The "Home Energy Management Systems Market - 3rd Edition" report has been added to ResearchAndMarkets.com's offering.

The Home Energy Management Systems Market is a comprehensive report analysing the latest developments and trends in the home energy management systems market in Europe and North America. This strategic research report provides you with unique business intelligence, including 5-year industry forecasts and expert commentary on which to base your business decisions.

The Number of Home Energy Management Systems in Europe and North America Reached 4.5 Million in 2024.

The residential sector accounts for about 25 percent of the total energy consumption in North America and Europe. The consumption is anticipated to increase substantially during the coming years due to the rapid adoption of electric cars and heat pumps. Solutions that enable homeowners to reduce their overall energy consumption and increase the share of energy coming from renewable sources therefore, play a vital role in the transition to carbon neutrality and mitigating climate change. To support this transition, governments in Europe and North America have introduced targeted incentives and subsidies to encourage residential investments in renewable energy and energy optimisation technologies. The rising and increasingly volatile electricity prices seen during the past few years combined with more frequent power outages in some regions, have also created a strong drive among homeowners to invest in such solutions.

Despite high interest rates and various market uncertainties, the number of European and North American households with HEMS grew substantially in 2024. At the end of 2024, there were an estimated 3.8 million HEMS installed in European homes. An estimated 1.2 million systems were added to the installed base in 2024. This figure includes both new installations of solar PV + battery storage systems as well as installations of battery storage systems in existing solar PV systems (i.e. retrofits). The penetration rate is still low in Europe, at around 3.2 percent. Germany is by far the leading market, accounting for close to half of the installed base and shipments in Europe. Growing at a CAGR of 22.8 percent, the installed base of HEMS in Europe is estimated to reach 10.6 million systems at the end of 2029. This corresponds to a penetration rate of 8.5 percent.

The North American HEMS market is smaller in terms of the number of installed and shipped systems compared to Europe. At the end of 2024, there were an estimated 700,000 HEMS installed in North American homes. Shipments, including both new installations and retrofits, reached 200,000 systems in 2024. About 0.6 percent of the houses and MDUs in the region had a HEMS installed at the end of the year. The US is estimated to account for about 95 percent of the North American market, while Canada accounts for 5 percent. California, Texas, Hawaii and Puerto Rico are some of the largest HEMS markets in the US. Growing at a CAGR of 18.9 percent, the installed base of HEMS in North America is estimated to reach 1.7 million systems at the end of 2029. This will correspond to a penetration rate of 1.4 percent.

The HEMS value chain includes a diverse range of companies from various industry sectors. Some companies are vertically integrated, offering a complete HEMS based on in-house developed hardware and software solutions. Other companies focus on designing and manufacturing specific HEMS components. Some of these companies integrate devices from third-party companies to offer a complete HEMS. There are also several companies that specialise in providing software platforms that enable other companies to offer HEMS.

Leading US-based HEMS players include Tesla, Enphase Energy, Generac, Lunar Energy, FranklinWH Energy Storage and Savant Systems. Leading Germany-based companies include E3/DC (Hager Group), Sonnen (Shell), Senec (EnBW), Solarwatt, SMA Solar, RCT Power and Viessmann Climate Solutions (Carrier). Additional leading European companies include UK-based GivEnergy and Myenergi, Austria-based Fronius, France-based Schneider Electric and Denmark-based Emaldo.

Several leading players active on the HEMS market in North America and Europe are based outside of the two regions, including China-based Huawei, Growatt, Sungrow and BYD Electronics; Israel-based SolarEdge; and South Korea-based LG Energy Solution.

Highlights from the report:

• Insights from 20 executive interviews with market-leading companies.
• Comprehensive overview of the HEMS value chain and key applications.
• In-depth analysis of market trends and key developments.
• Statistical data on residential solar PV system adoption in Europe and North America.
• Profiles of 64 companies active in the solar PV, battery storage and HEMS industry.
• Detailed market sizing and forecasts lasting until 2029.

The report answers the following questions:

• Which are the main applications within HEMS?
• How important are government subsidies and tax reductions for adoption?
• What are the business models and channels-to-market for HEMS solutions?
• Which are the main connectivity technologies and standards?
• What is the potential market size for cellular IoT in the HEMS market?
• Which are the leading HEMS providers in Europe and North America?
• How will the HEMS market evolve in the next five years?
• Which are the main trends in the industry?

Key Topics Covered:

1 Introduction

1.1 Home Energy Management Systems (HEMS)

1.1.1 Solar PV panels

1.1.2 Inverters and power optimisers

1.1.3 Battery storage systems

1.1.4 Smart electrical panels, load controllers and energy managers

1.1.5 EV chargers

1.1.6 Heat pumps and home appliances

1.1.7 Smart meters and dynamic electricity pricing

1.1.8 Management portal and smartphone app

1.1.9 Levelized Cost of Energy (LCOE)

1.1.10 Value chain

1.2 The electricity market

1.3 Solar power generation

1.4 Market drivers for HEMS

1.4.1 Government subsidies and incentives

1.4.2 Net metering and feed-in tariffs

1.4.3 Load management, demand response and VPP programmes

1.4.4 Rising electricity prices

1.4.5 Declining costs of solar PV and battery storage solutions

1.4.6 Grid independence and power outage protection

1.4.7 Growth of EVs and electrical heating systems

2 Communications Technologies and Standards

2.1 3GPP cellular and LPWA technologies

2.1.1 2G/3G/4G/5G cellular technologies and IoT

2.1.2 LoRa and LoRaWAN

2.1.3 Sigfox

2.2 Home networking technologies and standards

2.2.1 Bluetooth

2.2.2 EEBus

2.2.3 EnOcean

2.2.4 Home Connectivity Alliance (HCA)

2.2.5 KNX

2.2.6 Matter

2.2.7 Modbus

2.2.8 Open Charge Point Protocol (OCPP)

2.2.9 Open Connectivity Foundation (OCF)

2.2.10 OpenTherm

2.2.11 SG-Ready

2.2.12 SunSpec

2.2.13 Thread

2.2.14 Wi-Fi

2.2.15 Zigbee

2.2.16 Z-Wav

3 Solution Vendors and Strategies

Home energy management system providers

• APsystems (Yuneng Technology)
• Bluetti Power (PowerOak NewEner)
• Briggs & Stratton Energy Solutions
• BYD Electronic
• Canadian Solar
• E3/DC (Hager Group)
• Eaton
• EcoFlow
• Emaldo
• Enphase Energy
• Fenecon
• Ferroamp
• Fimer (McLaren Applied)
• Fortress Power
• FranklinWH Energy Storage
• Fronius
• Generac
• GivEnergy
• GoodWe
• Growatt New Energy
• Hanwha Qcells
• Huawei
• JinkoSolar
• Kostal
• LG Energy Solution
• Lunar Energy
• Myenergi
• NeoVolta
• Pixii
• Polarium Energy Solutions
• Powervault
• Pylon Technologies
• RCT Power
• Samsung SDI
• Savant Systems
• Schneider Electric
• Senec (EnBW)
• SMA Solar Technology
• SolarEdge
• Sol-Ark
• Solarwatt
• Sonnen (Shell)
• Sungrow Power Supply
• TeraHive (Liteon Technology)
• Tesla
• Tigo Energy
• Varta
• Viessmann Climate Solutions (Carrier)

Smart electrical panel and load control device providers

• Legrand
• Leviton
• Lumin (ABB)
• SPAN
• Smappee

HEMS platform providers and integrators

• Alarm.com
• Eniris
• Enode
• Enpal
• Greenely
• GridX (E.ON)
• Homey (LG Electronics)
• Kiwigrid
• Loxone
• myGEKKO (Ekon)
• Tibber

4 Market Analysis and Trends

4.1 Market forecasts

4.2 Value chain analysis

• Leading home energy management system providers
• Companies from other industry sectors enter the HEMS market

4.3 Trends

• Reduced net metering rates increases demand for battery storage systems
• Virtual power plants to become more powerful as more DERs are connected
• EV batteries to be used for home backup power
• Interoperability will be key for the adoption of wider HEMS
• Energy aggregation and trading software adds a new revenue stream
• Small-scale HEMS increases in popularity in Europe
• Intelligent and AI-driven solutions facilitate energy management Glossary

For more information about this report visit https://www.researchandmarkets.com/r/ivwbra

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