Aug. 25, 2014: Home Energy Management Market is Expected to Reach $1.9 Billion in 2019
The Need to Conserve and Optimize Energy Utilization Is Expected to Increase Demand
ALBANY, N.Y. — According to a new report, “Home Energy Management Systems Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019,” published by Transparency Market Research, the home energy management systems (HEMS) market was valued at $393.8 million in 2012, and it is expected to reach USD $1.9 billion by 2019, growing at a compound annual growth rate (CAGR) of 25 percent from 2013 to 2019.
The report notes that rising electricity prices across the globe have compelled homeowners to look for different means to monitor and control their electricity usage. The need to conserve and optimize energy utilization is expected to increase the demand for energy management solutions, driving the HEMS market forward. Utilities and service providers offering variable pricing schemes are expected to generate greater interest for energy management products in the minds of cost-conscious consumers. Since HEMS products support cloud-based services and other Internet-related services, increased Internet connectivity and penetration across the globe are expected to have a positive impact on the growth of the HEMS market.
In 2012, Wi-Fi was the major technology employed in home energy management systems, accounting for 25.1 percent of the total market. However, over the forecasted period from 2013 to 2019, ZigBee is expected to show the fastest growth and surpass Wi-Fi to become the major technology. This is primarily attributed to its growing demand in established markets like the United States and Europe due to its superior properties like scalability, more interference tolerance, and compatibility with most home area network (HAN) devices. In 2012, control devices, including thermostats, home lighting systems, and the like, were the largest functional segment. However, owing to increasing use of technologies like sensing and others offering connectivity for energy management, the enabling technologies segment is expected to grow at the fastest growth rate over the forecasted period from 2013 to 2019, increasing at a CAGR of 26.3 percent.
North America was the largest HEMS market in 2012, followed by Europe and Asia Pacific. Europe is expected to be the fastest growing HEMS market over the forecasted period from 2013 to 2019, growing at a CAGR of 26.2 percent. This swift growth is attributed to complete roll-out of smart meters and government regulations encouraging optimum management of electricity consumption. Owing to highly subsidized energy in Asia Pacific and other regions (Latin America, Middle East, and Africa), the consumers in these regions have little incentive to invest in an expensive technology offering uncertain benefits. Therefore, growth in these regions has been sluggish.
For more information on the Home Energy Management Systems Market report, click here.
Publication date: 8/25/2014