Home Energy Management Systems Market Report 2024: Reduced Net Metering Rates Increases Demand for Battery Storage Systems - ResearchAndMarkets.com

The "Home Energy Management Systems Market - 2nd Edition" report has been added to ResearchAndMarkets.com's offering.

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.

The number of HEMS in Europe and North America reached close to 2.8 million in 2023

In 2023, the solar industry as a whole in Europe and North America was negatively impacted by higher interest rates, causing a lower than anticipated demand for new solar PV systems. However, the adoption of HEMS grew substantially in 2023 due to several reasons, including a number of policy changes in key markets that have made investments in HEMS more attractive for homeowners. At the end of 2023, there were an estimated 2.2 million HEMS installed in European homes.

An estimated 1.1 million systems were added to the installed base in 2023. 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, at around 1.8 percent.

Germany is by far the leading market, accounting for more than half of the installed base and shipments in Europe in 2023. Growing at a CAGR of 36.7 percent, the installed base of HEMS in Europe is estimated to reach 10.3 million systems at the end of 2028. This corresponds to a penetration rate of 8.2 percent. There were an estimated 600,000 HEMS installed in North American homes at the end of 2023. Shipments, including both new installations and retrofits, reached 210,000 systems during the year.

The US is estimated to account for about 95 percent of the North American market while Canada accounts for about 5 percent. California, Texas and Hawaii are some of the largest HEMS markets in the US. Growing at a CAGR of 38.3 percent, the installed base of HEMS in North America is estimated to reach 3.0 million systems at the end of 2028. This corresponds to a penetration rate of 2.5 percent.

The report answers the following questions:

• Which are the main applications within HEMS?
• How important are government subsidies and tax reductions for adoption?
• What are the business models and channels-to-market for HEMS solutions?
• Which are the main connectivity technologies and standards?
• What is the potential market size for cellular IoT in the HEMS market?
• Which are the leading HEMS providers in Europe and North America?
• How will the HEMS market evolve in the next five years?
• Which are the main trends in the industry?

Highlights from the report:

• Insights from 20 executive interviews with market leading companies.
• Comprehensive overview of the HEMS value chain and key applications.
• In-depth analysis of market trends and key developments.
• Statistical data on residential solar PV system adoption in Europe and North America.
• Profiles of 59 companies active in the solar PV, battery storage and HEMS industry.
• Detailed market sizing and forecasts lasting until 2028.

Key Attributes:

Key Topics Covered:

1. Introduction

1.1 Home Energy Management Systems (HEMS)

1.1.1 Solar PV panels

1.1.2 Inverters and power optimizers

1.1.3 Battery storage systems

1.1.4 Smart electrical panels, load controllers and energy managers

1.1.5 EV chargers

1.1.6 Heat pumps and home appliances

1.1.7 Smart meters and dynamic electricity pricing

1.1.8 Management portal and smartphone app

1.1.9 Levelized Cost of Energy (LCOE)

1.1.10 Value chain

1.2 The electricity market

1.3 Solar power generation

1.4 Market drivers for HEMS

1.4.1 Government subsidies and incentives

1.4.2 Net metering and feed-in-tariffs

1.4.3 Load management, demand response and VPP programmes

1.4.4 Rising electricity prices

1.4.5 Declining costs of solar PV and battery storage solutions

1.4.6 Grid independence and power outage protection

1.4.7 Growth of EVs and electrical heating systems

2 Communications Technologies and Standards

2.1 3GPP cellular and LPWA technologies

• 2G/3G/4G/5G cellular technologies and IoT
• LoRa and LoRaWAN
• Sigfox

2.2 Home networking technologies and standards

• Bluetooth
• EEBus
• EnOcean
• Home Connectivity Alliance (HCA)
• KNX
• Matter
• Modbus
• Open Charge Point Protocol (OCPP)
• Open Connectivity Foundation (OCF)
• OpenTherm
• SG-Ready
• SunSpec
• Thread
• Wi-Fi
• Zigbee
• Z-Wave

3 Solution Vendors and Strategies

3.1 Inverter and complete home energy management system providers

• APsystems (Yuneng Technology)
• Bluetti Power (PowerOak NewEner)
• Briggs & Stratton Energy Solutions
• Canadian Solar
• E3/DC (Hager Group)
• Eaton
• EcoFlow
• Eguana Technologies
• Enphase Energy
• Ferroamp
• Fimer (McLaren Applied)
• Fortress Power
• FranklinWH Energy Storage
• Fronius
• Generac
• GivEnergy
• GoodWe
• Growatt New Energy
• Hanwha Qcells
• Huawei
• JinkoSolar
• Kostal
• LG Energy Solution
• Lunar Energy
• Myenergi
• Panasonic
• Pixii
• Polarium Energy Solutions
• Powervault
• Savant Systems
• Schneider Electric
• Senec (EnBW)
• SMA Solar Technology
• SolarEdge
• Sol-Ark
• Sonnen (Shell)
• Sungrow Power Supply
• Tesla
• Tigo Energy
• Viessmann Climate Solutions (Carrier)

3.2 Battery storage specialists

• BYD Electronic
• Pylon Technologies
• Samsung SDI
• Solarwatt
• Varta

3.3 Smart electrical panel and load control device providers

• Legrand
• Leviton
• Lumin
• SPAN
• Smappee

3.4 HEMS platform providers and integrators

• Alarm.com
• Enode
• Enpal
• GridX (E.ON)
• Homey (LG Electronics)
• Kiwigrid
• myGEKKO (Ekon)
• Tibber
• Tiko Energy Solutions (Engie)

4 Market Analysis and Trends

4.1 Market forecasts

4.2 Value chain analysis

4.3 Trends

• Reduced net metering rates increases demand for battery storage systems
• Virtual power plants to become more powerful as more DERs are connected
• EV batteries to be used for home backup power
• Interoperability will be key for the adoption of wider HEMS
• Energy aggregation and trading software adds a new revenue stream

For more information about this report visit https://www.researchandmarkets.com/r/s14heq

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View source version on businesswire.com: https://www.businesswire.com/news/home/20241008073477/en/