PUBLISHER: The Business Research Company | PRODUCT CODE: 1653317
PUBLISHER: The Business Research Company | PRODUCT CODE: 1653317
Residential batteries are energy storage systems designed for in-home use, capable of storing energy supplied from the power grid or generated from renewable sources such as solar and wind. Among the various battery technologies available in the market, lithium-ion technology is the most commonly used. Lithium-ion batteries operate as rechargeable batteries, charging when connected to a power source and discharging when disconnected based on residential energy usage.
The main types of residential batteries include lithium-ion batteries, lead-acid batteries, and other types. Lithium-ion batteries, also known as Li-ion batteries, are rechargeable batteries composed of cells where lithium ions move from the negative electrode to the positive electrode through an electrolyte during discharge and then back again during charging. These residential batteries can be utilized in standalone systems, solar and storage configurations, with power ratings typically ranging from 3 to 6 kW or 6 to 10 kW. They are used by industrial, commercial, and residential users.
The residential battery market research report is one of a series of new reports from The Business Research Company that provides residential battery market statistics, including residential battery industry global market size, regional shares, competitors with a residential battery market share, detailed residential battery market segments, market trends and opportunities, and any further data you may need to thrive in the residential battery industry. This residential battery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The residential battery market size has grown rapidly in recent years. It will grow from $9.66 billion in 2024 to $11.08 billion in 2025 at a compound annual growth rate (CAGR) of 14.6%. The growth in the historic period can be attributed to renewable energy integration, energy storage for backup and grid stability, declining battery costs, government incentives and subsidies, increasing power outages.
The residential battery market size is expected to see rapid growth in the next few years. It will grow to $17.96 billion in 2029 at a compound annual growth rate (CAGR) of 12.8%. The growth in the forecast period can be attributed to energy independence and self-sufficiency, advanced battery management systems, expansion of microgrid and off-grid systems, integration with smart home technologies, transition to electric heating and cooling, energy efficiency and carbon footprint reduction. Major trends in the forecast period include increasing use of lithium-ion and solid-state batteries, virtual power plants and peer-to-peer energy trading, recycling and sustainable battery materials, advanced grid integration solutions, mobile and modular battery solutions, artificial intelligence for predictive maintenance.
The growing adoption of solar power generation is anticipated to drive the residential battery market. Many individuals are installing solar panels in their homes and commercial spaces due to their cost-effectiveness. To store the electricity generated by these solar panels, residential batteries are utilized. For example, in February 2024, the World Resources Institute, a US-based non-profit organization, reported that the United States experienced a historic installation of 31 gigawatts (GW) of solar energy capacity in 2023, representing a remarkable 55% increase compared to 2022 and surpassing the previous record set in 2021. Community solar initiatives provide homeowners, renters, and businesses equitable access to the economic and environmental benefits of solar energy generation, regardless of their property's physical characteristics or ownership status. Furthermore, over the next five years, the community solar sector in the USA is expected to install more than 4.3 gigawatts of total capacity. This rising demand for solar power generation is driving the residential battery market.
The decreasing prices of lithium-ion batteries are expected to boost the residential battery market. Lithium-ion batteries are a type of rechargeable technology known for their high energy density, relatively low weight, and long cycle life. Recently, these batteries have become increasingly popular as storage systems for residential solar and home inverters due to their declining costs. For instance, in 2023, the International Energy Agency, a France-based governmental organization, reported that lithium prices fell by 20% between January and March 2023, returning to their levels from late 2022. As a result, the decline in lithium-ion battery prices is likely to drive the growth of the residential battery market in the future.
Technological advancements are a significant trend gaining traction in the residential battery market. Major companies in the battery sector are focusing on new technologies and research and development to deliver improved products to their customers. For instance, in March 2023, Qorvo, a US-based semiconductor company providing solutions for the communication industry, launched two new battery management systems, PAC22140 and PAC25140, which utilize single battery management ICs to support up to 20 battery pack cells.
Major companies in the residential battery market are exploring products like lithium iron phosphate (LFP) batteries to gain a competitive edge and enhance their product offerings. A lithium iron phosphate (LFP) battery is a type of rechargeable lithium-ion battery that uses lithium iron phosphate as its cathode material. For example, in April 2024, Greenfuel Energy Solutions Pvt. Ltd, an India-based manufacturing company, launched wall-mounted lithium batteries designed for residential power backup needs. Greenfuel's residential lithium batteries, constructed with prismatic Lithium Iron Phosphate (LFP) cells, provide a lightweight alternative-55% lighter than traditional acid batteries of the same capacity. These batteries improve convenience, reliability, and efficiency by delivering high usable energy while minimizing energy loss during charge-discharge cycles.
In May 2023, Winnebago Industries, a US-based manufacturer of motorhomes, acquired Lithionics Battery for an undisclosed sum. This acquisition is anticipated to improve Winnebago's margin profile both in the near and long term, generate value for its shareholders, employees, and consumers, and enable the company to explore new market applications for Lithionics' efficient energy solutions. Lithionics Battery is a US-based manufacturer specializing in residential batteries, battery management systems, and integrated circuit products.
Major companies operating in the residential battery market include Amara Raja Batteries Limited, Samsung SDI Co. Ltd., LG Chem Ltd., BYD Company Ltd., Tesla Inc., ABB Ltd., Siemens AG, Luminous Power Technologies Ltd., Contemporary Amperex Technology Co. Limited, Panasonic Corporation, Power-Sonic Corporation, Lishen Battery Co. Ltd., China Baofeng Battery Technology Co. Ltd., Loom Solar Pvt. Ltd., Ruipu Energy Co. Ltd., China Aviation Lithium Battery Co. Ltd., Guoxuan High-tech Power Energy Co. Ltd., Sunwoda Electronic Co. Ltd., Farasis Energy Co. Ltd., Sonnen GmbH, Fluence Energy LLC, Bloom Energy Corporation, Blue Planet Energy, Electrovaya Inc., Enphase Energy Inc., ESS Inc., Evergen Energy Solutions Inc., FIMER SpA, Gotion High-tech Co. Ltd., Murata Manufacturing Co. Ltd., NEC Corporation, NextEra Energy Inc., Powin Energy Corporation, Redflow Limited, SimpliPhi Power Inc., Ultralife Corporation
Asia-Pacific was the largest region in the residential battery market in 2024. The regions covered in the residential battery market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The countries covered in the residential battery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The residential battery market consists of sales of rechargable batteries, solar batteries, lead-acid, lithium-ion, flow batteries, sodium nickel chloride, and vented batteries. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Residential Battery Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on residential battery market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for residential battery ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The residential battery market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.