Berg Insight, a leading provider of IoT market research, has published a comprehensive report on the Home Energy Management Systems (HEMS) market. The report defines a HEMS as a system that typically includes a solar PV system, battery storage, and a management platform accessible via a web portal or smartphone app for remote control and monitoring. More advanced systems integrate additional features like backup generators, EV chargers, heat pumps, and other connected appliances, creating a holistic approach to home energy management.
At the end of 2023, there were an estimated 2.2 million HEMS installed in homes across Europe. Over the course of the year, approximately 1.1 million systems were added to this base, encompassing both new installations of solar PV and battery storage systems, as well as retrofits of battery storage into existing solar PV setups. Despite this growth, the penetration rate in Europe remains low, around 1.8%. Germany is the dominant market, representing more than half of the region’s total installations and shipments in 2023. The market is projected to grow at a compound annual growth rate (CAGR) of 36.7%, with the installed base expected to reach 10.3 million systems by the end of 2028, equating to a penetration rate of 8.2%.
In North America, there were an estimated 600,000 HEMS installations by the end of 2023. Shipments, which included both new setups and retrofits, reached 210,000 during the year. The U.S. dominates the North American market, accounting for roughly 95% of the total, while Canada represents the remaining 5%. Some of the largest markets in the U.S. are California, Texas, and Hawaii. Looking ahead, the installed base in North America is forecasted to grow at a CAGR of 38.3%, reaching 3.0 million systems by the end of 2028, representing a penetration rate of 2.5%.
The HEMS value chain involves a diverse range of companies from various industries. Some are vertically integrated, offering complete HEMS solutions with proprietary hardware and software. Others specialize in specific components, integrating third-party products to deliver a complete system. Additionally, several companies focus solely on providing software platforms that enable other firms to offer HEMS solutions.
Prominent HEMS players in the U.S. include Enphase Energy, Tesla, Generac, Lunar Energy, and Savant Systems. In Germany, leading companies include E3/DC (Hager Group), Sonnen (Shell), Senec (EnBW), Solarwatt, SMA Solar, and Viessmann Climate Solutions (Carrier). UK-based firms GivEnergy and Myenergi are also noteworthy, alongside France’s Schneider Electric. Several major companies in the HEMS market hail from outside Europe and North America, such as China-based Huawei, Growatt, and Sungrow, Israel-based SolarEdge, Japan-based Panasonic, and South Korea’s LG Energy Solution. Other notable players include Briggs & Stratton Energy Solutions, Canadian Solar, Enpal, Ferroamp, Fimer, FranklinWH Energy Storage, Fronius, GridX (E.ON), Homey, Kiwigrid, Kostal, myGEKKO (Ekon), Pixii, Polarium Energy Solutions, Powervault, Sol-Ark, and Tigo Energy.
Martin Apelgren, Principal Analyst at Berg Insight, highlighted the significant growth in the HEMS market in 2023, driven by homeowners seeking to reduce electricity costs, enhance energy resilience, and lower carbon emissions. He emphasized the role of government subsidies, tax incentives, and net metering or feed-in-tariff schemes in driving HEMS adoption. “Recent policy changes in key markets, such as the implementation of NEM 3.0 in California, have further catalyzed the HEMS market,” Apelgren explained. He also pointed out the increasing reliance on renewable energy sources like wind and solar, which, combined with rising demand for electricity due to EVs, heat pumps, and other energy-intensive devices, is straining the grid. “The ability to reduce grid electricity consumption during peak periods using HEMS will be crucial not only for individual households but for society as a whole,” he concluded.
For more information, download the report brochure on the Home Energy Management Systems market: click here
