Connect with us

Hi, what are you looking for?


Consumer Technology

Technavio: Market Size For Home Energy Management Systems To Grow To More Than $2 Billion

The global market size for home energy management systems (HEMS) is poised to grow to more than $2 billion by 2019, with an overall growth rate of 26.8%, according to a new report by Technavio.

The Global Home Energy Management Systems Market 2015–2019 report by the global technology research and advisory company reveals the key drivers and trends shaping the global HEMS market, as well as challenges impeding its additional growth.

Global HEMS Market, 2015–2019 ($ millions)


Source: Technavio, 2015

Home Energy Management Systems

HEMS comprise five products that help monitor and reduce energy consumption in a home: lighting controls, self-monitoring systems and services, programmable communicating thermostats, intelligent HVAC controllers, and advanced central controllers. These products help consumers communicate better with their electrical and electronic appliances by allowing them to track their real-time energy consumption using cellphones, tablets, and other devices and then also compare it with historical data, resulting in energy conservation.

These systems also have other features and abilities, such as maintaining the temperature inside homes (NEST thermostat), and alerting homeowners when there is unwanted activity present on the property (People Power’s Presence). Many systems can also be operated remotely, such as Schneider Electric’s Wiser, adding the benefit of convenience for the user. HEMS can also communicate and work with the utility grid to provide demand-response prompts from a power utility’s loads, benefiting both utilities and consumers.

Basic HEMS Functions


Source: Technavio, 2015

Key Drivers and Trends Beyond 2015

The authors highlight several key drivers of the large forecast market growth: 1) the need for energy conservation, 2) increased investment in smart grids, and 3) the provision of bundled services by utilities and service providers. Key trends influencing the market are: 1) the rise in distributed generation, 2) high investment by key players, and 3) the need for optimal use of energy.

As energy costs have increased worldwide, along with the push for energy efficiency and conservation, so has the demand for HEMS. Consumers are becoming more aware of the benefits of energy management and control, and have increased interest in these systems because they can keep track of and reduce their energy bills. Adoption is expected to increase as consumers see the considerable reductions in their energy consumption HEMS can deliver.

According to the report, the HEMS market is currently dominated by five major players: Cisco, GE, Honeywell, Panasonic, and Schneider Electric, but there are numerous vendors in the market. These key vendors are expected to increase investments, driven by the flock of new startups introducing groundbreaking new products, intensifying the competition.

The challenges that hinder the additional growth of the global HEMS market are: 1) the high initial cost of the products, 2) a limited diversity of services, and 3) an overall lack of awareness of the products. However, with the entry of many new players, the authors note, innovative HEMS are expected to emerge with much better value offers for end-users, continuing to fuel the growth of the market.

Read the full Technavio report here.

Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Written By


You May Also Like

Clean Power

Earlier this month, Schneider Electric put out two press releases that show that it is working on two very important aspects of climate change....


Electric vehicle batteries are quickly becoming one of the most important commodities in the USA. Mineral processing operations are largely happening overseas, but one...


Rare earth minerals and other battery materials are crucial for global politics. As this article explains, China’s power over the worlds clean technology advancements...


Panasonic has agreed to purchase cathode materials and copper foil from Redwood Materials for its battery factories in Nevada and Kansas.

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.