Global Residential Battery Market - Analysis by Type, and Geography - Growth, Trends, and Forecast (2018 - 2023)
The residential battery market is likely to grow in the near future, owing to increasing deployment of solar power generation, and rising need for energy storage solutions in residential sector across the world. In addition, the increasing energy demand-supply gap and the growing disposable income, primarily in South America and Asia-Pacific, is expected to increase the adoption of residential battery. Decline in price of lithium-ion batteries stimulated by technological advancements have resulted in increasing usage of battery storage solutions in the residential sector.
Decline in Lithium-ion Prices to drive the Market
Manufacturers are focusing on reducing the cost of lithium-ion technology. The price of lithium-ion batteries has fallen steeply in the past 10 years. In 2016, lithium-ion battery price was USD 273 per kWh, 73% lower than the price in 2010. Lithium-ion battery prices are falling continuously and are down by 24% in 2017 from 2016 levels; it has witnessed 80% drop since 2010. The average lithium-ion battery pack price is down to USD 209/kWh, and the prices are expected to fall below USD 100/kWh by 2025.
Moreover, lithium-ion is growing at a fast pace, due to its better performance, higher energy density, and decreasing price. The price of lithium-ion batteries is usually high compared to other batteries. However, leading players in the market have been investing in mass production capacity to achieve economies of scale and R&D activities to improve their performance and prices.
This sharp and sustained cost reduction is expected to help in adoption of lithium-ion as the battery chemistry of choice in residential energy storage market during the forecast period.
Asia-Pacific to Dominate the Market Growth
Asia-Pacific holds the majority share in terms of revenue, with China and India being the major contributors. These countries are likely to exhibit immense growth potential during the forecast period. The Chinese residential battery market is expected to grow during the forecast period, led by the government’s policy and regulatory support. The Chinese government has already shown its ability to stimulate high growth in domestic demand for solar-related equipment, through subsidies and installation targets. The solar energy consumption grew by 71.5% in 2016 alone, with the growth rate in the decade 2005 to 2015 being 84.6%. Moreover, China achieved its national solar energy installation target of 2020 in 2017 itself by reaching an installed solar capacity well over 105 GW, as of July 2017 the total installed solar capacity was 112 GW.
With increasing disposable income in emerging economies of Asia-Pacific, such as China and India, when coupled with the rising need for reliable energy supply is expected to result in a growing demand for residential batteries. Furthermore, Asia-Pacific is home to the fastest urbanizing countries and the expected increase in energy demand is likely not to be met by the increasing energy production. According to the United Nation, the city population is predicted to increase between 2016 and 2030, while the rural population is projected to slightly decline during the same period. Due to the above factors, the sale of the residential battery is expected to maintain its growth momentum in the near future.
The major players include - ABB Ltd, LG Chem Ltd, Panasonic Corporation, Samsung SDI, Siemens AG, Luminous Power Technologies, Amara Raja Batteries Ltd, Hitachi, Ltd., NEC Corp, Tesla Inc, among others.
Reasons to Purchase This Report
Current and future residential battery market outlook in the developed and emerging markets
Analyze various perspectives of the market with the help of Porter’s five forces analysis
The segment that is expected to dominate the market
Regions that are expected to witness fastest growth during the forecast period
Identify the latest developments, and strategies, employed by the major market players
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