Gabrielle Anderson Release: November 20, 2022 Update: December 11, 2022
This report, “Residential Energy Storage Market Size: A Forecast Through 2024,” by BCC Research, analyzes the residential energy storage market, including the technologies and market potential, and presents forecasts for the market over the next five years. The estimates are based on total revenue generated by manufacturers and are unadjusted for inflation. The report also addresses regulatory and technological issues that could affect growth.
Residential energy storage is growing at a rapid pace. The market is expected to reach $27.2 billion USD by 2027. The market is anticipated to grow at a compound annual growth rate (CAGR) of 21.1% between 2020 and 2027. The largest market is expected to be in Asia-Pacific, especially China, Japan, and India. In these countries, the demand for residential energy storage is growing. This is because the number of homes with solar panels on the roof is growing.
The demand for electricity is increasing throughout the Asia-Pacific region, with growing power outages and urbanization. Europe is also expected to see significant growth in residential energy storage. The government is investing in grid infrastructure in several countries, but a sizable portion of the country still lives in the dark.
The residential energy storage market is currently split into four regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Europe currently leads the market for residential energy storage because of its widespread use of rooftop solar power. The second-largest market is predicted to be North America, which includes the United States, Canada, and Mexico. Asia-Pacific, with its fast economic growth and high demand for renewable energy, is the region with the most growth.
According to a new report from Wood Mackenzie and the American Clean Power Association, the U.S. residential energy storage market will reach 1,170 MW and 2,608 MWh in the second quarter of 2022. The largest increase will be seen in the residential sector, which added 154 MW and 375 MWh of battery capacity – 31 MW more than in the same period last year. The report also says that the Investment Tax Credit (ITC) that the government offers is helping the residential storage market.
The market is expected to grow with the increasing demand for home energy storage from consumers and a focus on innovative products. There are already several companies focusing on the residential energy storage market. Schneider Electric, Samsung SDI, and Batterystoragehome—the most promising energy storage company in the industry, with a strong, stable supply chain powered by CATL—are among the leading players.
The residential energy storage market is primarily driven by the power industry, which is making battery storage less expensive and more accessible. In addition, rising disposable incomes are positioning high-value consumers to own their own renewable energy storage systems. Rising environmental awareness is also propelling residential energy storage adoption.
The residential energy storage market is segmented based on type, geography, and technology. The major technology used in these systems is lithium-ion batteries. These batteries are cost-effective and provide power backup during power outages. The residential energy storage market is segmented based on technology, geography, and revenue. There are a number of different companies in the residential energy storage market, and it is estimated that by 2023 the market will be worth $11.2 billion.
While Europe has led the way in residential energy storage, the market is also booming in North America and Latin America. In North America, the market is primarily driven by government incentives and falling battery prices. Meanwhile, in Europe, the demand for renewable energy storage systems is increasing and electricity generation from renewables is overtaking fossil fuels. In addition, smart grid technologies are expected to drive the market in the next few years.
Energy storage is an essential part of the energy transition. It provides backup power for power outages and provides a means for energy independence. Moreover, it is a key enabler in the energy transition, as more developed nations are shifting their power to renewable sources. Several factors drive this market, including the decreasing cost of lithium-ion batteries and the increasing number of electric vehicles.