Residential Energy Storage Market By Power Rating (3–6 kW, 6–10 kW) By Operating Power Rating (Food Processing Standalone systems, Solar and storage) By Technology (Lithium-ion, Lead–Acid) By Ownership Power Rating (Customer owned, Utility owned, Third-party owned) By Connectivity Power Rating (On-grid, Off-grid) - Growth, Share, Opportunities & Competitive Analysis, 2016 -2028

The household energy storage market is divided into On-grid and Off-grid segments based on connectivity type. In 2021, the on-grid segment accounted for the highest residential energy storage market revenue share. The pace of revenue growth for the on-grid category is anticipated to increase significantly throughout the projection period. This market is expanding since on-grid systems are used more frequently in residential buildings. With the aid of on-grid devices, the extra energy generated can be delivered to the appropriate power company that owns the grid, allowing the person to accumulate credit that can be withdrawn at the end of the year. In addition, being grid-tied offers the advantage of removing the need to invest in an expensive battery backup system to store any extra energy.

What is the Market Size of Residential Energy Storage in terms of value?

The market for residential energy storage is expected to grow significantly over the next few years, with a CAGR of 7.6 percent. The need for residential energy storage was valued at USD 21.80 million in 2021, and it is anticipated to increase to USD 24.81 million by 2028. Therefore, the demand for residential energy storage is expected to rise significantly in the upcoming years. During the forecast period between 2022 and 2028, it is anticipated to create revenue opportunities worth USD 17.21 million for the major industry participants.

Is Residential Energy Storage Market Fragmented?

Due to the number of companies, the energy storage industry looks fragmented and competitive. Market participants engage in strategic actions such as product launches, mergers and acquisitions, expansions, and collaborations. Manufacturers might also support their expansion goals and invest strategically in R&D projects. Energy storage is predominantly a business-to-business sector. Because of this, the suppliers' reliance on the manufacturer is firm, which lowers the manufacturers' profit margin. Backward integration is a strategy used by several manufacturers, and they are buying suppliers.

Interesting Facts about Residential Energy Storage Industry

• The need for lithium-ion batteries in household energy storage systems is expanding as battery storage technology in the power industry advances. This and other factors are the main drivers of market growth.
• A shortage of specialists with the necessary training and expertise, among other factors, is anticipated to restrain the growth of the residential energy storage market throughout the forecast period.
• In terms of volume and value, Europe dominated the worldwide Residential Energy Storage market in 2021, and it is anticipated that this dominance will last throughout the forecast period.
• Customer-owned Customer-owned Residential Energy Storage to witness high growth during the period.

Who are the Top 10 players/companies in the Residential Energy Storage market in terms of value and volume?

The key players in the global Residential Energy Storage market in value and volume include Huawei, Tabuchi Electric, Tesla, LG Chem, SMA Solar Technology, BYD, Siemens, Eguana Technologies, Eaton, Schneider Electric, ABB, Samsung SDI Co. Ltd. In order to increase their production of Residential Energy Storage and capture a competitive market share on a global scale, these key companies are focusing on new product advancements as well as technological innovation. Additionally, several national and regional firms are investing significantly to diversify their product offerings and boost sales. For instance, in November 2021, In a project to test approaches for incorporating more renewable energy onto the city-electrical state's networks, Hitachi ABB Power Grids said it would provide battery energy storage and smart controls to Singapore's first virtual power plant. Furthermore, to encourage the operation of a utility-scale power resource system, the project is anticipated to assist in integrating electricity from various Distributed Energy Resources (DEES), including solar. 

Who are the Top 10 Countries in the Residential Energy Storage Market?

The major countries in the global Residential Energy Storage market are China, Canada, the U.K., Germany, France, the U.S., Russia, India, Italy, and Spain. In 2021, the United Kingdom will dominate the worldwide residential energy storage industry in terms of production and consumption. In addition, rooftop solar electricity is being quickly adopted, causing a significant increase in demand in the area.

Which is the Key Ownership Power Rating in the Residential Energy Storage Market?

The home energy storage market is divided into utility-owned, customer-owned, and third-party-owned segments based on ownership type. The forecast period is expected to see a sharp increase in the revenue growth rate for the Customer-owned category. Demand for customer-owned domestic energy storage systems is anticipated to be driven by consumers' great value in owning their storage systems. A domestic energy storage system's declining cost per kilowatt-hour is another factor boosting the Customer-owned system market. In addition, solar rooftop charging solutions are becoming more popular as environmental damage in the residential sector comes to light. Another important element driving the increase in customer-owned system deployment is the growing desire to cut electricity costs and the frequency of extreme weather events like hurricanes or storms interrupting the power grid. Another element promoting household storage installation is government subsidies. The current "U.S. Energy Storage Monitor in Residential storage had its highest quarter to date with 123 MW installed, surpassing the previous quarterly record of 110 MW in Q1 2021, according to Wood Mackenzie, a Verisk company, and the American Clean Power Association's (ACP) research.

What are the Major Driving Factors for Residential Energy Storage Market?

The decline in battery prices is the main force for growth. Demand for lithium-ion batteries in household energy storage systems is rising as battery storage technology in the power sector develops. The global home energy storage market is expanding due to increasing domestic energy storage system installations in industrialized nations, where consumers desire more battery control, reliability, and resilience. One of the main factors driving the rise in demand for energy storage in the residential sector of industrialized nations is the growing necessity for grid resilience during mass-grid outages. In addition, power supply interruptions are brought on by an increase in the frequency of severe weather events like hurricanes or storms.

What are the Major Restraints for Residential Energy Storage Market?

During the period, the market's growth is anticipated to be somewhat constrained by factors like low knowledge of storage technology and a lack of highly qualified and experienced specialists. The key restraint of the global Residential Energy Storage market is anticipated to hamper the market growth.

Which Region Dominated the World Residential Energy Storage Market?

In 2021, Europe will dominate the residential energy storage market, and it is anticipated that it will do so. Because rooftop solar electricity is being adopted so quickly, there is substantial growth in the area's need for residential energy storage. Since 2015, the German market for domestic energy storage systems has expanded quickly, helped along by an incentive program that provides a 30% investment subsidy for battery installation. The energy mix in Germany has been changing during the last several years. A considerable portion of Germany's total solar energy production came from rooftop solar, largely because of sophisticated supporting mechanisms that were previously developed, like grants and loans for roof programs. The Renewable Energy Law, or EEG 2021, was changed in Germany in 2021. As part of this change, owners of PV systems for self-consumption no larger than 30kW are free from the EEG levy. This restriction's previous value was 10 kW. Given that most residential systems fall within the aforementioned range, this EEG levy is anticipated to enhance the German residential battery market.

Additionally, Italy unveiled a new super bonus incentive program that, from July 2020 through June 2023, offers the opportunity to receive a tax credit of 110 percent for the expense, promoting energy efficiency measures. The PV and storage system must be installed with one of the significant interventions to receive the super bonus. A higher energy efficiency rating must result from all of the investments undertaken. In the event of ineligibility, small-scale PV generation assets and BESS are still eligible for the existing 10-year 50% tax credit.

Segmentation of Global Residential Energy Storage Market-

Global Residential Energy Storage Market – By Power Rating

• 3–6 kW
• 6–10 kW 

 Global Residential Energy Storage Market – By Operating Power Rating

• Food Processing Standalone systems
• Solar and storage 

Global Residential Energy Storage Market – By Technology

• Lithium-ion
• Lead–Acid 

 Global Residential Energy Storage Market – By Ownership Power Rating

• Customer-owned
• Utility owned
• Third-party owned 

Global Residential Energy Storage Market – By Connectivity Power Rating

• On-grid
• Off-grid

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