Market for Residential Energy Management Systems Estimated to Grow to $1.3 Billion by 2032
For utilities, primary driver for REM adoption is need for new innovative tools to engage customers and provide demand side management
A new report from Guidehouse Insights examines the market for residential energy management systems (REMS) that monitor and manage one or more parts of a home’s energy system.
The market for REMS is expected to grow over the next decade due to greater demand for home energy management solutions from the two main customer segments in this market: in-home REMS and grid-based REMS. Guidehouse Insights defines in-home REMS as any system that is installed in a home, often referred to as behind-the-meter technologies. While there are many in-home REMS on the market today, this report focuses on home energy management systems (HEMS) and three specific distributed energy resources (DER): solar generation, battery storage, and EV charging.
According to the report, revenue from HEMS is expected to grow at a healthy pace over the next decade, from an estimated $827.7 million in 2023 to an anticipated $1.3 billion in 2032, a compound annual growth rate (CAGR) of 5.2%.
“Residents are expected to become increasingly interested in REMS as they continue adopting distributed energy resources like solar generation and electrical vehicles because these systems can help them manage their new energy resources and maximize the use of them,” says Hannah Bastian, research analyst with Guidehouse Insights. “Utilities are also expected to be increasingly interested in REMS as a tool to improve their demand side management strategies.”
REMS adoption is expected to grow significantly over the next decade because of market conditions that are driving consumers and utilities to be interested in in-home and grid-based REMS. For consumers, these include growing adoption of DER and building electrification technologies, rising energy costs, and policies requiring or encouraging the first two factors. For utilities, the primary driver for REM adoption is needing new innovative tools to engage their customers better and provide demand side management, according to the report.
The report, Residential Energy Management Systems, analyzes the global market for REMS in two main segments: in-home REMS and grid-based REMS. It provides an analysis of market drivers and barriers, and provides an overview of the many types of companies entering the market with new solutions. Global market analyses for number of households with REMS and revenue, broken out by technology type and region, extend from 2023 through 2032. An executive summary of the report is available for free download on the Guidehouse Insights website.
* The information contained in this press release concerning the report, Residential Energy Management Systems, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.