The COVID-19 pandemic is expected to moderately impact the market due to the decrease in electricity consumption from industrial & commercial sectors and the reduction in the economic growth of the world.
New York, June 16, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Residential Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06036752/?utm_source=GNW
The negative growth is more prominent in many of the major economies of the world such as the United Kingdom, United States, and India which are also among the largest user of residential batteries. This is expected to directly impact the market in the coming years. On the other side - the residential battery market is likely to grow in the coming years, owing to the increasing deployment of solar power generation and the rising need for energy storage solutions in the residential sector across the world. The steady improvement of battery performance achieved through sustained R&D, aimed at improving battery materials, reducing the amount of non-active materials and the cost of materials, improving cell design and production yield, and increasing production speed.? Therefore, the decline in lithium-ion battery prices is expected to drive the market over the forecast period. However, factors such as complexity, short life span, and failure due to deep and continuous cycling, etc. are hindering the growth of the market.
- Lithium-ion batteries is expected to dominate the market majorly due to their favorable capacity-to-weight ratio and other factors like declining prices, better performance etc.
- The rising use of energy storage systems is expected to create immense opportunities for the residential battery market especially with the increasing usage of distributed renewable energies.
- Asia-Pacific is expected to dominate the market with the majority of the demand coming from the countries such as China and India.
Key Market Trends
Lithium-ion Battery to Witness the Highest Market Demand Growth
- Among different types of battery technology, lithium-ion battery (LIB) is expected to dominate the residential battery market majorly due to its capacity-to-weight ratio and other factors like better performance, high energy density, and decreasing price.
- In 2020, lithium-ion battery price was around USD 137/kWh, 79.5% lower than the price in 2010. Lithium-ion battery prices are falling continuously and are down by 12.7% in 2020 from 2019 levels.
- The price of LIB is usually high, as compared to other batteries. Also, leading players in the market have been investing, in order to gain economies of scale and in R&D activities, to improve LIB’s performance and price.
- Lithium-ion batteries find application in a wide range of consumer goods, like smartphones, wearables, laptops, digital cameras, remote controls and gaming devices. Lithium-ion batteries are safer and have higher capacity power packs and are more economical than other alternatives for long-term use.
- Therefore, the emergence of new and exciting markets such as electric vehicle and energy storage systems (ESS), for both commercial and residential applications, is expected to boost the demand for lithium-ion battery during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific has multiple growing economies with substantial natural as well as human resources. The region 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.
- Also, China is home to some of the major battery manufacturing companies, such as BYD and Amperex Technology, and these companies benefit because of preferential domestic treatments over their Japanese and Korean competitors.? The country aims at further developing its domestics battery manufacturing sector. The country already dominates the lithium-ion battery supply chain and controls 80% of the world’s raw material refining, 77% of the world’s cell capacity, and 60% of the world’s component manufacturing.
- Another important country in the region is India, which accounts for the fifth largest power generation capacity in the world, with an installed capacity of 36.9 GW as November 2020. India is the third largest power producer, with a production of 1,558 TWh. However, India faces power outages, and the Indian government has aimed to supply electricity 24 hours a day, by making a significant addition of renewable energy generation capacity, including rooftop solar power, which is likely to increase the demand for residential batteries. Although new energy addition witnessed a slowdown in 2020 and is expected to witness a slowdown during the initial years of the forecast period due to the outbreak of COVID-19, the market is expected to witness significant growth during the latter parts of the forecast period.
- Asia-Pacific is home to the fastest urbanising countries and this, in turn, is likely to create an significant demand for residential battery for a wide range of applications including consumer electronics, back-up power supply systems, and electric vehicles.
The residential battery market is fragmented. Some of the major companies in the market include FIMER SpA, Amara Raja Batteries Ltd, Samsung SDI, NEC Corp., and LG Chem Ltd.
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