The Home Energy Management Systems Market 1st Edition

The Home Energy Management Systems Market 1st Edition

The Home Energy Management Systems Market is a comprehensive report from Berg Insight analysing the latest developments and trends on the home energy management systems market in Europe and North America. This strategic research report from Berg Insight provides you with 120 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

The Home Energy Management Systems Market 1st Edition

The residential sector accounts for about a fourth of the total energy consumption in North America and Europe. The consumption is anticipated to increase substantially during the coming next 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 the share of energy coming from renewable sources therefore play a vital role in the transition to carbon neutrality and mitigating climate change. For this reason, governments in Europe and North America have introduced various incentives and subsidies directed specifically towards the residential market to stimulate investments in renewable energy sources and energy optimization solutions. The rising and increasingly volatile electricity prices seen during the past few years also create a strong demand allowing homeowners to lower their monthly electricity bill and reduce reliance on the electricity grid.

In this report, a home energy management system (HEMS) is defined as a system that at minimum consists of a solar PV system, battery storage system and a web-based management portal or smartphone app that allows for remote monitoring and control of the system. Solutions that only display information and do not provide tools to manage the electricity flow and consumption in the home is therefore excluded. A wider HEMS also integrates backup generators, EV chargers, heat pumps, home appliances and other connected products and systems in the home.

At the end of 2022, there were an estimated 950,000 HEMS installed in European homes. In 2022, an estimated 320,000 systems were added to the installed base. This figure includes both new installations of solar PV + battery storage systems as well as installations of battery storage systems in existing solar PV systems (i.e. retrofits). The penetration rate is still very low in Europe, below one percent. Germany is by far the leading market. Growing at a CAGR of 40.3 percent, the installed base of HEMS in Europe is estimated to reach 5.2 million systems at the end of 2027. There were at the same time an estimated 520,000 HEMS installed in North American homes at the end of 2022. Shipments including both new installations and retrofits reached 250,000 systems during the year. About 0.5 percent of the houses and MDUs in the region had a HEMS installed at the end of the year. Growing at a CAGR of 49.4 percent, the installed base of HEMS in North America is estimated to reach 3.9 million systems at the end of 2027.

The HEMS value chain spans various companies from different industry sectors. Some companies are vertically integrated, offering a complete HEMS based on in-house developed hardware and software solutions. Other companies develop and manufacture one of the components of HEMS. Some of these companies integrates its solutions with components fromthird-party companies to offer a complete HEMS. There are also several companies thatspecialise in providing a software platform that enables other companies to offer HEMS. EnphaseEnergy, Tesla, SolarEdge, Generac, E3/DC (Hager Group), Senec (EnBW) and Solarwatt areconsidered to be the leading companies in the HEMS market in North America and Europe. Allseven companies offer a range of software and hardware solutions that enable homeowners tocontrol their electricity generation, storage and usage.

Additional important players in the European and North American HEMS market includeGermany-based Kostal, SMA Solar and Sonnen (Shell); Italy-based FIMER (McLaren Applied);Austria-based Fronius; France-based Schneider Electric and US-based Eaton, SimpliPhi Power(Briggs & Stratton), Savant Systems and Tigo Energy. There are also a number of companiesfrom Asia that provide HEMS solutions. Key players include BYD Electronic, LG Energy Solution,Huawei, Growatt New Energy and Pylon Technologies.