Berg Insight yesterday released a new market report covering the Home Energy Management Systems (HEMS) market. In this study, a 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. A wider HEMS also integrates backup generators, EV chargers, heat pumps, home appliances and other connected products and systems in the home.
There were an estimated 950,000 HEMS installed in European homes at the end of 2022. An estimated 320,000 systems were added to the installed base during the year. 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 percent. Germany is by far the leading market. Growing at a CAGR of 40.3 percent, 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. Only about 0.5 percent of the houses and MDUs in the region now have a HEMS installed. The installed base of HEMS in North America is estimated to grow at a CAGR of 49.4 percent 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 components from third-party companies to be able to offer a complete HEMS. There are also several companies that specialises in providing a software platform that enables other companies to offer HEMS. US-based Enphase Energy, Tesla and Generac, Israel-based SolarEdge, and Germany-based E3/DC (Hager Group), Senec (EnBW) and Solarwatt are leading companies in the HEMS market in North America and Europe. All seven companies offer a range of software and hardware solutions that make it possible to control the electricity generation, storage and usage at home. 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) and Tigo Energy. There are also a number of Asia-based companies active in Europe and North America. Key players include BYD Electronic, LG Energy Solution, Huawei, Growatt New Energy and Pylon Technologies.
Source: media.berginsight.com/2023/07/04193122/bi-homeenergy1-ps.pdf
Martin Backman, Principal Analyst at Berg Insight
A number of factors indicate that the market for HEMS is on the verge of entering a strong growth period that will last for several decades The ability to control and optimize the household energy consumption and even generate and store electricity in the home will be of key importance for both individual households and the society as a whole going forward... The residential sector accounts for about a fourth of the total energy consumption in North America and Europe. As the adoption of electric cars and heating systems are expected to grow fast during the coming years, household electricity consumption is also expected to increase... HEMS help homeowners to reduce the electricity bill and increase independence from the electricity grid.
