Energy Efficient Devices Global Market Opportunities and Strategies to 2033

This report describes and explains the energy efficient devices market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global energy efficient devices market reached a value of nearly $973.85 billion in 2023, having grown at a compound annual growth rate (CAGR) of 7.79% since 2018. The market is expected to grow from $973.85 billion in 2023 to $1.73 trillion in 2033.

Growth in the historic period resulted from the increasing demand for renewable energy, surge in electricity generation, growing adoption of microgrids and rising adoption of distributed energy resources (DERs). Factors that negatively affected growth in the historic period include rising security concerns in the energy sector and raw material shortages.

Going forward, the rising government initiatives for energy efficiency, growing investments in the energy sector, strong rise in residential building construction and increasing number of smart meters will drive the market. Factors that could hinder the growth of the energy efficient devices market in the future include high upfront costs.

The energy efficient devices market is segmented by component into hardware, software and services. The hardware market was the largest segment of the energy efficient devices market segmented by component, accounting for 59.35% or $577.97 billion of the total in 2023. Going forward, the software segment is expected to be the fastest growing segment in the energy efficient devices market segmented by component, at a CAGR of 14.19% during 2023-2028.

The energy efficient devices market is segmented by system type into industrial energy management systems, building energy management systems and home energy management systems. The industrial energy management systems market was the largest segment of the energy efficient devices market segmented by system type, accounting for 45.93% or $447.33 billion of the total in 2023. Going forward, the home energy management systems segment is expected to be the fastest growing segment in the energy efficient devices market segmented by system type, at a CAGR of 13.60% during 2023-2028.

The energy efficient devices market is segmented by vertical into residential, energy and power, telecom and IT (information technology), manufacturing, retail, healthcare and other verticals. The residential market was the largest segment of the energy efficient devices market segmented by vertical, accounting for 20.07% or $195.45 billion of the total in 2023. Going forward, the residential segment is expected to be the fastest growing segment in the energy efficient devices market segmented by vertical, at a CAGR of 13.67% during 2023-2028.

North America was the largest region in the energy efficient devices market, accounting for 33.71% or $328.26 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the energy efficient devices market will be Asia-Pacific and South America, where growth will be at CAGRs of 14.85% and 14.54% respectively. These will be followed by Eastern Europe and Western Europe, where the markets are expected to grow at CAGRs of 14.06% and 12.44% respectively.

The global energy efficient devices market is fairly fragmented, with a large number of companies operating in the market. The top ten competitors in the market made up to 16.55% of the total market in 2023. LG Electronics Inc. was the largest competitor with a 2.98% share of the market, followed by Panasonic Corporation with 2.44%, Schneider Electric SE with 1.76%, Daikin Industries Ltd. with 1.74%, General Electric Company with 1.68%, ABB Ltd. with 1.57%, Trane Technologies plc with 1.29%, Johnson Controls International plc with 1.11X%, Eaton Corporation with 1.03% and Emerson Electric Co. with 0.95%.

The top opportunities in the energy efficient devices market segmented by component will arise in the hardware segment, which will gain $414.3 billion of global annual sales by 2028. The top opportunities in the energy efficient devices market segmented by system type will arise in the industrial energy management systems (IEMS) segment, which will gain $308.38 billion of global annual sales by 2028. The top opportunities in the energy efficient devices market segmented by vertical will arise in the energy and power segment, which will gain $209.2 billion of global annual sales by 2028. The energy efficient devices market size will gain the most in the USA at $156.72 billion.

Market-trend-based strategies for the energy efficient devices market include focus on strategic partnerships and collaborations to drive innovation, combining resources and expertise to develop cutting-edge products and technologies, focus on the launch of advanced energy-efficient motor solutions that herald a new era in energy savings and reliability, focus on developing smart technologies that integrate with home automation systems, improving the sustainability of their products by using eco-friendly materials and enhancing user convenience through intuitive designs and functionalities, focus on the concept of smart Internet of Things (IoT) for energy efficiency and indoor air quality and technological advancements.

Player-adopted strategies in the energy efficient devices market include focus on strengthening business operations through new product developments and focus on expanding business capabilities through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the energy efficient devices companies to focus on advanced energy-efficient motor solutions for enhanced sustainability, focus on smart technologies and eco-friendly designs for enhanced user experience and sustainability, focus on smart IoT solutions for enhanced energy efficiency and indoor air quality, focus on fastest-growing software market segment, focus on building energy management systems (bems) segment, expand in emerging markets, focus on strategic partnerships and collaborations for sustainable growth, focus on expanding distribution channels for energy efficient devices, provide competitively priced offerings, continue to use B2B promotions, focus on educational content to showcase benefits of energy efficiency, focus on strategic partnerships for effective promotions and focus on tailored solutions for various industry verticals.