Residential Energy Storage Market Size to Exceed USD 5.60 Billion by 2032, at a CAGR of 14.08%

Residential Energy Storage Market growth driven by rising demand for energy independence, grid resilience, and integration of rooftop solar systems.

Rising Demand for Backup Power and Energy Independence Fuels Residential Energy Storage Market Growth

As rooftop solar photovoltaics (PV) systems become more widespread, smart homes emerge and the need for reliable backup supply during outages escalates, the Residential Energy Storage Market is gaining ground. Extreme weather events and aging electric grid infrastructure are causing blackouts more frequently, and homeowners are increasingly turning to battery storage for energy independence and resiliency. In 2024 alone, Hurricanes, wildfires and storms caused over 25 major grid disturbances all over the U.S. When you add to that a growing desire in many areas to abandon the grid, coupled with additional federal incentives, including the ITC, you have a recipe for high growth. Home smart phones are core elements of a much bigger global energy-storage ecosystem and together global BWTO capacity shoud exceed 400 GW by 2024, led primarily from Europe and Australia but also with fast growing penetration in US and India.

Residential Energy Storage Market Segmentation Outlook: Technology, Ownership, Connectivity, and Capacity Trends Shaping 2024–2032 Growth

By Solution

The Residential Energy Storage Market in 2024 was dominated by Lithium-ion batteries, which accounted for a significant 78.4% share, and the segment is projected to maintain the highest CAGR from 2024 to 2032. Their advantages are a combination of high energy density, long cycle life, falling costs, compatibility with smart energy systems and solar PV systems, and general battery chemistry improvements and a growing acceptance of battery safety standards and practices.

By Connectivity Type

On-grid systems accounted for a leading 77.6% share of the Residential Energy Storage Market in 2024 and are expected to grow at the fastest CAGR through 2032. This growth is fueled by widespread adoption of grid-connected rooftop solar, net metering policies, time-of-use pricing, and smart grid initiatives. On-grid storage offers cost savings, real-time monitoring, scalability, and virtual power plant (VPP) potential, making it an increasingly attractive option for homeowners.

By Ownership Type

Customer-owned systems are projected to hold 59.7% of the Residential Energy Storage Market in 2024, as more homeowners opt to purchase batteries outright—especially when paired with rooftop solar—to maximize energy savings and access government incentives. Ownership offers full control over usage, performance, and integration with home energy platforms.

from 2025 to 2032, third-party owned systems are expected to grow fastest due to rising popularity of leasing, PPAs, and BaaS models.

By Power Rating        

In 2024, the 3–6 kW segment led the Residential Energy Storage Market with a 46.5% share, favored for its suitability in small to mid-sized homes, affordability, and compatibility with rooftop solar. It offers backup and daily efficiency for typical household use.

From 2025 to 2032, the 6–10 kW segment is expected to grow fastest, driven by rising EV adoption, smart appliances, and increasing demand for home electrification and energy independence.

Regional Momentum in Residential Energy Storage Market Driven by Policy Support, Solar Adoption, and Climate Resilience

In 2024, North America led the Residential Energy Storage Market with a 32.5% share, driven by rising rooftop solar adoption, frequent weather-induced outages, and strong policy support such as the U.S. Investment Tax Credit (ITC). The U.S. spearheaded growth with federal incentives and increased demand for backup power.

From 2025 to 2032, Asia Pacific is projected to witness the fastest CAGR of 14.98%, fueled by rapid urbanization, rising electricity demand, falling battery costs, and expanding solar-plus-storage policies in China, Japan, South Korea, and Australia.

Europe follows closely, with strong climate policies, energy independence goals, and rooftop solar penetration. Meanwhile, Latin America and the Middle East & Africa are gaining momentum through electrification efforts and off-grid solar-storage solutions in underserved regions.