Europe Home Energy Management System Market Size

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.