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Analysis of the $ 17.81Bn Home Energy Management System Market, 2025-2032: Growth Trends and Strategies Shaping the Market, Including a Breakdown of Leading Players’ Shares

By Globenewswire February 7, 2025 • 9:00 pm

Home Energy Management System Market Growth is Propelled by the Increasing Adoption of HEMS in Residential Buildings.

New Delhi, Feb. 07, 2025 (GLOBE NEWSWIRE) — The global home energy management system market valuation is poised to reach US$ 17.81 billion by 2032, with a CAGR of 20.6% during the forecast period from 2024 to 2032.

The global home energy management system market is witnessing rapid expansion and transformation, particularly in the Asia Pacific region. This growth is primarily propelled by the growing adoption of HEMS in residential buildings, which is propelled by their advantages such as energy consumption monitoring, automated appliance scheduling, and significant energy savings. For instance, the surge in residential constructions, as witnessed in the UK with more than 252,000 new residential units approved in Southern England in 2022, is directly contributing to the heightened demand for HEMS. Also, the increasing number of green building initiatives, which prioritize energy efficiency and sustainable living, is further catalyzing the market growth. HEMS are integral in handling electricity demand and optimizing energy consumption in these green buildings without compromising consumer comfort.

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Technologically, the market is segmented into different components, with the hardware segment, comprising plugs, panels, smart circuits, consumption monitors, and sensors, leading in 2023. The hardware segment’s growth is underpinned by the growing adoption of smart devices and appliances, the rising residential projects, and the growing demand for energy monitoring solutions. Concurrently, Wi-Fi technology is expected to significantly contribute to the home energy management system market, boosted by its communication accessibility, efficiency, and advancements in network technologies such as 5G. Geographically, North America emerged as the market leader in 2023, a status attributed to the region’s concentration of key HEMS providers like Honeywell International Inc. and Nest Labs, alongside the growing investments in residential projects and the increasing demand for home energy monitoring and management solutions.

Rising Electricity Costs: A Core Driver for the Home Energy Management System Market

A critical driver shaping the global home energy management system (HEMS) market is the escalating cost of electricity. This surge in electricity prices is playing a key role in pushing the demand for efficient HEMS. The market, which is expected to grow at a growth rate of 14.5% from 2023 to 2031, is increasingly boosted by the requirement for optimal energy management in the face of growing electricity costs​​. The urgency of this driver is presented by the situation in Europe, significantly in Norway, where the average cost per kilowatt-hour for power bills is among the highest. Norwegian residents spend about 6.3% of their annual income on electricity, a significant financial burden. Such high energy expenses are a compelling reason for consumers to turn towards efficient HEMS solutions, which deliver a way to manage and reduce these costs effectively​​.

Moreover, this trend in the home energy management system market is not isolated but part of a larger global change. Rapid urbanization and population growth worldwide are leading to augmented energy consumption, widening the gap between energy demand and supply. This situation is aggravated by issues such as the depletion of fossil fuels and expected further hikes in electricity prices. In response, governments globally are enforcing strict energy guidelines, standards, and regulations. These measures aim to handle the rising energy demand-supply gap and include incentives like tax credits for consumers adopting HEMS, and nationwide standards to ease the burden on manufacturers. Such policy measures are further bolstering the growth of the home energy management system market, as they encourage both consumer adoption and manufacturer innovation in energy management technologies​​.

Hardware Leads Home Energy Management System Market, While Services Segment Shows Rapid Growth

In the global home energy management system market, the segmentation by component shows distinct dynamics and growth trajectories for each segment. The hardware segment currently dominates, holding the largest share of 59.1%. This predominance is attributed to the important role of hardware components such as smart sensors, controllers, meters, and other devices that form the backbone of any HEMS. These components are necessary for the functionality of the system, enabling the monitoring, control, and management of energy usage in homes.

However, the services segment is exhibiting a more rapid growth trend and is estimated to expand at the highest growth rate of 21.7% in the home energy management system market. This growth can be ascribed to the growing demand for different services related to HEMS, including maintenance, installation, and consulting services. As these systems become more complicated and integrated, the expertise needed for their optimal function and maintenance escalates, thus pushing the demand for professional services. Also, the services segment is benefiting from the increasing consumer preference for customized energy management solutions, which usually need ongoing support and consultation to ensure efficiency and effectiveness.

Energy Management Dominates Home Energy Management System Market, Leading Growth in Applications

In the global home energy management system (HEMS) market, the application segment is dominated by energy management, which holds the highest share at 36.9%. This segment is also estimated to grow at the highest growth rate of 20.8%, emphasizing its central role in the home energy management system market. The prominence of the energy management segment is largely due to the growing focus on efficient energy utilization and cost reduction in residential settings. HEMS in energy management primarily involves optimizing consumption patterns, monitoring and controlling energy usage, and reducing overall energy costs. The increasing awareness among consumers about energy conservation and the escalating energy prices are significant factors pushing this segment’s growth. Moreover, advancements in technology, such as integration with IoT and AI for smarter energy solutions, are further improving the abilities and appeal of HEMS in energy management, driving this segment’s rapid growth.

Key Players

  • 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

For more information about this report visit: https://www.astuteanalytica.com/industry-report/home-energy-management-system-market

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