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Global Residential Battery Energy Storage Growth Opportunities

  • Report
  • 74 Pages
  • November 2021
  • Region: Global
  • Frost & Sullivan
  • ID: 4515827

Higher Electricity Prices, Declining Technology Costs, and Desire for Grid Independence are Factors Driving Market Growth

The residential battery storage market will continue its recent trajectory of strong growth, with global revenues increasing from $3.05 billion in 2021 to reach $8.11 billion in 2030. High electricity prices, declines in feed-in tariffs and net metering payments, and continued declines in lithium-ion battery prices and associated components are the key drivers. These drivers help create a viable business case for battery energy storage, particularly for households acquiring new systems, where solar + storage propositions are increasingly common. Advanced digital-based value propositions will also become important in the coming years. 


This allows for value-added functionalities such as electricity aggregation and trade from residential battery cloud-based communities (known as virtual power plants) to the grid under balancing markets for ancillary services. All of these bring additional revenues for householders and solution providers. The additional revenue streams for solution providers also enable them to provide different financing models, aside from direct purchase, such as leasing or as-a-service outcome-based contracts. Germany, the United States, and Japan - key markets in 2021 - will remain key markets in 2030 and joined by Australia, South Korea, and China. 


In Europe, Italy, the United Kingdom, Spain, and Austria will see significant growth. LG Chem, Sonnen, Tesla, and BYD are the leading solution providers in the market. Beyond that are over 20 solutions providers that have a strong presence in a few key country markets. As players look to achieve scale, there will likely be some consolidation within the market in the longer term. Partnerships with utilities and automotive companies will be key to future success as electricity and mobility become the same ecosystem.


Key Issues Addressed

  • What are the key drivers and restraints impacting future growth in the market?
  • What are the forecast growth in key country markets in systems, revenues, and kWh storage?
  • What are the market shares of leading players in the market, and how did they achieve their positioning? 
  • What is the main distribution model for the market?
  • What are the key growth opportunities for market participants to secure their place in the future market? 

Table of Contents

1. Strategic Imperatives
  • Why is it Increasingly Difficult to Grow?
  • The Strategic Imperative 8
  • The Impact of the Top Three Strategic Imperatives on the Residential Battery Energy Storage (BES) Industry
  • Growth Opportunities Fuel the Growth Pipeline Engine
  • Key Findings


2. Growth Opportunity Analysis - Residential Battery Energy Storage Market
  • Residential Battery Energy Storage Market Scope of Analysis
  • Market Segmentation
  • Key Competitors
  • Key Growth Metrics for the Residential Battery Energy Storage Market
  • Distribution Channel Analysis
  • Growth Drivers for the Residential Battery Energy Storage Market
  • Growth Restraints for the Residential Battery Energy Storage Market
  • Forecast Assumptions
  • Revenue and System Installations Forecast
  • Cumulative and Annual Capacity Additions Forecast
  • Revenue Forecast by Region
  • System Installations Forecast by Region
  • Revenue and System Installations Forecast Analysis by Region
  • Annual Capacity Additions Forecast by Region
  • Cumulative Capacity Forecast by Region
  • Pricing Trends and Forecast Analysis
  • Competitive Environment
  • System Installations Market Share of Top Participants
  • System Installations Market Share Analysis


3. Growth Opportunity Analysis - North America
  • Key Growth Metrics for the Residential Battery Energy Storage Market - North America
  • Revenue and System Installations Forecast - North America
  • Cumulative and Annual Capacity Additions Forecast - North America
  • Revenue Forecast by Country - North America
  • System Installations Forecast by Country - North America
  • Annual Capacity Additions Forecast by Country - North America
  • Revenue, Systems Installations and Annual Capacity Additions Forecast Analysis by Country - North America


4. Growth Opportunity Analysis - Europe
  • Key Growth Metrics for the Residential Battery Energy Storage Market - Europe
  • Revenue and System Installations Forecast - Europe
  • Cumulative and Annual Capacity Additions Forecast - Europe
  • Revenue Forecast by Country - Europe
  • System Installations Forecast by Country - Europe
  • Annual Capacity Additions Forecast by Country - Europe
  • Revenue, System Installations, and Annual Capacity Additions Forecast Analysis by Country - Europe


5. Growth Opportunity Analysis - Asia & Oceania
  • Key Growth Metrics for the Residential Battery Energy Storage Market - Asia & Oceania
  • Revenue and System Installations Forecast - Asia & Oceania
  • Cumulative and Annual Capacity Additions Forecast - Asia & Oceania
  • Revenue Forecast by Country - Asia & Oceania
  • System Installations Forecast by Country - Asia & Oceania
  • Annual Capacity Additions Forecast by Country - Asia & Oceania
  • Revenue, Systems Installations and Annual Capacity Additions Forecast Analysis by Country - Asia & Oceania


6. Growth Opportunity Universe
  • Growth Opportunity 1: Solar + Storage Value Proposition
  • Growth Opportunity 2: New Business Models for Storage-as-a-Service
  • Growth Opportunity 3: Leverage Data Analytics for Residential Battery Energy Storage


7. Next Steps
  • Your Next Steps
  • Why Now?
  • List of Exhibits
  • Legal Disclaimer

Companies Mentioned

A selection of companies mentioned in this report includes:

  • BYD
  • LG Chem
  • Sonnen
  • Tesla