Europe Home Energy Management System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Europe Home Energy Management System Market is Segmented By Component (Hardware, Software, Services), By Product Type (Lighting Controls, Self-Monitoring Systems and Services, Programmable Communicating Thermostats, Advanced Central Controllers, Intelligent HVAC Controller), and By Technology (Z-Wave, ZigBee, Wi-Fi, Internet) and By Country.

Europe Home Energy Management System Industry Overview

Europe Home Energy Management System Market Summary
Study Period: 2018 - 2028
CAGR: 12.5 %

Major Players

Europe Home Energy Management System Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Home Energy Management System Market Analysis

The European Home Energy Management System (HEMS) market is expected to grow at a CAGR of 12.5% over the forecast period. The market for home energy management systems is anticipated to grow significantly due to factors like the growing real-time energy conservation approach, the convenience of cloud computing and data analytics, and increased device interconnectivity. These systems can also help the utility support demand response and lower peak demand. Home energy management systems concentrate on four main areas: electricity, solar photovoltaic, solar thermal, and battery storage. While some home management systems can address all of the issues, others only address a couple of them.

  • Europe is a diverse region with the potential to drive up demand for home energy management systems due to the significant production of smart meters in the United Kingdom and Germany.
  • Home energy management systems have emerged as critical components of the smart grid and smart homes. With the help of these systems, a homeowner can remotely control various aspects of their home. It combines control, scheduling, and user information. Home energy management systems enable customers to modify their energy consumption patterns based on consumption details received through these systems.
  • Rapid technological advancements in areas such as smart grid, bidirectional communication medium, network communication, information infrastructures, energy conservation methodologies, and diverse techniques have resulted in a revolutionary change in various power consumption domains such as electricity usage patterns and energy conservation at consumption premises across Europe.
  • Moreover, according to the European Commission, more than three-quarters of the European population lives in cities, with this figure expected to rise to nearly 85% by 2050. Because of government regulations in Europe, cost savings, and energy consumption optimization, homes, industries, and businesses are increasingly adopting energy management solutions.
  • Several European policies, proposals, and initiatives are already in place to promote more sustainable and competitive urban areas. These include the implementation of smart technologies in buildings to improve energy efficiency, the promotion of research and innovation efforts to transform European energy systems into low-carbon systems, and the development of expertise network exchanges to help cities implement European climate and energy goals.
  • Furthermore, the COVID-19 pandemic has had a significant impact on global economies, resulting in workforce and travel restrictions, supply chain and production disruptions, and decreased demand and spending across a wide range of industries. A sudden drop in infrastructure development and installation projects is expected to hamper home energy management market growth across Europe.
  • Also, in order to obtain real-time feedback on energy usage at home, Home Energy Management System requires the installation of software and service tools. Additional tools, such as home energy displays, software, sensors, and analytical solutions, must be purchased by consumers. The associated cost has a significant impact on the importance of energy efficiency solutions. This acts as a barrier to market growth, resulting in a low rate of HEMS implementation.

Europe Home Energy Management System Industry Segments

Home energy management systems are a comprehensive combination of hardware and software that allows consumers to track and manage the energy usage of the various electrical appliances in their homes. The home energy management system is made up of five distinct products that aid in the management and reduction of energy consumption. These devices include lighting controls; self-monitoring systems and services; programmable communicating thermostats; advanced central controllers; and intelligent HVAC controllers.

Also, Europe's home energy management system market is further segmented by components (hardware, software, services), technology (Z-Wave, ZigBee, Wi-Fi, Internet), and country. The report also provides an analysis of the impact of COVID-19 on the market.

Component
Hardware
Software
Services
Product Type
Lighting Controls
Self-Monitoring Systems and Services
Programmable Communicating Thermostats
Advanced Central Controllers
Intelligent HVAC Controller
Technology
ZigBee
Wi-Fi
Internet
Z-Wave
Others
Country
United Kingdom
Germany
France
Spain
Rest of Europe

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Europe Home Energy Management System Market Trends

This section covers the major market trends shaping the Europe Home Energy Management System Market according to our research experts:

Lighting Controls Will have the Significant Share

  • Rapid urbanization and rising consumer demand for a comfortable and convenient lifestyle are both contributing to a significant increase in the market share of lighting control systems in Europe. Lighting control systems are more in demand in the area because more energy-efficient lights are sold there than less efficient ones. The European Union's government is adamant that remodeling will significantly improve Europe's energy efficiency. The market is utilizing LEDs to their full potential and supplying products that are both sustainable and energy-efficient.
  • Additionally, the industry in European nations is propelled by new installations. The two main growth drivers are the replacement of outdoor lighting and the residential sector. The demand for new lightning control installations is rising quickly as a result of the increased emphasis on the creation of smart cities.
  • Additionally, as with retrofit installations, demand for wireless applications is growing. Numerous businesses offer retrofit installations to customers due to the decrease in labor and maintenance costs. In the upcoming years, Europe intends to give priority to remodeling structures that will hasten the adoption of these products.
  • Spain is replacing 2,25,000 streetlights with energy-efficient lighting, including 84,000 LED lights, according to the Smart Cities Council. According to estimates, the project will reduce power consumption by roughly 44%, and the money saved will be used to pay for the investment.
  • Additionally, under a strong smart grid paradigm, a modern home with a home energy management system makes a significant contribution to efficiency improvement, reducing energy consumption, reliability, and energy conservation for distributed systems.
Europe Home Energy Management System Market: Primary Energy Consumption Europe, In Exajoules, By Country, 2021

United Kingdom will Dominate the Market

  • The United Kingdom is expected to account for a sizable portion of the market. The United Kingdom remains one of the leaders in terms of adoption, thanks to support energy policies and regulations aimed at lowering the nation's carbon footprint through the deployment of smart meters, energy-efficient buildings, and systems.
  • The Department of Energy and Industrial Policy is in charge of the country's rollout strategy. Furthermore, because of its high population density and high connectivity, the country has a favorable cost-benefit analysis, which contributes to its growth.​
  • Furthermore, the United Kingdom has the potential to drive up demand for home energy management systems in the country due to the significant production of smart meters in respective countries. The government of the United Kingdom has stepped up efforts to reduce greenhouse gas emissions by rapidly installing smart meters across the country.
  • According to the Ministry of Housing, the vast majority of owner-occupied homes in the United Kingdom (UK) had an energy efficiency rating of D or C in 2020. The energy performance certificate, which shows a property's energy efficiency, is legally required when buying or renting a home. Only about 3% of owner-occupied homes had an A or B rating, the most energy efficient. Social rented housing was more energy efficient, with approximately 2.5 million out of four million homes receiving a C rating.
Europe Home Energy Management System Market: Renewable Energy Consumption in the United Kingdom 2010-2021, (In Exajoules)

Europe Home Energy Management System Market Competitor Analysis

The European Home Energy Management Systems market is considerably fragmented. The market has various small and large players. Some of the significant players in the market are ABB Group, Schneider Electric, Eaton, ABB, General Electric, Honeywell International, and many more. The companies are increasing their market share by forming multiple partnerships and investing in introducing new solutions to earn a competitive edge during the forecast period.

  • August 2022 - Enphase Energy, Inc. has announced the acquisition of GreenCom Networks AG. GreenCom Networks offers Internet of Things (IoT) software solutions that enable customers to connect and manage a variety of distributed energy devices in their homes. The company's technology enables the convergence of sectors such as mobility, heating, and renewable energy, also known as sector convergence or sector coupling, to aid in the achievement of full home electrification.
  • April 2022 - ABB and Samsung formed a strategic alliance to expand the integration of Samsung smart things into more homes and buildings. Samsung and ABB's integrated home energy management systems run high-impact energy applications like HVAC using more efficient usage models. Energy and power meters provide users with up-to-date information on energy costs, allowing them to strategize the appliances they use to reduce overall costs.

Europe Home Energy Management System Market Top Players

  1. Schneider Electric

  2. Eaton Corporation

  3. ABB Group

  4. GE Electric

  5. Honeywell International Inc.

*Disclaimer: Major Players sorted in no particular order

Europe Home Energy Management System Market Concentration

Europe Home Energy Management System Market Recent Developments

  • April 2022 - Enphase Energy increased its global manufacturing capacity by forming a partnership with manufacturer Flex in Timisoara, Romania, for its European base. The company increased its capacity due to a surge in demand for its products in Europe for self-consumption as the continent's energy crisis worsens, causing people to turn to residential solar PV, often paired with battery storage.
  • February 2022 - Eaton and LG Electronics have collaborated to provide flexible load management for renewable distributed energy applications. Eaton will integrate intelligent power management technology, such as smart breakers and EV chargers, with the LG ThinQ energy mobile app and LG energy management solutions to simplify load management in the home. Eaton's smart breakers are an important component of the home as part of a grid-based approach to the energy transition, providing insights and intelligent load control to help homeowners better manage and monitor their energy usage.
  • January 2022 - Schneider Electric, a leader in the digital transformation of energy management and automation, has launched Infrastructure of the Future, an integrated solution suite aimed at building smart, green infrastructure. Future integrated solutions' infrastructure includes interoperable software, such as EcoStruxure Microgrid Advisor. The EcoStruxure Microgrid Advisor is a demand-side energy management software platform that uses predictive algorithms to collect, forecast, and optimize the operation of distributed energy resources.

Europe Home Energy Management System Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Value Chain / Supply Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Rising Demand for Energy-efficient Solution

      2. 5.1.2 Increasing Number of Connected Devices through Internet of Things

    2. 5.2 Market Challenges

      1. 5.2.1 High Initial Costs related to Deploying of Energy Management Systems

  6. 6. MARKET SEGMENTATION

    1. 6.1 Component

      1. 6.1.1 Hardware

      2. 6.1.2 Software

      3. 6.1.3 Services

    2. 6.2 Product Type

      1. 6.2.1 Lighting Controls

      2. 6.2.2 Self-Monitoring Systems and Services

      3. 6.2.3 Programmable Communicating Thermostats

      4. 6.2.4 Advanced Central Controllers

      5. 6.2.5 Intelligent HVAC Controller

    3. 6.3 Technology

      1. 6.3.1 ZigBee

      2. 6.3.2 Wi-Fi

      3. 6.3.3 Internet

      4. 6.3.4 Z-Wave

      5. 6.3.5 Others

    4. 6.4 Country

      1. 6.4.1 United Kingdom

      2. 6.4.2 Germany

      3. 6.4.3 France

      4. 6.4.4 Spain

      5. 6.4.5 Rest of Europe

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Schneider Electric

      2. 7.1.2 Eaton Corporation

      3. 7.1.3 ABB Group

      4. 7.1.4 GE Electric

      5. 7.1.5 Honeywell International Inc.

      6. 7.1.6 Intel Corporation

      7. 7.1.7 Panasonic Corporation

      8. 7.1.8 Comcast Corporation

      9. 7.1.9 EnergyHub, Inc.

      10. 7.1.10 Johnson Controls International

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE MARKET OUTLOOK

**Subject to Availability
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Europe Home Energy Management System Market Research FAQs

The Europe Home Energy Management System Market is studied from 2018 - 2028.

The Europe Home Energy Management System Market is growing at a CAGR of 12.5% over the next 5 years.

Schneider Electric, Eaton Corporation, ABB Group, GE Electric, Honeywell International Inc. are the major companies operating in Europe Home Energy Management System Market.

Europe Home Energy Management System Industry Reports

In-depth industry statistics and market share insights of the Europe Home Energy Management System sector for 2020, 2021, and 2022. The Europe Home Energy Management System research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Europe Home Energy Management System report PDF.

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