Market for home batteries – growth, trends, COVID-19
Market for home batteries – growth, trends, COVID-19

Market for home batteries – growth, trends, COVID-19

New York, June 23, 2022 (GLOBE NEWSWIRE) – announces the release of the report “Residential Battery Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” –
The home battery market is likely to grow in the coming years due to the increasing prevalence of solar energy production and the increasing need for energy storage solutions in the home sector worldwide. The constant improvement of battery performance achieved through continuous research and development, aimed at improving battery materials, reducing the amount of inactive materials and the cost of materials, improving cell design and production yield, and increasing production speed.? Therefore, the fall in the prices of lithium-ion batteries is expected to drive the market during the forecast period. However, factors such as complexity, short life, failure due to deep and continuous cycling, etc., are expected to hinder the growth of the market during the forecast period.

Key highlights
Lithium-ion batteries are expected to dominate the market mainly due to their favorable capacity-to-weight ratio and other factors like falling prices, better performance, etc.
With the declining costs of photovoltaic systems, combined with supportive government initiatives to reduce carbon emissions, the utilization of off-grid photovoltaic projects is expected to increase significantly during the forecast period and beyond, thus creating more opportunities for the home battery market in the future.
The Asia-Pacific region is expected to dominate the market, with the bulk of demand coming from countries such as China and India.

Important market trends

Lithium-ion battery segment is expected to dominate the market

Lithium-ion (Li-ion) batteries offer various technical advantages over other technologies, such as lead-acid batteries. Rechargeable Li-ion batteries offer on average cycles more than 5,000 times compared to lead-acid batteries that last for around 400-500 times.
Li-ion batteries do not require as frequent maintenance and replacement as lead-acid batteries. Li-ion batteries retain their voltage throughout the discharge cycle, enabling greater and longer-lasting efficiency of electrical components, whereas the voltage of lead-acid batteries decreases consistently throughout the discharge cycle. Despite the higher upfront costs for Li-ion batteries, the true price is much less than for lead-acid batteries when considering longevity and performance.
Batteries play a crucial role in energy storage systems and are responsible for a large part of the total cost of the system, especially used in residential energy storage systems. The total installed capacity of the renewable energy sources is increasing at a significant rate worldwide, and so is the installation of solar cell roofs on the residential buildings.
The increase in solar roof capacity is also likely to promote an increase in the demand for battery energy storage. Therefore, the emergence of new energy storage systems (ESS) for residential applications is expected to increase the demand for lithium-ion batteries in the forecast period. Properties of lithium-ion batteries, such as less weight, low charging time, a higher number of charging cycles and decreasing costs, make it preferable for this application.
In recent times, due to their falling prices, lithium-ion batteries have gained popularity as battery storage systems for solar cell and home inverters. In 2021, the price of the lithium-ion battery was 123 USD / kWh, which decreased by 81.58% from 668 USD / KWh in 2013.
The policies for energy storage in homes to date are fairly incipient. However, countries such as the United States and Germany create opportunities in local energy storage markets through government action and regulatory action.
For example, in June 2021, the US Department of Energy (DOE) announced an immediate policy to upscale the domestic production supply chain to advanced battery materials and technologies. Similarly, India promotes the production of batteries domestically to drive the battery market in the country and it increased the tax on the import of lithium ion cells.
Therefore, due to the above points, the lithium-ion battery segment is expected to dominate the market during the forecast period.

The Asia-Pacific region is expected to dominate the market

The Asia-Pacific region has several growing economies with significant natural as well as human resources. The region has the majority of revenue, with China and India being the largest contributors. These countries are likely to show enormous growth potential during the forecast period.
The Chinese housing battery market is expected to grow during the forecast period, led by government policy and regulatory support. The Chinese government has already demonstrated its ability to stimulate high growth in domestic demand for solar-related equipment through subsidies and installation targets.
China added 2.14 GW of solar cell capacity to homes in September 2021, witnessing a 64.61% increase over the previous year, bringing the total capacity installed in the first nine months of the year to 7.41 GW.
In February 2022, Bslbatt unveiled a modular lithium-ion battery for off-grid solar storage in China. The battery has a storage capacity of between 5.1 and 30.7 kWh and can provide stable operation for up to 6,000 charging cycles. Such new battery technologies in the residential sector are thus expected to increase the market studied during the forecast period
Another important country in the region is India, which accounts for the fifth largest electricity generation capacity in the world with an installed capacity of 393.83 GW in December 2021. However, India is facing power outages and the Indian government has sought to supply electricity 24 hours a day. around the clock by making a significant addition of renewable energy production capacity, including solar energy on the roof, which is likely to increase the demand for home batteries.
As the Indian government pushes for the installation of lithium-ion battery factories in India, which are expected to start production in 2022, the price of lithium-ion batteries is expected to fall.
For example, in June 2021, LNJ Bhilwara formed a joint venture with Replus Engitech to create lithium battery solutions for the residential and commercial sector. The project aims to have 1 GWh capacity in operation in Pune by mid-2022, with plans to scale up production to 5 GWh by 2024. Thus, residential and commercial buildings are expected to take battery-distributed electricity production to reduce dependence on grid electricity supply. ?
The Asia-Pacific region is home to the fastest urbanizing countries, and this in turn is likely to create significant demand for home batteries for a wide range of applications, including consumer electronics, backup power supply systems, and so on.

Competitive landscape

The market for home batteries is fragmented. Some of the major companies in the market include FIMER SpA, Amara Raja Batteries Ltd, Samsung SDI Co. Ltd, NEC Corporation and LG Energy Solution Ltd.

Additional benefits:

Market Estimate (ME) sheet in Excel format
3 months analyst support
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