Residential Energy Storage (RES) Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Residential Energy Storage (RES) Market size was estimated at USD 2,660 million in 2024 and is projected to reach USD 4,645.15 million in 2031 at a CAGR of 8.29 % during the forecast period 2025-2031.

The residential energy storage (RES) market refers to the industry focused on the use of energy storage systems for homes, allowing homeowners to store electricity for later use. These systems typically consist of batteries that store energy generated from renewable sources like solar panels or from the grid during off-peak hours. Residential energy storage solutions help users reduce energy costs, increase energy independence, and contribute to a more sustainable energy future by optimizing energy consumption. With advancements in battery technology and growing environmental concerns, the RES market has seen significant growth in recent years.

The scope of the residential energy storage market includes the development, installation, and maintenance of storage systems tailored for residential use. These systems vary in capacity and design, depending on the needs of the household and the integration with other energy technologies, such as solar energy systems. The market also includes a wide range of players, from battery manufacturers to energy management companies, with customers ranging from individual homeowners to larger housing complexes looking to reduce energy costs and improve efficiency. The increasing focus on renewable energy adoption and sustainability further expands the scope of this market.

Key trends driving the growth of the residential energy storage market include the increasing adoption of renewable energy sources, especially solar power, and the growing need for energy independence. Homeowners are increasingly seeking ways to reduce their reliance on the grid and control their energy usage, particularly in regions with high electricity prices or frequent power outages. Innovations in battery technology, such as improved efficiency, longer lifespans, and decreasing costs, are also playing a crucial role in making residential energy storage systems more accessible to a broader audience. Additionally, government incentives and policy support for green technologies are encouraging further adoption of energy storage systems.

The primary drivers of the residential energy storage market include the rising demand for energy-efficient homes, the growing availability of renewable energy, and the need for greater grid stability. As energy prices continue to rise, homeowners are turning to energy storage systems as a way to lower their electricity bills and maximize the value of their renewable energy systems. The need for backup power during outages, combined with an increasing number of climate-related events, also fuels the demand for energy storage. Technological advancements in batteries, along with favourable regulatory frameworks, are expected to drive continued growth in the residential energy storage market in the coming years.

Delvens Industry Expert's Standpoint

Experts in the Residential Energy Storage (RES) Market highlight several key trends driving growth and innovation. The residential energy storage (RES) market involves the use of energy storage systems, such as batteries, to store electricity for homes, helping users reduce energy costs, increase independence, and support sustainability. This market is expanding due to the growing adoption of renewable energy, particularly solar power, and the need for efficient, cost-effective energy solutions. Key trends include advancements in battery technology, decreasing costs, and government incentives. The market is driven by rising demand for energy-efficient homes, the need for backup power, and the push for renewable energy adoption, with technological advancements and supportive regulations further fuelling growth in the sector.

Market Portfolio

Key Findings

• By system type, the standalone systems segment is expected to exhibit the highest CAGR during the forecast period. As the focus on energy independence grows, consumers are increasingly seeking modular, scalable, and standalone systems that provide power for household needs. These energy storage solutions ensure homeowners can optimize savings and efficiency, tailored to factors such as lifestyle, household size, and renewable energy potential. Standalone systems offer unmatched flexibility, ranging from compact solutions designed for basic energy storage to larger configurations that enable complete independence from the electrical grid. The modular design allows homeowners to choose systems that meet their immediate needs, with the option to expand or adapt as circumstances evolve over time.

• By ownership type, the customer-owned segment is set to dominate the market during the forecast period. Customer-owned energy storage systems have gained significant trust due to rapid advancements in battery technology. Longer-lasting batteries reduce the need for frequent replacements, resulting in long-term savings for homeowners. These improvements also enable better energy utilization, maximizing performance and reducing energy loss, ensuring the system operates at peak efficiency. Additionally, the increase in energy density allows these systems to store more energy in smaller, more compact units, which saves space and increases the overall system’s capacity, making them more practical. Homeowners are increasingly seeking efficient ways to power their homes using smart, renewable energy. With advancements in technology, accurate and efficient energy storage solutions are becoming key to reducing reliance on the grid and supporting a more sustainable future. As the technology continues to improve, customer-owned energy storage systems are becoming a more affordable and beneficial investment for homeowners, contributing to the overall growth of the market.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Europe region is projected to hold the largest market share. Factors such as Increased demand for renewable energy, energy independence and security, rising electricity prices, government incentives and subsidies, technological advancements in battery storage, growing awareness of environmental impact, reliability and backup power during outages, integration with solar power systems, decreasing cost of energy storage solutions, consumer preference for smart home technologies, rising demand for electric vehicles, improved grid stability and efficiency have triggered the Residential Energy Storage (RES) Market in the region.

Regional Analysis

Europe to Dominate the Market

• The North American residential energy storage market is experiencing significant growth, driven by the increasing adoption of solar energy, frequent power outages, and favorable government policies. The U.S. continues to be the dominant player, supported by incentives such as federal tax credits, including the Investment Tax Credit (ITC), state rebates, and programs like California's Self-Generation Incentive Program (SGIP). Growing energy demands in disaster-resilient areas, the availability of low-cost batteries, and advancements in smart energy solutions are further accelerating the market's expansion.

• The U.S. market is thriving, fuelled by the rising adoption of renewable energy, supportive government initiatives, advancements in battery technology, and increasing energy costs. The growing shift toward solar and wind energy is driving the demand for residential energy storage systems. Homeowners are increasingly installing solar panels, creating a need for energy storage solutions to ensure a continuous power supply during non-sunny hours or grid outages. Energy storage systems allow homeowners to store surplus energy, reducing reliance on the grid. Advancements in lithium-ion battery technology have improved efficiency, extended lifespans, and lowered costs, making these systems more affordable. Federal and state-level initiatives, such as rebates and subsidies, are also critical in promoting market adoption, particularly in states like California and New York.

• In Asia Pacific, rapid urbanization and rising energy demands are driving the adoption of residential energy storage systems. Countries like China, Japan, and Australia are leading in residential solar adoption, fueling the need for energy storage solutions to address the intermittent nature of renewable energy and enhance energy security. The increasing use of solar power has led to higher demand for storage systems to improve energy self-sufficiency. Governments in the region are promoting energy storage adoption through subsidies, tax incentives, and favorable policies. Additionally, advancements in lithium-ion battery technology are making energy storage systems more efficient and affordable, supporting the region's growing market.

• In Europe, rising security concerns and favourable government policies are driving market growth. The European Union's commitment to carbon neutrality by 2050 has led to increased solar installations in countries like Germany, Italy, and Spain, creating a demand for energy storage solutions to manage excess energy and maintain grid stability. The Russia-Ukraine conflict has further highlighted Europe’s dependence on imported energy, increasing efforts to enhance energy security. Rising electricity prices are also motivating households to adopt energy storage systems to reduce grid dependency. The European Green Deal and REPowerEU plan emphasize energy storage as a crucial component of the region's energy transition. Additionally, the European Union’s Battery 2030+ initiative is focused on developing sustainable and high-performance batteries, boosting the competitiveness of European energy storage systems.

• In Latin America, unreliable grid infrastructure, government incentives, and technological advancements are driving the growth of residential energy storage systems. Countries like Brazil, Mexico, and Chile are expanding their renewable energy capacity, particularly through solar PV installations. Power outages and grid instability in many regions are pushing households to adopt energy storage solutions as a reliable backup power source. Government initiatives, including subsidies and tax incentives, are making solar-plus-storage systems more affordable. Additionally, the declining cost of battery manufacturing, particularly in Brazil, is contributing to wider adoption in the residential sector.

• The Middle East and Africa (MEA) region is increasingly adopting renewable energy, particularly solar power, due to the region's abundance of sunlight. Countries such as South Africa, the UAE, and Saudi Arabia are installing residential solar systems, which in turn is driving demand for energy storage systems to address power supply interruptions and improve efficiency. Regular blackouts and grid unreliability are pushing households in rural and underserved areas to adopt energy storage solutions. Population growth, particularly in Saudi Arabia, is also increasing energy demand, further stimulating the need for energy storage systems. Both governments and households are increasingly pursuing energy independence, further boosting the adoption of solar-plus-storage systems in self-sufficient homes.

Competitive Landscape

• Tesla
• Panasonic Holdings Corporation
• BYD Company Ltd
• Enphase Energy
• Sonnen GmbH
• VARTA AG
• Delta Electronics, Inc.
• Huawei Technologies Co., Ltd.
• Eaton
• SMA Solar Technology AG
• LG Energy Solution
• TESVOLT AG
• Shanghai PYTES Energy Co., Ltd
• Dyness

Recent Developments

• In July 2024, Tesla and Intersect Power signed a contract for 15.3 GWh of Megapacks, Tesla's advanced battery energy storage system, to support Intersect Power's solar-plus-storage projects through 2030.

• In November 2024, Enphase Energy launched a more powerful home energy storage system in Romania, featuring the IQ Battery 5P and IQ8 Microinverters. This system allows homeowners to store more solar energy and use it when necessary.

• In October 2024, Enphase Energy expanded its support for grid services programs in New Hampshire, North Carolina, and California. This initiative enables homeowners with Enphase IQ Battery 5P systems to participate in programs that offer incentives for storing and supplying energy to the grid during peak demand, helping reduce energy costs and promote a sustainable energy future.

• In June 2024, Sonnen partnered with Tibber to introduce a virtual power plant (sonnenVPP) in Sweden. This initiative allows sonnenBatterie owners to join the VPP through Tibber's dynamic electricity tariff. The collaboration provides financial benefits to residential customers by stabilizing the grid through participation in the frequency containment reserve (FCR) market and optimizing battery charging with cost-effective electricity.

• In September 2023, LG Energy Solution announced plans to triple its global energy storage system (ESS) sales over the next five years, with a focus on the U.S. market and a USD 2.3 billion investment. At RE+ 2023, the company revealed strategies to achieve this goal, including building a 16 GWh ESS battery production facility in Arizona by 2026, localizing its supply chain for IRA compliance, and advancing its LFP technology.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
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• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope