Residential Energy Storage Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The residential energy storage market was valued at USD 2.82 Billion in 2024. The industry is expected to grow at a CAGR of 9.10% during the forecast period of 2025-2034. The emphasis of homeowners on cost savings driven by the growing rate of urbanisation is likely to bolster the demand for residential energy storage worldwide supported by robust government support for solar power. The market will likely attain a valuation of USD 6.74 Billion by 2034.

Global Residential Energy Storage Market Report Summary

Market Size 2024

• USD Billion 2.82

Market Size 2034

• USD Billion 6.74
• CAGR 2025-2034
• 9.10%

CAGR 2025-2034- Market by Region

• Asia Pacific
• 10.2%

CAGR 2025-2034 - Market by Country

• India
• 10.7%

CAGR 2025-2034 - Market by Country

• Australia
• 9.5%

CAGR 2025-2034 - Market by Type

• Lithium-ion Batteries
• 9.4%

CAGR 2025-2034 - Market by System Type

Solar and Storage Systems

• 9.7%

Market Share by Country 2024

• Italy
• 3.2%

Residential Energy Storage Market Overview

The residential energy storage market value will witness significant growth during the forecast period fuelled by the rising usage of electric bikes across the globe and the soaring efforts on attaining grid stability and load management. According to industry reports, nearly 300 million e-bikes were reported to be in use globally in 2023. Solar power is largely sought for charging electric bikes as it absorbs sunlight to convert to electricity. However, the efficiency of the solar electric bike charging processes is dependent on the size of the solar panels, the intensity of the sun, and the battery capacity of the e-bikes.

Residential Energy Storage Market Growth

The constant innovations in solar energy storage is an important factor influencing the residential energy storage industry outlook. In March 2025, Spain’s storage manufacturing firm Turbo Energy introduced its newest all-in-one solar energy storage solution Dubbed Sunbox Home Lite to cater to residential houses. The new product deploys lithium iron phosphate (LiFePO4) batteries while boasting a capacity between 2.4 kWh and 9.6 kWh. These batteries are known for their safety, stability, longevity, and environmental benefits. Moreover, solar energy storage systems are gaining popularity among homeowners and businesses to offer greater energy independence and solar backup power in grid outages.

Key Trends and Recent Developments

The global residential energy storage market expansion is being fuelled by the rapid advances in AI-powered energy management, a strong emphasis on lowering carbon emissions, the surging rate of EV and solar integration together with greater adoption of wireless energy transfer technology.

March 2025

Chinese conglomerate BYD’s unit BYD Energy Storage launched its first-ever integrated storage system sold in combination with single-phase hybrid inverters or three-phase devices to cater to residential applications. The new storage system comes in two versions boasting capacities of 6.45 kWh and 4.29 kWh.

March 2025

Sungrow, a leading Chinese power electronics firm unveiled its newest residential battery energy storage system (BESS) to render quick power delivery during peak demands and grid fluctuations. The 5.12 kWh lithium iron phosphate (LFP) system efficiently offers lower energy costs and supports high-power household appliances.

March 2025

Samsung SDI announced that it had signed a deal worth 437.4 billion won (USD 300.7 million) for supplying energy storage system (ESS) batteries to U.S.-based energy holding firm and property owner NextEra Energy, as part of its major supply deal exceeding 1 trillion won.

September 2024

South Korean connected battery storage provider LG Chem launched its new generation systems to offer smaller, affordable, lighter and improved aesthetics. This new battery storage series also provides tariff structure, high electricity prices, and higher levels of rooftop solar and excellent sunshine.

Increased AI-powered energy management developments

The residential energy storage market share is likely to be driven by the rising importance of AI-driven energy management solutions for reducing costs, enhancing sustainability, and limiting the environmental impacts. In January 2025, Smart energy solutions firm EcoFlow launched its new AI-driven home energy management system Oasis that deploys a chatbot to offer simplified managing of energy. Thus, with several companies striving to attain cost-savings, the need for AI-driven energy management solutions may become increasingly important.

Efforts to curb carbon emissions

Surging public and private initiatives to limit carbon footprint worldwide and embrace eco-friendly technologies will boost the residential energy storage industry revenue. According to industry reportsnew Cornell University research, solar panels made and utilised in the U.S. will help reduce the carbon footprint by 33% by 2050 compared to the panels globally sourced in 2020. By maximizing the installation of renewable energy, battery storage is aiding in reduced reliance on fossil fuels to curb carbon emissions and support the transition to a cleaner energy landscape.

Higher EV-solar integration

The demand for solar EV charging stations is gaining traction to offer benefits, such as cost savings to limit the dependence on grid electricity and sustainability via renewable energy during power outages as well as environmental impact reduction with lowered carbon emissions. In December 2024, Servotech partnered with LESSzwei GmbH for developing 100% solar-driven EV charging infrastructure to offer micromobility in Germany. Such advancements will boost the demand of the residential energy storage market.

Advent of wireless energy transfer technology

Rapid explorations in wireless energy transfer for making seamless connection between battery storage, solar panels, and the grid is driving innovations in residential energy storage, subsequently adding to the market expansion. For instance, in September 2024, electrification and automation provider ABB India introduced ABB-free@home®, its new smart home automation system offering enhanced interoperability for the Indian market.

Residential Energy Storage Market Trends

The residential energy storage market share will further be driven by the onset of vehicle-to-grid (V2G) and smart energy solutions. V2G technology helps to balance the electricity demand while avoiding unnecessary costs in expanding the electricity system whilst improving resource allocation, energy resilience, and sustainability. The rising efforts to limit power outages has further propelled the need for smart energy solutions. The persistent need for electricity driven by the rising rate of electricity consumption will also push the industry ahead. The IEA estimated that the total net electricity generation reached 945.5 TWh in December 2024, showing an increase of 3.1% in comparison to December 2023.

Residential Energy Storage Market Opportunities

Influx of a large number of net metering programs will prove beneficial for the residential energy storage demand growth. Philippines approved a net-metering PV capacity of 37.9 MW in 2023. Net metering programs are allowing consumers to generate their own power as well as supply others with electricity to meet their personal needs. They also offer benefits to homeowners as well as the broader energy infrastructure. The growing popularity of net metering as a strong incentive for homeowners for investing in solar energy systems whilst encouraging more people to switch to clean energy sources is another important factor for the industry growth.

Residential Energy Storage Market Restraints

The residential energy storage market may be hindered by disadvantages like the degradation of effectiveness and cyclic life. As energy storage systems are devised to be intermittently used along with renewable energy and grid sources, they do not act as backup generators that can be deployed solely during outages. Higher initial costs, environmental concerns and limited lifespan are some other drawbacks of storing solar energy in batteries.

Residential Energy Storage Industry Segmentation

The report titled “Residential Energy Storage Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Type

• Lithium-ion Batteries
• Lead-acid Batteries
• Others

Breakup by System Type

• Standalone Systems
• Solar and Storage Systems

Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Residential Energy Storage Market Share

Market Insights by Type

With homeowners placing constant efforts to maximize self-consumption of solar power to limit electricity bills, and ensure backup power during outages, lithium-ion batteries are likely to garner significant traction in the residential energy storage market. These batteries have emerged as a popular choice for residential energy storage as they render efficiency, reliability, and ability to integrate seamlessly with solar power systems.

While the demand for lead-acid batteries will grow with the rapid pace of innovations led given their ability to store large amounts of energy. For instance, in August 2024, Dutch off-grid solar firm TSS4U’s subsidiary SS4U, introduced its new battery for residential use. These batteries have garnered considerable popularity to offer standby power supply in computer centres, electrical substations, and communications facilities.

Market Insights by System Type

The value of the residential energy storage industry is expected to surge by the type of systems. The demand for standalone systems will grow with advantages like low maintenance, easy expansion and no waste or byproducts. These systems are also beneficial for remote rural areas as well as applications with impractical or unavailable power sources to provide power for appliances, lighting, and other uses.

The demand for solar and storage systems is poised for expansion due to their minimal dependence on the grid to enhance energy independence for helping to lower energy bills. It has been reported that homeowners and business owners using solar power systems can cut their electricity costs up to 50% to 90%. Higher adoption to limit the rising electricity problems will also add to the segment growth.

Residential Energy Storage Market Regional Analysis

CAGR 2025-2034 - Market by

• Country
• China
• 13.2%
• India
• 12.1%
• Japan
• 11.6%
• Canada
• 11.2%
• USA
• 9.7%
• Australia
• 9.5%
• UK
• Germany
• France
• Italy
• Saudi Arabia
• Brazil
• Mexico

North America Residential Energy Storage Market Opportunities

The significant boom in solar installation mainly across the United States and Canada will positively influence the residential energy storage industry in North America. As per an EIA report, generators added 30 GW of utility-scale solar to U.S. grid, recording 61% of the capacity additions in 2024. Moreover, energy storage has turned as an increasingly common component in utility-scale solar energy systems in the region. The surge in the sales of EVs along with the growing prominence of solar energy storage systems mainly amongst homeowners and businesses to gain access to greater energy independence and solar backup will stimulate the market growth.

Europe Residential Energy Storage Market Analysis

Europe residential energy storage market will witness immense growth with the thriving government support and investments in vital renewable energy storage technologies for strengthening energy independence. For instance, in October 2024, the UK’s Department for Energy Security and Net Zero introduced a new scheme to assist in building energy storage infrastructure in a bid to inch closer to energy independence. Significant measures have been taken across the continent to expand the vast potential of wind and solar power. Thus, the growing government intervention along with strong consumer push towards renewable energy will add positive impetus to the regional market revenue.

Asia Pacific Residential Energy Storage Market Trends

The residential energy storage market value in Asia Pacific is expanding with intensifying efforts to ramp up the renewable energy capacity on account of the need to cater to the rising sustainability goals, mainly in countries like India and China. For instance, in October 2024, Hitachi Energy introduced its fully integrated portfolio Grid-enSure in India to enhance grid resilience, flexibility, and stability for accelerating sustainable energy transition. Such initiatives are likely to boost the residential energy storage consumption in India. The robust developments in energy storage solutions and semiconductor technologies together with the ever-rising need for consistent electricity will signify the market expansion in APAC.

Latin America Residential Energy Storage Market Factors

The residential energy storage industry share in Latin America led by substantial developments in battery storage is slated to observe tremendous growth. Countries like Brazil are coming up with several strategies to limit consumption during the peak grid demand periods. To state an instance, in In September 2024, Brazilian authorities announced plans to host an energy storage auction in 2025 for potentially creating a large market for large-scale storage facilities across the country. The increasing importance of deploying batteries for promoting intermittent energy sources, such as wind and solar along with the strong government support for reducing energy costs while ensuring energy security will favour the regional market growth.

Middle East and Africa Residential Energy Storage Market Drivers

The residential energy storage market development will pick pace in the Middle East and Africaattributable to the rapid advancements in battery storage for boosting the solar energy sector. The rising stream of innovations are making batteries more affordable and efficient. In January 2025, the UAE introduced the first-ever large-scale gigascale energy storage project in Abu Dhabi by combining solar power and battery storage as part of a significant development for its energy sector. The rise in such initiatives for integrating state-of-the-art renewable technologies with energy storage solutions for scaling innovative clean energy solutions to cater to the evolving energy demands will complement the regional market growth.

Competitive Landscape

Key players in the residential energy storage market are pursuing strategic initiatives aimed at increasing their global presence. These firms are constantly engaging in partnerships, mergers, acquisitions and investment strategies in order to cater to the incessant power demands worldwide.

LG Energy Solution Ltd.

Founded in 2020 and headquartered in Seoul, South Korea, LG Energy Solution (LGES) is one of the leading battery making frontrunners across the world. The company is leading the future of the eco-friendly energy industry through its distinguished materials and next-generation batteries.

Samsung SDI Co. Ltd.

Founded in 1970 and headquartered in South Korea, Samsung SDI offers presents a holistic range of ESS battery products that span household solutions. The company also offers commercial, utility, and industrial solutions integrated with renewable energy sources designed for securing the uptime of data centers.

Hitachi Energy Ltd.

Founded in 2020, with its headquarters in Zürich, Switzerland, Hitachi Energy Ltd. is a tech company offering high-voltage equipment, transformers, as well as services for renewable energy. It also provides a wide range of energy solutions, including power generation systems, clean energy, and nuclear energy.

Panasonic Corporation

Founded in 1918, Panasonic Holdings Corporation is a Japanese multinational electronics giant, headquartered in Osaka, Japan, known for its innovative technologies and solutions to cater to wide-ranging applications in the consumer electronics. It emerged as a global leader in developing innovative technologies and solutions for wide-ranging applications.

Other key players in the residential energy storage market report include Tesla Inc., Saft Groupe SA, Sunverge Energy LLC, and Deutsche Energieversorgung GmbH (SENEC), among others.