Residential Energy Management Market Size & Share, by Component (Hardware, Software); Communication Technology (Wired, Wireless); Application (Power Monitoring & Control, Load Shedding & Management, Flexible Load Management) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3658
  • Published Date: Apr 01, 2023
  • Report Format: PDF, PPT

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

Residential Energy Management Market size is anticipated to reach USD 9 billion by the end of 2035, growing at a CAGR of over 12% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of residential energy management was around USD 3 billion. The growing production of energy to meet the rising energy demands of the global population and the increasing need to track this energy usage with digitized and automated systems are expected to propel the market growth.

Factors such as the adoption of advanced metering infrastructure (AMI) in homes along with the increasing interest in efficient energy management due to the emergence of smart home automation technology will drive residential energy management market. In addition to these, with the rising implementation of rules and regulations regarding the application of sustainable solutions, there is a rapid escalation in the demand for energy-efficient appliances, which is further expected to increase the utilization rate of solutions such as residential energy management in the upcoming years.


Residential Energy Management Market
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Residential Energy Management Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Demand for Electricity – Recent statistics revealed that the world’s electricity consumption has continuously risen in the past 50 years by almost 50% to reach around 25,300 terawatts-hours in 2021. Moreover, the rising demand for electricity in the residential sector is significantly increasing owing to the usage of electricity for lighting, heating, cooling, ventilation, and other appliances. As this is adding to the cost payable and the global carbon footprint, there is a rising need for an Energy Management System (EMS) to monitor, control and optimize energy usage and transmission.
  • Surging Number of Smart Homes & Smart Buildings – 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. The increasing advancement and adoption of smart grid technology globally in smart home and the rise of residential energy consumption are creating numerous opportunities for residential energy management as Smart Home Energy Management Systems (SHEMS) aid in simplifying, reducing, and managing energy consumption.

Challenges

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

Residential Energy Management Market: Key Insights

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)
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Residential Energy Management Segmentation

Component (Hardware, Software)

The software segment is estimated to hold 53% share of the residential energy management market by the year 2035. A major factor for segment growth is its ease of accessibility and the ability to manage & transmit a huge amount of data from multiple devices. Home energy management (HEM) software is a digital tool that authorizes the monitoring & management of energy consumption by automating definite tasks. Hence, with the integration of AI-powered devices and the penetration of IoT (Internet of Things) devices, this software provides insights on how to further improve efficiency and minimize cost.

Application (Power Monitoring & Control, Load Shedding & Management, Flexible Load Management)

The power monitoring & control segment is expected to garner a significant share of around 42% through 2035 as a result of the increasing demand for power in the residential sector and the rising need for effective utilization of power. As per recent reports, 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 predicted to drive segment growth.

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

          Component

  • Hardware
  • Software

         Communication Technology

  • Wired
  • Wireless

           Application

  • Power Monitoring & Control
  • Load Shedding & Management
  • Flexible Load Management

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Residential Energy Management Industry - Regional Synopsis

North American Market Forecast

The residential energy management market in North America is set to account for the largest share of 32% by the end of 2035. The growth of the market in the region is attributable to the increased awareness of energy conservation among residents of developed nations like the USA and Canada.

Additionally, various government initiatives to curb energy wastage in households and the growing digitalization of the power sector together with the adoption of smart grids in the region are also set to drive market growth.

APAC Market Statistics

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 slated to bring lucrative growth opportunities for market growth in the region is the high demand and consumption of electricity owing to the burgeoning population in countries such as China. 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.

Further, the rise in the implementation of carbon policy to reduce emissions and achieve energy efficiency are other factors that are counted to induce robust revenue generation in the upcoming years.

Research Nester
Residential Energy Management Market Size
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Companies Dominating the Residential Energy Management Landscape

top-features-companies
    • 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

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 EnergyHub is all set to expand its ecosystem of partners for its next-generation grid software business.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 3658
  • Published Date: Apr 01, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The increasing adoption of smart home energy management systems using IoT with the rising adoption of smart home automation technology are the major factors driving the growth of the market.

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

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.)

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

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Residential Energy Management Market Report Scope
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