The Home Energy Management Systems Market

Today we published the new market report The Home Energy Management Systems Market which analyses the latest developments and trends on the home energy management systems market in Europe and North America. This study provides you with 120 pages of unique business intelligence, including 5-year industry forecasts, expert commentary and real-life case studies on which to base your business decisions.

In this report, a home energy management system (HEMS) is defined as a system that at minimum consists of a solar PV system, battery storage system and a web-based management portal or smartphone app that allows for remote monitoring and control of the system. Solutions that only display information and do not provide tools to manage the electricity flow and consumption in the home are therefore excluded. A wider HEMS also integrates backup generators, EV chargers, heat pumps, home appliances and other connected products and systems in the home.

At the end of 2022, there were an estimated 950,000 HEMS installed in European homes. In 2022, an estimated 320,000 systems were added to the installed base. This figure includes both new installations of solar PV + battery storage systems as well as installations of battery storage systems in existing solar PV systems (i.e. retrofits). The penetration rate is still very low in Europe, below one per cent. Germany is by far the leading market. Growing at a CAGR of 40.3 per cent, the installed base of HEMS in Europe is estimated to reach 5.2 million systems at the end of 2027.

There were at the same time an estimated 520,000 HEMS installed in North American homes at the end of 2022. Shipments including both new installations and retrofits reached 250,000 systems during the year. About 0.5 per cent of the houses and MDUs in the region had a HEMS installed at the end of the year. Growing at a CAGR of 49.4 per cent, the installed base of HEMS in North America is estimated to reach 3.9 million systems at the end of 2027.

The HEMS value chain spans various companies from different industry sectors. Some companies are vertically integrated, offering a complete HEMS based on in-house developed hardware and software solutions. Other companies develop and manufacture one of the components of HEMS. Some of these companies integrate their solutions with components from third-party companies to offer a complete HEMS. There are also several companies that specialise in providing a software platform that enables other companies to offer HEMS. Enphase Energy, Tesla, SolarEdge, Generac, E3/DC (Hager Group), Senec (EnBW) and Solarwatt are considered to be the leading companies in the HEMS market in North America and Europe. All seven companies offer a range of software and hardware solutions that enable homeowners to control their electricity generation, storage and usage.

Additional important players in the European and North American HEMS market include Germany-based Kostal, SMA Solar and Sonnen (Shell); Italy-based FIMER (McLaren Applied); Austria-based Fronius; France-based Schneider Electric and US-based Eaton, SimpliPhi Power (Briggs & Stratton), Savant Systems and Tigo Energy. There are also a number of companies from Asia that provide HEMS solutions. Key players include BYD Electronic, LG Energy Solution, Huawei, Growatt New Energy and Pylon Technologies.

Highlights from the report

• Insights from 20 executive interviews with market-leading companies.
• Comprehensive overview of the HEMS value chain and key applications.
• In-depth analysis of market trends and key developments.
• Statistical data on residential solar PV system adoption in Europe and North America.
• Profiles of 42 companies active in the solar PV, battery storage and HEMS industry.
• Detailed market sizing and forecasts lasting until 2027.

This report answers the following questions

• Which are the main applications within HEMS?
• What are the main drivers behind the growth in Europe and North America?
• How important are government subsidies and tax reductions for adoption?
• What are the business models and channels-to-market for HEMS solutions?
• Which are the leading HEMS providers in Europe and North America?
• Which are the main connectivity technologies and standards?
• What is the potential market size for cellular IoT in the HEMS market?
• How will the HEMS market evolve in the next five years?
• Which are the main trends in the industry?

Analyst: Martin Backman
Formats: PDF + Excel user licenses
Publication date: July 4, 2023