Solar Battery Market Size was valued at USD 217.9 million in 2023. The Solar Battery Market industry is projected to grow from USD 258.2 million in 2024 to USD 1003.9 million by 2032, exhibiting a compound annual growth rate (CAGR) of 18.50% during the forecast period (2024 - 2032). Solar batteries are used for storage of solar power. Basically, solar battery is installed with inverter. In addition, it is rechargeable and can be used in solar panel systems.
For instance, in industrial applications, solar battery can be utilized with other renewable power sources such as hydropower and wind power. In coming years, solar battery is expected to be used with other renewable power sources as a part of renewable electricity mix to provide sustainable energy solutions. Some of the significant applications of solar battery are solar charging stations, storage for power plants, and storage systems for off-grids. Moreover, the application of solar battery can effectively reduce carbon footprints. Implementation of solar battery can make a nation energy independent and reduce the dependence on imported fossil energy resources.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Factors contributing toward the Solar Battery Market growth are the rise in demand for eco-friendly and cost-effective energy solutions for industrial and commercial energy storage. In addition, the awareness regarding clean energy in developed country such as U.S. has increased the demand for solar battery from all the end users. In addition, ongoing infrastructural investments and smart city projects are the major factors influencing the commercial solar battery market growth. Moreover, the application of solar battery can effectively reduce carbon footprints. Implementation of solar battery can make a nation energy independent and reduce the dependence on imported fossil energy resources. Furthermore, growing interest of industry players toward renewable energy storage solutions is expected to increase investment opportunities during the forecast timeframe. For instance, countries, such as the UK and Portugal, are encouraging capacity auctions for solar battery storage instead of conventional energy storage systems. The increasing demand to reduce greenhouse gas (GHG) emissions has surged renewable energy usage in countries exponentially in recent years and is expected to increase in the coming years as well. This in turn will lead to the expansion of the market for solar battery and thus stoke the adoption of batteries. For instance, in 2019, Germany declared a new goal to produce 20GW energy by using offshore wind power by end of 2030, attracting investments for developing energy storage systems in the country and driving the market.
The rising focus on deploying sustainable energy storage solutions among industrial players will drive the growth of the Solar Battery Market. In addition, growing support by government bodies to promote sustainable energy sources and decline pollution rates will contribute to the growth of the Solar Battery Market. The shortage of fossil fuels, such as oil, coal, and other fossil energy resources, will surge the demand for technology-based renewable energy. In addition, the implementation of solar battery storage systems and growing investments in the industry will escalate the growth of the market. The implementation of stringent government rules intending to reduce carbon emissions will increase the demand for photovoltaic technology for electricity generation. Furthermore, innovative strategies by government players to outperform will benefit the overall solar battery market. For instance, Samsung acquired Teleworld Solutions in 2020 with the aim to develop next-generation wireless communication. Furthermore, LG Chem inked a deal with China Shanshan in June 2020 to sell its LCD Polarizer Business. Lithium-ion batteries are witnessing a massive demand in the battery solar storage market, owing to their declining prices. The United States Department of Energy (DOE) has announced an interim price target of USD 125/kWh by 2020, and the costs for lithium-ion batteries is estimated to fall to as low as USD 73/kWh by 2030. Additionally, lithium-ion batteries are expected to hold the most significant share in the battery energy storage market, as they require little maintenance, are light-weight, have a reliable cycle life, and high energy density regarding volume, high charge/discharge efficiency. More utilities include storage in their solicitations for solar projects, thereby increasing the opportunities for solar battery storage systems during the forecast period.
Lack of solar radiation and foggy weather can impact the efficiency of solar storage. However, the backup system as a solar collector aid in additional storage of solar heat during cloudy or foggy weather. It maintains the same performance as a solar battery, even on cloudy days and foggy weather. Therefore, such advancements are expected to create lucrative opportunities for market growth. There is an increased adoption of digitization and artificial intelligence in the solar power battery industry, which is likely to cause major disruption in the electricity sector as governments seek to transition away from fossil fuel. This increasing adoption will play a pivotal role in the transition and companies and governments will need to embrace such technologies. The IoT makes solar energy generation and service more visible, measurable, and cost-effective.
The use of AI technologies and the expansion of energy trading with blockchain have steered up the market by providing these advanced opportunities. This stimulates the owner to export the maximum energy and sell it at a reasonable price. Urbanization, industrialization, and the growth in population demand increase energy consumption and provide great opportunities for expansion.
The Solar Battery Market segmentation, based on Type has been segmented as Lithium-Ion, Lead-acid and Flow Battery. Among these, the Lithium-Ion segment is projected to dominate the Solar Battery Market revenue through the projected period due to several major advantages offered by advanced lithium-ion batteries, such as high storage density, suitability for hybrid electric vehicles, and compact size. The lithium-ion batteries are not only more efficient but also more environmentally friendly, which has also contributed to its rise in demand. Due to these benefits, lithium-ion batteries are the ideal type of solar battery for solar-based applications. Another key reason for the rising usage of Li-ion batteries is the growth in renewable energy production.
Based on End Use, the Solar Battery Market is segmented as Industrial, Residential and Commercial. Out of which the Industrial segment dominated base year market and is also projected to dominate the Solar Battery Market revenue through the projected period. The demand for solar battery is more from the industrial sector, owing to the presence of a large industrial consumer base and their high energy demand. Furthermore, some of the major industries are cutting their carbon emission because of which the demand for solar batteries is increasing. For industrial applications, solar battery can be used with other renewable power sources such as hydropower and wind power. In future, solar battery will be used with other renewable power sources as a part of renewable electricity mix to provide sustainable energy solutions.
Based on Region, the Solar Battery market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The Asia-Pacific Solar Battery market held the maximum market share and is also expected to account for a significant revenue share during the forecast period. Rising industrialization and strict laws by government bodies to restrict carbon emissions will fuel the growth of the Asia pacific solar battery market. Asia-Pacific consists of China, India, Japan, South Korea, Australia, and the rest of Asia-pacific. The Asia-Pacific solar battery market is primarily dominated by China, owing to high foreign investments in the solar energy market. Additionally, the product witnesses huge demand from the industrial power sectors. Further, the rise in demand for sustainable energy sources in various end-user industries drives the market growth in the projected timeframe.
Key market players are emphasizing significantly on R&D for increasing their product offerings, which will further help the Solar Battery Market to grow considerably. Market players are adopting several business development strategies such as acquisitions, mergers, collaborations, and partnerships to enhance their market presence and acquire a larger customer base. To survive in the competitive market, industry players must provide cost effective products.
The Solar Battery market is very competitive with market players trying to develop unique and innovative products and solutions, which could render the competitors’ offerings obsolete. The competitive environment is likely to grow further owing to rising technological advancements. Some of the key players operating in the Solar Battery Market are Tesla, Inc, LG Corp, Contemporary Amperex Technology Co Ltd, Loom Solar, Panasonic Corporation, BAE Batteries GmbH, BYD company, EnerSys, Luminous Power Technologies, Exide Industries Limited, Okaya Power Group, Amara Raja Batteries Limited, HBL Power Systems Limited, Base Batteries and Eastman Auto & Power Limited a. To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.
Tesla, Inc: Tesla, Inc. designs, develops, manufactures, sells and leases fully electric vehicles and energy generation and storage systems, and offers services related to its products. The Company's automotive segment includes the design, development, manufacturing, sales, and leasing of electric vehicles as well as sales of automotive regulatory credits. Additionally, the automotive segment is also comprised of services and other, which includes non-warranty after-sales vehicle services, sales of used vehicles, retail merchandise, sales by its acquired subsidiaries to third party customers, and vehicle insurance. Its energy generation and storage segments include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its automotive products include Model 3, Model Y, Model S and Model X. Powerwall and Megapack are its lithium-ion battery energy storage products.
Contemporary Amperex Technology Co Ltd: Contemporary Amperex Technology Co Ltd is a China-based supplier of power battery systems. The Company is primarily engaged in the research, development, manufacture and sales of new energy vehicle power battery systems and energy storage systems. The Company's main products include power battery systems, energy storage systems and lithium battery materials. The Company's products are mainly used in the fields of electric passenger cars, electric buses and special vehicles, such as electric logistics cars. The Company distributes its products within the domestic market and to overseas markets.
July 2021: Tesla, Inc launched a new 420-watt solar panel, one of the most powerful residential solar panels on the market. Tesla solar installers offers the 420-watt panel, which is much more powerful than what it was previously offering and amongst the most powerful residential solar panels on the market.
October 2020: LG Chem, Korea's leading manufacturer of advanced lithium-ion batteries, has strengthened its partnership with global inverter manufacturer SolarEdge to offer the most advanced home backup solution to date with training for installers. By pairing an LG RESU10H with SolarEdge's new inverter (Energy Hub), homeowners will be able to stay turned on even when the power grid is down, where they can connect to a generator for even more power.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 217.9 million |
| Market Size 2024 | USD 258.2 million |
| Market Size 2032 | USD 1003.9 million |
| Compound Annual Growth Rate (CAGR) | 18.50% (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2019 & 2022 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, End Use and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa and South America |
| Countries Covered | US, Canada, Mexico, Germany, Italy, Spain, United, Kingdom, France, Netherlands, Poland, Russia, China, Japan, India, Australia, Malaysia, South Africa, Saudi Arabia, UAE, Brazil, Chile, Argentina |
| Key Companies Profiled | Tesla, Inc (US), LG Corp (South Korea), Contemporary Amperex Technology Co Ltd (China), Loom Solar (India), Panasonic Corporation (Japan), BAE Batteries GmbH (Germany), BYD company (China), EnerSys (US), Luminous Power Technologies (India), Exide Industries Limited (India), Okaya Power Group (India), Amara Raja Batteries Limited (India), HBL Power Systems Limited (India), Base Batteries (India), Eastman Auto & Power Limited (US) |
| Key Market Opportunities | Advanced technologies in energy backup systems |
| Key Market Dynamics | Rise in demand for eco-friendly and cost-effective energy solutions Growing interest of industry players toward renewable energy storage solutions |
Solar Battery Market Highlights:
Frequently Asked Questions (FAQ) :
Solar Battery Market is US$ 217.9Mn in 2023.
Growth rate of the Solar Battery Market is 18.50% by 2032.
Asia Pacific Region held the largest market share in the Solar Battery Market.
Key players in the Solar Battery Market are: Tesla, Inc (US), LG Corp (South Korea), Contemporary Amperex Technology Co Ltd (China), Loom Solar (India), Panasonic Corporation (Japan), BAE Batteries GmbH (Germany), BYD company (China), EnerSys (US), Luminous Power Technologies (India), Exide Industries Limited (India), Okaya Power Group (India), Amara Raja Batteries Limited (India), HBL Power Systems Limited (India), Base Batteries (India), Eastman Auto & Power Limited (US).
Lithium-Ion Type had the largest market share in the Solar Battery Market.
Industrial End Use had the largest market share in the Solar Battery Market.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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