North America Home Energy Management System Market Size
| Study Period | 2018-2028 |
| Base Year For Estimation | 2022 |
| Forecast Data Period | 2024 - 2028 |
| Historical Data Period | 2018 - 2021 |
| CAGR | 15.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
North America Home Energy Management System Market Analysis
The North America Home Energy Management System Market is expected to reach around USD 2.20 billion in the current year and will register a CAGR of 15% over the forecast period. The increasing demand for smart building solutions and the deployment of smart meters is expected to boost the market over the forecasted period.
- A home energy management system is a collection of hardware and software components that work together to efficiently manage a home's energy usage. Compatible appliances can also be connected to a HEMS, allowing the user to control when appliances operate, including manually turning appliances off or on and setting up scheduled running times.
- As per the U.S. Energy Information Administration, the average annual electricity consumption for a United States residential utility customer in 2021 was 10,632-kilowatt hours (kWh) and an average of about 886 kWh per month. Home Energy Management Systems provide value to the homeowner and the utility by saving money and energy by enabling a combination of control, scheduling, and user information. These systems can monitor the energy consumption of the home residents to help them adapt their energy usage behavior based on the feedback received from the system.
- With the rapid improvements in technologies like network communication, smart grid, bidirectional communication mediums, information infrastructures, energy conservation methodologies, and various techniques, Home area networks (HANs) have encountered a revolutionary change in multiple areas of power consumption domains like energy conservation at consumption premises, electricity usage patterns, etc.
- Under a robust smart grid paradigm, modern home implemented with HEMS offers significant efficiency improvement, reliability, economizing energy usage, and conserving energy for distributed systems.
North America Home Energy Management System Market Trends
Hardware Component is Expected to Hold the Major Market Share
- The hardware segment comprises monitors, gateways, and load controllers. The hardware component generally records measurement data from different media and variables for energy monitoring and processes it for further analysis, archiving, and reporting.
- A facility's energy consumption often depends on several factors, like production value or outside temperature, and these rigid limits can potentially hinder simple monitoring. With advanced energy meters and submeters, the dynamic limit value and reference values are obtained to analyze data related to energy performance level and energy utilization degree, thus increasing the energy efficiency of the building.
- Various companies are innovating new solutions as part of their business expansion. For instance, in September 2022, SolarEdge Technologies, Inc., one of the global leaders in innovative energy technology, announced the launch of the Home Load Controller, the latest addition to the company's home ecosystem, allowing longer and smarter backup control. The SolarEdge Home Load Controller is a wireless device designed to optimize energy consumption by controlling heavy-load home appliances.
- Also, IoT-powered home energy management systems use IoT sensors to collect, analyze, and convert energy data into information, which can be further used for monitoring and controlling to drive efficiency. With the increasing demand for these solutions, several market incumbents are adopting IoT.
- Moreover, the increasing deployment of smart meters in the region further boosts market growth. As per the Institute for Electric Efficiency, 124 million smart meters were expected to be deployed in the United States by the end of 2022.
United States is Expected to Hold the Major Market Share
- Electricity is an essential part of modern life and is important to the US economy. People use electricity for heating, lighting, refrigeration, and cooling, as well as for operating appliances, machinery, electronics, computers, and public transportation systems.
- The home energy management systems market in the United States region remains significant as residential consumers continue to drive adoption to realize energy savings.
- As per the United States Energy Information Administration (EIA), in 2021, total electricity consumption in the United States was approximately 3.93 trillion kWh. Further, in 2021, total United States electricity end-use consumption increased by approximately 2% compared to 2020, primarily because the economy recovered from the effects of the COVID-19 pandemic.
- Retail electricity sales to the residential sector increased by approximately 1%, and retail electricity sales to the commercial sector increased by approximately 3%.
- Another major driver for the market is the deployment of smart electricity meter infrastructure through the American Recovery and Reinvestment Act (ARRA) of 2009, coupled with the funding for the Smart Grid Investment Grant (SGIG) program. More than 50% of the USD 7.9 billion in the SGIG (USD 3.4 billion from ARRA and USD 4.5 billion in matched funds from the private sector) was designated for advanced metering infrastructure.
North America Home Energy Management System Industry Overview
The North American home energy management system market is highly fragmented and consists of many competitive players. In terms of market share, a few of the major players, such as Rockwell Automation, IBM, and Schneider Electric, among others, currently dominate the market. These major players with a significant share of the market are expanding their customer base across the region, and many companies are forming strategic and collaborative initiatives with various start-up companies to increase their market share and their profitability.
In November 2022, Oracle assisted FirstEnergy, a firm based in Ohio, in implementing the Oracle Utilities Network Management System to help them manage the response to power outages across its six-state electric system. Through the use of the browser-based NMS Flex Operations, FirstEnergy is able to remotely administer control centers for each of its ten electric utilities, activate users to respond promptly to storms and other power outages, and oversee restoration activities.
In June 2022, Honeywell unveiled its new Carbon & Energy Management platform, a carbon energy management platform that enabled building owners to monitor and optimize energy performance against carbon reduction goals down to a device or asset level. Carbon and energy management are the centerpieces of Honeywell's new Sustainable Buildings Solutions portfolio.
North America Home Energy Management System Market Leaders
Eaton Corporation
Schneider Elecctric
General Electric
IBM Corporation
Rockwell Automation
*Disclaimer: Major Players sorted in no particular order
North America Home Energy Management System Market News
- January 2023: The Home Connectivity Alliance, an organization dedicated to the development and promotion of secure interoperability and energy savings across HVAC systems, long-life appliances, and TVs within the connected home ecosystem, announced the release of its HCA Interface Specification 1.0 for cloud-to-cloud interoperability at CES 2023 in the United States.
- January 2023: Schneider Electric launched Schneider Home, a home energy management solution for homeowners looking for savings, comfort, and energy independence. The company launched the product at the Consumer Electronics Show in the United States. Schneider Electric has eliminated the complexity for homeowners by automating energy production, storage, measurement, and control.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers/Consumers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Usage Of Smart Grids And Smart Meters
5.1.2 Rising Investments In Energy Efficiency
5.2 Market Restraints
5.2.1 Lack of Awareness in Small and Medium-sized Businesses
6. MARKET SEGMENTATION
6.1 Component
6.1.1 Hardware
6.1.2 Software
6.1.3 Services
6.2 Product Type
6.2.1 Lighting Controls
6.2.2 Self-Monitoring Systems and Services
6.2.3 Programmable Communicating Thermostats
6.2.4 Advanced Central Controllers
6.2.5 Intelligent HVAC Controllers
6.3 Technology
6.3.1 ZigBee
6.3.2 Wi-Fi
6.3.3 Internet
6.3.4 Z-Wave
6.3.5 Other Technologies
6.4 Country
6.4.1 United States
6.4.2 Canada
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.2 Rockwell Automation Inc.
7.1.3 General Electric
7.1.4 Schneider Electric
7.1.5 Eaton
7.1.6 Enel X
7.1.7 SAP SE
7.1.8 Siemens AG
7.1.9 ABB
7.1.10 Oracle Corporation
7.1.11 Honeywell International Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Home Energy Management System Industry Segmentation
A Home Energy Management System (HEMS) is a technology system that helps homeowners manage and monitor their energy consumption and production in a more efficient and sustainable way.
The scope of the report includes a home energy management system based on the components and their technological applications in residential houses based on different product types.. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of COVID-19 on the ecosystem. The scope of the report encompasses market sizing and forecast for segmentation by component (hardware, software, and services), product type (lighting control, self-monitoring systems & services, programmable communicating thermostats, advanced central controllers, intelligent HVAC controllers), technology (ZigBee, Wi-Fi, Internet, Z-Wave, and other technologies), and country (United States, Canada). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| Component | |
| Hardware | |
| Software | |
| Services |
| Product Type | |
| Lighting Controls | |
| Self-Monitoring Systems and Services | |
| Programmable Communicating Thermostats | |
| Advanced Central Controllers | |
| Intelligent HVAC Controllers |
| Technology | |
| ZigBee | |
| Wi-Fi | |
| Internet | |
| Z-Wave | |
| Other Technologies |
| Country | |
| United States | |
| Canada |
Frequently Asked Questions
What is the current North America Home Energy Management System Market size?
The North America Home Energy Management System Market is projected to register a CAGR of 15% during the forecast period (2023-2028).
Who are the key players in North America Home Energy Management System Market?
Eaton Corporation, Schneider Elecctric, General Electric, IBM Corporation and Rockwell Automation are the major companies operating in the North America Home Energy Management System Market.
North America Home Energy Management System Industry Report
Statistics for the 2023 North America Home Energy Management System market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Home Energy Management System analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
