Market Research Report
Global Residential Energy Management Market - 2022-2029
|Global Residential Energy Management Market - 2022-2029|
Published: June 3, 2022
Content info: 216 Pages
Delivery time: 2 business days
The global residential energy management market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
A residential energy management system comprises hardware and software components that efficiently control a home's energy usage. The residential energy management system connects three different sectors within a home, namely, home appliances, metering and the communication network. The residential energy management system's central unit is the most important hardware to work properly.
This device is located on the house's main electrical switchboard, which is in charge of distributing power throughout the house. It is the hub for all communications and data exchange between energy management devices, users and household appliances. Photovoltaic batteries, smart meters and switches, sensors and other energy management technologies are included in this category.
The software regulates the data and communications between the devices and users in a residential energy management system. The information is relayed via the communication network between the residential energy management system, the supplier and the user. Aside from that, the software includes an algorithm for analyzing energy consumption data and identifying areas for improvement. Its definition can also include the function of serving as a user interface for the residential energy management system. It communicates the data on energy usage collected from the devices and provides feedback and suggestions for energy conservation based on the data. It can also take user input and transmit commands to the devices.
The increasing global energy consumption mainly drives the demand for residential energy management. The high costs and lack of interoperability in residential energy management are key factors in limiting the growth of this market.
Increasing global energy consumption
Globally, rapid industrialization and urbanization are occurring, particularly in emerging countries. Many major countries in every region of the world are establishing new manufacturing and service businesses. It has resulted in a surge in energy demand.
Aside from the emergence of new sectors, the modern era has seen a total shift in lifestyles. Different home equipment such as televisions, smartphones, laptop computers, washing machines and kitchen appliances have grown widespread in today's houses. Nowadays, people's lives are more energy-dense than they have ever been, increasing energy usage.
The increased global energy consumption has caused a severe strain on generation, transmission and distribution, especially in developing regions. It has led to rolling blackouts, power shortages and total grid failure in the worst cases. Judicious energy use is required to stave off various ill-effects of overconsumption and wasteful energy use. Residential energy management systems moderate and control wasteful energy spending. The increasing global energy consumption is a key driver for the growth of the residential energy management market.
High costs and lack of interoperability in residential energy management
The initial deployment of a residential energy management system is expensive. The average cost starts from US$ 1800 for a simple system and increases with complexity and features. The local and national governments play a critical role in infrastructure transformation. The technology requires a large initial investment to establish the transmission network between customers and the smart grid. Strong collaboration across traditional organizational boundaries, significant process change and strict governance are also required for a successful deployment. High post-deployment operational and maintenance costs are also significant for power companies.
The problem of adoption is exacerbated by the need to connect both legacy building equipment such as roof-top chillers, electric meters and lighting control panels and next-generation over the top (OTT) devices in the electric power system, such as sensors and switches, to improve energy flow coordination with real-time information and analysis. Residential energy management system deployment and interoperability are hampered by a lack of communication standards, the incapability of various IT protocols and incompatible components of the residential energy management system. High costs and lack of interoperability are barriers that prevent the wider adoption of residential energy management systems and represent a key challenge for the market's growth.
COVID-19 impact analysis
The global residential energy management market experienced severe impacts due to the COVID-19 pandemic. Lockdowns and other movement restrictions imposed by governments halted manufacturing activities. It caused a serious backlog of production that is not expected to be resolved easily. A noticeable collapse in demand was also observed since many consumers cut back major expenditures due to the economic downturn as a result of the pandemic.
Manufacturers outsource the various components required for the residential energy management systems to overseas subcontractors. The supply chain spans the globe, entailing various small, medium and large enterprises. Therefore, the supply chain is fragile and highly vulnerable to external shocks. The global pandemic has caused massive shocks to the global supply chain and logistics, thereby affecting the construction of residential energy management systems. The backlog in construction is not expected to be cleared before the end of 2021. Many new solar energy projects are currently on hold due to the material shortages caused by the supply chain and logistical problems.
The impact of the pandemic has been severe for the residential energy management market. The pandemic will not have a major impact on the long-term growth of the global residential energy management market since governments are prioritizing investment in the energy sector to ensure energy security. The governments are providing subsidies, tax credits and other incentives to adopt energy management systems by consumers. The demand for residential energy management remains strong and is expected to grow gradually in the coming years.
The global residential energy management market is segmented into component, technology, application and region. The residential energy management market is further segmented into wired and wireless based on technology. Wireless is leading in this segmentation since it is the most widely used technology in residential energy management. Wireless technology use has proliferated due to the adoption of smart devices and over-the-top (OTT) services. Wireless technology also helps control costs since it does not require the setup and maintenance of expensive physically wired connections. A smartphone app can operate the latest residential energy management systems. Wired technology is mostly used for legacy and old infrastructure, which does not have interoperability with modern systems.
North America is leading in the global residential energy management market. The region accounts for the largest market share due to the presence of U.S. and Canada. Both the countries have developed high-income economies with an energy-dense population. The electricity demand is very high in this region.
The power grid has struggled in North America to meet rising energy demand and improve grid efficiency. Localized grid failures and rolling blackouts due to environmental factors such as snowstorms, heavy rain and hurricanes have become increasingly common. While increasing government investment in improving transmission and distribution infrastructure and changing consumer habits is a long-term target, the adoption of residential energy management is seen as a better alternative in the short term.
U.S. is leading in the adoption and commercialization of emerging technologies. A large and well-educated workforce and a world-leading IT industry helps in the wider adoption of residential energy management systems. North America is expected to retain the largest share in the global residential energy management market.
The global residential energy management market is competitive due to the availability of a wide range of residential energy management systems that cater to the different needs of consumers as per their home setup. Some of the major players contributing to the market's growth are Schneider Electric, Eaton Corporation, Kawasaki Heavy Industries, Ltd., Eaton Corporation, General Electric, ABB, Siemens, Landis+Gyr, Robert Bosch GmbH and Honeywell International Inc. The major market players adopt several strategies such as new product launches, innovative research, collaborations and joint ventures, thereby contributing to the growth of the global industry.
Overview: Schneider Electric is a multinational engineering company that engages in designing, researching and manufacturing electrical equipment and digital automation solutions. The company's products are sold in over 115 countries through subsidiaries and distributors. Schneider Electric was founded in 1836 and is headquartered in Rueil-Malmaison, Paris, France.
Wiser System is the company's range of solutions for residential energy management. The wiser system features an integrated home electrical system that a smartphone app can control through the Internet of Things (IoT). The degree of control and the number of appliances and electrical outlets to be controlled can be customized according to the residential area and customer requirements.
In January 2021, Schneider Electric unveiled the Wiser Energy Center, an AI-driven residential energy management panel, at the Consumer Electronics Show (CES) 2021 held in virtual mode. The panel controls all the energy needs of connected smart devices through an AI algorithm. The entire setup includes an energy meter, backup generator and energy storage. The system is designed to prioritize renewable energy if it is available.
Visualize the composition of the residential energy management market segmentation by the component, technology, application and region, highlighting the critical commercial assets and players.
Identify commercial opportunities in the residential energy management market by analyzing trends and co-development deals.
Excel data sheet with thousands of global residential energy management market-level 4/5 segmentation data points.
PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
Product mapping in excel for the critical product of all major market players
The global residential energy management market report would provide access to an approx.: 58 market data tables, 55 figures and 216 pages.
Target Audience 2022
Residential energy management service providers
Electrical equipment manufacturers
Industry Investors/Investment Bankers
Education & Research Institutes
LIST NOT EXHAUSTIVE