The global residential lithium-ion battery energy storage systems market was valued at USD 4.56 billion in 2022 and is projected to reach USD 48.81 billion by 2030, representing a compound annual growth rate (CAGR) of 32.1% from 2023 to 2030. These systems are primarily designed to store surplus energy generated by residential solar installations or other renewable sources for use during peak demand periods or when generation is low.

Key Market Trends & Insights and Market Size & Forecast

  • The Asia Pacific region dominated the market in 2022, with more than 40 % of total revenue share.
  • In terms of power‐rating segmentation, the 3 kW to 5 kW category held the largest share—over 54 % of revenue in 2022.
  • For connectivity, the off-grid segment led with more than 56 % of revenue share in 2022.
  • By the numbers: in 2022 the market size stood at USD 4.56 billion, and with a forecast reaching USD 48.81 billion by 2030, the implied CAGR over 2023-2030 is 32.1%.
  • The strong growth is driven by accelerating adoption of residential solar systems, rising need for peak-demand and backup power solutions, favourable government incentives (for example tax credits covering installation of battery systems in some regions) and the maturity of lithium-ion battery technologies offering higher energy density and longer cycle life.
  • In regional detail, the Asia Pacific market—led by countries such as Japan, Australia and South Korea—is expected to exhibit significant growth thanks to policies promoting renewables, falling battery costs and heightened awareness of energy efficiency.

Meanwhile, in the U.S., wide adoption of battery storage systems, bolstered by supportive legislation (such as a 30% tax credit for home energy storage in the U.S.) is contributing to demand.

Among power rating segments, systems between 3 kW-5 kW are favoured because they strike a practical balance for many homes: sufficient storage to cover several hours of household demand, scalable installation, while offering cost-benefit in reducing bills and gaining energy autonomy.

For connectivity, off-grid solutions dominate because they enable homeowners in remote areas to decouple from the grid and gain greater energy security; these systems typically cost less to install as they do not require grid‐tie infrastructure.

Order a free sample PDF of the Residential Lithium-ion Battery Energy Storage Systems Market Intelligence Study, published by Grand View Research.

Key Companies & Market Share Insight

Major companies in the residential lithium-ion battery energy storage systems market are actively engaging in R&D to meet rising demand, expand production capacity and improve cost structures in light of the strong growth forecast.

Some of the prominent players include:

  • HAIKAI
  • Enphase Energy
  • E3/DC
  • Panasonic
  • sonnen Holding GmbH
  • Tesla
  • Pylon Technologies Co., Ltd.
  • LG Chem
  • AlphaESS
  • Generac Power Systems
  • Hitachi Energy
  • GOODWE

These companies are implementing strategies such as joint-ventures, capacity expansions and portfolio diversification to capture share in high-growth regions such as Asia Pacific and North America. For example, in January 2023 LG Energy Solution and Hanwha Group announced joint investments in U.S. battery production facilities aiming to increase their market presence.

While exact market share percentages for each company are not detailed in the summary, the competitive landscape is clearly intensifying as firms vie for leadership in this fast-expanding market.

Key Companies List

The key companies operating in this space are detailed as follows: HAIKAI; Enphase Energy; E3/DC; Panasonic; sonnen Holding GmbH; Tesla; Pylon Technologies Co., Ltd.; LG Chem; AlphaESS; Generac Power Systems; Hitachi Energy; GOODWE.

Conclusion

In summary, the residential lithium-ion battery energy storage systems market is on a steep growth trajectory, rising from USD 4.56 billion in 2022 to an expected USD 48.81 billion by 2030 at a CAGR of 32.1%. The dominance of the Asia Pacific region, the 3 kW–5 kW power-rating segment and off-grid connectivity reflect key demand patterns. A wave of supportive government incentives, falling battery costs and increased home renewable generation is transforming household-level energy storage into a mainstream solution. Major companies are positioning themselves aggressively to capitalise on this opportunity, making competition intense and dynamic. As homeowners increasingly seek energy autonomy and resilience, these residential storage systems are set to become a foundational element of the clean-energy future.

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.