Smart Home Energy Management Systems Market is segmented By Component (Hardware, Software, Services), By Type (Lightning Controls, Self-monitoring System and Services, Programmable Communicating Thermostats, Advanced Central Controllers, Intelligent HVAC, Controllers), By End-User (Residential, Commercial, Industrial), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030
Smart Home Energy Management Systems Market Size
Global Smart Home Energy Management Systems Market reached USD 1.25 billion in 2022 and is expected to reach USD 4.60 billion by 2030 growing with a CAGR of 19.5% during the forecast period 2023-2030. With growing awareness about energy efficiency, there is an increasing focus on installing energy-saving technologies in homes.
Regardless of national energy costs, usage or climatic circumstances, smart home energy management systems are cost-effective in all residential structures. As a result, they are rapidly being implemented in homes, driving the global expansion of smart home energy management systems.
During the forecast period 2023-2030, Asia-Pacific is expected to account for almost 1/4th of the global smart home energy management systems market. Due to the significant manufacturing of smart meters in India and China, Asia-Pacific has the ability to boost the demand for smart home energy management systems. According to the Ministry of Power (India), as of April 2023, the Indian state of Bihar had the highest smart meters installed nationwide, with over 1.37 million smart meters.
Smart Home Energy Management Systems Market Scope
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Metrics |
Details |
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CAGR |
19.5% |
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Size Available for Years |
2021-2030 |
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Forecast Period |
2023-2030 |
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Data Availability |
Value (US$) |
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Segments Covered |
Component, Type, End-User and Region |
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Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle East & Africa |
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Fastest Growing Region |
Asia-Pacific |
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Largest Region |
North America |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Smart Home Energy Management Systems Market Dynamics
Growing Smart Home Automation
Smart home automation allows homeowners to control several aspects of their houses remotely through voice commands. The ability to readily monitor and alter energy settings gives users more control and allows them to make more energy-efficient decisions. Furthermore, the global smart home energy management systems market is likely to be driven by advance wireless technologies such as security and access regulators, entertainment controls and HVAC controllers.
Companies are always investing in new product ideas. Google's Nest smart-home division, for example, just released a new smart thermostat. The Nest Thermostat is a basic variant that costs USD 129.99, which is USD 40 less than the Nest E and USD 120 less than the top-of-the-line third-generation Nest Learning Thermostat.
Rising Awareness of Energy Efficiency
Global awareness of the necessity of energy efficiency and sustainability is expanding. Homeowners are becoming more concerned of their carbon footprint and are looking for methods to reduce energy waste. Individuals can use smart home energy management systems to track and manage their energy consumption, apply energy-saving strategies and contribute to a greener, more sustainable future.
The use of HVAC systems is expected to increase as a result of new government laws governing energy efficiency. It has provided access to smart HVAC control systems for the most advanced heating and cooling units in buildings. As a result, older HVAC equipment had to be replaced or upgraded to meet government energy efficiency criteria. It would increase the demand for HVAC retrofitting, driving the overall growth of the smart home energy management systems market.
High Initial Costs and Complexity
For some homeowners, the initial costs associated with setting up smart home energy management systems might be a major obstacle to adoption. Hardware components, installation and integration with existing systems are all included in the price. Although long-term energy savings could offset the costs, the initial investment may put off potential customers.
Installing and executing smart home energy management systems can be difficult and time-consuming, necessitating technical knowledge. Integration with current home systems like HVAC or lighting may necessitate extra installations or changes. Technical complications might be difficult for homeowners lacking technical understanding or for older homes with outdated systems.
Smart Home Energy Management Systems Market Segment Analysis
The global smart home energy management systems market is segmented based on component, type, end-user and region.
Monitoring the Energy Production and Usage Through Hardware
During the forecast period hardware component is expected to hold about 1/3rd of the global smart home energy management systems market. The hardware allows the user to monitor energy usage and production, as well as control or automate energy use in the home. A homeowner can use these systems to control many components of their home remotely. Customers can change their energy use patterns using smart home energy management systems based on consumption data obtained from the systems.
Furthermore, increasing the number of linked devices via the Internet of Things (IoT) could open up new prospects in the market for smart home energy management systems. At the Cloud 11 event in April 2023, OnePlus introduced its 5G router, which supports Wi-Fi 6, 4G/5G SIM connectivity, a Home Hub with Matter protocol quality set, Home Mesh network support and LED indicators.
Source: DataM Intelligence Analysis (2023)
Global Smart Home Energy Management Systems Market Geographical Share
Rising Demand from Building Sector in North America
North America is estimated to account for more than 1/3rd of the global smart home energy management systems market in 2022. According to U.S. Department of Energy, the buildings sector accounted for approximately 76% of all electricity used, resulting in a significant amount of associated greenhouse gas (GHG) emissions, which makes it essential to minimise energy consumption in buildings in order to meet national energy and environmental challenges as well as lowering costs to building owners and tenants.
As per the New York State Energy Research and Development Authority (NYSERDA), smart technologies and real-time energy management systems can lower expenses by 15% on average and enhance the bottom line by building an ecosystem that reduces energy waste. Consumers demand smart home products like connected cameras, video doorbells, connected light bulbs, smart locks and smart speakers.
Source: DataM Intelligence Analysis (2023)
Smart Home Energy Management Systems Market Companies
The major global players include IBM Corporation, Indesit Company, Honeywell International Inc, Schneider Electric SE, General Electric Co, Siemens AG, Johnson Controls International Plc, Intel Corp, Resideo Technologies Inc and Hitachi.
COVID-19 Impact on Smart Home Energy Management Systems Market
The smart home management system experienced numerous negative effects during the COVID-19 Pandemic effect. Individuals spending more time at home, increased energy use and increased demand for systems as homeowners sought alternative ways to reduce usage and expenses. Simple smart devices such as doorbells, cameras, light and motion sensors will be utilised more frequently to assist family members and friends remotely.
The epidemic has increased consumer awareness of energy, efficiency and sustainability, offering potential for smart home control systems as consumers became more aware of the environmental impact. The rising usage of remote working and monitoring technologies has driven up the demand for smart home energy management capabilities provided by the systems.
AI Impact
In terms of technology, artificial intelligence (AI) is being used to optimise energy usage and enhance efficiency in the context of the Smart Home, as a major component in AIoT - the combining of AI and Internet of Things. It is entirely feasible, however the usefulness of this method across diverse Smart Home ecosystems, which are only loosely connected via isolated apps and independent IoT hubs, is uncertain.
Within a smart home, AI algorithms can automatically manage and distribute energy loads, balancing the energy consumption of various gadgets and appliances based on real-time conditions. During peak demand periods, AI can optimise energy usage and participate in demand response programmes, helping homeowners contribute to grid stability and potentially earn rewards.
Russia-Ukraine War Impact
Owing to the conflict, energy supply routes passing through Ukraine have been disrupted, leading to temporary shortages or price fluctuations in energy markets. The Russia-Ukraine conflict has created an energy crisis, which has directly impacted the costs of heating, cooling, lighting and mobility, as well as indirectly increasing the pricing of other goods and services across global supply chains.
While all households are affected, the effects differ based on their income, how they spend their money and how and where the things they buy are manufactured. Higher energy prices have an effect on the acceptance and affordability of smart home energy management systems because consumers may prioritise basic energy needs over investing in advanced energy management solutions.
Key Developments
- In 2021, Ecobee, a Canadian home automation business, debuted the Smart Thermostat with voice control, along with an updated and upgraded microphone and speaker for better voice detection and response.
- In 2020, Honeywell, an American publicly traded global company, will launch forge energy optimization, a cloud-based closed-loop machine learning solution that would continually analyzes energy usage patterns and automatically react to energy savings. Honeywell Forge energy optimization was entirely focused on reducing energy use and carbon footprints.
- In 2021, Emerson, an American global company, finalized the US$1.6 billion acquisition of Open Systems International, Inc. (OSI Inc.). Emerson's software portfolio will includes OSI Inc., a well-known provider of operations technology software. Emerson's software products were improved by the strategic acquisition, which led to the extension and improvement of their current range of software solutions.
Why Purchase the Report?
- To visualize the global smart home energy management systems market segmentation based on component, type, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of smart home energy management systems market level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The global smart home energy management systems market report would provide approximately 61 tables, 60 figures and 204 pages.
Target Audience 2023
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
