[Edaily Reporter Choi Oh-hyun ] The global residential lithium-ion energy storage system (ESS) battery market has grown more than 2.5 times faster than last year. Driven primarily by Europe, the market has expanded to outpace growth in the grid, industrial, and commercial sectors. While China effectively dominates the residential ESS market, South Korean battery manufacturers are focusing on demand for large-scale ESS systems.

According to market research firm SNE Research on the 9th, residential ESS shipments surged 152% to 97.5 GWh in the first three quarters of this year. The share of the residential sector in the overall ESS market also expanded from 8.6% to 12.5%. During the same period, grid-scale ESS shipments increased by 68%, and industrial and commercial ESS shipments rose by 57%. Even looking solely at AI data centers, which saw a 141% increase, the growth rate of residential ESS still outpaced that figure.

Residential ESS systems are primarily used to store electricity generated by residential solar power systems. The electricity is stored and then used when needed or as an emergency power source. Since this allows for significant savings on electricity bills, demand is rising in certain European countries, parts of the United States, and Australia, where electricity rates vary significantly by time of day.

Currently, Chinese battery manufacturers account for approximately 77% of the residential ESS market. In the first three quarters of this year, China’s REPT took the top spot with a 24% market share, followed by Great Power (20%) and EVE (19%). However, as the trend toward decoupling from China has recently accelerated in Europe and the United States, South Korean battery manufacturers are filling that gap.

LG Energy Solution operates its own residential ESS brand, “RESU.” It has been the most active among Korean battery companies, having signed a supply contract last September with EG CORPORATION, a U.S. residential ESS specialist, for 13.3 GWh through 2030. SAMSUNG SDI CO.,LTD. has been active in the market since the early 2010s, when it signed an exclusive supply agreement with Japan’s Nichicon for residential ESS systems.

However, while both companies are maintaining their existing residential businesses, they have recently been shifting their focus toward AI data centers and renewable energy ESS. This is because, although the residential ESS market is growing rapidly, the grid-scale market remains approximately six times larger in terms of total shipment volume. For this reason, SK On has chosen not to pursue the residential ESS business at all and is instead focusing on grid-scale applications.

An industry official explained, “Due to the demand for grid-scale ESS and the size of the market itself, it’s a tight squeeze to meet demand even when running factories at full capacity,” adding, “The residential ESS market targets small-scale customers and involves a combination of installation and post-sales maintenance, so the operational burden is greater than that of large-scale projects.” The official also noted, “We expect the residential market to grow, particularly in Europe, and plan to respond to diverse demand.”