Lithium Ion Solar Energy Storage Market Research Report: By Type (On-Grid, Off-Grid, Hybrid), By Capacity (10 kWh, 10-100 kWh, 100-500 kWh, >500 kWh), By Application (Residential, Commercial Industrial, Utility-Scale), By Chemistry (Lithium-Ion Phosphate (LFP), Nickel-Manganese-Cobalt Oxide (NMC), Nickel-Cobalt-Aluminum Oxide (NCA)), By Form Factor (Rack-Mounted, Floor-Mounted, Wall-Mounted) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Lithium Ion Solar Energy Storage Market Overview:

As per MRFR analysis, the Lithium Ion Solar Energy Storage Market Size was estimated at 6.43 (USD Billion) in 2022. The Lithium Ion Solar Energy Storage Market Industry is expected to grow from 7.87 (USD Billion) in 2023 to 48.7 (USD Billion) by 2032. The Lithium Ion Solar Energy Storage Market CAGR (growth rate) is expected to be around 22.45% during the forecast period (2024 - 2032).

Key Lithium Ion Solar Energy Storage Market Trends Highlighted

Key market drivers for lithium-ion solar energy storage include the increasing adoption of renewable energy sources, government incentives and regulations promoting energy storage, and the declining cost of lithium-ion batteries. Opportunities for growth in this market lie in the development of new technologies, such as solid-state batteries, and the expansion of the electric vehicle market.

Recent trends in the lithium-ion solar energy storage market show a shift towards larger-scale systems, the integration of artificial intelligence and machine learning for system optimization, and the emergence of virtual power plants. Growing demand for reliable backup power, coupled with the increasing frequency of grid outages, is also driving the adoption of solar-plus-storage solutions.

As the industry continues to mature, the convergence of renewable energy, energy storage, and electric vehicles is expected to create new opportunities for innovation and market growth. The increasing focus on sustainability and decarbonization efforts is expected to further boost the adoption of lithium-ion solar energy storage systems.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Lithium Ion Solar Energy Storage Market Drivers

Increasing Demand for Renewable Energy

One of the key growth drivers of the Lithium Ion Solar Energy Storage Market Industry is the increasing global demand for renewable energy sources, such as solar power. As more and more countries around the world are moving towards cleaner energy sources, the need for reliable and efficient energy storage solutions is also showing a rise. This industry growth is also fuelled by government grants and subsidies as well as mandatory regulations related to renewable energy adopted by a number of countries.Moreover, other technologies available in the market have higher initial costs and other operational problems.

Technological Advancements

The Lithium Ion Solar Energy Storage Market Industry is promoted due to the ongoing technological progress in lithium-ion battery technology. Particularly, advances are connected with battery improvements in regard to such factors as efficiency, cycle life, and safety. Thus, being more efficient and longer-lasting and requiring lower maintenance, the batteries acquire an increased economic feasibility in solar energy storage. The technological progress presupposes the development of new battery chemistries and cell designs that keep improving lithium-ion batteries. Government Support and Regulations

Major factors that are driving the Lithium Ion Solar Energy Storage Market Industry include government support and regulations. Many governments across the world have put in place policies, and there are incentives that have been presented to the market players to adopt renewable energy and solar storage systems. These incentives and policies include feed-in tariffs, tax credits, and rebates for solar installations and energy storage systems.Some governments across the world are implementing regulations that will require the market players to use renewable energy and energy storage systems in constructing their new buildings and infrastructure.

Lithium Ion Solar Energy Storage Market Segment Insights:

Lithium Ion Solar Energy Storage Market Type Insights

The Lithium Ion Solar Energy Storage Market is segmented by Type into On-Grid, Off-Grid, and Hybrid. The On-Grid segment represents the largest segment and was the largest revenue-generating segment in 2023. The on-grid category is also expected to lead the market during the forecast period. The main factor responsible for the substantial contribution of this segment is related to the greater adoption of solar energy systems, both residential and commercial. The off-grid category is expected to experience the most substantial growth at an estimated CAGR of 26.46% during the period, as there is continually growing demand for sustainable and reliable energy in remote regions.Finally, the hybrid segment is projected to experience substantial growth as it blends the benefits of both submarkets. As of 2023, the Lithium Ion Solar Energy Storage Market was valued at 7.87 USD billion. The Lithium Ion Solar Energy Storage Market is considered highly competitive; the primary companies on the market are Tesla, Sonnenbatterie, LG Chem, Samsung SDI, and BYD. The companies are implementing strategies related to investments in research and development, aimed at the development of new products. Furthermore, they are focusing on expanding distribution networks to vaster numbers of new markets.The future for the Lithium Ion Solar Energy Storage Market appears to be promising. The increasing demand for renewable energy sources, decreasing costs of solar panels, as well as the increasing overall awareness regarding the potential of solar energy storage will all help the market grow.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Lithium Ion Solar Energy Storage Market Capacity Insights

The market is divided by capacity type into 10 kWh, 10-100 kWh, 100-500 kWh, and >500 kWh segments. The 10 kWh is expected to have the largest market share in 2023, driven by the increasing demand for small-scale energy storage systems. The demand for these systems is likely to grow mainly in residential and commercial applications. The 10-100 kWh segment is expected to have the most considerable growth, driven by the adoption of electric vehicles and the requirement for electricity storage at the grid scale. The 100-500 kWh segment is expected to have substantial growth, meeting the growing need for energy storage systems for industrial purposes.The >500 kWh is expected to have moderate growth, driven by the substantial cost of large-scale energy storage systems.

Lithium Ion Solar Energy Storage Market Application Insights

The Lithium Ion Solar Energy Storage Market is segmented based on application into residential, commercial industrial, and utility-scale. Among these, the utility-scale segment is expected to account for the largest revenue share during the forecast period. The growth of this segment can be attributed to the increasing demand for large-scale energy storage systems to support the integration of renewable energy sources into the grid. The commercial industrial segment is also expected to witness significant growth, driven by the increasing adoption of solar energy systems by businesses and industries.The residential segment is expected to grow at a steady pace as more homeowners adopt solar energy systems to reduce their electricity bills and increase their energy independence.

Lithium Ion Solar Energy Storage Market Chemistry Insights

The Lithium Ion Solar Energy Storage Market segmentation by Chemistry is divided into Lithium-Ion Phosphate (LFP), Nickel-Manganese-Cobalt Oxide (NMC), and Nickel-Cobalt-Aluminum Oxide (NCA). The NMC segment held the largest market share of 55% in 2023 and is projected to retain its dominance throughout the forecast period. This is attributed to its high energy density, power capability, and relatively low cost compared to other chemistries. The LFP segment is anticipated to witness significant growth during the forecast period owing to its long cycle life, safety, and low cost.NCA offers high energy density and power capability but is more expensive than other chemistries. The Lithium Ion Solar Energy Storage Market revenue for NMC is expected to reach USD 26.9 billion by 2032, while LFP and NCA are projected to generate revenues of USD 13.8 billion and USD 8 billion, respectively, by 2032. The growth of the Lithium Ion Solar Energy Storage Market is driven by the increasing demand for renewable energy sources, government incentives, and declining battery prices.

Lithium Ion Solar Energy Storage Market Form Factor Insights

The Lithium Ion Solar Energy Storage Market market is segmented by Form Factor into Rack-Mounted, Floor-Mounted, and Wall-Mounted. Rack-Mounted is expected to hold the largest market share in 2023, accounting for over 50% of the Lithium Ion Solar Energy Storage Market revenue. This is due to the fact that Rack-Mounted systems are modular and scalable, making them ideal for large-scale solar energy storage applications. Floor-Mounted systems are expected to grow at the fastest rate over the forecast period due to their lower cost and easier installation.Wall-Mounted systems are expected to account for a small share of the market due to their limited capacity and higher cost. In 2024, the Lithium Ion Solar Energy Storage Market by Form Factor is expected to be valued at over USD 10 billion, with Rack-Mounted systems accounting for the majority of the market share.

Lithium Ion Solar Energy Storage Market Regional Insights

The Lithium Ion Solar Energy Storage Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is projected to hold the largest market share during the forecast period due to the increasing adoption of solar energy systems in countries such as China, India, and Japan. North America and Europe are also expected to witness significant growth due to supportive government policies and the rising demand for renewable energy sources. The market in South America and MEA is expected to grow at a steady pace, driven by the increasing investments in solar energy projects and the growing awareness about the benefits of lithium-ion batteries.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Lithium Ion Solar Energy Storage Market Key Players And Competitive Insights:

The lithium Ion Solar Energy Storage Market is highly competitive. Most of the companies in the marketplace aim to enhance their products to perform better. As a result, many leading Lithium Ion Energy Storage Market players are investing in R departments. In conclusion, the highly competitive nature of the market is due to the fact that more companies will focus on their product’s performance and efficiency in the future.

Tesla is one of the most competitive companies in the marketplace. The United States-based company is one of the largest electric vehicle manufacturers and lithium-ion battery producers in the world. The Powerwall and Powerpack batteries are the most used in both residential and solar applications. The company is also a large battery lithium ion battery supplier to the automotive industry.

LG Chem Limited is another company that is competitive in the Lithium Ion Solar Energy Storage Market. The South Korean-based company is one of the largest manufacturers of lithium-ion batteries in the globe. It supplies its batteries to all markets of mobile consumers, energy storage, and electric vehicles. The company is also one of the leading investors in its R department to ensure it comes up with better performance batteries and safe ones.

Key Companies in the Lithium Ion Solar Energy Storage Market Include:

• ABB


• BYD


• SunPower


• Eguana Technologies


• Sonnen


• NEC Energy Solutions


• Fluence


• Tesla


• CATL


• Panasonic


• Samsung SDI


• AES Energy Storage


• Saft


• LG Chem

Lithium Ion Solar Energy Storage Market Industry Developments

The global lithium-ion solar energy storage market is projected to reach USD 48.7 billion by 2032, exhibiting a CAGR of 22.45% during the forecast period (2024-2032). The increasing adoption of renewable energy sources, coupled with government incentives and supportive policies, is driving market growth. Moreover, advancements in battery technology and declining system costs are further fueling market expansion. Key players in the market include Tesla, LG Chem, Samsung SDI, BYD, and Panasonic. Recent developments include Tesla's launch of its Megapack battery system and Sonnen's acquisition of sonnenBatterie, indicating the growing demand for energy storage solutions.

Lithium Ion Solar Energy Storage Market Report Scope

Lithium Ion Solar Energy Storage Market Segmentation Insights

• Lithium Ion Solar Energy Storage Market Type Outlook
  
  
  
  • On-Grid
  
  
  • Off-Grid
  
  
  • Hybrid
  
  
  
  

• Lithium Ion Solar Energy Storage Market Capacity Outlook
  
  
  
  • 10 kWh
  
  
  • 10-100 kWh
  
  
  • 100-500 kWh
  
  
  • >500 kWh
  
  
  
  

• Lithium Ion Solar Energy Storage Market Application Outlook
  
  
  
  • Residential
  
  
  • Commercial Industrial
  
  
  • Utility-Scale
  
  
  
  

• Lithium Ion Solar Energy Storage Market Chemistry Outlook
  
  
  
  • Lithium-Ion Phosphate (LFP)
  
  
  • Nickel-Manganese-Cobalt Oxide (NMC)
  
  
  • Nickel-Cobalt-Aluminum Oxide (NCA)
  
  
  
  

• Lithium Ion Solar Energy Storage Market Form Factor Outlook
  
  
  
  • Rack-Mounted
  
  
  • Floor-Mounted
  
  
  • Wall-Mounted
  
  
  
  

• Lithium Ion Solar Energy Storage Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa