Residential Energy Management Market Size, Share, Growth, and Industry Analysis, By Type (Energy Management Platform (EMP), Energy Analytics and Customer Engagement Platform (CEP)), By Application (Smart Appliances, Smart Meters, Smart Thermostat and In-House Displays), Regional Insights, and Forecast To 2032

Updated On: 29 April 2024

Residential Energy Management Market REPORT OVERVIEW

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The global residential energy management market size was in USD 8967.7 million 2022. As per our research, the residential energy management market is expected to reach USD 72290 million by 2028, exhibiting a CAGR of 41.6% during the forecast period.

System, technology, and practice application that optimizes and controls energy usage in a residential building is referred to as domestic energy management. The objective is to increase overall energy sustainability, decrease energy consumption, and improve energy efficiency. Based on user preferences and occupancy, these devices may modify the temperature settings automatically. They can improve heating and cooling systems, possibly resulting in energy savings and lower utility bills. These programs keep track of and offer up-to-date data on household energy use. They could be whole-home energy management systems, smart meters, or energy monitoring equipment that provide thorough insights into energy consumption patterns.

Professional energy audits evaluate the insulation, appliances, lighting, and air leakage of a house to determine its energy efficiency. The findings aid in locating potential areas for energy optimization. Modern, energy-saving appliance models can replace older, less energy-efficient ones to drastically cut energy usage. Appliances with the Energy Star label are renowned for being energy efficient. Utilizing renewable energy sources to produce electricity on-site, such as solar panels or wind turbines, may be part of residential energy management. This may lessen dependency on the grid and bring down energy prices.

COVID-19 Impact: Changes in Demand Pattern to Hinder Market Growth

Residential energy use has generally increased as a result of many people working and studying from home while lockdowns and stay-at-home orders are in effect. Home energy use has increased as a result of increased use of gadgets, appliances, heating systems, and cooling systems. Changes in daily energy demand patterns have been brought on by the pandemic. Historically, when homes were empty during the day, energy demand was often greater. The energy demand has, however, been distributed more evenly throughout the day due to more people remaining at home, which has an effect on load profiles and system operations. Energy Use in the Home Office: Energy use for home offices has increased as a result of the transition to remote work. This includes using computers, monitors, printers, and other office equipment, which can increase energy use and provide problems with energy management.

LATEST TRENDS

"Increased Use of Smart Home Technologies to Propel Market Growth"

Residential energy management is increasingly using smart home technologies. Through smartphone apps or voice assistants, smart devices such as thermostats, lighting controls, appliances, and energy monitoring systems can be connected and remotely managed. Homeowners can easily manage and optimise their energy consumption thanks to this integration. Energy consumption trends are analysed and real-time energy usage optimisation is done using AI and machine learning techniques. With the help of these technologies, heating, cooling, and lighting systems may be intelligently adjusted to maximise energy efficiency based on human behaviour, environmental factors, and other factors. Residential energy storage technologies, including batteries, are becoming more and more well-liked.

Residential Energy Management Market SEGMENTATION

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• By Type

Based on type market is classified as energy management platform (EMP), energy analytics and customer engagement platform (CEP).

• By Application

Based on application market is classified as smart appliances, smart meters, smart thermostat and in-house displays.

DRIVING FACTORS

"Energy Efficient Technologies to Augment Market Growth"

Energy efficiency is being prioritised more and more by governments, utilities, and international organisations as a crucial method to lower greenhouse gas emissions, battle climate change, and improve energy security. By maximising energy use and minimising waste, residential energy management is essential for reaching energy efficiency goals. Homeowners are motivated to look for ways to reduce their energy costs by rising utility costs and energy costs. Through residential energy management, people can find ways to save energy, choose their energy usage wisely, and perhaps even cut their utility costs. A key motivator is the possibility for long-term cost reductions. The adoption of household energy management is driven by rising awareness and concern about environmental issues, such as climate change and carbon footprints.

Energy efficiency is being prioritised more and more by governments, utilities, and international organisations as a crucial method to lower greenhouse gas emissions, battle climate change, and improve energy security. In order to achieve energy efficiency, residential energy management is essential.  Homeowners are actively looking for ways to cut their energy use, reduce greenhouse gas emissions, and switch to renewable energy sources as they become more aware of their ecological impact.

"Changes in Work and Living Habits to Enhance Market Growth"

Homeowners may now more easily manage and optimise their energy usage thanks to technological advancements like smart home appliances, energy monitoring systems, and artificial intelligence algorithms. The widespread use of residential energy management techniques is facilitated by the increasing availability and affordability of these technology. Globally, governments and utilities are putting in place laws, rules, and incentive schemes to encourage domestic energy management. For energy-efficient improvements, the installation of renewable energy sources, and the use of smart home devices, these can include tax credits, grants, rebates, and subsidies.

Support from policymakers creates enabling circumstances for homeowners to invest in energy management technologies. Changes in work and living habits are the result of the COVID-19 epidemic and the expansion of remote work. The emphasis on building cosy, energy-efficient living spaces has increased as more people spend more time at home. Homeowners are becoming more and more interested in designing energy-efficient, ecological homes.

RESTRAINING FACTORS

"Huge Initial Investment Required to Impede Market Expansion"

One of the primary restraining factors is the initial investment required for implementing residential energy management solutions. Upgrading appliances, installing smart home devices, or integrating renewable energy systems can involve significant upfront costs. For some homeowners, the initial expense may deter them from pursuing energy management initiatives, especially if they have limited financial resources. Limited awareness and understanding of energy management practices can act as a barrier to adoption. Many homeowners may not be aware of the available technologies, benefits, or energy-saving strategies. Insufficient education and outreach programs can hinder the uptake of energy management solutions.

Residential Energy Management Market REGIONAL INSIGHTS

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"North America to Dominate the Market Due to Increased Adoption"

The household energy management market has grown significantly in North America. Particularly in the United States, adoption has increased as a result of factors such governmental subsidies, rising energy prices, and environmental consciousness. There are many technological companies in the area, and programmes like the construction of smart grids and net-zero energy homes help to expand the market. Residential energy management market is an established sector, with Germany, the United Kingdom, and Sweden in the forefront. Goals for energy efficiency, sustainability, and the integration of renewable energy are priorities in the area. Adoption of energy management technologies is sparked by strict rules like the Energy Performance of Buildings Directive of the European Union. The market also gains from favourable governmental regulations and a strong energy infrastructure.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Elster Group (Germany)
• General Electric (U.S.)
• Itron (U.S.)
• Landis+Gyr (Switzerland)
• Schneider Electric (Germany)
• Opower (U.S.)
• Aclara Technologies (U.S.)
• Alertme.Com (U.S.)

REPORT COVERAGE

The report anticipates a detailed analysis of the global market size at the regional and national level, the ssegmentation market growth and market share. The prime objective of the report is to help user understand the market in terms of definition, market potential, influencing trends, and the challenges faced by the market. Aanalysis of sales, the impact of the market players, recent developments, opportunity analysis, strategic market growth analysis, territorial market expansion, and technological innovations are the subject matter explained in the report.