Global Smart Home Energy Management Systems Market - 2023-2030

Market Overview

Global Smart Home Energy Management Systems Market reached US$ 1.25 billion in 2022 and is expected to reach US$ 4.60 billion by 2030 growing with a CAGR of 19.5% during the forecast period 2023-2030. An increase in energy management across commercial, industrial and public sector organizations has driven up demand for smart home energy management systems.

Implementing advanced energy-efficient technology and minimizing energy waste will help to reduce greenhouse gas emissions, decrease exposure to fluctuating energy prices and increase productivity. In 2022, North America is expected to account for more than 1/3rd of the global smart home energy management systems market. Higher efficiency objectives are the primary goal of regional government energy-saving efforts.

As a result, increasing energy efficiency through the usage of smart home energy management systems becomes relatively essential, driving the regional market. To save money, commercial building owners made "reducing energy use" their main goal. According to U.S. Energy Information Administration, about 40% of the energy utilised in U.S. is used to boost the commercial and residential homes.

Market Dynamics

The Growing Smart Home Automation

Energy-saving methods can be implemented automatically or based on user preferences by smart home automation systems. They can modify thermostat settings as occupants are away, optimize lighting schedules or activate appliance standby modes. The automated solutions help in the reduction of energy waste and the advancement of energy efficiency without the need for ongoing personal involvement.

For example, Aspinity announced the launch of their Acoustic Event Detection Kit (EVK1) in February 2021 for battery-powered, smart home devices that are constantly listening for acoustic triggers such as window glass breaks or other acoustic events. The package includes the company's analogML core, a fully analogue machine learning processor that increases system power efficiency by detecting certain acoustic events prior to data digitization.

The Rising Technological Advancements

Continuous advances in technology, such as IoT (Internet of Things), artificial intelligence and data analytics, are propelling the development of smart home energy management systems. The innovations improve the capabilities of energy management solutions, enabling more precise monitoring, intelligent automation and personalized energy optimization, driving market growth.

As part of the company expansion, various organizations are developing innovative solutions. In April 2022, Samsung Electronics announced a collaboration with global technology giant ABB to expand Samsung SmartThings integration into more homes and buildings. Furthermore, as a result of the agreement, Samsung may be able to improve its home IoT offering in the residential and commercial construction markets.

Lack of Standardization and Privacy Concerns

There are no uniform standards for interoperability or communication protocols in the smart home market. The lack of standardization might result in compatibility concerns across different devices and systems, making it difficult for homeowners to smoothly integrate and operate multiple components. The absence of uniform standards can also limit consumer options and lead to market fragmentation.

Personal energy usage data is collected and analyzed by smart home energy management systems. This raises privacy concerns among homeowners, who may be concerned about the security and potential exploitation of their data. To encourage widespread usage, industry players must address privacy and security concerns, develop strong data protection methods and develop customer trust.

COVID-19 Impact Analysis

The COVID-19 epidemic has had a significant impact on the expansion of the smart home energy management system market. With the implementation of work-from-home arrangements and social distancing methods, having the capacity to remotely monitor and control energy usage became even more vital. Smart home energy management systems enable customers to remotely regulate their energy consumption, monitor the performance of solar panels and track energy usage, decreasing the need for physical participation.

The COVID-19 also highlighted the significance of renewable energy sources. Many homeowners began to invest in solar panels and other renewable energy systems in order to reduce their reliance on the grid and cut their electricity bills. Smart home energy management systems supplement these installations by allowing for more efficient use of renewable energy and better energy storage.

AI Impact

Smart home energy management systems can analyse energy consumption patterns and make smart decisions to optimise energy usage owing to AI algorithms and machine learning techniques. AI algorithms may utilise past data and human behaviour to find energy-saving opportunities, recommend appropriate settings and automate energy-consuming devices.

Considering how unlikely it is for consumers to acquire a full range of items from within a manufacturer's own ecosystem, the Consumer Electronics sector realises the need for agreement on how to communicate between the many mechanisms used by various companies. Voice control is mostly found in Smart Speakers and is likely to gain traction in other devices, driving the global smart home energy management systems market.

Russia-Ukraine War Impact Analysis

Geopolitical conflicts could lead affected regions to reassess their energy objectives and strategies. During such times, energy security and diversity become significant issues, which could result to a greater focus on traditional energy sources, such as fossil fuels and a potential delay in investments in renewable energy and related technologies.

The shift in emphasis may have an indirect effect on the acceptance and desire for smart home energy management systems. If better policy choices had been taken earlier, the energy price hikes caused by the Russian-Ukraine war might not have had such a severe impact. The crisis has forced a number of economies to enter recession, increased inflation and placed significant cost-of-living pressures on vulnerable households globally.

Segment Analysis

The global smart home energy management systems market is segmented based on component, type, end-user and region.

Hardware Helps to Keep a Track of Software and its Data

During the forecast period, the hardware components is expected to grow at the highest CAGR in the global smart home energy management market. It collaborates with software, data analytics and AI algorithms to create an integrated energy management solution. Hardware advancements continue to improve the efficiency, functionality and compatibility of smart home energy management systems, allowing homeowners to optimise energy consumption, decrease expenditures and contribute to sustainability.

Smart metres are improved energy metres that provide real-time consumption statistics. It makes data collecting easier for energy management systems and allows consumers to make more educated decisions regarding their energy consumption. In September 2022, the EDMI announced the brand of a new solution, MIRA, for use in smart metering systems, announcing a bag of value and choice for clients and customers in retail, distribution and metering services.

Geographical Analysis

The Rising Government Investment and Initiatives in Asia-Pacific

Asia-Pacific is anticipated to hold around 1/4th of the global smart home energy management systems market during the forecast period 2023-2030. Governments in the region are investing in a variety of projects, including renewable energy, adopting solutions to improve power grid efficiency and sanctioning the use of inefficient technologies.

54 projects worth CNY 1 billion have been signed at the ongoing Smart China Expo (SCE) 2022 in Chongqing, southwest China, under the subject of SCE, Smart Technology Empowering Economy, Enriching Life. Furthermore, the Xiaomi Mijia Smart Socket 3 was released in China in August 2022. It aids in the transformation of common household items, like as lamps and kettles, into smart gadgets that regulate energy flow. It also enables them to be operated via an app or voice commands and linked to other smart home network gadgets.

In addition, in January 2022, Samsung Electronics Co., Ltd. announced a collaboration with Oracle Corp. to create smart energy solutions for its clients, combining Oracle's contextual and behavioural energy insights with Samsung's SmartThings devices and automation services. The collaboration aims to provide new and important features in their product offerings.

Competitive Landscape

The major global players include IBM Corporation, Indesit Company, Honeywell International Inc, Schneider Electric SE, General Electric Co, Siemens AG, Johnson Controls International Plc, Intel Corp, Resideo Technologies Inc and Hitachi.

Why Purchase the Report?

• To visualize the global smart home energy management systems market segmentation based on component, type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of smart home energy management systems market level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global smart home energy management systems market report would provide approximately 61 tables, 60 figures and 204 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies