Residential Battery Market Analysis

The global residential battery market size was valued at USD 11.08 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 18.6% from 2022 to 2030. The market is projected to expand due to the policy’s levied by the government and the market is driven by the lower prices of the lithium ion batteries and the installation of the solar rooftops and the market is segmented by lithium ion battery and lead acid battery among others and regionally driven by several regions. 

Global Residential Battery Market: Regional Insights

Based on geography, the global residential battery market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East &Africa. North America is expected to gain highest share in the global market over the forecast period as the battery system in the United States faced notable development particularly in the residential sector with the increasing expenditure in the renewable energy infrastructure over the region. The electricity consumption in the residential segment is projected to rise over the predicted duration. 

At the same time, Asia Pacific is expected to experience fastest growth over the forecast period as China is being one of the world’s huge developed energy storage installed capacities. The Chinese residential battery market is anticipated to develop over the predicted duration which led by the official declarations and its support and assistance. The Chinese government and the regulatory has already stated its ability and the capacity to stimulate the huge development in the domestic demand of the solar associated equipment.

Figure 1: Global Residential Battery Market Share (%), By Region, 2021

Global Residential Battery Market Drivers:

The cost of the lithium ion batteries declined the steeply over the past decade and in the year 2021, the cost of the lithium ion battery is valued at around US$ 123 kWh. The cost continuously decreased over the past decade and is still continuing to decrease by 85% in the year 2021 comparatively to the year 2010.  The constant battery performance achieved from the sustained research and development focuses at enhancing battery materials.

The reduction in the amount of non-active materials and the price of the materials enhancing the cell design and the structure and the production yield and the rising the speed of the production volume particularly in the China helped achieve the economies of the scale in lithium –ion battery manufacturing. Additionally the large capacity additions rising the competition amidst manufacturers.

Global Residential Battery Market Opportunities:

Requirement for the power is rising substantially, selectively in a form of method that is clear and clean and then very environment friendly. With the rising advancement of the renewable technologies of such as solar and the battery energy storage solution is also anticipated to witness robust development in the future years. As of 2020, the lithium ion is mainly chosen due to its technological developments such as the huge energy density, huge output voltage.

A novel technology the lithium sulfur battery established which has various energy density comparatively to the traditional lithium ion batteries theoretically 2600 Wh/kg with the open circuit of voltage 2 volts. The lithium sulfur battery is composed of the metal lithium negative pole and the elemental sulfur positive pole. During the time of discharge the negative pole metal lithium dissolves in the electrolyte and the lithium ion moves from positive sulfur pole to react with the sulfur to make a polysulfide ion.  

Residential Battery Market Report Coverage

Report Coverage	Details
Base Year:	2021	Market Size in 2021:	US$ 11.08 Bn
Historical Data for:	2017 to 2020	Forecast Period:	2022 to 2030
Forecast Period 2022 to 2030 CAGR:	18.6%	2030 Value Projection:	US$ 49.09 Bn
Geographies covered:	North America: U.S. and Canada Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific Middle East: GCC Countries, Israel, and Rest of Middle East Africa: South Africa, North Africa, and Central Africa
Segments covered:	By Type: Lithium-ion Battery, Lead-acid battery, Other Types
Companies covered:	FIMER SpA, Amara Raja Batteries Ltd, Samsung SDI, Energizer Holding Inc., Luminous Power Technologies Private Limited, LG Energy Solution, Ltd., Duracell Inc., Panasonic Corporation, Siemens AG, Tesla Inc., Delta Electronics Inc., BYD Co. Ltd and NEC Corp
Growth Drivers:	Declining prices of lithium-ion batteries Increasing residential rooftop solar installations to drive the market
Restraints & Challenges:	Environmental disadvantages of lead-acid batteries

Global Residential Battery Market Trends:

During the charge, the polysulfide ion gets decomposed and then the lithium ion returns to the negative pole. With the continuous reaction the solubility of the polysulfide’s ion is decreased and the reaction approaches to the final stage, Li 2S2 and the Li2S are divided from the solution and make a solid precipitate that impacts the free movement of the positive pole sulfur.

Lyten a developed material or the substance organization introduced a next generation lithium sulfur battery with a huge gravimetric energy density compared to the conventional lithium ion technologies . And this type of innovations are mostly to improve the market share of the lithium sulfur batteries over the predicted duration.

Global Residential Battery Market Restraints:

Residential batteries such as lead acid have few environmental concerns .The disposal of the lead acid batteries releases the lead which is known harmful or the hazardous waste to the human health or the well-being and the surroundings. If such type of batteries are not correctly disposed of and then it may adversely effect on the human brain, renal may increase the hearing problems.

Although the various nations have the recycling services for the lead acid batteries which are still the disadvantages of the lead recycling procedures, initially the one associated with the environmental and the surrounding issues.  The lead acid battery recycling procedure comprises of the huge energy demand owing to the huge operating temperatures.

Figure 2: Global Residential Battery Market Share (%), By Segmentation, 2021

Global Residential Battery Market Segmentation:

The global residential battery market report is segmented into type and region

Based on Type, the market is segmented into lead acid battery and lithium-ion battery and other types. Out of which, Lithium-ion battery is expected to dominate the global market over the forecast period as it offers several technical or the mechanical benefits compared to the other technologies like that of the lead acid batteries. The rechargeable Li-ion batteries on a minimal provides the cycles above 5,000 times comparatively to the lead acid batteries.

Lead acid battery is the energy to measure the ratio of the lead and the lead acid battery is low however, it can supply huge amount surge currents, showing a huge power to weight the ratio and then it is initially useful for the SLI usage. Also due to the least price which is very essential then the energy to measure the ratio in the backup supplies.  

Global Residential Battery Market: Key Developments

1. In March 2021, The Panasonic Corporation declared the signing of a share transfer deal with the Germany based AURELIUS Group under which all the shares of the Panasonic energy, Belgium N.V , Panasonic Energy Europe N.V., and the Panasonic Energy Poland S.A will be transferred to the German investment firm.
2. In October 2020, Panasonic Corporation being the first Japanese company to share or to transfer the cumulative total of 200 billion dry batteries globally post the achievement of 100 billion milestones in 2001 since the start in house production of the dry cells in the year 1931.
3. In October 2021, The Delta electronics Inc. adopted the Infinova Ltd. it aims to reinforce or to strengthen the Delta’s presence in the rising video surveillance market and the complement in its building automation solutions.
4. In April 2021, the Delta Electronics Inc. partnered with the BMW group and the Microsoft joints the open manufacturing platform. It focuses to gain the high effective, less cost and sustainable innovative energy solutions brought by the digital changes from the cutting edge technologies.

Global Residential Battery Market: Key Companies Insights

The global residential battery market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global residential battery market are:

FIMER SpA, Amara Raja Batteries Ltd, Samsung SDI, Energizer Holding Inc., Luminous Power Technologies Private Limited, LG Energy Solution, Ltd., Duracell Inc., Panasonic Corporation, Siemens AG, Tesla Inc., Delta Electronics Inc., BYD Co. Ltd and NEC Corp.

*Definition: A residential battery is such as a barrier amidst the house and the power grid. It plugs right into the current electrical system to minimize the dialy required energy usage and to offer the backup at the time of a grid failure. It occurs by taking the power from the grid of the solar panels and then deploying them into the house.