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Residential Energy Management Market

Information & Communications Technology
Digitalization & IoT

Worldwide, major developed and developing countries face similar challenges when it comes to energy rising demand, high cost, and security and environmental concerns. Hence, there is a crucial need for changing the way that energy resources are generated and distributed. As a result, utilities around the world are in need of efficient, reliable, and secure ways to manage energy generation, transmission, and distribution. The residential sector alone consumes 18% of world’s total energy that is 92 quadrillion British thermal unit (Btu) energy is consumed. Out of this, 40 quadrillion Btu energy is loss in the form of electricity. Hence, to bridge this gap between the consumption and loss, there is a need for an efficient energy management system with stringent policies and standards.

In recent years, a number of countries have made substantial investments in energy management technology and the global market is expected to continue to grow throughout the decade. According to the industry analysis, the global market for EMS is estimated to reach $38.44 billion by 2018. A majority of this growth is expected to take place in the NA and European region, while the residential sector is likely to be the fastest growing market in these regions. Stringent government policies and fiscal incentives are the primary drivers of demand for REM in a multitude of markets. Eventually, the market tends to attract manufacturers that are seeking to expand their global presence. The governments have been playing a vital role in the advancement of the Residential energy management market.

Government initiatives such as smart meter rollouts, standardization of energy management policies, and incentives grab the interest of the residential consumer to adopt EMS. In 2008, the U.K. mandated that 53 million smart electric and gas meters be deployed in residential and commercial sectors by the end of 2019. Similarly, Europe will be completing its smart meters rollout initiative by 2020; which will cover almost 80% of the consumers. Also, China strategically placed the smart gird technology initiative in its 12th Five-Year Plan (2011–2015) and announced to deploy 300 million smart meters by 2015. Such initiatives by the regional government create substantial new markets for both domestic and foreign investments in the region. The intent was to introduce the smart metering technology which would benefit both the residential consumers and the utilities and then integrate the technology with the REM system to achieve the best result. However, the utilities tend to have limited budgets for capital expenditures that restrain the growth of the market. According to the analysis, although today the Residential energy management market shows slow Y-o-Y growth potential, by the end of decade the market will most likely achieve a winning imperative as new and more efficient technological solutions will be introduced in the market. Moreover, the winning imperatives will be more beneficial for vendors who offer open architecture and user-friendly products. The increasing energy demand, price volatility, government mandates, and spending over EMSs are considered as the influential growth drivers for the market.

The Residential energy management market was estimated to be valued at $2,860.4 Million in 2014 and reach $15,620.9 Million by 2019, with a Compound Annual Growth Rate (CAGR) of 40.4% between 2014 and 2019.

Market Size, by Region, 2014 - 2019 ($ Million)

Residential Energy Management Market

E- Estimated; P-Projected

Sources: Related Research Publications, Government Publications, Company Press Releases, Company Annual Report, Company Websites, Company Publications, MarketsandMarkets Analysis

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