Home energy management market to top $3bn by 2022
March 3, 2016
The home energy management system (HEMS) market is expected to grow from US$864.2m in 2015 to $3.15bn by 2022, at a CAGR of 18.36 per cent between 2016 and 2022, according to Markets & Markets.
The HEMS market is expected to grow because of factors such as increasing real-time energy conservation approach, convenience of cloud computing and data analytics, and increased device interconnectivity.
The market for software and services is expected to grow at the highest rate during the forecast period.
The HEMS software and service industry has been facing competition in developing technically advanced, user-friendly software and is providing best and real-time services to its customers as a result of the emerging awareness of the importance of reducing the energy consumption within the household. Also the government bodies of most countries, developed and developing, are forming environmental regulations to accelerate the rate of HEMS installations.
The control devices held the largest share of the HEMS hardware market in 2015.
The control device market is dominated by trending HEMS devices such as thermostats, sensors, smart meters, smart plugs and strips, and lighting controllers. Most of the smart home users prefer smart thermostats for controlling the energy consumption. Smart plugs and lighting controllers are other major HEM control products that are expected to account for market growth. These devices are driving the overall HEMS hardware market and in turn spurring the market growth.
Asia-Pacific is predicted to hold the major share of the HEMS market by 2022.
North America held the largest market in 2015, followed by Europe and Asia-Pacific. The HEMS market in North America is dominated by market leaders that are boosting their HEMS offerings by developing more efficient, convenient and economic HEM products as well as broadening their distribution. The implementation of HEMS in the Asia-Pacific countries such as China, Japan, Australia and the rest of Apac is increasing fast, thereby making Asia-Pacific the region with the highest growth rate in the HEMS market.
The major companies in the global HEMS market included in the report are Honeywell (USA), Nest Labs (USA), Ecobee (Canada), General Electric (USA), EnergyHub (USA), Vivint (USA), Panasonic (Japan), Alarm.com (USA), Ecofactor (USA) and Comcast Cable (USA).
The report describes market dynamics that include the key drivers, restraints, challenges and opportunities with respect to the HEMS market and forecasts the market till 2022. This global report provides a detailed view of the market across hardware, communications technology, software and service, and region.