Home Energy Management Systems (HEMS) Market (Updated Version Available)
Home Energy Management Systems (HEMS) Market Size, Share & Trends Analysis, By Component (Hardware and Software), By Technology (Wi-Fi, Z-Wave, ZigBee, and Bluetooth), By Region, Forecast Period-2023 - 2030
Report ID : RI_673908 | Date : July 2023 |
Format : 
Key Market Overview:
The Home Energy Management Systems (HEMS) Market was valued at USD 3,179.12 Million in 2022, registering a CAGR of 19.1% during the forecast period (2023-2030), and the market is projected to be worth USD 12,649.02 Million by 2030.
A home energy management system (HEMS) refers to a digital system that is capable of monitoring and controlling energy generation along with storage and consumption within a household. The deployment of home energy management system offers several benefits including cost reduction, lowered carbon footprint, higher return-on-investment (ROI), and the ability to control various aspects of a residential building\'s energy performance including lighting, HVAC (heating, ventilation, and air conditioning) systems, and others.
Factors including the rise in residential construction and increasing need for automated and smart energy management solutions in residential sector are among the prime factors driving the adoption of home energy management system. Additionally, the rising initiatives and investments in development of smart homes and smart grids are significant factors fostering the market demand for home energy management system.
In January 2023, Schneider Electric revealed its new smart and sustainable home energy management solution. The home energy management solution consist of a smart electrical panel, high-power solar inverter, home battery for clean energy storage, connected electric sockets and light switches, and electric vehicle charger, which are all controlled by the Schneider Home application. Therefore, the rising innovations associated with home energy management system are further driving the growth of the market.
Home Energy Management Systems (HEMS) Market Report Coverage:
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Market Dynamics:
Driver:
Rising residential construction is driving the market growth
Home energy management systems are primarily used in residential buildings to simplify, manage, and reduce energy consumption of the building. HEMS often monitors and displays a building\'s energy consumption through a website or smartphone application. Moreover, HEMS also enable connectivity with compatible appliances allowing users to control the operation of appliances by manually turning appliances on or off along with setting up scheduled running times.
Factors including the rise in disposable income, increasing investments, and government policies including tax incentives, subsidies, and rebates are among the key determinants driving the growth of the residential construction sector.
For instance, according to the State of Nevada, U.S., new residential building permits in Nevada reached up to 23,406 units in 2021, witnessing a growth of approximately 19% in comparison to 19,716 units in 2020. Thus, the rise in residential construction is driving the utilization of home energy management system for installation in residential buildings to simplify, manage, and reduce energy consumption of the buildings, in turn proliferating the growth of the market.
Restraint:
High installation cost of energy management system is restraining the market growth
The installation of an energy management system is associated with high costs, which is a key factor limiting market growth. For instance, according to Frazier Service Company, the average installation cost of a building management system ranges from USD 2.50 to USD 7 per square foot. Similarly, the average installation cost for a 100,000 square-foot building reaches up to approximately USD 250,000, which is relatively high. Therefore, the high cost associated with the installation of energy management systems is restraining the growth of the market.
Home Energy Management Systems (HEMS) Market Segmentation:
By Component
The component segment is divided into hardware and software.
The hardware segment contributed to the largest revenue share in 2022. Home energy management system hardware consists of multiple components including smart panels, smart circuits, smart plugs, consumption monitors, light & temperature sensors, and others. A home energy management system\'s hardware includes a hub device that is responsible for relaying communications between devices installed in the house and the user. The hub is often installed on the home\'s electrical board or virtually in cases where the operation of HEMS is purely based on a wireless network.
In June 2022, Hogar Controls launched a new series of smart home devices comprising of Wi-Fi enabled smart touch panels. The smart touch panels are available with fan controller, light dimmer, and curtain control among others. Hence, the rising innovations associated with HEMS hardware are contributing to the growth of the segment.
Further, factors including rising residential projects, increasing adoption of smart devices and appliances, and growing demand for energy monitoring solutions are among the primary aspects driving the growth of the hardware segment.
Additionally, the software segment is expected to grow steadily during the forecast period. Home energy management software helps users in monitoring energy consumption and managing it by automating certain tasks. Home energy management software also offers insights on how to improve household efficiency and further cut down energy costs. Moreover, home energy management software provides an interface that enables access to monitoring data and control functions of the system and usually takes the form of an application or web portal. Additionally, home energy management software also offers the ability for controlling devices remotely or automatically for security or convenience purposes.
Furthermore, factors including rising government initiatives for smart home projects, growing residential construction, and increasing demand for home automation solutions are key prospects fostering the growth of the software segment.
By Technology
The technology segment is divided into Wi-Fi, Z-Wave, ZigBee, and Bluetooth.
The Wi-Fi segment accounted for largest share in the home energy management systems (HEMS) market in 2022. Wi-Fi is a wireless networking technology that enables multiple devices including computers, mobile devices, and other equipment to interface with the Internet. Wi-Fi technology offers various benefits including better accessibility, increased communication efficiency, flexibility, ease of installation, and affordability among others. The abovementioned benefits of Wi-Fi technology are prime determinants for increasing its utilization in home energy management systems for connecting smart devices and appliances within households.
Further, factors including the rising smart city projects, advancements in network technology including 5G, and increasing adoption of wireless technology for connected devices are driving the growth of the Wi-Fi segment.
In April 2023, TP Link\'s Kasa Smart brand launched its new smart plug integrated with Wi-Fi technology and energy monitoring capability. The smart plug offers scheduling and timer capabilities, enabling users to set smart plugs for automatically turning on and off any home electronic appliances including fans, lamps, humidifiers, and others. Hence, the rising integration of Wi-Fi technology in home energy management system components including smart plugs, smart panels, and others is a vital factor anticipated to drive the market growth during the forecast period.
By Region:
The North American region is considered to contribute the largest revenue share in the year 2022. The growth of energy management system market in North America is primarily driven by several factors including increasing investments in residential construction projects and rising demand for home energy monitoring and management solutions in the region.
For instance, according to Statistics Canada, investments in the residential sector in Canada accounted for USD 14.9 billion in January 2023, depicting an increase of 1.9% in comparison to 2022. The above factors are anticipated to drive the adoption of home energy management system in residential buildings for simplifying, managing, and reducing energy consumption of the building, in turn driving market growth in North America during the forecast period.
The Asia-Pacific region is anticipated to witness substantial growth during the forecast period. The growing pace of urbanization and development is promoting lucrative opportunities for market growth in the region. Moreover, the rising government initiatives for the development of smart cities in the Asia-Pacific region are contributing to the market growth for home energy management system. For instance, the government of China launched multiple initiatives including National New-type Urbanization Plan, China\'s 14th five-year Development Plan (2021 to 2025), and smart cities projects that aims at supporting the development of smart homes in the country.
Additionally, several factors including the rise in residential construction and growing need for automated energy monitoring solutions in residential buildings are projected to drive the demand for heat cost allocator in the Asia-Pacific region during the forecast period.
Home Energy Management Systems (HEMS) Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in research and development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the global home energy management systems (HEMS) market. Key players in the market include-
• Panasonic Industry Co., Ltd
• Honeywell International Inc.
• GE Digital
• Nest Labs
• Vivint Inc.
• Alarm.com
• Ecobee
• EnergyHub
• Comcast
• Eaton
• Schneider Electric
Recent Developments
• In June 2023, Panasonic launched new generation of EVERVOLT home battery system and SmartBox for efficient home energy management. The system features a compact design and is ideal for both indoor and outdoor installation in a residential building.
The Home Energy Management Systems (HEMS) Market was valued at USD 3,179.12 Million in 2022, registering a CAGR of 19.1% during the forecast period (2023-2030), and the market is projected to be worth USD 12,649.02 Million by 2030.
A home energy management system (HEMS) refers to a digital system that is capable of monitoring and controlling energy generation along with storage and consumption within a household. The deployment of home energy management system offers several benefits including cost reduction, lowered carbon footprint, higher return-on-investment (ROI), and the ability to control various aspects of a residential building\'s energy performance including lighting, HVAC (heating, ventilation, and air conditioning) systems, and others.
Factors including the rise in residential construction and increasing need for automated and smart energy management solutions in residential sector are among the prime factors driving the adoption of home energy management system. Additionally, the rising initiatives and investments in development of smart homes and smart grids are significant factors fostering the market demand for home energy management system.
In January 2023, Schneider Electric revealed its new smart and sustainable home energy management solution. The home energy management solution consist of a smart electrical panel, high-power solar inverter, home battery for clean energy storage, connected electric sockets and light switches, and electric vehicle charger, which are all controlled by the Schneider Home application. Therefore, the rising innovations associated with home energy management system are further driving the growth of the market.
Home Energy Management Systems (HEMS) Market Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Million) | 12,649.02 million |
| CAGR (2023-2030) | 19.1% |
| Base Year | 2022 |
| By Component | Hardware and Software |
| By Technology | Wi-Fi, Z-Wave, ZigBee, and Bluetooth |
| By Geography |
|
| Key Players | Panasonic Industry Co., Ltd., Honeywell International Inc., GE Digital, Nest Labs, Vivint Inc., Alarm.com, Ecobee, EnergyHub, Comcast, Eaton, Schneider Electric |
Market Dynamics:
Driver:
Rising residential construction is driving the market growth
Home energy management systems are primarily used in residential buildings to simplify, manage, and reduce energy consumption of the building. HEMS often monitors and displays a building\'s energy consumption through a website or smartphone application. Moreover, HEMS also enable connectivity with compatible appliances allowing users to control the operation of appliances by manually turning appliances on or off along with setting up scheduled running times.
Factors including the rise in disposable income, increasing investments, and government policies including tax incentives, subsidies, and rebates are among the key determinants driving the growth of the residential construction sector.
For instance, according to the State of Nevada, U.S., new residential building permits in Nevada reached up to 23,406 units in 2021, witnessing a growth of approximately 19% in comparison to 19,716 units in 2020. Thus, the rise in residential construction is driving the utilization of home energy management system for installation in residential buildings to simplify, manage, and reduce energy consumption of the buildings, in turn proliferating the growth of the market.
Restraint:
High installation cost of energy management system is restraining the market growth
The installation of an energy management system is associated with high costs, which is a key factor limiting market growth. For instance, according to Frazier Service Company, the average installation cost of a building management system ranges from USD 2.50 to USD 7 per square foot. Similarly, the average installation cost for a 100,000 square-foot building reaches up to approximately USD 250,000, which is relatively high. Therefore, the high cost associated with the installation of energy management systems is restraining the growth of the market.
Home Energy Management Systems (HEMS) Market Segmentation:
By Component
The component segment is divided into hardware and software.
The hardware segment contributed to the largest revenue share in 2022. Home energy management system hardware consists of multiple components including smart panels, smart circuits, smart plugs, consumption monitors, light & temperature sensors, and others. A home energy management system\'s hardware includes a hub device that is responsible for relaying communications between devices installed in the house and the user. The hub is often installed on the home\'s electrical board or virtually in cases where the operation of HEMS is purely based on a wireless network.
In June 2022, Hogar Controls launched a new series of smart home devices comprising of Wi-Fi enabled smart touch panels. The smart touch panels are available with fan controller, light dimmer, and curtain control among others. Hence, the rising innovations associated with HEMS hardware are contributing to the growth of the segment.
Further, factors including rising residential projects, increasing adoption of smart devices and appliances, and growing demand for energy monitoring solutions are among the primary aspects driving the growth of the hardware segment.
Additionally, the software segment is expected to grow steadily during the forecast period. Home energy management software helps users in monitoring energy consumption and managing it by automating certain tasks. Home energy management software also offers insights on how to improve household efficiency and further cut down energy costs. Moreover, home energy management software provides an interface that enables access to monitoring data and control functions of the system and usually takes the form of an application or web portal. Additionally, home energy management software also offers the ability for controlling devices remotely or automatically for security or convenience purposes.
Furthermore, factors including rising government initiatives for smart home projects, growing residential construction, and increasing demand for home automation solutions are key prospects fostering the growth of the software segment.
By Technology
The technology segment is divided into Wi-Fi, Z-Wave, ZigBee, and Bluetooth.
The Wi-Fi segment accounted for largest share in the home energy management systems (HEMS) market in 2022. Wi-Fi is a wireless networking technology that enables multiple devices including computers, mobile devices, and other equipment to interface with the Internet. Wi-Fi technology offers various benefits including better accessibility, increased communication efficiency, flexibility, ease of installation, and affordability among others. The abovementioned benefits of Wi-Fi technology are prime determinants for increasing its utilization in home energy management systems for connecting smart devices and appliances within households.
Further, factors including the rising smart city projects, advancements in network technology including 5G, and increasing adoption of wireless technology for connected devices are driving the growth of the Wi-Fi segment.
In April 2023, TP Link\'s Kasa Smart brand launched its new smart plug integrated with Wi-Fi technology and energy monitoring capability. The smart plug offers scheduling and timer capabilities, enabling users to set smart plugs for automatically turning on and off any home electronic appliances including fans, lamps, humidifiers, and others. Hence, the rising integration of Wi-Fi technology in home energy management system components including smart plugs, smart panels, and others is a vital factor anticipated to drive the market growth during the forecast period.
By Region:
The North American region is considered to contribute the largest revenue share in the year 2022. The growth of energy management system market in North America is primarily driven by several factors including increasing investments in residential construction projects and rising demand for home energy monitoring and management solutions in the region.
For instance, according to Statistics Canada, investments in the residential sector in Canada accounted for USD 14.9 billion in January 2023, depicting an increase of 1.9% in comparison to 2022. The above factors are anticipated to drive the adoption of home energy management system in residential buildings for simplifying, managing, and reducing energy consumption of the building, in turn driving market growth in North America during the forecast period.
The Asia-Pacific region is anticipated to witness substantial growth during the forecast period. The growing pace of urbanization and development is promoting lucrative opportunities for market growth in the region. Moreover, the rising government initiatives for the development of smart cities in the Asia-Pacific region are contributing to the market growth for home energy management system. For instance, the government of China launched multiple initiatives including National New-type Urbanization Plan, China\'s 14th five-year Development Plan (2021 to 2025), and smart cities projects that aims at supporting the development of smart homes in the country.
Additionally, several factors including the rise in residential construction and growing need for automated energy monitoring solutions in residential buildings are projected to drive the demand for heat cost allocator in the Asia-Pacific region during the forecast period.
Home Energy Management Systems (HEMS) Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in research and development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the global home energy management systems (HEMS) market. Key players in the market include-
• Panasonic Industry Co., Ltd
• Honeywell International Inc.
• GE Digital
• Nest Labs
• Vivint Inc.
• Alarm.com
• Ecobee
• EnergyHub
• Comcast
• Eaton
• Schneider Electric
Recent Developments
• In June 2023, Panasonic launched new generation of EVERVOLT home battery system and SmartBox for efficient home energy management. The system features a compact design and is ideal for both indoor and outdoor installation in a residential building.
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|---|---|
| Multi user | : $5460 |
| Corporate user | : $7460 |
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| Single user | : $3860 |
|---|---|
| Multi user | : $5460 |
| Corporate user | : $7460 |
Buy Now
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