battery market.
Rising Demand for Battery Storage Systems in Grids to Drive Residential Battery Market Growth
The demand for energy storage systems in grids continues to influence the use of batteries. Recent shift towards use of renewable energy sources to ensure environment health and cope up with growing need for electricity has propelled the use of batteries in the residential sector. Predominantly, wind and solar energy are widely used sources of renewable energy that is stored in grids. However, fluctuation in wind currents or concealing of sun by clouds can result in major variations and fluctuations in the generation of energy. These variations can result in frequent blackouts or power cuts hampering routine activities. This factor has triggered the need for flexible energy storage systems in turn driving growth of the residential battery market. Moreover, with ongoing grid modernisation, residential grid-scale battery storage systems have gained steam and are an integral part of the grid ecosystem. The use of batteries in energy storage can improve flexibility and reliability of electrical supply apropos to generation, distribution, and transmission of energy.
Demand for Lithium Ion Batteries to Remain Bullish in Residential Battery Market
Lithium ion batteries are expected to witness soaring demand owing to their functional benefits. As compared to other counterparts such as lead acid and nickel cadmium batteries, lithium ion batteries do not require frequent maintenance or replacement. In addition, they maintain a stable voltage run throughout their discharge cycle which facilitates long lasting and superior functioning of electrical components. Furthermore, rechargeable lithium ion batteries offer higher number of charging cycles as compared to lead acid batteries. Additionally, less weight, less charging time, high efficiency, and better return on investments offered by lithium ion batteries continues to influence their use in the residential space, in turn supplementing growth of the residential battery market.
Asia Pacific Poised to Remain a Lucrative Region in Global Residential Battery Market
Asia Pacific has prevailed as a lucrative region comprising of substantial human and natural resources. The demand for residential batteries in the region is expected to witness a momentous increase on the back of rising need for continuous supply of electricity across the residential sector. This factor has pushed individuals to install a separate energy storage system to cope up with power cuts and fluctuations in electricity thus ensuring a continuous supply of power. In addition, focus on using renewable sources of energy such as solar power has further influenced the growth of the residential battery market. Significant investments in solar power have triggered battery installations in residential spaces. Being more economical, use of solar energy and electricity storage using batteries has resulted in the availability of a continuous supply, in turn bolstering growth of the residential battery market.
The fast-developing economies such as China, and India are expected to account for a significant share in the market. The adoption of residential battery in these countries is largely influenced by favourable government policies and incentives along with regulatory support. The Government of China has showcased its ability to encourage momentous growth in the domestic demand for solar equipment via subsidies and keeping installation targets. Such is the case with India, whose government is focused to provide electricity without outage. This aim is backed by its initiative to use renewable energy such as rooftop solar power. Additionally, significant growth in electrification in remote areas is another factor pushing the use of batteries. These factors remain instrumental in driving the growth of the residential battery market in Asia Pacific and manufacturers can expect an optimistic stream of opportunities from this region in the coming years.
On the other hand, the residential battery market in Europe is also expected to pick up steam. This can be attributed towards increasing solar power installations across the residential space. According to industry association – SolarPower Europe – the prospects for residential energy storage are likely to remain bullish in the forthcoming years. Germany is expected to hold a significant share of more than 70% in the home batteries segment. Following Germany, the UK, Italy, Switzerland, and Austria are the potential markets for residential batteries.
Residential Battery Market: Competitive Landscape
New product launches, collaborations, acquisitions, and partnerships have been the most leveraged strategies by players to strengthen their position in the residential battery market. A few of the major players in the market include Amara Raja Batteries Ltd., NEC Corporation, LG Energy Solution Ltd., Samsung SDI Co. Ltd., FIMER SpA, Evergen, Murata, Luminous India, Siemens, Ultralife, and BYD Electronic Company Ltd.
Recent Notable Developments
The Global Residential Battery Market Is Segmented As Below:
By Battery Type
Key Elements Included In The Study: Global Residential Battery Market
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