The Home Energy Management Systems Market 2nd Edition

The Home Energy Management Systems Market 2nd Edition

The Home Energy Management Systems Market is a comprehensivereport from Berg Insight analysing the latest developments andtrends on the home energy management systems market in Europeand North America. This strategic research report from Berg Insightprovides you with 150 pages of unique business intelligence including5-year industry forecasts and expert commentary on which to baseyour business decisions.

The Home Energy Management Systems Market 2nd Edition

The residential sector accounts for about a fourth of the total energy consumption in NorthAmerica and Europe. The consumption is anticipated to increase substantially during the comingnext few years as the adoption of electric cars and heat pumps are expected to grow fast.Solutions that enable homeowners to reduce their overall energy consumption and increase theshare of energy coming from renewable sources therefore play a vital role in the transition tocarbon neutrality and mitigating climate change. For this reason, governments in Europe andNorth America have introduced various incentives and subsidies directed specifically towardsthe residential market to stimulate investments in renewable energy sources and energyoptimization solutions. The rising and increasingly volatile electricity prices seen during the pastfew years combined with more frequent power outages in some regions have also created astrong drive from homeowners to invest in such solutions.

In this report, a home energy management system (HEMS) is defined as a system that atminimum consists of a solar PV system, battery storage system and a web-based managementportal or smartphone app that allows for remote monitoring and control of the system. Solutionsthat only display information and do not provide tools to manage the electricity flow andconsumption in the home are therefore excluded. A wider HEMS also integrates backupgenerators, EV chargers, heat pumps, home appliances and other connected products andsystems in the home. HEMS allow households to become active participants in the electricitymarket, reducing the monthly electricity bill and lessening the strain on the electricity grid duringhours of high electricity demand.

In 2023, the solar industry as a whole in Europe and North America was negatively impacted byhigher interest rates, causing a lower than anticipated demand for new solar PV systems.However, the adoption of HEMS grew substantially in 2023 due to several reasons, including anumber of policy changes in key markets that have made investments in HEMS more attractivefor homeowners. At the end of 2023, there were an estimated 2.2 million HEMS installed inEuropean homes. An estimated 1.1 million systems were added to the installed base in 2023.This figure includes both new installations of solar PV + battery storage systems as well asinstallations of battery storage systems in existing solar PV systems (i.e. retrofits). Thepenetration rate is still very low in Europe, at around 1.8 percent. Germany is by far the leadingmarket, accounting for more than half of the installed base and shipments in Europe in 2023.Growing at a CAGR of 36.7 percent, the installed base of HEMS in Europe is estimated to reach10.3 million systems at the end of 2028. This corresponds to a penetration rate of 8.2 percent.

There were an estimated 600,000 HEMS installed in North American homes at the end of 2023.Shipments, including both new installations and retrofits, reached 210,000 systems during theyear. The US is estimated to account for about 95 percent of the North American market whileCanada accounts for about 5 percent. California, Texas and Hawaii are some of the largest HEMSmarkets in the US. Growing at a CAGR of 38.3 percent, the installed base of HEMS in NorthAmerica is estimated to reach 3.0 million systems at the end of 2028. This corresponds to apenetration rate of 2.5 percent.

The HEMS value chain spans various companies from different industry sectors. Somecompanies are vertically integrated, offering a complete HEMS based on in-house developedhardware and software solutions. Other companies develop and manufacture one part of theHEMS. Some of these companies integrate devices from third-party companies to offer acomplete HEMS. There are also several companies that specialise in providing a softwareplatform that enables other companies to offer HEMS. Leading US-based HEMS players includeEnphase Energy, Tesla, Generac, Lunar Energy and Savant Systems. Leading Germany-basedcompanies include E3/DC (Hager Group), Sonnen (Shell), Senec (EnBW), Solarwatt, SMA Solarand Viessmann Climate Solutions (Carrier). Significant UK-based companies include GivEnergyand Myenergi. France-based Schneider Electric is also an important player in the industry.Several significant players on the HEMS market in North America and Europe are based outsideof the two regions, including China-based Huawei, Growatt and Sungrow; Israel-basedSolarEdge; Japan-based Panasonic; and South Korea-based LG Energy Solution.