Home Energy Management Market

The global home energy management market size is expected to reach $8.73 billion by 2030 from $2.28 billion in 2020, growing at a CAGR of 15.6% from 2021 to 2030.  Home energy management is an effective hardware and software system that facilitates home users to monitor and reduce energy consumption of various electrical devices installed in their homes. Home energy management comprises five different products, which assist in managing and reducing energy consumption. These products include self-monitoring systems, lighting controls, programmable communicating thermostats, advanced central controllers, and intelligent HVAC controllers. 

With rapid advancements in technologies, such as smart grid, bidirectional communication medium, network communication, information infrastructures, energy conservation methodologies and diverse techniques have undergone a revolutionary change pertaining to various areas of power consumption domains such as electricity usage patterns and energy conservation at consumption premises. Under a robust smart grid paradigm, the modern home equipped with home energy management system contributes significantly toward efficiency improvement, economizing energy usage, reliability as well as conserving energy for distributed systems. 

HEMS can provide value to the homeowner and the utility by saving money and energy by providing a mixture of control, scheduling, and user information. HEMS can monitor the energy consumption of home residents to help them adapt their energy usage behavior based on the feedback they receive from the system. 

The global home energy management market size is anticipated to witness significant growth during the forecast period. Factors, such as rising demand for energy-efficient solution, rise in urbanization in developing economies, and increasing number of connected devices through Internet of Things, drive the home energy management market growth. Emerging countries, such as India, China, Japan, Argentina, Brazil, Mexico, and South Korea, are witnessing rapid urbanization with the construction of smart building. In these countries, the awareness of housing development has resulted in the growing demand for improved housing infrastructure. This would lead to the deployment of home energy management in newly constructed buildings.  

However, high initial cost related to deploying of energy management systems is a major restraint to the global home energy management market growth. In addition, government initiative toward the construction of smart home is expected to create opportunities for the home energy management industry. Governments play a vital role in energy savings and supporting initiatives toward construction of smart buildings. They have formulated regulations and policies to improve energy efficiency and reduce a building’s footprint of renewable energy, HVAC, lighting, and location.       

The global home energy management market share is segmented on the basis of product type, technology, and region. By offering, the market is categorized into hardware, software, and services. By product type, the market is bifurcated into lighting controls, self-monitoring systems and services, programmable communicating thermostats, advanced central controllers, and intelligent HVAC controllers. By technology, it is fragmented into Z-Wave, ZigBee, Wi-Fi, Ethernet, and others.     

Region-wise, the home energy management market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and the rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). North America is dominating the home energy management market, owing to increasing use of home energy management with augmented awareness about this technology. 

Top Impacting Factors

The prominent factors that impact the home energy management market growth are rising demand for energy-efficient solution, rising in urbanization in developing economies, and increasing number of connected devices through Internet of Things. However, high initial cost related to deploying of energy management systems is a major restraint to the global home energy management market growth. On the contrary, government initiative toward the construction of smart home is expected to create lucrative opportunities for the market. Therefore, these factors are expected to definitely affect the global home energy management industry during the forecast period.    

Covid-19 Impact Analysis

The COVID-19 pandemic has significantly impacted global economies, resulting in workforce & travel restrictions, supply chain & production disruptions, and reduced demand & spending across many sectors. Sudden decline in infrastructure development and installation projects is expected to hamper the market growth for home energy management. 

Due to the ongoing COVID-19 crises, the construction market is expected to witness abrupt downturn this year. However, a slow recovery is anticipated to begin next year. It is also estimated that construction market will face a lot of challenges leading to the COVID-19 crisis with stagnation trends in many countries. Shortages of electronics components and materials have significantly impacted the global supply chains. In addition, reductions in various capital budgets and delay in planned projects in different applications have hampered the global economy.  

However, as vaccines roll out across the globe, the pandemic situation is better controlled, especially in North America and Europe. This would boost the recovery of the home energy management market.  

Furthermore, key players operating in the market faced slight negative impact of the COVID-19 outbreak as compared to other industries. The demand for home energy management system has increased significantly during the pandemic, thereby making the market highly competitive. Hence, several key players are embracing different strategies such as collaboration, partnership, product launch, and expansion to stay competitive in the market and provide home energy management system. 

Key Benefits For Stakeholders

• This study comprises analytical depiction of the global home energy management market outlook along with the current trends and future estimations to depict the imminent investment pockets.
• The overall home energy management market analysis is determined to understand the profitable trends to gain a stronger foothold. 
• The report presents information related to key drivers, restraints, and home energy management market opportunities with a detailed impact analysis.  
• The current home energy management market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.   
• Porter’s five forces analysis illustrates the potency of the buyers and the home energy management market share of key vendors.   
• The report includes the market trends and the revenue share of key vendors.

 Home Energy Management Market Report Highlights