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Residential Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The global residential battery market was valued at USD 9. 87 billion in 2020, and it is anticipated to reach USD 29. 63 billion by 2027, at a CAGR of 17. 09% during the forecast period, 2022-2027. In 2020, the COVID-19 pandemic moderately impacted the market due to the decrease in electricity and energy consumption and the reduction in the economic growth of the world.
New York, June 23, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Residential Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06036752/?utm_source=GNW
The residential battery market is likely to grow in the coming years, owing to the increasing deployment of solar power generation and the rising need for energy storage solutions in the residential sector across the world. The steady improvement of battery performance achieved through sustained R&D, aimed at improving battery materials, reducing the amount of non-active materials and the cost of materials, improving cell design and production yield, and increasing production speed.? Therefore, the decline in lithium-ion battery prices is expected to drive the market over the forecast period. However, factors such as complexity, short life span, failure due to deep and continuous cycling, etc., are expected to hinder the growth of the market during the forecast period.
Key Highlights
Lithium-ion batteries are expected to dominate the market majorly due to their favorable capacity-to-weight ratio and other factors like declining prices, better performance, etc.
With the decreasing cost of solar PV equipment coupled with supportive government initiatives to reduce carbon emissions, the utilization of off-grid solar projects is expected to increase significantly during the forecast period and beyond, thus creating several opportunities for the residential battery market in the future.
Asia-Pacific is expected to dominate the market, with the majority of the demand coming from the countries such as China and India.
Key Market Trends
Lithium-ion Battery Segment Expected to Dominate the Market
Lithium-ion (Li-ion) batteries offer various technical advantages over other technologies, such as lead-acid batteries. Rechargeable Li-ion batteries, on average, offer cycles more than 5,000 times, in comparison to lead-acid batteries that last for around 400-500 times.
Li-ion batteries do not need as frequent maintenance and replacement as lead-acid batteries. Li-ion batteries maintain their voltage throughout the discharge cycle, allowing greater and longer-lasting efficiency of electrical components, whereas the voltage of lead-acid batteries drops consistently throughout the discharge cycle. Despite the higher upfront cost of Li-ion batteries, the true cost is much lesser than that of lead-acid batteries when considering lifespan and performance.
Batteries play a crucial part in the energy storage systems and are responsible for a major portion of the total cost of the system, especially used in residential energy storage systems. The total installed capacity of the renewable energy sources is increasing at a significant rate worldwide, and so is the installation of solar rooftops on the residential buildings.
The increase in solar rooftop capacity is likely to foster an increase in the demand for battery energy storage as well. Therefore, the emergence of new energy storage systems (ESS) for residential applications is expected to boost the demand for lithium-ion batteries during the forecast period. Properties of lithium-ion batteries, such as less weight, low charging time, a higher number of charging cycles, and declining cost, make it preferable for this application.
In recent times, owing to their declining prices, lithium-ion batteries gained popularity as battery storage systems for residential solar and home inverters. In 2021, the price of the lithium-ion battery was USD 123/kWh, which declined by 81.58% from USD 668/KWh in 2013.
The residential energy storage policies to date are quite nascent. However, countries, like the United States and Germany, through state policy action and regulatory action, are creating opportunities in the local energy storage markets.
For instance, in June 2021, the United States Department of Energy (DOE) announced an immediate policy to scale up the domestic manufacturing supply chain for advanced battery materials and technologies. Similarly, India is promoting the manufacturing of batteries domestically to drive the battery market in the country, and it increased the tax on lithium-ion cell imports.
Therefore, owing to the above points, the lithium-ion battery segment is expected to dominate the market during the forecast period.
Asia-Pacific Expected to Dominate the Market
Asia-Pacific has multiple growing economies with substantial natural as well as human resources. The region holds the majority share in terms of revenue, with China and India being the major contributors. These countries are likely to exhibit immense growth potential during the forecast period.
The Chinese residential battery market is expected to grow during the forecast period, led by the government’s policy and regulatory support. The Chinese government has already shown its ability to stimulate high growth in domestic demand for solar-related equipment through subsidies and installation targets.
China added 2.14 GW of residential rooftop solar capacity in September 2021, witnessing an increase of 64.61% as compared to the previous year taking the total capacity installed in the first nine months of the year to 7.41 GW.
In February 2022, Bslbatt unveiled a modular lithium-ion battery for the off-grid storage of solar energy in China. The battery has a storage capacity ranging from 5.1 to 30.7 kWh and can provide steady operation for up to 6,000 charge cycles. Thus, such new battery technologies in the residential sector are anticipated to increase the studied market during the forecast period
Another important country in the region is India, which accounts for the fifth largest power generation capacity in the world, with an installed capacity of 393.83 GW, as of December 2021. However, India faces power outages, and the Indian government has aimed to supply electricity 24 hours a day by making a significant addition of renewable energy generation capacity, including rooftop solar power, which is likely to increase the demand for residential batteries.
With the Indian government pushing for the installation of lithium-ion battery manufacturing plants in India, which are expected to start production in 2022, the cost of lithium-ion batteries is expected to drop.
For instance, in June 2021, LNJ Bhilwara formed a joint venture with Replus Engitech to create lithium battery solutions for the residential and commercial sectors. The venture aims to have 1 GWh of capacity operational in Pune by mid-2022, with plans to scale up the production to 5 GWh by 2024. Thus, the residential and commercial buildings are expected to take up battery distributed power generation to decrease the reliance on the grid electricity supply.?
Asia-Pacific is home to the fastest urbanizing countries, and this, in turn, is likely to create a significant demand for residential batteries for a wide range of applications, including consumer electronics, backup power supply systems, etc.
Competitive Landscape
The residential battery market is fragmented. Some of the major companies in the market include FIMER SpA, Amara Raja Batteries Ltd, Samsung SDI Co. Ltd, NEC Corporation, and LG Energy Solution Ltd.
Additional Benefits:
The market estimate (ME) sheet in Excel format
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