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.
Growth Drivers
Challenges
|
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 |
|
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 |
|
|
Communication Technology |
|
|
Application |
|
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.
Author Credits: Payel Roy, Dhruv Bhatia
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?