USD 2.56 billion
Residential Energy Storage Market Size, Share, and Growth Analysis
Residential Energy Storage Market By Power Rating (3 to 6 KW, 7 to 10 KW), By Technology (Lead-acid, Lithium-ion), By Ownership (Customer-owned, Utility-owned), By Connectivity Type, By System Type, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG25G2020 |
Region:
Global |
Published Date: March, 2025
Pages:
199
|Tables:
137
|Figures:
70
Format -
Residential Energy Storage Market Insights
Global Residential Energy Storage Market size was valued at USD 2.56 billion in 2023 and is poised to grow from USD 2.8 billion in 2024 to USD 5.79 billion by 2032, growing at a CAGR of 9.5% during the forecast period (2025-2032).
The residential energy storage system is gaining traction due to increased strain on the grid in many regions and the intermittent nature of renewable energy. Grid assets are aging, and severe weather is rising worsening bottlenecks and chokes points in the energy delivery system resulting in higher costs and threatening to increase local power outage. Utilities are deploying residential energy storage systems to replace thermal power plants, support renewable generation, and improve grid reliability and resilience. The residential energy storage system is a highly flexible and valuable resource, improving efficiency for system owners and the power grid. Several factors are contributing to the rapid uptake of the storage system, such as falling cost, increasing natural calamities, solar plus storage benefits, incentives and tax benefits, and grid service payment. It also reduces the peak load on the local grid network and improves the quality of power.
The global residential energy storage market growth is primarily driven by spurring demand for electric vehicles to mitigate carbon emission. Moreover, the growing demand for uninterrupted power supply and frequent power outage in remote areas are likely to strengthen market prospects. Also, the residential energy storage system assists the grid in maintaining reliability and resilience in operation, which eliminates bottlenecks in the transmission and distribution of energy.
The energy storage system requires high capital investment, which deters investment by household owners. Furthermore, most of the batteries contain harmful chemicals and materials which need to be disposed of methodically. Poor implementation of standards and the high cost of recycling are likely to impede the growth of the market.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Off-grid
Fastest Growth
On-grid
Growth Rate
9.5% CAGR
Global Residential Energy Storage Market ($ Bn)
Country Share for North America Region (%)
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Residential Energy Storage Market Segments Analysis
Global Residential Energy Storage Market is segmented by Power Rating, Technology, Ownership, Connectivity Type, System Type and region. Based on Power Rating, the market is segmented into 3 to 6 KW, 7 to 10 KW and 10 to 20 KW. Based on Technology, the market is segmented into Lead-acid and Lithium-ion. Based on Ownership, the market is segmented into Customer-owned, Utility-owned and Third-party-owned. Based on Connectivity Type, the market is segmented into On-grid and Off-grid. Based on System Type, the market is segmented into Standalone Systems and Solar And Storage Systems. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Technology
As per global residential energy storage market outlook, the lithium-ion segment dominated the market and holds the larger share of 65% in 2024. This segment is leading due to the numerous advantages of Li-ion batteries, such as high energy density, lightweight design, good long-term performance with a long lifespan, high-temperature tolerance, and fast recharging capability, with low self-discharge, which reduces waste. In February 2023, the Geological Survey of India (GSI) discovered a lithium-inferred resource of 5.9 million tons in Jammu and Kashmir, making India the world’s seventh-largest source of lithium. Lithium-ion batteries are preferred for residential energy storage due to their superior energy density, longer lifespan, and high efficiency compared to other battery technologies.
As per global residential energy storage market analysis, the lead-acid segment is still experiencing growth due to lower cost. Affordability remains a key driver, as lead-acid batteries have a lower upfront cost compared to lithium-ion alternatives, making them attractive for cost-conscious consumers and regions with budget constraints. Additionally, established reliability and recyclability contribute to their continued adoption, especially in areas where recycling infrastructure for lead-acid batteries is well developed. Off-grid and backup power applications also support growth, as some homeowners still prefer lead-acid batteries for short-term energy storage or emergency backup solutions. Furthermore, advancements in enhanced flooded batteries (EFB) and absorbent glass mat (AGM) technologies have improved lead-acid battery performance, offering better durability and charge efficiency.
Analysis by Connectivity Type
As per global residential energy storage market forecast, the off grid dominated the market due to lack of access to centralized grid. Lead-acid batteries are widely used in off-grid applications because they offer a cost-effective and reliable solution for storing energy in remote locations. These areas often rely on solar, wind, or other renewable energy sources, and lead-acid batteries provide a way to store the energy generated for later use. In off-grid applications, the upfront cost is a major consideration. Lead-acid batteries are more affordable compared to lithium-ion options, making them suitable for off-grid homes or communities with limited budgets. Lead-acid batteries have been used in off-grid systems for decades, and their established technology offers a sense of reliability and dependability for remote energy storage.
The on-grid segment is the fastest-growing in the residential energy storage market due to its ability to enhance grid reliability and optimize energy usage through peak shaving and demand response services. The systems allow homeowners to capture the energy generated during off-peak hours, which is served during peak hours, thus reducing strain on the grid and lowering electricity costs. This capability is of a lot of value in regions with time-of-use pricing; energy prices vary with demand. In areas with unstable grid conditions or where there is a likelihood of frequent power outages, on-grid storage systems buffer the system for a stable power supply. They provide all points of stabilization in energy flow and help support more imminent grid infrastructure, thus saving cost individually.
Global Residential Energy Storage Market By Connectivity Type (%)
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Residential Energy Storage Market Regional Insights
North America dominated the market due to high adoption of solar energy, government incentives and policies. The price of electricity is rather high when peak demand occurs during the evening when energy consumption in homes is at its peak. This situation creates an excellent reason for homeowners to make a significant investment in residential energy storage systems. Advanced energy storage systems with intelligent energy management software automate the process, offering maximum convenience to the user and thereby optimizing energy usage to the best extent. This shift goes one step further in promoting energy efficiency and helps utilities properly balance grid load, making TOU pricing a great deal of the reason for the installation of home energy storage units.
The global residential energy storage market will witness the highest growth in Asia-Pacific. China is one of the largest producers and exporters of residential energy storage systems. It is home to leading manufacturers of energy storage devices for residential and commercial applications. In March 2024, Energy Vault in China successfully connected its grid and its commercial EVx gravity-based energy storage system. The growing investments in solar energy installations and the rising number of suppliers of devices used in solar energy panels will be influential in driving regional demand. With countries like China, Japan, India, and South Korea leading the charge, there is a strong push for renewable energy adoption, especially solar power, which drives the need for residential energy storage systems to store excess energy for later use.
Global Residential Energy Storage Market By Geography
- Largest
- Fastest
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Residential Energy Storage Market Dynamics
Residential Energy Storage Market Drivers
Increasing Instances of Load Shedding Across Globe
- The residential energy storage systems are expected to witness high growth due to the growing instances of load shedding across the globe. Load shedding is the process of a deliberate halt in the supply of electricity from the main power grid to specific areas for a temporary period. Load shedding is extremely common in underdeveloped or developing nations especially when the stress on power grid systems rises sharply. This is mostly witnessed during the summer season and is a precautionary step toward the prevention of complete blackouts for longer hours.
Growing Awareness among Consumers
- The demand for home energy storage technology is expected to be further impacted by the growing awareness among customers about the advantages associated with battery-powered energy-storing devices. The rising marketing tactics incorporated by businesses developing residential energy storage tools as well as the rising sale of the devices through retail chains have been crucial to the overall growth in the global residential energy storage market.
Residential Energy Storage Market Restraints
High Initial Cost of Deployment
- The high initial costs associated with residential energy storage systems pose a significant challenge for the residential energy storage market. Despite advancements in technology and decreasing prices over time, the upfront capital required to purchase and install energy storage solutions remains substantial. This initial investment includes not only the cost of the battery units themselves but also installation expenses, such as electrical modifications and system integration.
Limited Lifetime of Device and Regular Maintenance
- The global residential energy storage industry faces challenges due to the limited lifetime of technology. It requires constant maintenance work and frequent changes in damaged parts thus leading to increased operational expenses. Additionally, if the projects deliver higher energy output, more investments will be required further causing hindrances in the market adoption rate.
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Residential Energy Storage Market Competitive Landscape
The global residential energy storage industry is highly competitive, with key players focusing on technological advancements, strategic partnerships, and market expansion to strengthen their positions. Companies such as Tesla, LG Energy Solution, Sonnen, BYD, and Enphase Energy dominate the market, offering lithium-ion battery solutions with enhanced efficiency, longevity, and smart energy management capabilities. Tesla’s Powerwall remains a market leader due to its seamless integration with solar panels and advanced energy monitoring features.
Top Player’s Company Profiles
- Tesla, Inc. (United States)
- Enphase Energy, Inc. (United States)
- Sunrun Inc. (United States)
- Sunnova Energy International Inc. (United States)
- Vistra Corp. (United States)
- Panasonic Holdings Corporation (Japan)
- Samsung SDI Co., Ltd. (South Korea)
- LG Energy Solution Ltd. (South Korea)
- BYD Company Ltd. (China)
- Huawei Technologies Co., Ltd. (China)
- GoodWe Technologies Co., Ltd. (China)
- SolaX Power Network Technology (Zhejiang) Co., Ltd. (China)
- SMA Solar Technology AG (Germany)
- Saft Groupe S.A. (France)
- Eaton Corporation plc (Ireland)
- Delta Electronics, Inc. (Taiwan)
- Hitachi Energy Ltd. (Switzerland)
- Exide Industries Ltd. (India)
- SolarEdge Technologies Inc. (Israel)
Recent Developments in Residential Energy Storage Market
- In January 2024, the Indian Prime Minister launched a new scheme, the PM Suryodaya Yojana, for installing rooftop solar systems at reduced subsidiary rates in 10 million houses for the lower- and middle-class populations.
- In February 2023, the Geological Survey of India (GSI) discovered a lithium-inferred resource of 5.9 million tons in Jammu and Kashmir, making India the world’s seventh-largest source of lithium.
- In January 2022, the Indian Ministry of New and Renewable Energy launched a grid-connected rooftop solar (RTS) program. Under this, the ministry is providing a 40% subsidy for the up to 3 kW and a 20% subsidy above 3 kW and up to 10 kW.
Residential Energy Storage Key Market Trends
- Growing Investments in Solar Energy Devices: The global residential energy storage market is expected to witness high growth opportunities due to growing installations of solar panels across the globe. The rising power costs have led to customers seeking more sustainable solutions for electricity generation and storage. The rising improvements in solar panel technology and increasing government support to encourage the adoption of solar panels will drive the demand for residential solar technology in the coming years.
- Rising Launch of New Solutions will Drive More Customers Toward Home Energy Technology: The residential energy storage market will gain growth momentum owing to the growing launch of new solutions with improved performance. In February 2024, LG announced the launch of two new residential energy storage devices in the form of the novel Enblock E storage system. Each system has a capacity of 15.5 kWh and 12.4 kWh and is ideal for small units as the new devices are 451 mm x 330 mm in size.
Residential Energy Storage Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to SkyQuest analysis, the main global residential energy storage market trend is the adoption of solar rooftop systems. The combined usage of solar PV and energy storage system can enable the creation of microgrids and small-scale power units. The Indian government has implemented various initiatives to encourage the adoption the solar rooftop system. For instance, the Grid-Connected Rooftop Solar Program attempts to lower the installation cost of solar panels. India has been suffering from frequent power cuts, which is a serious problem for the people due to issues like low infrastructure quality, voltage spikes, and grid disruption. These factors have driven the growth of the market substantially, and in an effort to address this problem, the government has been implementing new methods. The adoption of new methods, such as solar rooftop systems and windmills, for the generation of electricity is being promoted, so coal can be replaced as the primary source of energy.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 2.56 billion |
| Market size value in 2032 | USD 5.79 billion |
| Growth Rate | 9.5% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Residential Energy Storage Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Residential Energy Storage Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Residential Energy Storage Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Residential Energy Storage Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Residential Energy Storage Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Residential Energy Storage Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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