The global home energy management systems market is anticipated to generate revenues of US$ 2,892.4 million in 2023. Demand is anticipated to increase at a CAGR of 17.7% and reach US$ 104,360.3 million by 2033. The leading factors of this expansion are increasing power consumption and cutting-edge technology like the smart grid.
Market progress is possible by limiting greenhouse gas emissions and minimizing possible exposure. To change energy prices, and implement advanced energy-efficient technology. This is likely to expand the solar home energy management systems market by 2033.
For instance, SunPower, a solar-tech company, has introduced the only home solar + storage solution built and warranted by a single business, SunPower, a solar technology company. It has introduced SunVault Storage, which connects with SunPower Equinox solar systems. It provides whole-home backup in the event of a power outage.
The adoption of home energy management systems is anticipated to be high due to the increased global investment in smart grid infrastructure. Governments and energy organizations are attempting to upgrade the current smart grid infrastructure to effectively satisfy the public's changing energy needs.
For instance, to aid in the creation of a smart grid in Spain, the European Investment Bank (EIB) and Iberdrola inked a green financing arrangement worth US$ 607.38 million.
| Attributes | Details |
|---|---|
| HEMS Market Expected CAGR (2023 to 2033) | 17.7% |
| HEMS Market Expected Size (2023) | US$ 2,892.4 million |
| HEMS Market Expected Size (2033) | US$ 104,360.3 million |
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| Market CAGR (2018 to 2022) | 6.3% |
|---|---|
| Market Size (2018) | US$ 1,283.8 million |
| Market Size (2022) | US$ 2,451.2 million |
| Market Growth Rate (between 2022 and 2023) | 1.17x |
Energy management strategies have undergone a revolutionary transformation. This is regarding many sectors of power consumption, such as electricity usage patterns and energy conservation at consumption premises.
A smart home energy management system that significantly increases efficiency is required for a modern home. This raised the global adoption rate to 1.17x between 2022 and 2023.
According to FMI, domestic energy consumption is likely to increase by 0.3% annually by 2030. Consequently, home energy management systems sales are expected to be supported by energy optimization solutions, such as a smart home's electrical board.
The worldwide EMS market is anticipated to hold a sizable market share for the home energy management systems industry share. Smart building development is accelerating urbanization in developing nations. Like China, India, Japan, Argentina, Mexico, Brazil, and South Korea.
The knowledge of housing development in these nations has led to an increase in demand for better housing infrastructure. As home energy management software is used in newly constructed buildings, the global market is likely to reach US$ 9,050.4 million by 2030.
Manufacturers and suppliers of home energy management systems are concentrating on power storage, control, and monitoring. Key players' top priorities are energy independence and automation, and developments are moving in this direction.
For instance: Schneider Electric is the industry leader in the digital transformation of energy management and automation. For homes looking for cost savings, comfort, and energy independence, the company introduced Schneider Home, a ground-breaking home energy management solution.
Like any industry, this one also faces challenges. The global market growth is significantly constrained by the high initial cost associated with adopting energy management systems. However, the government's push for smart house development is anticipated to open doors for the home energy management systems sector.
Governments are crucial in promoting energy-saving efforts and the installation of smart buildings. Regulations and policies have been devised to improve energy efficiency and reduce a building's consumption of renewable energy, home HVAC systems, and lighting.
Principal Consultant
| Countries | Market Share (2022) |
|---|---|
| United States | 16.5% |
| Australia | 2.7% |
| Germany | 7.1% |
| Japan | 5.4% |
By 2033, the home energy management systems market share is predicted to generate a sizable amount of revenue in the United States. This is due to technological improvements and the growing use of wireless technologies like ZigBee, Wi-Fi, and Z-wave. The regional sector is also made stronger by the rising demand for home LAN hardware.
Home energy management systems companies are also pleading with the government to expand existing programs and seek funding. Also, a lot of the organizations are concentrating on leveraging funding from the bipartisan Infrastructure Investment and the American Rescue Plan Act of 2021. As a result, the market under study is anticipated to benefit from this requirement for energy efficiency.
By implementing the National Action Plan Energy Efficiency strategy, the German government is on track to rank among the world's leading eco-friendly and energy-efficient nations.
Funding plans for energy audits and efficiency measures are covered. The nation intends to lower its usage of primary energy by 30% by 2030 compared to 2008 levels, according to the Ministry for Economic Affairs.
Since 2010, Germany has placed a priority on long-term, sustainable energy. A strategy plan known as the Energy Concept was adopted by the nation for the use of renewable energy. This plan lays the groundwork for a renewable energy-based route that is focused on the year 2050.
Market leaders focus on supportive energy policies and laws aimed at lowering the nation's carbon footprint. Implementation of smart meters and energy-efficient buildings & systems contributes to the sales of home energy management systems.
Energy providers are required to put smart meters in 26 million homes by the United Kingdom government. The European directive is to reduce carbon emissions by 80% by 2050, along with the increasing smart meter rollout and increased awareness of the energy problem.
| Countries | Market CAGR (2023 to 2033) |
|---|---|
| China | 15.4% |
| India | 16.7% |
The quantity of investments made has also been increasing in the Asia Pacific area. Between 2016 and 2020, the average annual energy investment in the region was around US$ 70,000 million, of which 40% went to clean energy technologies. The main investments involved in grids, solar, and wind energy. Due to the rising use of smart home technology in nations like China and India, Asia Pacific is anticipated to have considerable growth over the forecast period.
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| Category | Communication Technology |
|---|---|
| Top Segment | Wi-Fi |
| Market Share (2022) | 26.5% |
| Category | Offering |
|---|---|
| Top Segment | Hardware |
| Market Share (2022) | 38.9% |
In 2022, the hardware sector held the leading market share of 26.5%. This is explained by the increased use of communication and sensor technology. Nonetheless, the software plays a key role in reducing energy consumption and providing data on consumption trends. Software components are more popular now since they provide useful energy data insights that are used to cut costs and streamline processes.
By 2033, WiFi communication technology is anticipated to rule the market. In recent years, WiFi technology has advanced substantially, resulting in quicker speeds and higher reliability. Due to this, it has become simpler for manufacturers to create HEMS systems that offer real-time data and control functions without calling for challenging installations.
As ZigBee modules are frequently used to monitor the energy usage of residential appliances, the ZigBee-powered market is expected to expand significantly. ZigBee is a widely used wireless, low-power mesh networking protocol that enables users with smaller batteries and is utilized in wireless control applications.
Home energy management systems manufacturers are anticipated to expand their market share. By creating innovative products that cater to consumers' shifting demands and preferences. This entails enhancing functionality, cutting expenses, and adding new features.
Manufacturers aim to spend money on customer education and awareness initiatives to increase acceptance. This clarifies the benefits of home energy management systems and how they are used to save energy and money.
Manufacturers who create AI and ML capabilities that can react to shifting consumer preferences and energy usage trends are going to have a big competitive edge.
For instance:
Globally, the smart home has become popular, inspiring top home energy management systems businesses to develop technology alliances and take a strategic stance. Home energy management systems are a significant emerging industry due to the growing IoT trend.
Several government organizations want to use product approvals to encourage the adoption of these systems. To get a competitive edge during the forecast period, the firms are anticipated to expand their market share through many alliances and investments in the introduction of new solutions.
Recent Developments:
January 2022: To penetrate the global smart home market, Zigbang announced the acquisition of Samsung SDS's home Internet of Things (IoT) unit. The former is preparing to automate real estate transactions, smart home gadgets, and living spaces.
September 2022: A highly scalable Linux and Kubernetes-based platform designed to execute thousands of workloads on a single system was unveiled as the new edition of IBM's LinuxONE server.
August 2021: A contract was signed by Mitsubishi Electric Company to purchase Smarter Grid Solutions (SGS). SGS solutions, according to Mitsubishi Electric, are consistent with the company's environmental sustainability vision. This calls for a decarbonized society with lower greenhouse gas emissions by 2050.
The home energy management systems market is estimated to be worth US$ 2,892.4 million in 2023.
The home energy management systems market is expected to have a CAGR of 17.7% by 2033.
The home energy management systems market expanded at a share of US$ 2,451.2 million in 2022.
North America's home energy management systems market accounted for a share of 27.4% in 2022.
By 2033, it is anticipated that the home energy management systems sector in the United Kingdom experience a CAGR of 16.3%.
The market is valued at US$ 2,892.4 million in 2023.
A 1.17x increase in global adoption rate is predicted for 2022 to 2023.
Government initiatives and smart infrastructures to drive the market.
The market exhibited a 2.7% share in 2022.
The hardware segment exhibited a 38.9% CAGR by 2022.
1. Executive Summary | Home Energy Management Systems Market 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022 4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Component, 2018 to 2022 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Component, 2023 to 2033 5.3.1. Hardware 5.3.2. Software 5.3.3. Services 5.4. Y-o-Y Growth Trend Analysis By Component, 2018 to 2022 5.5. Absolute $ Opportunity Analysis By Component, 2023 to 2033 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Service 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) Analysis By Service, 2018 to 2022 6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Service, 2023 to 2033 6.3.1. Professional services 6.3.2. Managed services 6.4. Y-o-Y Growth Trend Analysis By Service, 2018 to 2022 6.5. Absolute $ Opportunity Analysis By Service, 2023 to 2033 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Technology 7.1. Introduction / Key Findings 7.2. Historical Market Size Value (US$ Million) Analysis by Technology, 2018 to 2022 7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast by Technology, 2023 to 2033 7.3.1. Wi-Fi 7.3.2. Zigbee 7.3.3. Z-Wave 7.3.4. Others 7.4. Y-o-Y Growth Trend Analysis by Technology, 2018 to 2022 7.5. Absolute $ Opportunity Analysis by Technology, 2023 to 2033 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. Introduction 8.2. Historical Market Size Value (US$ Million) Analysis By Region, 2018 to 2022 8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2023 to 2033 8.3.1. North America 8.3.2. Latin America 8.3.3. Europe 8.3.4. South Asia 8.3.5. East Asia 8.3.6. Oceania 8.3.7. MEA 8.4. Market Attractiveness Analysis By Region 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 9.2.1. By Country 9.2.1.1. The USA 9.2.1.2. Canada 9.2.2. By Component 9.2.3. By Service 9.2.4. By Technology 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Component 9.3.3. By Service 9.3.4. By Technology 9.4. Key Takeaways 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 10.2.1. By Country 10.2.1.1. Brazil 10.2.1.2. Mexico 10.2.1.3. Rest of Latin America 10.2.2. By Component 10.2.3. By Service 10.2.4. By Technology 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Component 10.3.3. By Service 10.3.4. By Technology 10.4. Key Takeaways 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 11.2.1. By Country 11.2.1.1. Germany 11.2.1.2. United Kingdom 11.2.1.3. France 11.2.1.4. Spain 11.2.1.5. Italy 11.2.1.6. Rest of Europe 11.2.2. By Component 11.2.3. By Service 11.2.4. By Technology 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Component 11.3.3. By Service 11.3.4. By Technology 11.4. Key Takeaways 12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 12.2.1. By Country 12.2.1.1. India 12.2.1.2. Malaysia 12.2.1.3. Singapore 12.2.1.4. Thailand 12.2.1.5. Rest of South Asia 12.2.2. By Component 12.2.3. By Service 12.2.4. By Technology 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Component 12.3.3. By Service 12.3.4. By Technology 12.4. Key Takeaways 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 13.2.1. By Country 13.2.1.1. China 13.2.1.2. Japan 13.2.1.3. South Korea 13.2.2. By Component 13.2.3. By Service 13.2.4. By Technology 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Component 13.3.3. By Service 13.3.4. By Technology 13.4. Key Takeaways 14. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 14.2.1. By Country 14.2.1.1. Australia 14.2.1.2. New Zealand 14.2.2. By Component 14.2.3. By Service 14.2.4. By Technology 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Component 14.3.3. By Service 14.3.4. By Technology 14.4. Key Takeaways 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 15.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 15.2.1. By Country 15.2.1.1. GCC Countries 15.2.1.2. South Africa 15.2.1.3. Israel 15.2.1.4. Rest of MEA 15.2.2. By Component 15.2.3. By Service 15.2.4. By Technology 15.3. Market Attractiveness Analysis 15.3.1. By Country 15.3.2. By Component 15.3.3. By Service 15.3.4. By Technology 15.4. Key Takeaways 16. Key Countries Market Analysis 16.1. USA 16.1.1. Pricing Analysis 16.1.2. Market Share Analysis, 2022 16.1.2.1. By Component 16.1.2.2. By Service 16.1.2.3. By Technology 16.2. Canada 16.2.1. Pricing Analysis 16.2.2. Market Share Analysis, 2022 16.2.2.1. By Component 16.2.2.2. By Service 16.2.2.3. By Technology 16.3. Brazil 16.3.1. Pricing Analysis 16.3.2. Market Share Analysis, 2022 16.3.2.1. By Component 16.3.2.2. By Service 16.3.2.3. By Technology 16.4. Mexico 16.4.1. Pricing Analysis 16.4.2. Market Share Analysis, 2022 16.4.2.1. By Component 16.4.2.2. By Service 16.4.2.3. By Technology 16.5. Germany 16.5.1. Pricing Analysis 16.5.2. Market Share Analysis, 2022 16.5.2.1. By Component 16.5.2.2. By Service 16.5.2.3. By Technology 16.6. United Kingdom 16.6.1. Pricing Analysis 16.6.2. Market Share Analysis, 2022 16.6.2.1. By Component 16.6.2.2. By Service 16.6.2.3. By Technology 16.7. France 16.7.1. Pricing Analysis 16.7.2. Market Share Analysis, 2022 16.7.2.1. By Component 16.7.2.2. By Service 16.7.2.3. By Technology 16.8. Spain 16.8.1. Pricing Analysis 16.8.2. Market Share Analysis, 2022 16.8.2.1. By Component 16.8.2.2. By Service 16.8.2.3. By Technology 16.9. Italy 16.9.1. Pricing Analysis 16.9.2. Market Share Analysis, 2022 16.9.2.1. By Component 16.9.2.2. By Service 16.9.2.3. By Technology 16.10. India 16.10.1. Pricing Analysis 16.10.2. Market Share Analysis, 2022 16.10.2.1. By Component 16.10.2.2. By Service 16.10.2.3. By Technology 16.11. Malaysia 16.11.1. Pricing Analysis 16.11.2. Market Share Analysis, 2022 16.11.2.1. By Component 16.11.2.2. By Service 16.11.2.3. By Technology 16.12. Singapore 16.12.1. Pricing Analysis 16.12.2. Market Share Analysis, 2022 16.12.2.1. By Component 16.12.2.2. By Service 16.12.2.3. By Technology 16.13. Thailand 16.13.1. Pricing Analysis 16.13.2. Market Share Analysis, 2022 16.13.2.1. By Component 16.13.2.2. By Service 16.13.2.3. By Technology 16.14. China 16.14.1. Pricing Analysis 16.14.2. Market Share Analysis, 2022 16.14.2.1. By Component 16.14.2.2. By Service 16.14.2.3. By Technology 16.15. Japan 16.15.1. Pricing Analysis 16.15.2. Market Share Analysis, 2022 16.15.2.1. By Component 16.15.2.2. By Service 16.15.2.3. By Technology 16.16. South Korea 16.16.1. Pricing Analysis 16.16.2. Market Share Analysis, 2022 16.16.2.1. By Component 16.16.2.2. By Service 16.16.2.3. By Technology 16.17. Australia 16.17.1. Pricing Analysis 16.17.2. Market Share Analysis, 2022 16.17.2.1. By Component 16.17.2.2. By Service 16.17.2.3. By Technology 16.18. New Zealand 16.18.1. Pricing Analysis 16.18.2. Market Share Analysis, 2022 16.18.2.1. By Component 16.18.2.2. By Service 16.18.2.3. By Technology 16.19. GCC Countries 16.19.1. Pricing Analysis 16.19.2. Market Share Analysis, 2022 16.19.2.1. By Component 16.19.2.2. By Service 16.19.2.3. By Technology 16.20. South Africa 16.20.1. Pricing Analysis 16.20.2. Market Share Analysis, 2022 16.20.2.1. By Component 16.20.2.2. By Service 16.20.2.3. By Technology 16.21. Israel 16.21.1. Pricing Analysis 16.21.2. Market Share Analysis, 2022 16.21.2.1. By Component 16.21.2.2. By Service 16.21.2.3. By Technology 17. Market Structure Analysis 17.1. Competition Dashboard 17.2. Competition Benchmarking 17.3. Market Share Analysis of Top Players 17.3.1. By Regional 17.3.2. By Component 17.3.3. By Service 17.3.4. By Technology 18. Competition Analysis 18.1. Competition Deep Dive 18.1.1. Honeywell International Inc. 18.1.1.1. Overview 18.1.1.2. Product Portfolio 18.1.1.3. Profitability by Market Segments 18.1.1.4. Sales Footprint 18.1.1.5. Strategy Overview 18.1.1.5.1. Marketing Strategy 18.1.2. Schneider Electric SE 18.1.2.1. Overview 18.1.2.2. Product Portfolio 18.1.2.3. Profitability by Market Segments 18.1.2.4. Sales Footprint 18.1.2.5. Strategy Overview 18.1.2.5.1. Marketing Strategy 18.1.3. Siemens AG 18.1.3.1. Overview 18.1.3.2. Product Portfolio 18.1.3.3. Profitability by Market Segments 18.1.3.4. Sales Footprint 18.1.3.5. Strategy Overview 18.1.3.5.1. Marketing Strategy 18.1.4. General Electric Company 18.1.4.1. Overview 18.1.4.2. Product Portfolio 18.1.4.3. Profitability by Market Segments 18.1.4.4. Sales Footprint 18.1.4.5. Strategy Overview 18.1.4.5.1. Marketing Strategy 18.1.5. Johnson Controls International plc 18.1.5.1. Overview 18.1.5.2. Product Portfolio 18.1.5.3. Profitability by Market Segments 18.1.5.4. Sales Footprint 18.1.5.5. Strategy Overview 18.1.5.5.1. Marketing Strategy 18.1.6. ABB Ltd. 18.1.6.1. Overview 18.1.6.2. Product Portfolio 18.1.6.3. Profitability by Market Segments 18.1.6.4. Sales Footprint 18.1.6.5. Strategy Overview 18.1.6.5.1. Marketing Strategy 18.1.7. Cisco Systems Inc. 18.1.7.1. Overview 18.1.7.2. Product Portfolio 18.1.7.3. Profitability by Market Segments 18.1.7.4. Sales Footprint 18.1.7.5. Strategy Overview 18.1.7.5.1. Marketing Strategy 18.1.8. Panasonic Corporation 18.1.8.1. Overview 18.1.8.2. Product Portfolio 18.1.8.3. Profitability by Market Segments 18.1.8.4. Sales Footprint 18.1.8.5. Strategy Overview 18.1.8.5.1. Marketing Strategy 18.1.9. Lutron Electronics Co. Inc. 18.1.9.1. Overview 18.1.9.2. Product Portfolio 18.1.9.3. Profitability by Market Segments 18.1.9.4. Sales Footprint 18.1.9.5. Strategy Overview 18.1.9.5.1. Marketing Strategy 18.1.10. Nest Labs Inc. 18.1.10.1. Overview 18.1.10.2. Product Portfolio 18.1.10.3. Profitability by Market Segments 18.1.10.4. Sales Footprint 18.1.10.5. Strategy Overview 18.1.10.5.1. Marketing Strategy 19. Assumptions & Acronyms Used 20. Research Methodology
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Home Energy Management Systems Market
