Home Energy Management Market Expected to Reach $8.73 Billion by 2030

According to a new report published by Allied Market Research, titled, “Home Energy Management Market by Product Type and Technology: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the global home energy management market size was valued at $2.28 billion in 2020, and is projected to reach $8.73 billion by 2030, registering a CAGR of 15.6%. North America is expected to be the leading contributor to the global market during the forecast period, followed by Europe and Asia-Pacific.       

Home energy management are gaining popularity around the world, helping accelerate the transition to renewable energy. With advances in smart home technology and machine-to-machine communication, home energy management will not only change how homeowners consume energy, but how they actively look to reduce energy usage. With home energy management, end users can access real-time energy consumption data through mobile phones, tablets, and other communication devices to monitor and manage energy consumption in the house.

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. For instance, the U.S. Green Building Council (USGBC) is a government body that developed and released criteria for improving the environmental performance of smart home through the leadership in Energy and Environmental Design (LEED) rating system for new building construction.

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

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 market, owing to increasing use of home energy management with augmented awareness about this technology.  The overall home energy management market analysis is determined to understand the profitable trends to gain a stronger foothold.

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 home energy management 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.

Key Findings Of The Study

• In 2020, the hardware segment accounted for the maximum revenue and is projected to grow at a notable CAGR of 13.70% during the forecast period.
• The self-monitoring system and services segment witness highest growth rate during the forecast period.
• Germany was the major shareholder in the Europe home energy management market revenue, accounting for approximately 35% share in 2020.  

The key players profiled in the report include Honeywell International, Inc., General Electric Company, Panasonic Corporation, Alphabet (Google Inc.), Ecobee, Inc., Vivint Inc., Schneider Electric SA, Comcast Cable Communications, LLC (Xfinity), EcoFactor, Inc., and Energyhub, Inc. These players have adopted various strategies, such as partnership, agreement, expansion, and product launch, to expand their foothold in the home energy management industry.