How Big Is The Energy Storage Market?

Gabrielle Anderson Release: November 19, 2022 Update: December 11, 2022

You may be wondering about the size of the residential energy storage market. If you do, you’re not alone. Many homeowners and businesses are interested in this technology. There are a variety of enterprises in the residential energy storage market, which is expected to be valued $11.2 billion by 2023.

What is the size of the home energy storage market?

Residential energy storage is rapidly expanding. By 2027, the market is anticipated to be worth $27.2 billion USD. Between 2020 and 2027, the market is expected to increase at a compound annual growth rate (CAGR) of 21.1%. The Asia-Pacific region, particularly China, Japan, and India, is predicted to be the largest market. Residential energy storage is becoming more popular in these countries. This is due to an increase in the number of homes having solar panels on the roof.

With increased power disruptions and urbanization, the Asia-Pacific region’s demand for electricity is rising. Residential energy storage is also predicted to increase significantly in Europe. The government is investing in grid infrastructure in various countries, but a significant chunk of the country remains without power.

North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa now dominate the household energy storage industry. Because of its broad usage of rooftop solar electricity, Europe now dominates the market for home energy storage. North America, which includes the United States, Canada, and Mexico, is expected to be the second-largest market. Asia-Pacific, with its rapid economic expansion and high demand for renewable energy, is the fastest growing area.

renewable energy and energy storage systems

How big is the residential energy storage market in the United States?

According to a new Wood Mackenzie and American Clean Power Association estimate, the household energy storage market in the United States will reach 1,170 MW and 2,608 MWh in the second quarter of 2022. The residential sector will witness the greatest rise, with 154 MW and 375 MWh of battery capacity added – 31 MW more than in the same period last year. According to the survey, the government’s Investment Tax Credit (ITC) is also aiding the domestic storage industry.

The market is predicted to expand due to rising consumer demand for residential energy storage and a focus on new solutions. Several businesses are already concentrating on the domestic energy storage industry. Among the top participants are Schneider Electric, Samsung SDI, and Batterystoragehome—the most promising energy storage firm in the sector, with a solid, dependable supply chain powered by CATL.

The electricity industry is essentially driving the domestic energy storage market by making battery storage less expensive and more accessible. Furthermore, rising disposable incomes are putting high-value consumers in a position to acquire their own . Rising environmental consciousness is also driving the usage of residential energy storage.

What is the commercial value of energy storage?

The domestic energy storage industry is divided into three sections: type, geography, and technology. Lithium-ion batteries are the primary technology in these systems. These batteries are inexpensive and provide backup power during power outages. The residential energy storage market is divided into three segments: technology, geography, and revenue. There are a variety of enterprises in the domestic energy storage market, which is expected to be valued $11.2 billion by 2023.

While Europe has led the way in home energy storage, the sector in North America and Latin America is also thriving. Government subsidies and dropping battery prices are driving the industry in North America. Meanwhile, in Europe, demand for renewable  is growing, and renewable energy output is displacing fossil fuels. Furthermore, smart grid technologies are projected to propel the market in the next years.

Energy storage is a critical component of the energy transition. It provides backup power during power outages and a means of achieving energy independence. Furthermore, it is a critical enabler in the energy transition, as more affluent countries move their electricity to renewable sources. This market is being driven by several factors, including the falling cost of lithium-ion batteries and the growing number of electric vehicles.