The stable formation of the American household energy storage industry chain
Home energy storage batteries refer to energy storage cells used in the energy system of a household, typically storing electrical energy from solar photovoltaic systems or the power grid. It can provide electricity during peak demand periods, reduce electricity bills, and even serve as a backup power source during power outages.
The industrial chain structure of the US home energy storage market has taken shape and is stable. The upstream mainly consists of battery component manufacturers and energy storage supporting manufacturers, while the midstream mainly consists of home energy storage battery and system manufacturers. They integrate and assemble the energy storage materials and equipment provided by the upstream to form an energy storage system. The downstream mainly consists of energy storage product sellers/service providers and individual customers. The effective operation of the entire industry chain has enabled rapid growth of household energy storage batteries in the US market, while also promoting innovation and application of related technologies.
Energy independence and security are the core driving forces behind market growth
In terms of demand in the US energy storage battery market, firstly, with the vigorous development of renewable energy, especially the widespread application of solar energy, in states such as California and Texas, many households need to effectively store and utilize excess electricity; Secondly, the instability of the power grid increases the demand for backup power sources in households; In addition, fluctuations in electricity prices enable energy storage batteries to store electricity when prices are low and use it when prices are high, thereby saving electricity costs. The above factors make home energy storage systems more feasible and jointly promote the rapid development of home energy storage batteries in the US market. According to statistics, the installed capacity of home energy storage in the US will increase by 1640 MWh in 2023, a year-on-year increase of 7%, and 973 MWh in the first half of 2024. It is expected that the annual installed capacity will reach a new high in recent years.
In the future, although the new Trump administration tends to support fossil fuels and traditional energy, and its planned tariff policies may increase the import cost of US household energy storage batteries, thereby weakening the policy driving force of the US household energy storage battery market. However, some Republican states such as Texas may continue to promote the development of photovoltaics and energy storage, and household energy storage batteries still have certain value in terms of energy independence and security, and there will still be some demand growth at the consumer level. According to Wood Mackenzie's forecast, the United States will deploy 12GW of household distributed energy storage systems from 2024 to 2028, of which household energy storage systems will account for about 80%, with a cumulative installed capacity of approximately 28GWh.
Tesla firmly holds the top spot, EG4 stands out as a rising star
The leading companies in the US market for household energy storage batteries mainly include Tesla, Enphase, EG4, LG, and others. Tesla's Powerwall product is the most popular home energy storage battery system in the United States. It is estimated that Tesla will have a market share of about 41% in the US home energy storage battery market in 2023, ranking first; EG4 Electronic has partnered with Zeta Power and Ganfeng Lithium to become a dark horse in the field of household energy storage batteries due to its strong product economy. In 2023, it will ship over 260MWh of household energy storage batteries, and its market share will increase from 9.8% in 2022 to 16% in 2023, ranking second in the US market; Enphase relies on IQ batteries to layout in the field of home energy storage. According to the company's disclosed shipment volume and revenue share in the US market, Enphase's market share in the US home energy storage battery market in 2023 is estimated to be about 14%, ranking third.
