Solar Battery Market size was USD 256.5 million in 2024 and is estimated to reach USD 1.97 billion by the end of 2037, expanding at a CAGR of 17% during the forecast period, i.e., 2025-2037. In 2025, the industry size of solar battery is evaluated at USD 300.1 million.
The evolving environmental regulations are driving the attention of several countries toward renewable energy sources including solar. For instance, according to the International Energy Agency (IEA), the global annual renewable capacity additions surpassed by nearly 50% to almost 510 gigawatts (GW) in 2023. Also, globally solar photovoltaic (PV) alone accounted for three-quarters of renewable capacity additions. The rise in the demand for cleaner energy is significantly increasing the adoption of solar power to combat carbon emissions. Advanced solar batteries allow industrial, commercial, or residential sectors to reduce their dependence on the grid and lower their carbon footprint. Thus, a hike in the solar energy demand is anticipated to directly influence the sales of solar batteries.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
17% |
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Base Year Market Size (2024) |
USD 256.5 million |
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Forecast Year Market Size (2037) |
USD 1.97 billion |
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Regional Scope |
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Type (Lithium-ion, Lead-acid, Flow Battery, Others)
Lithium-ion segment is set to dominate solar battery market share of around 65.1% by the end of 2037. The vehicle electrification trend and increasing transition towards renewable energy owing to zero-carbon emission initiatives are driving the sales of lithium-ion solar batteries. The advancements in the battery manufacturing process are increasing the life and storage efficiency of lithium-ion solar batteries.
The improvements in the lithium extraction technology such as direct lithium extraction (DLE) are further contributing to batteries' cost-effectiveness. Thus, technological advancements and the rising green technology trend are positively influencing lithium-ion solar battery sales. For instance, in August 2024, Vatrer Power announced the launch of its latest all-in-one lithium battery energy storage system. This technological advancement in the energy storage field is offering more efficient and reliable solutions for both residential can commercial users.
By End use (Industrial, Commercial, Residential)
In solar battery market, industrial segment is anticipated to account for revenue share of around 36.8% by 2037. To align with the sustainability trend and mitigate carbon footprint, several industrial organizations are widely adopting solar panels and energy storage systems such as batteries. Although the initial investment required for the installation of solar battery systems is high, industrial organizations consider it a long-term investment with attractive returns. Many governments around the globe are offering lucrative schemes in the form of tax benefits and the mitigation of energy-related risks such as fluctuations in electricity prices is providing a positive return on investments for industrial companies.
Our in-depth analysis of the global solar battery market includes the following segments:
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Type |
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End use |
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Technology |
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Capacity |
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Asia Pacific Market Forecast
Asia Pacific solar battery market is set to capture revenue share of over 33.6% by 2037. The swift industrial activities, increasing popularity of smart home systems, and tax benefits on cleaner energy use are augmenting the sales of solar batteries in the region. India, China, Japan, and South Korea are some of the high-earning marketplaces in Asia Pacific.
In India, the increasing investments in the solar grid infrastructure are positively boosting the sales of solar batteries. For instance, according to the India Brand Equity report, in the interim budget 2024-2025, the fiscal allocation for solar grid infrastructure development increased to USD 1.02 billion compared to previous years which was USD 600 million. Furthermore, the country’s installed renewable energy capacity is set to rise to around 170 GW in March 2025 from 136.57 GW by December 2023. Such aspects are generating high-potential opportunities for solar battery producers.
China’s net-zero carbon emission goals are driving the demand for renewable energy sources including solar energy systems. The government is offering supportive policies in the form of subsidies to encourage solar panel and battery adoption. Financial incentives, tax credits, and schemes are appealing to individuals to invest in clean energy production and storage systems, contributing to the overall market growth.
Europe Market Statistics
By the end of 2037, Asia Pacific solar battery market is projected to hold over 25.8% revenue share. The high investments in renewable energy sources to comply with carbon emission regulations and initiatives are significantly fueling the sales of solar batteries in Europe. For instance, according to the SolarPower Europe analysis, in 2023, the region installed 17.2 GWh of new battery energy storage systems, a 94% rise compared to the previous year. The residential sector accounted for a major 63% of this capacity. These statistics underscore how profitable is the Europe solar battery market for solar battery producers.
Germany’s strong commitment towards Energiewende is creating a favorable environment for solar energy and storage system market players. To comply with the Carbon neutrality by 2045 initiatives, the country is also pushing the adoption of solar energy and battery systems by offering several tax benefits.
In Italy, the current energy crisis is boosting the clean energy transition to enhance energy security in the country. The government is investing heavily in solar PV to enhance the energy supply. For instance, the total battery storage capacity in Italy reached 3.7 GWh (+86%) in 2023. Thus, the increasing adoption of solar panels in the country is directly influencing the demand for energy storage systems such as solar batteries.
Leading companies in the solar battery market are employing strategies such as new product launches, technological advancements, strategic partnerships, mergers & acquisitions, and regional expansion to earn more. Key market players are investing heavily in R&D activities to introduce innovative solar batteries. They are also collaborating with other players and tech firms to enhance their product offerings. Furthermore, to cater to a larger consumer base, industry giants are tapping into high-potential solar battery markets.
Some of the key players include:
Author Credits: Dhruv Bhatia
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