TLDR;
This article discusses the increasing adoption of Home Energy Management Systems (HEMS) in Europe and North America. It highlights the factors driving this growth, such as rising electricity costs and the increasing use of electric vehicles and heat pumps. The article also identifies key players in the HEMS market and provides forecasts for future growth in the sector.
- The HEMS market is growing due to rising electricity costs and increased use of electric vehicles and heat pumps.
- Germany leads the European market, while the United States dominates North America.
- Key players in the HEMS market include Tesla, LG Energy Solution, and E3/DC.
Europe and North America Home Energy Management Systems Surpass 4.5 Million Units in 2024
In 2024, over 4.5 million households in Europe and North America have installed home energy management systems. This surge is attributed to the increased electricity consumption from electric vehicles and heat pumps, coupled with the need to manage high electricity bills and frequent power outages. The data comes from a report by Berg Insight.
European Market Growth and Projections
Europe saw 3.8 million HEMS installations by the end of last year, with 1.2 million new installations within the year. While the penetration rate is only 3.2% of total households, the market is growing annually by over 22% and is projected to reach 10.6 million units by 2029, exceeding 8% of all European households. Germany is the largest market in Europe, accounting for half of the installations, driven by government subsidies and renewable energy support policies.
North American Market and Expansion Drivers
North America has a smaller HEMS market, with 700,000 units installed by the end of last year. The United States accounts for 95% of these installations, while Canada accounts for the remaining 5%. The penetration rate is 0.6% of total households. However, regions with high electricity costs and frequent power outages, such as California, Texas, Hawaii, and Puerto Rico, are experiencing rapid growth in demand. Berg Insight forecasts an annual growth rate of about 18%, reaching 1.7 million units by 2029, which would represent 1.4% of total households.
Key Players in the HEMS Market
The HEMS market includes solar power generation, battery storage, electric vehicle chargers, and software. This broad scope has attracted various companies, including electronics, power companies, and startups. Key players in the United States include Tesla, Enphase Energy, Generac, Lunar Energy, FranklinWH Energy Storage, and Savant Systems. In Europe, notable companies include Germany's E3/DC, Sonnen, Senec, Solarwatt, RCT Power, and SMA Solar, as well as the UK's GivEnergy and Myenergi, Austria's Fronius, France's Schneider Electric, and Denmark's Emaldo. Additionally, Chinese companies like Huawei, Sungrow, and BYD, Israel's SolarEdge, and South Korea's LG Energy Solution are expanding in both European and North American markets.
Factors Driving Market Growth
The report highlights that HEMS not only help consumers reduce electricity bills but also contribute to grid stability by distributing power usage during peak demand times. The increasing adoption of electric vehicles and heat pumps is driving the need for energy management solutions, as households seek to directly manage their energy consumption.