Residential Energy Storage Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The market for residential energy storage systems (RESS) is expected to grow at a CAGR of more than 19% during the forecast period of 2021 – 2026, reaching a market value of more than USD 8.5 billion by 2026 from USD 2.2 billion in 2019. The market has been affected significantly by the outbreak of COVID-19. Increasing trade restrictions due to the spread of the COVID-19 affected the supply chain globally. Major companies like BYD, CATL cut down production due to lower demand in 2020. However, widespread acceptance of solar PVs in Europe, Asia-Pacific, and North America has driven the residential energy storage demand. Factors such as increasing demand for uninterrupted and reliable power supply and the rise in adoption of solar rooftop systems by the residential sector are expected to be the major drivers for the market studied. Government initiatives, such as net metering, have been one of the major factors in the adoption of rooftop solar, which is expected to drive the demand for residential energy storage systems in the future. However, the high installation cost for solar plus battery systems is expected to hinder the growth of the residential energy storage systems market in the emerging and underdeveloped economies in the coming years.
- Lithium-ion battery-based energy storage systems (ESS) accounted for the highest market share in 2019 and are expected to dominate the market during the forecast period.
Increasing Demand for Lithium–ion Battery-based ESS
- The lithium-ion-based energy storage systems accounted for more than 50% of the market share in 2019 and are expected to continue their dominance over the forecast period. 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 5000 times, in comparison to lead-acid batteries that last around 400-500 times.
- The adoption of Li-ion batteries has been increasing, primarily due to their property of being the most energetic rechargeable batteries available. Also, the use of Li-ion batteries is increasing, as it is replacing conventional batteries due to its techno-economic benefits.
- Battery manufacturers are working to reduce the cost of Li-ion technology. The price of lithium-ion batteries has fallen steeply in the past 10 years. In 2019, the lithium-ion battery price was USD 156 per kWh, 13% lower than the price in 2018 and more than 80% compared to the prices in 2012. This sharp and sustained cost reduction is expected to help cement lithium-ion as the battery chemistry of choice in all energy storage markets, including residential energy storage.
Europe to Dominate the Market
- Europe has dominated the RESS market in 2019 and is expected to continue its dominance in the coming years. The demand for RESS in the region is witnessing high growth, owing to the rapid adoption of rooftop solar power.
- The residential energy storage system market has grown rapidly in Germany since 2015, supported by an incentive scheme granting a 30% investment subsidy for the battery system.
- Transformation in Germany’s energy mix has been taking place for the past few years. Rooftop solar accounted for a significant share of the total solar energy generation in Germany, mainly due to advanced supporting mechanisms introduced in the past such as grants and loans for roof programs.
- Moreover, the government of the United Kingdom is also promoting the adoption of battery energy storage to meet local, regional, and international carbon emission reduction goals.
Competitive Landscape
The global residential energy storage systems market is moderately consolidated. Some of the major players in this market include LG Chem Ltd, Samsung SDI Co. Ltd, Panasonic Corporation, Sonnen GmbH, and Saft Groupe SA.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Comments
Post a Comment