DUBLIN–(BUSINESS WIRE)–The “Home Energy Management Systems (HEMS) Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2023 to 2031” report has been added to ResearchAndMarkets.com’s offering.
As electricity costs continue to climb, the need for optimal energy management is driving significant growth in the Home Energy Management Systems (HEMS) market. The market is predicted to expand at a compounded annual growth rate (CAGR) of 14.5% between 2023 and 2031.
Rising electricity expenses and the consequential need for better energy management have been identified as major factors propelling market growth. Notably, the highest average cost per kilowatt-hour for power bills in Europe is in Norway, where residents spend an estimated 6.3% of their annual salary on electricity bills. Such high costs are increasing the demand for efficient HEMS.
The rapid urbanization and population growth worldwide are presumed to increase energy consumption manifolds, exacerbating the energy demand-supply gap. Anticipating future challenges such as fast-depleting fossil fuels and further electricity price hikes, governments worldwide are implementing stringent energy standards, guidelines, and regulations to manage this gap. Incentives in the form of tax credits for consumers and nationwide standards to alleviate the burden on manufacturers are driving the HEMS market forward.
Despite the positive growth projections, the market faces certain challenges, including the high upfront cost and technical complexities involved in the installation of HEMS. These factors have been a deterrent to widespread adoption, particularly in emerging economies where consumers are more price-sensitive. Inconsistent energy savings and returns on HEMS devices have also affected market demand.
Market Segmentation:
-
Product Type:
- Control Devices (Lighting Control Systems, Thermostats, Smart Plugs, etc)
- User Interface Devices (Home Energy Display, Web Dashboard, etc)
-
Technology:
- Wi-Fi
- ZigBee
- Z-Wave
- Others (Wireless M-Bus, Insteon, X#, etc)
In 2022, control devices comprised the largest revenue-contributing segment in the HEMS market, accounting for 65% of the global revenue. Meanwhile, the user interface devices segment is predicted to register maximum growth from 2023 to 2031.
In terms of technology, the Wi-Fi-based HEMS segment held the largest revenue share in 2022 with 37% of global revenue. However, the ZigBee market is set for a growth spurt, driven by increased demand in emerging markets and regulated demand from North America and Europe.
Geographically, North America emerged as the leader in the HEMS market in 2022, followed by Europe, together accounting for 70% of the global market revenue. This dominance is due to significant technological advancements and wider adoption of wireless technologies like ZigBee, Z-Wave, and Wi-Fi for energy management. The U.S. holds the position of the largest individual HEMS market globally, attributed to a substantial base of energy management solutions and service providers. Meanwhile, Asia Pacific is poised to witness maximum growth due to increased interest in managing residential electricity consumption.
Leading competitors are continuously engaging in activities such as product launches, collaborations, partnerships, and acquisitions to remain competitive. Emphasis on continual improvement of products by incorporating user-friendly design elements is a prominent trend among key players. Significant financial resources are being allocated to research and development efforts to improve product offerings and bolster market positions.
Companies Leading the Way in HEMS:
- Panasonic Corporation
- Schneider Electric SE
- Hitachi Ltd
- Honeywell International Inc
- Google Nest
- GE Lighting
- Vivint Inc
- Cisco Systems Inc
- EcoFactor Inc
- Comcast Cable
- Toshiba Corporation
- AT&T Inc
- EnergyHub Inc
- Ecobee Inc
- Alarm.com
- Uplight
- Oracle Corporation
- ADT Inc
- Samsung
- Tado
- Motorola
- LG Corporation
- General Electric Company
For more information about this report visit https://www.researchandmarkets.com/r/zahokf
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Read the orginal article: https://siliconcanals.com/news/business-wire/global-home-energy-management-systems-market-poised-for-14-5-cagr-from-2023-to-2031-driven-by-rising-electricity-costs-and-need-for-optimal-energy-management-researchandmarkets-com/
