Frost & Sullivan Release North American Essential Home Backup Industry White Paper

Shanghai, China--(Newsfile Corp. - June 17, 2025) -  In recent years, North America has faced growing challenges in power reliability due to aging grid infrastructure, extreme weather events, and frequent natural disasters. Soaring electricity prices have further strained household budgets, making stable and cost-effective energy solutions a top market priority. Against this backdrop, Essential Home Backup (EHB) systems-integrating power security, economic optimization, and intelligent energy management-are emerging as critical infrastructure for modern home energy resilience. EHB delivers uninterrupted power during grid failures caused by extreme weather or disasters, significantly enhancing household energy stability. The release of the "North American Essential Home Backup Industry White Paper" by Frost & Sullivan aims to provide industry stakeholders with in-depth market insights, revealing key trends and future opportunities in the sector.

The white paper aims to focus on the North American EHB market, analyzing the current market landscape, key growth drivers, future trends, and benchmark solutions under the context of energy crisis. Additionally, the white paper provides a comprehensive exploration on the core value and application scenarios of EHB products. It aims to share valuable insights with consumers, industry participants, and investors, and to collaboratively envision the roadmap for the North American EHB sector with all stakeholders.

1. Overview of North American Essential Home Backup Industry

01. Definition of Essential Home Backup (EHB)

Essential Home Backup (EHB) is an integrated home energy solution that combines solar photovoltaic (PV) generation, energy storage systems, and smart energy management. This comprehensive system addresses three critical needs: emergency power supply during outages, daily electricity optimization, and sustainable energy management. By providing reliable backup power, EHB ensures households meet emergency electricity demands while simultaneously achieving greater energy independence in their daily lives.

Source: Frost & Sullivan

02. Core Value of EHB

EHB delivers an uninterrupted and stable power supply during outages triggered by extreme weather or natural disasters, significantly improving household energy reliability. Beyond ensuring power security, EHB enhances energy self-sufficiency and cost-effectiveness, with its continuously shrinking payback period further boosting its economic appeal. Additionally, EHB supports a transition to green energy and sustainable living, while offering added benefits such as increased property value and financial incentives.

03. EHB Industry Progress and Market Status

With the North American residential energy storage market experiencing steady growth, EHB is emerging as critical infrastructure for modern home energy management. The United States represents one of the world's largest residential energy storage markets, with installations showing consistent growth driven by three key factors: declining installation costs, policy incentives, and increasing concerns about power stability. This growth is reflected in the impressive 2017-2024 compound annual growth rates (CAGRs) of 88.2% for installation power and 78.8% for installation capacity.

Source: Frost & Sullivan

With advantages in power stability, cost-effectiveness and smart energy management, EHB is gradually becoming the critical infrastructure for modern home energy management by promoting household energy self-sufficiency.

04. Value Chain of EHB industry

EHB device industry chain includes upstream raw materials, midstream power generation and energy storage equipment manufacturers, and downstream distributors and application scenarios.

2. Growth Drivers of North American EHB Industry

• Electricity stability concerns: Growing grid reliability issues and rising electricity prices represent key pain points across North America, creating significant market penetration opportunities for EHB solutions.
• Policy incentives: U.S. federal and state governments have implemented comprehensive incentive programs in recent years, including cost-reduction initiatives, rebates, and tax credits, to accelerate EHB adoption.
• Technological advancements: Continuous technological improvements are driving EHB system evolution, enhancing performance parameters, cost efficiency, and compatibility to meet increasingly diverse market requirements.

3. Future trends of North American EHB Industry

• Household energy independence: EHB has become an essential solution for North American homes facing energy challenges. By ensuring uninterrupted power supply during grid failures, these systems maintain operation of critical loads (refrigeration, lighting, WiFi routers, and water pumps) while significantly reducing dependence on traditional utility power.
• Intelligent system integration: EHB solutions leverage AI technology to revolutionize home energy management. Through dynamic load optimization and predictive maintenance capabilities, these intelligent platforms analyze real-time data from solar arrays, storage systems, and consumption patterns to boost household energy efficiency by 20-30%.
• Renewable energy convergence: EHB systems create comprehensive energy solutions by seamlessly integrating solar generation, energy storage, and charging infrastructure. This convergence enables self-balancing power management tailored to the needs of contemporary North American residences.

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