Andrea CalderanBerg Insight, a leading IoT market research firm, has released a new report on the Home Energy Management Systems (HEMS) market. HEMS integrate systems like thermal PV, battery storage, and management platforms, enabling remote monitoring and control. By the end of 2023, approximately 2.2 million HEMS were installed in Western Europe, and 600,000 in North America, with Germany and the US as the largest markets. The report projects a significant growth rate for HEMS, with Europe reaching 10.3 million systems by 2028 and North America reaching 3.0 million systems, driven by a CAGR of 36.7% and 38.3%, respectively. Major players in the HEMS market include Enphase Energy, Tesla, Generac, Sonnen, Schneider Electric, and many others across the US, Europe, and Asia. The growth is fueled by homeowners’ desire to save on electricity costs, increase energy resilience, and reduce CO2 emissions, along with government policies like net metering, tax incentives, and feed-in-tariff structures. As energy demand rises due to increased use of EVs, heat pumps, and other appliances, HEMS will play a crucial role in managing grid stability and supporting sustainable energy consumption.
Berg Insight, the world’s leading IoT market research provider, today released a new market report covering the Home Energy Management Systems (HEMS) market.
A HEMS is defined as a system that at most consists of a thermal PV system, battery storage system, and web-based management portal or smartphone app that enables remote monitoring and control of the system. A wider HEMS even integrates back generators, EV chargers, heat pumps, home appliances and other related products and systems in the home.
At the end of 2023, an estimated 2.2 million HEMS were installed in Western homes. During the year, an estimated 1.1 million systems were added to the installed base. This figure includes both brand-new thermal PV + battery storage systems and brand-new battery storage systems retrofitting existing solar PV systems. The penetration rate is also extremely low in Europe, at around 1.8 percent. Germany is by far the largest market, accounting for more than half of the mounted base and shipments in Europe in 2023. At the end of 2028, the installed base of HEMS in Europe is expected to reach 10.3 million systems, which is a penetration rate of 8.2%, growing at a CAGR of 36.7 percent.
Home Energy Management Systems (HEMS) Market to Reach 3 Million Installations in North America by 2028
At the end of 2023, an estimated 600,000 HEMS were installed in North American homes at the same time. 210, 000 systems were shipped in total, including both novel installations and retrofits, in the year. On average, the US accounts for about 95 percent of the North American market, while Canada accounts for just 5 percent. The US has the largest HEMS markets, with Texas, Hawaii, and California among them. At the end of 2028, HEMS ‘ installed base is projected to reach 3.0 million systems, growing at a CAGR of 38.3 %. The penetration rate will therefore be 2.5 percent.
The HEMS value chain includes businesses from several industry sectors. Some businesses are vertically integrated, providing a perfect HEMS based on internally developed hardware and software solutions. Different businesses create and manufacture a portion of the HEMS. Some of these businesses incorporate components from third-party vendors to provide a comprehensive HEMS. Additionally, there are some businesses that specialize in offering a software platform that makes it possible for other businesses to offer HEMS. Major US-based HEMS players include Enphase Energy, Tesla, Generac, Lunar Energy and Savant Systems. Leading Germany-based companies include E3/DC ( Hager Group ), Sonnen ( Shell ), Senec ( EnBW), Solarwatt, SMA Solar and Viessmann Climate Solutions ( Carrier ). GivEnergy and Myenergi are two notable UK-based businesses. France-based Schneider Electric is also an important player in the industry. Many major players on the HEMS market in North America and Europe are based outside of the two regions, including China-based Huawei, Growatt and Sungrow, Israel-based SolarEdge, Japan-based Panasonic, and South Korea-based LG Energy Solution.
Additional players active on the HEMS market in Europe and North America include Briggs &, Stratton Energy Solutions, Canadian Solar, Enpal, Ferroamp, Fimer, FranklinWH Energy Storage, Fronius, GridX (E. ON), Homey, Kiwigrid, Kostal, myGEKKO ( Ekon ), Pixii, Polarium Energy Solutions, Powervault, Sol-Ark and Tigo Energy.
Policy Changes and Growing Energy Demand Drive HEMS Market Growth in Europe and North America
“The HEMS market in Europe and North America grew significantly in 2023, driven by homeowners ‘ interest in saving on electricity costs, becoming more energy resilient and reducing CO2 emissions”, says Martin Apelgren, Principal Analyst at Berg Insight. In a country or region, the adoption of HEMS is influenced significantly by the government’s support for net metering and tax incentives as well as the structure of the feed-in-tariff schemes.
” A number of new policy changes in key markets in Europe and North America, such as the implementation of NEM 3.0 in California, catalyst the HEMS market”, continues Mr. Apelgren.
In some nations, continuous energy sources, such as wind and solar power, account for a larger portion of the energy mix, and the demand for energy is rising fast as a result of the growing use of EVs, heat pumps, and other energy-hungry appliances in the home. This puts a strain on the electricity grid by increasing energy demand and supply volatility.
Mr. Apelgren, concludes:
” The use of HEMS will be of crucial importance for both individual households and the society as a whole going frontward,” says the statement.
