New Delhi, March 01, 2024 (GLOBE NEWSWIRE) -- Global home energy management system market is projected to surpass US$ 17.81 billion by 2032 from US$ 3.30 billion in 2023 at a CAGR of 20.6% during the forecast period 2024–2032.
The home energy management systems market is on the rise. For one thing, homeowners around the world are clamoring for ways to get a grip on their electricity bill and usage. It has been found in a recent study by Astute Analytica that whopping 70% of a home’s energy is consumed by appliances and electronics alone. However, HEMS are able to reduce consumption by 10-25%. While HEMS technology has yet to go mainstream, smart thermostats have been dominating the field for quite some time now. Consumers now are ready for change; 69% said they’d be willing to modify their habits if it meant they’d be saving energy and money. Moreover, as per IEA’s latest findings, these systems can cut down greenhouse gas emissions by 2 tons per household each year if deployed. In line with this, our study found that this type of property improvement usually pays for itself within 3-5 years and homeowners can expect savings totaling around $500 per annum.
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A little over 90% of people who purchased this product found that they were satisfied with it (especially since it could provide enough savings in America alone compared to the output of five dozen power plants). Currently, Amazon (Alexa), Google and Apple (Siri) are some of the key technology enables in this market. In addition to voice control (a feature desired by almost 80%), solar panels and electric vehicles have potential to revolutionize the HEMS soon enough. Demand response programs — which allow utility providers to decrease or increase a customer’s bill based on how much power they consume — are also looking into using HEMS to optimize the power grid. In short, 60% of people said they’d like a greener service from their provider. With over half of Americans estimated to be living in smart homes by 2027, adding fuel to the overall market growth.
Key Findings in Global Home energy management system market
| Market Forecast (2032) | US$ 17.81 billion |
| CAGR | 20.6% |
| Largest Region (2023) | Asia Pacific (44.5%) |
| By Component | Hardware (59.1%) |
| By Building Type | Apartment Buildings (42.7%) |
| By Application | Energy Management (36.9%) |
| By Technology | Wireless (66.4%) |
| By Construction | New (83.8%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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HEMS Market Heats Up: Major Partnerships Signal Rapid Growth in Smart Energy Management
PulteGroup’s deal with SPAN for advanced energy management represents HEMS growing role in new construction. The partnership points to increasing interest among homebuilders in energy efficiency, easy integration into the grid and compliance with evolving building codes. Moreover, the partnership between SmartThings and Eve Systems, on the other hand, reveals a broader push toward improved real-time electricity monitoring within the widely used smart-home platform. As more brands become compatible with SmartThings’ energy-management capabilities, consumers gain more options and control.
The key findings provide trajectory of the home energy management systems market growth:
- Europe: With an estimated 950,000 HEMS installed in 2022 and a 40.3% CAGR, the European market is primed for significant expansion. The projected installed base of 5.2 million systems by 2027 reflects the region's commitment to energy management solutions. Germany's leadership in this space is noteworthy.
- North America: While starting from a smaller base (520,000 installed HEMS in 2022), North America boasts an even higher projected CAGR of 49.4%. The estimated 3.9 million systems by 2027 point to an accelerated adoption rate, indicating a rising demand for energy optimization across the region.
Home Energy Management Systems Market is Moderately Consolidated, Top 6 Players Holds Over 65% Market Share
Honeywell International Inc, Panasonic Cooperation, Iberdrola, EDF, and DENSO are top players collectively contributing more than 60% revenue share. Wherein, Honeywell International Inc. holds a dominant position in the moderately consolidated Home Energy Management Systems (HEMS) market, boasting over 15.8% market share. This leadership position can be attributed to several key factors:
Honeywell is a global player known for their brand of reliable and innovative products. Their reputation allows them to have a strong bond with consumers, making it easy to acquire new customers. The company in the home energy management systems market offers products in wide variety, including the popular Honeywell Home T9/T10 smart thermostats. but they also make energy monitoring systems and energy-efficient appliances too. They even have software solutions! By having such an extensive offering they're able to meet the wants and needs of many different kinds of people. With more competition coming in everyday, Honeywell has invested heavily in building automation tech and the company is continuously investing into research and development to stay ahead of the curve. Also, Honeywell is partnering up with other major players in the smart home and energy sectors to expand its compatibility, technological capabilities, and opens doors to new markets as well. In addition to this, Honeywell actively works alongside utility companies by integrating their HEMS products into demand response programs. This alignment provides broader market access and helps them create solutions that work best for their community.
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Apartment Buildings are the Leading Consumers of Home Energy Management Market, Controls Over 42.7% Market Share
Apartment buildings are rapidly rising to the top of the Home Energy Management Systems market. Some factors fuelling this include: simplified HEMS deployment since energy management is centralized within multi-unit buildings, property owners benefiting from technology’s bulk discounts, and government incentives in some regions, and energy waste being curbed by HEMS in common areas and individual units leading to cost savings. Moreover, for landlords, it creates a value-added amenity that can attract eco-conscious tenants and possibly justify higher rents. On a larger scale, utility demand response programs can generate more revenue for building owners while helping to stabilize grid functionality.
Key companies targeting HEMS in apartment buildings include BuildingIQ with its cloud-based energy management focus, GridPoint offering advanced monitoring and automation solutions, and industry giants like Schneider Electric and Siemens. The main audience here would be building owners looking for cost savings, efficient management, and competitive rental advantage. Distribution channels vary from direct sales to property owners to partnerships with builders for new construction. Utilities collaborations might also be possible along with HVAC contractors’ integration.
Here are some compelling stats highlighting the potential of this segment in the home energy management systems market:
- 35% of global energy consumption occurs in buildings, with a significant portion attributed to apartment complexes. (Source: IEA)
- HEMS technology can reduce energy consumption in multi-family buildings by 15-30%. (Source: US Department of Energy)
- 73% of apartment renters consider energy-efficient features important when choosing a residence. (Source: National Apartment Association)
- Smart thermostats, a key HEMS component, are expected to reach a 43% penetration rate in US apartments by 2026.
- Demand response programs for apartment buildings offer the potential to earn thousands of dollars in annual revenue.
Asia Pacific HEMS Market: A Region Poised for Explosive Growth
The Asia Pacific (APAC) home energy management systems market is expected to grow substantially, accounting for around 44.5% of the total market share. China leads this growth, followed by Japan and South Korea. In the region, the residential sector has been the primary adopter of HEMS due to growing smart homes technology. The most widely popular device in APAC is smart thermostats. Consumers in the Asia Pacific market for HEMS are adopting these technologies with energy efficiency in mind while also trying to control rising costs. In some countries, like Japan and South Korea, government initiatives and incentives encourage these practices even more. Additionally, there’s a trend toward integrating HEMS with solar PV systems and battery storage which aligns with increasing demand response programs where utilities optimize grid flexibility with consumers' help.
China's fast urbanization makes it the fastest-growing home energy management systems market in APAC. While South Korea benefits from government support for energy conservation and a population very enthusiastic about advanced technologies. Similarly, Japan's aging population increases its interest in home automation solutions such as HEMS for monitoring and control purposes. Australia is pushed by consumer demand for cost-effective solutions as they face rising energy costs. Today, more than half (58%) of consumers across the Asia Pacific region show willingness to adapt sustainable energy solutions which indicates potential HEMS adoption opportunities. Voice control is preferred among consumers along with partnerships between HEMS providers and utilities which further demonstrates how both sides are working together to improve energy management. However, some countries may face challenges regarding privacy concerns and data security related to HEMS technology.
These optimistic projections of growth come from an increase in disposable income within emerging APAC economies, India’s growing middle class and urbanization efforts as well as widespread grid modernization efforts happening throughout the region as well — including commercial sectors that demonstrate an increasing interest in maximizing building energy efficiency through HEMS technology purposes.
Global Home Energy Management System Market Key Companies
- Alarm.Com
- Comcast Corporation
- DENSO Corporation
- Eaton Corporation plc
- EDF Energy Ltd.
- Enel Spa
- EnergyHub
- General Electric Company
- Google Nest
- Honeywell International Inc.
- Iberdrola, S.A.
- IBM Corporation
- Mitsubishi Electric Corporation
- Panasonic Corporation
- Schneider Electric SE
- Siemens AG
- Vivint, Inc.
- Other prominent players
Key Segmentation:
By Component
- Hardware
- Thermostats
- Smart Panels
- Consumption Monitors
- Smart Circuit
- Monitoring & Control app
- Software
- Services
By Technology
- Wired
- Wireless
- Bluetooth
- Wi-Fi
- Zigbee
- Z-wave
- Others
By Application
- Lightening Controls
- Self-Monitored Security Systems
- Intelligent HVAC Systems
- Others
By Building Type
- Single Family Homes
- Apartment Building
- Low rise
- High rise
- Skyscrapers
- Villas/Bungalows
- Others (mobile homes, cottages)
By Construction
- New
- Renovation
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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