Residential Energy Storage Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Technology Type, By Power Rating, By Connectivity, By Operation, By Region & Competition, 2021-2031F

Description

The Global Residential Energy Storage Market is projected to expand from USD 5.31 Billion in 2025 to USD 12.17 Billion by 2031, registering a CAGR of 14.82%. These systems, typically relying on lithium-ion technology, function as stationary electrochemical devices that enable households to store electricity for on-demand use, thereby enhancing grid independence. The market is primarily propelled by the growing necessity for energy resilience during power outages and increasing utility costs, which drive homeowners to optimize the self-consumption of energy generated by rooftop solar panels. This growth is further supported by regulatory frameworks that offer financial incentives for stored energy; for instance, the Clean Energy Council reported that nearly 75,000 home battery units were sold in Australia in 2024, highlighting strong demand in established markets.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 5.31 Billion
Market Size 2031	USD 12.17 Billion
CAGR 2026-2031	14.82%
Fastest Growing Segment	Lithium-ion Batteries
Largest Market	Europe

However, the market faces a significant hurdle due to the high upfront capital costs required for purchasing and installing these units. Although prices are gradually decreasing, the substantial initial investment continues to act as a financial barrier for the mass market. Consequently, widespread adoption is largely limited to affluent demographics or specific regions where generous government subsidies help offset the expense.

Market Driver

The widespread installation of residential rooftop solar PV systems serves as a major catalyst for the market, as homeowners increasingly aim to maximize the return on their renewable energy investments. Integrating storage allows users to capture surplus solar energy generated during peak daylight hours for use in the evening, effectively reconciling the difference between intermittent generation and household consumption patterns. This capability is especially valuable in markets where utilities are lowering export tariffs, prompting a shift toward self-consumption models to reduce reliance on grid power. Highlighting this trend, Sunrun's 'Q3 2024 Financial Results' noted that the storage attachment rate on their new solar installations reached 60%, underscoring the growing integration of generation and storage assets.

Simultaneously, the falling costs of lithium-ion battery technologies are lowering entry barriers for residential consumers. As supply chains stabilize and manufacturing efficiencies advance-particularly within Lithium Iron Phosphate (LFP) chemistries-the levelized cost of stored energy is becoming competitive with retail electricity rates in high-tariff areas. This economic improvement is driving adoption beyond early adopters to a wider customer base seeking backup security and utility bill savings. According to the International Energy Agency's (IEA) April 2024 report, battery costs dropped by 14% in 2023, a trend further supported by Enphase Energy's shipment of 172.9 megawatt-hours of IQ Batteries in the third quarter of 2024, indicating sustained demand.

Market Challenge

The significant upfront capital required for purchasing and installing storage units continues to severely impede the growth of the global residential energy storage market. This high initial expense restricts the addressable market primarily to wealthy homeowners, preventing widespread adoption among the general population. While these systems provide long-term benefits such as energy savings and grid independence, the extended payback period makes the immediate financial commitment difficult for average households to justify. As a result, consumer demand remains highly sensitive to financing rates and economic conditions, leading to volatility in deployment volumes and preventing the technology from becoming a standard household appliance.

This economic barrier is evident in recent industry data. SolarPower Europe reported in 2025 that the European battery storage market experienced a slowdown, with the annual growth rate decelerating to 15% in 2024 due to a marked decline in residential installations in key markets. This trend highlights how the capital-intensive nature of these investments directly limits market momentum, restricting the sector's ability to reach its full potential despite the increasing demand for energy resilience.

Market Trends

The integration of residential batteries into Virtual Power Plants (VPPs) is evolving home storage units from passive backup devices into active components of grid infrastructure. By using cloud-based software to aggregate thousands of distributed systems, utilities can manage peak demand and stabilize grid frequency without depending on fossil-fuel peaker plants, while homeowners earn revenue through performance-based grid services. This model is gaining rapid acceptance; according to Utility Dive in November 2025, Sunrun reported a year-over-year increase of more than 400% in customer enrollment for its home-to-grid virtual power plant programs, illustrating a significant consumer shift toward these participative energy models.

Concurrently, the convergence of home storage with Electric Vehicle (EV) charging ecosystems is establishing unified residential energy hubs that utilize the substantial capacity of automotive batteries. This trend moves beyond unidirectional charging to include bidirectional capabilities like Vehicle-to-Home (V2H) and Vehicle-to-Grid (V2G), enabling EVs to power households or export electricity during high-price periods. Major industry players are collaborating to standardize these systems, effectively unlocking vast mobile storage potential for stationary use. A December 2025 article in Energy-Storage.News cited a Siemens study revealing that aggregated electric vehicles in Munich alone could offer 200 megawatts of flexible capacity, demonstrating the immense potential of integrating transport assets with residential energy networks.

Key Market Players

Tesla, Inc.
LG Chem Ltd.
Sonnen GmbH
Enphase Energy, Inc
Sunrun Inc
Panasonic Corporation
Orison
Eguana Technologies Inc
Pika Energy
BYD Company Limited

Report Scope

In this report, the Global Residential Energy Storage Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Residential Energy Storage Market, By Technology Type

Lithium-ion Batteries
Lead-acid Batteries
Others

Residential Energy Storage Market, By Power Rating

3-6 kW
6-10 kW
10-20 kW

Residential Energy Storage Market, By Connectivity

On-Grid
Off-Grid

Residential Energy Storage Market, By Operation

Standalone
Solar

Residential Energy Storage Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Residential Energy Storage Market.

Available Customizations:

Global Residential Energy Storage Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Residential Energy Storage Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Technology Type (Lithium-ion Batteries, Lead-acid Batteries, Others)
- 5.2.2. By Power Rating (3-6 kW, 6-10 kW, 10-20 kW)
- 5.2.3. By Connectivity (On-Grid, Off-Grid)
- 5.2.4. By Operation (Standalone, Solar)
- 5.2.5. By Region
- 5.2.6. By Company (2025)
5.3. Market Map

6. North America Residential Energy Storage Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Technology Type
- 6.2.2. By Power Rating
- 6.2.3. By Connectivity
- 6.2.4. By Operation
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Residential Energy Storage Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Technology Type
    - 6.3.1.2.2. By Power Rating
    - 6.3.1.2.3. By Connectivity
    - 6.3.1.2.4. By Operation
- 6.3.2. Canada Residential Energy Storage Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Technology Type
    - 6.3.2.2.2. By Power Rating
    - 6.3.2.2.3. By Connectivity
    - 6.3.2.2.4. By Operation
- 6.3.3. Mexico Residential Energy Storage Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Technology Type
    - 6.3.3.2.2. By Power Rating
    - 6.3.3.2.3. By Connectivity
    - 6.3.3.2.4. By Operation

7. Europe Residential Energy Storage Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Technology Type
- 7.2.2. By Power Rating
- 7.2.3. By Connectivity
- 7.2.4. By Operation
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Residential Energy Storage Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Technology Type
    - 7.3.1.2.2. By Power Rating
    - 7.3.1.2.3. By Connectivity
    - 7.3.1.2.4. By Operation
- 7.3.2. France Residential Energy Storage Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Technology Type
    - 7.3.2.2.2. By Power Rating
    - 7.3.2.2.3. By Connectivity
    - 7.3.2.2.4. By Operation
- 7.3.3. United Kingdom Residential Energy Storage Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Technology Type
    - 7.3.3.2.2. By Power Rating
    - 7.3.3.2.3. By Connectivity
    - 7.3.3.2.4. By Operation
- 7.3.4. Italy Residential Energy Storage Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Technology Type
    - 7.3.4.2.2. By Power Rating
    - 7.3.4.2.3. By Connectivity
    - 7.3.4.2.4. By Operation
- 7.3.5. Spain Residential Energy Storage Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Technology Type
    - 7.3.5.2.2. By Power Rating
    - 7.3.5.2.3. By Connectivity
    - 7.3.5.2.4. By Operation

8. Asia Pacific Residential Energy Storage Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Technology Type
- 8.2.2. By Power Rating
- 8.2.3. By Connectivity
- 8.2.4. By Operation
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Residential Energy Storage Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Technology Type
    - 8.3.1.2.2. By Power Rating
    - 8.3.1.2.3. By Connectivity
    - 8.3.1.2.4. By Operation
- 8.3.2. India Residential Energy Storage Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Technology Type
    - 8.3.2.2.2. By Power Rating
    - 8.3.2.2.3. By Connectivity
    - 8.3.2.2.4. By Operation
- 8.3.3. Japan Residential Energy Storage Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Technology Type
    - 8.3.3.2.2. By Power Rating
    - 8.3.3.2.3. By Connectivity
    - 8.3.3.2.4. By Operation
- 8.3.4. South Korea Residential Energy Storage Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Technology Type
    - 8.3.4.2.2. By Power Rating
    - 8.3.4.2.3. By Connectivity
    - 8.3.4.2.4. By Operation
- 8.3.5. Australia Residential Energy Storage Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Technology Type
    - 8.3.5.2.2. By Power Rating
    - 8.3.5.2.3. By Connectivity
    - 8.3.5.2.4. By Operation

9. Middle East & Africa Residential Energy Storage Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Technology Type
- 9.2.2. By Power Rating
- 9.2.3. By Connectivity
- 9.2.4. By Operation
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Residential Energy Storage Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Technology Type
    - 9.3.1.2.2. By Power Rating
    - 9.3.1.2.3. By Connectivity
    - 9.3.1.2.4. By Operation
- 9.3.2. UAE Residential Energy Storage Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Technology Type
    - 9.3.2.2.2. By Power Rating
    - 9.3.2.2.3. By Connectivity
    - 9.3.2.2.4. By Operation
- 9.3.3. South Africa Residential Energy Storage Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Technology Type
    - 9.3.3.2.2. By Power Rating
    - 9.3.3.2.3. By Connectivity
    - 9.3.3.2.4. By Operation

10. South America Residential Energy Storage Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Technology Type
- 10.2.2. By Power Rating
- 10.2.3. By Connectivity
- 10.2.4. By Operation
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Residential Energy Storage Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Technology Type
    - 10.3.1.2.2. By Power Rating
    - 10.3.1.2.3. By Connectivity
    - 10.3.1.2.4. By Operation
- 10.3.2. Colombia Residential Energy Storage Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Technology Type
    - 10.3.2.2.2. By Power Rating
    - 10.3.2.2.3. By Connectivity
    - 10.3.2.2.4. By Operation
- 10.3.3. Argentina Residential Energy Storage Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Technology Type
    - 10.3.3.2.2. By Power Rating
    - 10.3.3.2.3. By Connectivity
    - 10.3.3.2.4. By Operation

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Residential Energy Storage Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Tesla, Inc.
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. LG Chem Ltd.
15.3. Sonnen GmbH
15.4. Enphase Energy, Inc
15.5. Sunrun Inc
15.6. Panasonic Corporation
15.7. Orison
15.8. Eguana Technologies Inc
15.9. Pika Energy
15.10. BYD Company Limited