Energy management systems (EMS) help control and monitor electric utilities and electricity-consuming appliances in industries, houses, and commercial structures. For example, in residences, home energy management systems enable homeowners to efficiently assess their energy requirements and acquire individual devices’ electricity consumption data. This factor effectively helps manage household energy consumption, thereby reducing energy expenses and making available energy resources more sustainable.
The strong demand for energy-efficient appliances and home energy management systems is primarily attributed to the surging awareness of the sustainable use of energy resources. Consequently, this plays a pivotal role in strengthening the growth of the global energy management systems market, which is expected to rise with a CAGR of 16.20% during the forecast period, 2022 to 2030.
Home Energy Management Systems: Advantages
The use of home energy management systems (HEMS) can result in significant benefits, including reduced energy consumption and efficient processes. Moreover, HEMS also enable users to control intensive loads while personalizing power consumption as per their requirements.
In essence, the surging popularity of home energy management systems is primarily attributed to the following advantages –
While it is possible to operate home and building systems manually, this method lacks efficiency. In this regard, an energy management system provides a central interface to regulate all systems, and through this, users can easily access and control various electrical systems and devices via a single source. As a result, daily operations have become more convenient, easier, and faster.
The majority of electrical energy management systems are employed in collaboration with photovoltaic (PV) systems, enabling homeowners to assess performance as well as determine the return on investment. Besides, even in a conventionally powered home, the efficient management of energy through the use of HEMS can result in improved efficiency and substantial savings.
Minimize Energy Consumption:
Although electrical energy management systems don’t reduce consumption on their own, they offer the required data that assists homeowners in making smart choices. And once the user is familiar with the current consumption, both in terms of kilowatt (kW) usage as well as the monthly costs, an energy management system can prove beneficial in taking actionable measures to conserve energy.
Innovative Developments in HEMS
As per Inkwood Research, the home energy management systems segment, under the product type category, is set to grow with the highest CAGR of 17.09% during the forecast period. Hence, in order to exploit this augmenting market, several companies, as well as products, have emerged over the last decade, including centralized home automation systems. For instance, in 2021, Schneider Electric (France) introduced the Square D Energy Center that offers a grid to plug home energy management, thus facilitating resilient energy and more efficient homes. In the same year, Enel X (United States) partnered with Virtual Peaker, a cloud-based energy management platform, to deliver smart home energy solutions. Moreover, Uplight’s (United States) energy personalization system includes multiple products, including home energy reports and demand response.
What’s Next for Home Energy Management Systems Market?
Energy management systems are anticipated to witness high installations in order to control and monitor energy supply across different applications. While the implementation plays a vital role in reducing the overall expense of operations, it also improves sector-wise productivity and helps conserve energy significantly.
Aligning with this, here are some of the key areas expected to drive the future growth of the global market –
With notable advancements in power monitoring as well as display technologies, the global market has witnessed a significant rise in the development of intelligent devices, including smart meters, sensors, and thermostats, that can be equipped in smart homes. Over the upcoming years, remote regions are also expected to benefit from HEMS as they help analyze energy consumption and reduce environmental impact.
Building EMS Applications:
Energy management systems for buildings entail computerized systems for controlling energy-associated services, like ventilation and air conditioning, heating, power systems, alarms, lighting, fire, and smoke detection, in addition to other controls. With the potential to maximize the performance of buildings, the implementation of these systems is observing an increasing trend, especially in malls, office spaces, and educational institutions.
Smart Grid Technology:
Smart grid technologies include computer processing and control systems, comprising sensors known as Phasor Management Units that help operators assess grid stability. It also consists of digital meters that provide better information to the customers by automatically reporting outages. The modernized grid also makes it possible for customers to access their own data and thus manage their energy consumption.
Furthermore, the rising standards of living and comfort requirements, as well as increased digitization, have resulted in the rapid adoption of smart grids in residential spaces. Accordingly, this factor is set to play an integral role in fueling the global energy management systems market growth during the forecasted period.
What factors contribute to Europe being the largest energy management systems market?
The increasing electricity demand, combined with the increase in government measures to alleviate carbon emissions, is anticipated to drive the growth of the energy management systems market in Europe. Moreover, the European Union (EU) parliament agreed with member states to reduce carbon emissions by at least 55% by 2030, compared to the levels in 1990.
What are the key verticals analyzed in the report?
Power & energy, telecom & IT, manufacturing, retail & offices, healthcare, and other verticals are analyzed in the report.