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WhatsAppGrowing demand for clean energy drives market growth
Residential energy storage systems (RESS) allow homeowners to store electricity for use during periods of high demand or when renewable energy generation is low. These systems can store energy generated from solar panels, wind turbines, or the grid, and typically use technologies such as lithium-ion batteries, lead-acid batteries, or flow batteries. As the transition to cleaner energy sources accelerates and consumers seek greater control over their energy usage, the residential energy storage market is experiencing significant growth.
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Market report highlights
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Market report insights
Technavio’s industry reports offer qualitative and quantitative analysis of historical data as well as a comprehensive market forecast. They examine key factors such as market drivers, challenges, and emerging trends, and provide detailed information on the global competitive landscape. Also included is a breakdown of the types of products available on the market, along with a region-by-region analysis of market growth and opportunities.
Market segmentation
Lithium-ion batteries see high growth
Lithium-ion batteries are the most popular technology in residential energy storage due to their high energy density, longer lifespan, and decreasing costs. They are commonly used in systems integrated with solar panels and offer reliable performance and efficiency. Lead-acid batteries are a more traditional technology with a longer history in energy storage. While they are generally less expensive than lithium-ion batteries, they have lower energy density and shorter lifespans. They are still used in some residential applications due to their lower initial costs.
Regional analysis
North America leads the global market, with the US being a key country
The North American market, particularly in the United States, is a leader in residential energy storage adoption. The combination of high solar penetration, supportive policies, and technological advancements has driven significant growth. California, in particular, has been a major driver of market development due to its ambitious clean energy goals and incentives.
APAC is experiencing rapid growth in residential energy storage, driven by increasing urbanization, rising energy demands, and government incentives. China and Japan are notable leaders in the market, with large-scale deployments and ongoing investments in research and development.
Competitive landscape
This report provides an analysis of the market’s competitive landscape and offers information on the products offered by various companies in order to help clients improve their market positions. Companies leading the global residential energy storage market include:
- Tesla
- Panasonic
- Sonnen
- Samsung SDI
- LG Electronics
Market Dynamics
Integration with Smart Home Technologies
Residential energy storage systems are increasingly being integrated with smart home technologies and energy management systems. These integrations allow homeowners to optimize energy usage, monitor performance in real-time, and automate energy storage and consumption based on usage patterns and energy prices.
Energy-as-a-Service Models
Some companies are offering energy storage solutions through Energy-as-a-Service (EaaS) models, where homeowners pay for access to energy storage and management services rather than purchasing the equipment outright. This model can reduce the initial cost burden and provide ongoing maintenance and support.
Growing Interest in Energy Independence
The desire for energy independence and resilience, particularly in areas prone to power outages or natural disasters, is driving interest in residential energy storage systems. These systems provide backup power during emergencies and can enhance energy security for homeowners.
Faq
What types of energy storage systems are commonly used in residential settings?
Several types of energy storage systems are commonly used in residential settings. Lithium-ion batteries are the most prevalent due to their high energy density, longer lifespan, and decreasing costs. Lead-acid batteries are a more traditional technology with a longer history, though they are generally less efficient and have a shorter lifespan compared to lithium-ion batteries. Flow batteries, which use two separate chemical solutions stored in external tanks, offer scalable energy storage but are less common in residential applications due to their complexity and cost. Emerging solid-state batteries promise improvements in safety and performance but are still in development.
What are the common challenges associated with residential energy storage systems?
Residential energy storage systems face several common challenges. High upfront costs can be a barrier to adoption, although decreasing prices and government incentives are helping to mitigate this issue. Battery degradation over time can affect performance and capacity, necessitating consideration of warranty terms and expected lifespan. Installation and maintenance require professional expertise, and homeowners should ensure that they choose reputable providers. Additionally, regulatory and permitting issues may vary by location, which can impact the installation process and system integration.
What is the future outlook for the residential energy storage market?
The future outlook for the residential energy storage market is promising, with continued growth expected due to several factors. Advances in battery technology are likely to improve performance and reduce costs, making energy storage more attractive to homeowners. Increasing adoption of renewable energy sources and rising energy prices will drive demand for energy storage solutions. Additionally, the integration of energy storage with smart home technologies and innovative business models such as Energy-as-a-Service (EaaS) will further support market expansion. As technology evolves and policy support continues, residential energy storage systems will play an increasingly important role in the energy landscape.
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Table of Contents
1 Executive Summary
- 1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market by Geography
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Distribution Channel
- Exhibit 06: Executive Summary – Chart on Market Segmentation by Product
- Exhibit 07: Executive Summary – Chart on Incremental Growth
- Exhibit 08: Executive Summary – Data Table on Incremental Growth
- Exhibit 09: Executive Summary – Chart on Vendor Market Positioning
2 Market Landscape
- 2.1 Market ecosystem
- Exhibit 10: Parent market
- Exhibit 11: Market Characteristics
3 Market Sizing
- 3.1 Market definition
- Exhibit 12: Offerings of vendors included in the market definition
- 3.2 Market segment analysis
- Exhibit 13: Market segments
- 3.3 Market size 2023
- 3.4 Market outlook: Forecast for 2023-2028
- Exhibit 14: Chart on North America - Market size and forecast 2023-2028 ($ billion)
- Exhibit 15: Data Table on Regional - Market size and forecast 2023-2028 ($ billion)
- Exhibit 16: Chart on North America: Year-over-year growth 2023-2028 (%)
- Exhibit 17: Data Table on Regional - Market size and forecast 2023-2028 ($ billion)
4 Historic Market Size
- 4.1 Dietary supplements market in North America 2018 - 2022
- Exhibit 18: Historic Market Size – Data Table on dietary supplements market in north America 2018 - 2022 ($ billion)
- 4.2 Distribution Channel Segment Analysis 2018 - 2022
- Exhibit 19: Historic Market Size – Distribution Channel Segment 2018 - 2022 ($ billion)
- 4.3 Product Segment Analysis 2018 - 2022
- Exhibit 20: Historic Market Size – Product Segment 2018 - 2022 ($ billion)
- 4.4 Geography Segment Analysis 2018 - 2022
- Exhibit 21: Historic Market Size – Geography Segment 2018 - 2022 ($ billion)
5 Five Forces Analysis
- 5.1 Five forces summary
- Exhibit 22: Five forces analysis - Comparison between 2023 and 2028
- 5.2 Bargaining power of buyers
- Exhibit 23: Chart on Bargaining power of buyers – Impact of key factors 2023 and 2028
- 5.3 Bargaining power of suppliers
- Exhibit 24: Bargaining power of suppliers – Impact of key factors in 2023 and 2028
- 5.4 Threat of new entrants
- Exhibit 25: Threat of new entrants – Impact of key factors in 2023 and 2028
- 5.5 Threat of substitutes
- Exhibit 26: Threat of substitutes – Impact of key factors in 2023 and 2028
- 5.6 Threat of rivalry
- Exhibit 27: Threat of rivalry – Impact of key factors in 2023 and 2028
- 5.7 Market condition
- Exhibit 28: Chart on Market condition - Five forces 2023 and 2028
6 Market Segmentation by Distribution Channel
- 6.1 Market segments
- Exhibit 29: Chart on Distribution Channel - Market share 2023-2028 (%)
- Exhibit 30: Data Table on Distribution Channel - Market share 2023-2028 (%)
- 6.2 Comparison by Distribution Channel
- Exhibit 31: Chart on Comparison by Distribution Channel
- Exhibit 32: Data Table on Comparison by Distribution Channel
- 6.3 Offline - Market size and forecast 2023-2028
- Exhibit 33: Chart on Offline - Market size and forecast 2023-2028 ($ billion)
- Exhibit 34: Data Table on Offline - Market size and forecast 2023-2028 ($ billion)
- Exhibit 35: Chart on Offline - Year-over-year growth 2023-2028 (%)
- Exhibit 36: Data Table on Offline - Year-over-year growth 2023-2028 (%)
- 6.4 Online - Market size and forecast 2023-2028
- Exhibit 37: Chart on Online - Market size and forecast 2023-2028 ($ billion)
- Exhibit 38: Data Table on Online - Market size and forecast 2023-2028 ($ billion)
- Exhibit 39: Chart on Online - Year-over-year growth 2023-2028 (%)
- Exhibit 40: Data Table on Online - Year-over-year growth 2023-2028 (%)
- 6.5 Market opportunity by Distribution Channel
- Exhibit 41: Market opportunity by Distribution Channel ($ billion)
- Exhibit 42: Data Table on Market opportunity by Distribution Channel ($ billion)
7 Market Segmentation by Product
- 7.1 Market segments
- Exhibit 43: Chart on Product - Market share 2023-2028 (%)
- Exhibit 44: Data Table on Product - Market share 2023-2028 (%)
- 7.2 Comparison by Product
- Exhibit 45: Chart on Comparison by Product
- Exhibit 46: Data Table on Comparison by Product
- 7.7 Others - Market size and forecast 2023-2028
- Exhibit 63: Chart on Others - Market size and forecast 2023-2028 ($ billion)
- Exhibit 64: Data Table on Others - Market size and forecast 2023-2028 ($ billion)
- Exhibit 65: Chart on Others - Year-over-year growth 2023-2028 (%)
- Exhibit 66: Data Table on Others - Year-over-year growth 2023-2028 (%)
- 7.8 Market opportunity by Product
- Exhibit 67: Market opportunity by Product ($ billion)
- Exhibit 68: Data Table on Market opportunity by Product ($ billion)
8 Customer Landscape
- 8.1 Customer landscape overview
- Exhibit 69: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
9 Geographic Landscape
- 9.1 Geographic segmentation
- Exhibit 70: Chart on Market share by geography - 2023-2028 (%)
- Exhibit 71: Data Table on Market share by geography - 2023-2028 (%)
- 9.2 Geographic comparison
- Exhibit 72: Chart on Geographic comparison
- Exhibit 73: Data Table on Geographic comparison
- 9.6 Market opportunity by geography
- Exhibit 74: Market opportunity by geography ($ billion)
- Exhibit 75: Data Table on Market opportunity by geography ($ billion)
10 Drivers, Challenges, and Trends
- 10.1 Market drivers
- 10.2 Market challenges
- 10.3 Impact of drivers and challenges
- Exhibit 76: Impact of drivers and challenges in 2023 and 2028
- 10.4 Market trends
11 Vendor Landscape
- 11.1 Overview
- 11.2 Vendor landscape
- Exhibit 77: Overview on Criticality of inputs and Factors of differentiation
- 11.3 Landscape disruption
- Exhibit 78: Overview on factors of disruption
- 11.4 Industry risks
- Exhibit 79: Impact of key risks on business
12 Vendor Analysis
- 12.1 Vendors covered
- Exhibit 80: Vendors covered
- 12.2 Market positioning of vendors
- Exhibit 81: Matrix on vendor position and classification
- 13 Appendix
- 13.1 Scope of the report
- 13.2 Inclusions and exclusions checklist
- Exhibit 82: Inclusions checklist
- Exhibit 83: Exclusions checklist
- 13.3 Currency conversion rates for US$
- Exhibit 84: Currency conversion rates for US$
- 13.4 Research methodology
- Exhibit 85: Research methodology
- Exhibit 86: Validation techniques employed for market sizing
- Exhibit 87: Information sources
- 13.5 List of abbreviations
- Exhibit 88: List of abbreviations