Residential Energy Management Global Market Report 2024

The residential energy management market size has grown rapidly in recent years. It will grow from $2.86 billion in 2023 to $3.23 billion in 2024 at a compound annual growth rate (CAGR) of 12.9%. The growth observed in the historical period can be attributed to several factors, including the increase in energy costs, heightened environmental awareness, government regulations, consumer awareness, and the development of smart grids.

The residential energy management market size is expected to see rapid growth in the next few years. It will grow to $5.04 billion in 2028 at a compound annual growth rate (CAGR) of 11.8%. The anticipated growth in the forecast period can be attributed to several factors, including the expansion of the Internet of Things (IoT), the adoption of energy storage solutions, the implementation of demand response programs, increased home automation, and the application of big data analytics. Noteworthy trends expected in the forecast period encompass advancements in artificial intelligence, technological innovations, the adoption of renewable energy sources, advanced energy analytics, and the continued integration of energy storage solutions.

The anticipated increase in residential building construction is set to drive the growth of the residential energy management market in the future. Residential buildings encompass structures specifically designed for human habitation, ranging from single-family houses to apartments and townhouses. Residential energy management plays a crucial role in optimizing energy consumption, improving efficiency, and promoting sustainability within these residential structures. As an illustration, data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development in June 2023 indicates a significant surge in privately owned home starts. In May 2023, the seasonally adjusted annual pace reached 1,631,000, marking a 21.7% increase over the revised April 2023 prediction of 1,340,000. Additionally, the number of privately owned home completions in May 2023 was 1,518,000 on a seasonally adjusted yearly basis, representing a 5.0% increase over the May 2022 rate and a 9.5% rise above the revised April 2023 estimate of 1,386,000. Therefore, the growth in residential building construction is a key driver for the residential energy management market.

The anticipated growth of the residential energy management market is further propelled by the increasing adoption of the Internet of Things (IoT). IoT constitutes a networked system of interconnected computing devices and machinery capable of transferring data without direct human interaction. In residential energy management, IoT enables homeowners to remotely monitor and control their energy consumption through smart devices, leading to optimized consumption and cost reduction. For instance, a report by Ericsson in June 2022 revealed that global IoT connections reached 13.2 billion in 2022 and are projected to grow by 18% to 34.7 billion by 2028. Hence, the rising adoption of IoT is a driving force behind the growth of the residential energy management market.

The growth of the residential energy management market is anticipated to face limitations due to stringent laws aimed at safeguarding data and privacy during the forecast period. These laws aim to maintain the confidentiality of individual customers' energy consumption data, ensuring security and privacy against unauthorized access by the public or third parties. For example, in August 2022, the Ministry of Electronics and Information Technology in India passed the Digital Personal Data Protection Bill, 2022, encompassing legislation to digitize personal data, including data related to residential energy management. Consequently, strict data and privacy protection laws pose a challenge to the growth of the residential energy management market.

Major companies operating in the residential energy management market are strategically focusing on the development and introduction of intelligent and sustainable home energy management solutions to gain a competitive edge. These solutions, such as Schneider Home, empower homeowners to efficiently manage energy consumption, reduce carbon footprint, and enhance the sustainability of their homes. For instance, Schneider Electric SE launched Schneider Home in January 2023, providing a comprehensive residential energy management solution featuring components such as a home battery, solar inverter, smart electrical panel, electric vehicle charger, and connected electric sockets and light switches, all controlled through a user-friendly app. This app automates energy production and storage, incorporates geofencing and occupancy sensing features, and assists homeowners in saving on energy costs while reducing their environmental impact.

In December 2022, Daikin Industries Ltd., a multinational conglomerate based in Japan, acquired Venstar Inc. for an undisclosed amount. This strategic acquisition is expected to enhance Daikin Industries Ltd.'s presence in the North American market and strengthen its portfolio in indoor comfort solutions and energy management systems. Venstar Inc., a U.S.-based company, specializes in manufacturing smart thermostats and energy management systems for homes and businesses.

Major companies operating in the residential energy management market report are Samsung Electronics Co. Ltd., Microsoft Corporation, Tesla Inc., Siemens AG, General Electric Company, LG Electronics Inc., Panasonic Holdings Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., Toshiba Corporation, Daikin Industries Ltd., Haier Smart Home, Johnson Controls International PLC, Eaton Corporation PLC, Carrier Global Corporation, Trane Technologies plc, Enphase Energy Inc., SunPower Corporation, Vivint Smart Home Inc., ecobee, SmartRent, Tado Gmbh, Dandelion Energy, Span.IO Inc., Bosch Thermotechnik GmbH, OhmConnect, Sunverge Energy Inc., The Mobility House Gmbh, Mixergy Ltd.

North America was the largest region in the residential energy management market in 2023. The regions covered in the residential energy management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the residential energy management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The residential energy management market consists of revenues earned by entities by providing services such as energy consumption monitoring, energy audits, and real-time energy usage monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The residential energy management market also includes sales of smart thermostats, solar panels, smart plugs and switches, and energy monitors. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The key components of residential energy management consist of hardware and software. Hardware refers to the tangible, physical parts of a computer or other electrical device that can be seen and touched. Various types of hardware are involved in residential energy management, including energy management platforms (EMP), energy analytics, and customer engagement platforms (CEP). These components serve various applications, such as power monitoring and control, load shedding and management, and flexible load management.

The residential energy management market research report is one of a series of new reports that provides residential energy management market statistics, including residential energy management industry global market size, regional shares, competitors with a residential energy management market share, detailed residential energy management market segments, market trends and opportunities, and any further data you may need to thrive in the residential energy management industry. This residential energy management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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