The global residential energy storage systems market was valued at USD 1.73 Billion in 2025. The market is expected to grow at a CAGR of 18.40% during the forecast period of 2026-2035 to reach a value of USD 9.37 Billion by 2035. Peer-to-peer energy trading and grid decentralisation are pushing demand for modular, intelligent home energy storage systems across solar-powered residential communities.
The rise in decentralised energy models, driven by net-zero goals, is boosting the adoption of residential energy storage systems. One of the strongest driving factors is the growing instability of central grids, especially in urban areas with rising EV penetration and home electrification. According to the International Energy Agency (IEA), in 2022, global investments in battery energy storage topped USD 20 billion, with grid-scale deployment accounting for almost 65% of total spending[DM1]. Such investments are boosted by consumer interest in energy independence and blackout resilience, particularly in high-income urban households, accelerating further growth in the residential energy storage systems market.
Governments are leaning into this shift with targeted subsidies and tariff reforms, which are fast-tracking technology adoption. In Germany, the KfW 442 subsidy programme for solar and battery systems offered up to EUR 10,200 per home in November 2022[DM2], resulting in an influx of residential energy storage applications. Meanwhile, the United States is also incentivising adoption through the Inflation Reduction Act (IRA), offering a 30% federal tax credit on standalone home battery installations through 2032[DM3]. These developments are catalysing innovation in compact, modular systems and software-integrated control platforms. These also suggest that the residential energy storage systems industry is being deliberately built through policy, backed by resilient demand and layered infrastructure support.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
18.4%
Value in USD Billion
2026-2035
*this image is indicative*
|
Global Residential Energy Storage Systems Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
1.73 |
|
Market Size 2035 |
USD Billion |
9.37 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
18.40% |
|
CAGR 2026-2035- Market by Region |
Asia Pacific |
24.9% |
|
CAGR 2026-2035 - Market by Country |
India |
42.1% |
|
CAGR 2026-2035 - Market by Country |
China |
24.6% |
|
CAGR 2026-2035 - Market by Technology |
Lithium-ion Batteries |
20.2% |
|
Market Share by Country 2025 |
India |
3.5% |
The transition towards energy democratisation is propelling peer-to-peer (P2P) solar trading, making residential batteries central to microgrid ecosystems, further reshaping the residential energy storage systems market dynamics. Australia’s Power Ledger and Sonnen’s virtual power plant (VPP) projects in Germany have demonstrated that local energy exchange is economically viable only with decentralised storage.
Residential users are now using energy storage systems to take advantage of variable electricity tariffs by storing power when rates are low and using or selling it when rates are high. Time-of-use (ToU) pricing, implemented across the European Union and parts of North America, allows consumers to store electricity during off-peak hours and use or sell it during peak periods. For example, in March 2024, under California’s AB 205, the California Public Utilities Commission (CPUC) proposed shifting fixed grid maintenance costs to a separate flat-rate charge, aiming to reduce electricity bills for low-income and climate-vulnerable households. Tesla’s Powerwall and Enphase’s IQ Battery now offer AI-driven charge-discharge scheduling to capitalise on these rates, boosting further demand in the residential energy storage systems market.
V2H and V2G (vehicle-to-grid) technologies are transforming electric vehicles into mobile energy storage units. Nissan’s Leaf-to-home system in Japan and Ford’s F-150 Lightning bidirectional charging capability are being trialled as supplementary or backup power for homes. This convergence of mobility and energy is disrupting the traditional fixed battery model. Furthermore, according to the residential energy storage systems market analysis, around 250 million EVs globally, are expected to be V2H-ready by 2030, creating a hybrid ecosystem where home batteries and EVs co-function as a unified storage platform.
Form factor is becoming a deciding factor for homeowners in urban locations. Companies like Moixa and Huawei are developing ultra-slim modular batteries that can be wall-mounted or scaled up via plug-and-play architecture. This is especially relevant in emerging markets like Singapore and South Korea, where apartment space is limited, boosting the residential energy storage systems demand growth. The shift aligns with evolving customer demand for easy installation, scalability, and visual integration with smart home ecosystems. Panasonic’s EverVolt 2.0 exemplifies this trend by offering modular capacity (up to 18 kWh), reflecting a tangible user-first design shift in battery systems.
As per the residential energy storage systems market report, in California and Germany, grid operators are incentivising residential battery owners to join VPPs, wherein aggregated battery systems support the grid during peak load. Firms like Sonnen and Tesla Energy have enrolled thousands of homes into such networks. As utilities face peak demand pressures from climate events, this decentralised model positions residential batteries as essential grid assets, not just emergency backups.
The EMR’s report titled “Global Residential Energy Storage Systems Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Technology Type
Key Insight: The technology landscape in residential energy storage is categorised into lithium-ion, lead acid, and other emerging chemistries such as sodium-ion and flow batteries. While lithium-ion batteries hold the dominant share in the residential energy storage systems industry revenue due to energy density and tech integration, lead acid batteries are regaining traction in cost-sensitive markets. Innovations in battery chemistry and government-led recycling programmes are shaping growth trajectories. Emerging technologies, like sodium-ion, are being tested for tropical environments and offer non-flammable, cobalt-free alternatives.
Market Breakup by Region
Key Insight: Globally, residential energy storage systems adoption varies by region due to grid resilience, policy alignment, and electrification rates. Europe leads the residential energy storage systems adoption with clear climate mandates and consumer subsidies, while Asia Pacific is scaling rapidly with urbanisation and solar growth. North America benefits from federal tax incentives and disaster resilience initiatives, particularly in wildfire-prone states. Latin America is witnessing early-stage adoption driven by rural electrification, and the Middle East & Africa are tapping into solar-plus-storage models to address grid intermittency.
|
CAGR 2026-2035- Market by |
Region |
|
Asia Pacific |
24.9% |
|
Latin America |
21.5% |
|
Europe |
16.6% |
|
North America |
XX% |
|
Middle East and Africa |
XX% |
By technology type, lithium-ion batteries lead the market due to superior energy density and lifespan
Lithium-ion batteries dominate the industry due to their compact design, long cycle life, and high energy density. Their compatibility with solar PV systems and software-defined optimisation make them ideal for urban households and tech-integrated homes. Major manufacturers like Tesla, LG Energy Solution, and BYD are continuously improving lithium chemistries for better thermal stability and higher round-trip efficiency. With policy backing such as the EU Battery Regulation, which promotes low-carbon battery production, lithium-ion continues to benefit from scale, cost decline, and integration with smart home platforms.
Lead acid batteries are witnessing significant growth in the residential energy storage systems market due to cost-sensitive rural spaces and strong recycling ecosystems. In countries like India and South Africa, where backup power demand outpaces affordability, sealed lead acid (SLA) systems are used in hybrid solar setups. The low upfront cost and well-established distribution channels make them appealing for households not prioritising long-term performance. Policy mandates such as India’s Battery Waste Management Rules are also increasing manufacturer responsibility, enhancing collection and reprocessing. Manufacturers like Exide and Amara Raja have introduced lead acid variants tailored for domestic solar users, helping to bridge the affordability-access gap in emerging markets.
Europe dominates the market with strong policy and incentive frameworks
Europe continues to be the frontrunner in the global market, backed by aggressive climate targets and robust subsidy ecosystems. Germany, Italy, and the United Kingdom lead in household battery installations, driven by self-consumption incentives and net metering frameworks. The European Commission’s Green Deal and Horizon Europe programmes are investing significant funds into decentralised energy innovation. In 2023, Germany recorded over 500,000 new home battery systems.
The residential energy storage systems market in Asia Pacific is rapidly growing due to increasing urban grid stress, surging rooftop solar adoption, and government-led electrification initiatives. Countries like Japan, South Korea, China, and Australia are deploying advanced home storage systems to stabilise local grids and integrate distributed solar energy. Japan’s post-Fukushima energy strategy also prioritises home batteries through the Sustainable Open Innovation Initiative. On the other hand, China’s dual-carbon goals are pushing cities to subsidise battery-integrated solar rooftops in high-density housing.
Leading residential energy storage systems market players are investing in AI-powered energy management, modular battery designs, and VPP integrations to strengthen their market position. A major opportunity lies in offering integrated energy solutions, by combining solar, storage, and smart controls for a seamless user experience. Players are also exploring subscription-based energy storage models to make systems more accessible.
The shift toward vehicle-to-home integration is pushing residential energy storage system companies to partner with EV brands, opening new revenue streams. Additionally, firms are actively localising battery manufacturing to comply with evolving policy incentives and reduce supply chain risks. With the rise of decentralised energy models and consumer interest in energy autonomy, market leaders are competing to develop scalable, compact, and IoT-compatible systems that fit modern homes.
Established in 2020 and headquartered in Seoul, South Korea, LG Energy Solution leads in lithium-ion storage systems tailored for residential use. The company focuses on high-efficiency, modular batteries with advanced thermal safety. Its RESU Prime series integrates seamlessly with rooftop solar setups and offers AI-based smart energy management.
Founded in 2020 and based in Zurich, Switzerland, Hitachi Energy focuses on grid-edge solutions and home energy storage integration. The company offers hybrid inverter-battery systems that communicate with smart grids to enable dynamic load balancing and VPP participation. Hitachi’s Grid Edge Solutions division works on seamless integration between residential batteries and utility operations, using AI and edge computing.
Headquartered in Osaka, Japan and established in 1918, Panasonic is a long-standing innovator in battery technology. Its EverVolt residential storage line features expandable lithium-ion systems with AC and DC-coupled configurations. Panasonic focuses on home energy autonomy through solar-plus-storage packages, integrating advanced monitoring via the EverVolt app.
Founded in 1918 and headquartered in Paris, France, Saft, part of TotalEnergies, offers premium lithium-ion systems for residential applications. Saft is known for its high-performance batteries designed for harsh environments, now adapted for smart home use. Saft integrates advanced BMS (battery management systems) for real-time diagnostics and preventive maintenance.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market are sonnenGroup, Tesla Inc., SENEC GmbH, Samsung SDI Co., Ltd., Exide Industries Ltd., and Luminous Power Technologies Private Limited, among others.
Explore the latest trends shaping the global residential energy storage systems market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customised consultation on residential energy storage systems market trends 2026.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the residential energy storage systems market reached an approximate value of USD 1.73 Billion.
The market is projected to grow at a CAGR of 18.40% between 2026 and 2035.
The key players in the market include LG Energy Solution Ltd., Hitachi Energy Ltd., Panasonic Corporation, Saft Groupe SAS, sonnenGroup, Tesla Inc., SENEC GmbH, Samsung SDI Co., Ltd., Exide Industries Ltd., and Luminous Power Technologies Private Limited, among others.
Companies are developing compact, software-integrated systems, partnering with EV and solar firms, localising production, joining policy-driven pilot projects, and offering flexible financing models to scale residential energy storage adoption effectively.
Companies struggle with battery material sourcing, evolving safety regulations, fragmented global policies, and the high upfront cost that still limits adoption in developing regions, despite growing interest in energy independence.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Technology Type |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
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