Residential Energy Management Market Growth | Demand Analysis & Opportunity Outlook 2023-2035

Global Residential Energy Management Market Size, Forecast, and Trend Highlights Over 2023 - 2035

The global residential energy management market size is estimated to reach ~USD 9 Billion by the end of 2035 by growing at a CAGR of ~12% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of residential energy management was ~USD 3 Billion. The growth of the market can be majorly attributed to the rising need for proper management of energy in homes for tracking the energy usage, backed up a high amount of energy being produced to meet the energy demands of the global population and high consumption of energy and electricity for varied purposes in the households.

In the recent period, the demand for energy in residential sectors and homes has been on a constant rise as a result of increased economic activity and technological advancements in both developed and developing nations. Thus, energy consumption is always increasing which creates price volatility in petroleum-based fuels as well as affects the environmental issues linked with fossil fuels, such as greenhouse gas (GHGs) emissions and global warming. This factor is estimated to generate favorable options for the key players to create new approaches with sustainable technology which in turn is projected to bring lucrative growth opportunities for the expansion of the global residential energy management market. Furthermore, the factors such as the adoption of advanced metering infrastructure (AMI) in homes along with the increasing interest in efficient energy management are also anticipated to drive market growth during the forecast period. In addition to the aforementioned factors, the implementation of rules and regulations regarding renewables and sustainable solutions, rapid escalation in the demand for energy-efficient appliances and insulation in homes, and the presence of attractive prospects for smart homes are further expected to increase the utilization rate of residential energy management in the upcoming years. Also, the surging need for an improved utility sector coupled with the growth in the preference for sustainable power resources is forecasted to fuel market growth in the next few years.

Global Residential Energy Management Market: Growth Drivers and Challenges

Growth Drivers

Growing Demand for Electricity in Homes and Residential Sector – The demand for electricity in homes and in the residential sector has significantly increased owing to the usage of electricity for lighting, heating, cooling, and refrigeration and operating appliances such as mobile phones, laptops, television, and other electronics, machinery, and individualized transportation systems. Thus, managing energy consumption comes in role play while so many appliances require electricity and energy. Therefore, the high demand for electricity in homes is anticipated to drive the global residential energy management market in the forecast period. As per recent statistics revealed that the world’s electricity consumption has continuously risen in the past 50 years almost 50% to reach around 25,300 terawatts-hours in 2021. It also has been estimated that in the European Union, in 2020, the households or the residential sector were responsible for consuming almost 30% of the total energy consumption.
The Surge in Preference for Smart Homes – With the surge in disposable income, the preference for smart homes has increased. Smart homes are specifically designed with the integration of lighting, heating, cooling, and other electronic devices that could be controlled through a smartphone or a laptop. Thus, these smart homes require energy for proper functioning which in turn is anticipated to create favorable opportunities for the usage of residential energy management for efficient management of energy and fuel market growth during the analysis period. The global smart home industry garnered a significant revenue of USD 4 billion in 2022 which is further forecasted to reach around USD 6 billion by 2027 with a notable CAGR of 8%. Also, the number of smart home present across the world in 2021 was calculated to be around 260 million with a penetration rate of 12%.
High Expenditure on Smart Devices of the Households – It has been estimated that consumer spending on smart home devices was almost USD 130 billion across the globe in 2021.
Increasing Deployment of Micro Grids - The deployment of microgrids has increased as these grids can increase customer dependability and robustness to grid outages. Furthermore, advanced microgrids benefit from the incorporation of nearby power generation assets including traditional generators, renewables, and storage to keep the local grid functional even when the main grid is down. Thus, with the upsurge in operational microgrids in the world, the demand for residential energy management is also anticipated to increase. For instance, the installation count of operational microgrids in the United States has extended to around 465 that generate nearly 3.5 gigawatts of reliable electricity.
Worldwide Upsurge in Smart Buildings – Smart buildings and smart homes require technologically advanced products and tools which require energy and electricity to operate and proper functioning. For instance, the count for smart buildings is anticipated to rise from around 44 million in 2022 to nearly 118 million in 2026, an increase of more than 152% worldwide.

Challenges

Requirement of Higher Initial Investment – As the latest technologies are used in residential energy management, usually the cost of it is high. Also, there are additional charges such as installation charges and maintenance costs. As a result of the requirement of such high costs, the adoption rate of residential energy management is expected to lower among the population with middle and low income. Hence, it subsequently expected to hamper the market growth during the forecast period.
Lack of Awareness about Standard Guidelines Laid by the Government
Unavailability of Skilled Workforce to Implement Modern Solutions

Global Residential Energy Management Market Segmentation

The global residential energy management market is segmented and analyzed for demand and supply by component into hardware and software. Out of the two segments, the software segment is estimated to gain the largest market share of about ~53% in the year 2035. A major factor for segment growth is its ease of accessibility and the ability to manage a huge amount of data from multiple devices which efficiently transmits the data. Furthermore, the integration of AI-powered devices and the penetration of IoT (Internet of Things) devices is also anticipated to increase the usage of software for effective residential energy management in the upcoming years. A recently published report stated that the number of active Internet of Things (IoT) increased from around 12 billion devices in 2020 to 20 billion devices around the world. This number is further anticipated to increase to approximately 26 billion devices worldwide by 2030.

The global residential energy management market is also segmented and analyzed for demand and supply by end-user into power monitoring & control, load shedding & management, flexible load management, and others. Amongst these segments, the power monitoring & control segment is expected to garner a significant share of around ~42% in the year 2035. The growth of the segment is anticipated to be driven by the increasing demand for power in the residential sector and the need for effectively utilizing the power. As per the recent calculations done by organizations, it is estimated that the residential sector accounts for almost 30% of global energy consumption. Furthermore, the rising electricity bills and the increasing focus on saving the environment by effectively using energy and reduction of power usage are other factors that are anticipated to drive market growth.

Our in-depth analysis of the global residential energy management market includes the following segments:

By Component	Hardware Software
By Product	Wired Wireless Others
By Application	Power Monitoring & Control Load Shedding & Management Flexible Load Management Others

Global Residential Energy Management Market Regional Synopsis

The market shares of residential energy management in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~32% by the end of 2035. The market expansion in the region is anticipated to grow owing to the high awareness regarding energy conservation amongst the people, along with various government initiatives to curb energy wastage in households. Furthermore, the high utilization of electricity for carrying out varied purposes in households is also anticipated to drive market growth. The report by the World Bank stated that 10.11% of the total energy consumed in the United States was generated from renewable sources in 2018. Along with this, the growing digitalization of the power sector, and the adoption of smart grids in the region are estimated to boost the market growth in the region. Also, the rising awareness level of energy storage systems along with the rapid surge in initiatives by the government to reduce the consumption of energy and electricity to save the earth is anticipated to attract favorable opportunities for market expansion during the forecast period.

The Asia Pacific residential energy management market is estimated to be the second largest, registering a share of about ~26% by the end of 2035. The major factor that is anticipated to bring lucrative growth opportunities for market growth in the region is the high demand and consumption of electricity as a result of the burgeoning population. The recent statistics reveal that the Asia Pacific region is considered to be the primary consumer of energy in the world, with the consumption of approximately 275 exajoules in 2021, which is an increase of 6% from the previous year. Also, the rising focus on achieving energy efficiency, and fulfilling the electricity demand and consumption for the residential sector, along with compliance with federal carbon policy are other factors that are anticipated to impetus a robust revenue generation in the upcoming years.

Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The rising awareness level about the proper management of residential energy to reduce electricity bills and save money is considered to be a major factor for the expansion of market size in the upcoming years. Additionally, the need for protecting the environment by reducing energy consumption and the availability of favorable policies for the adoption of residential energy management is also estimated to aid market growth in the next few years in this region.

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Top Featured Companies Dominating the Global Residential Energy Management Market

Yokogawa Electric Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis

Siemens AG
C3.ai, Inc.
GridPoint, Inc.
Schneider Electric
The General Electric Company
DEXMA Sensors, SL
Johnson Controls International plc
Honeywell International Inc.
Energate, Inc. (Tantalus Systems Corp.)

In The News

Yokogawa Electric Corporation along with Radial Software Group B.V. is all set to sell its Viewport software. This software is expected to enhance customers’ asset management capabilities by offering an innovative AI-powered solution that provides a single view of all published technical information.
Siemens AG together with ENGIE Solutions, Centrax, Arttic, the German Aerospace Center (DLR), and four European universities have formed the Hyflexpower consortium and completed the first stage of the innovative research project on renewable energy.

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the residential energy management market?

Ans: Growing requirements for optimization of energy utilization along with the rising need for energy and electricity are the major factors driving the market growth.

2) What would be the CAGR of residential energy management market over the forecast period?

Ans: The market size of residential energy management is anticipated to attain a CAGR of ~12% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the residential energy management market growth?

Ans: High initial investment and deployment coupled with less awareness level about the advantages of residential energy management and the rising stringent government rules are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of residential energy management market in future?

Ans: The market in the North America region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the residential energy management market?

Ans: The major players in the market are Yokogawa Electric Corporation, Siemens AG, C3.ai, Inc., GridPoint, Inc., Schneider Electric, The General Electric Company, DEXMA Sensors, SL, Johnson Controls International plc, Honeywell International Inc., Energate, Inc. (Tantalus Systems Corp.), and other key players.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the residential energy management market?

Ans: The market is segmented by component, communication technology, application, and by region.

8) Which segment captures the largest market size in the component segment in the residential energy management market?

Ans: The software segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Base Year	2022
Forecast Year	2023-2035
CAGR	~12%
Base Year Market Size (2022)	~ USD 3 Billion
Forecast Year Market Size (2035)	~ USD 9 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Residential Energy Management Market