Residential Energy Management Market Trends
Growth Drivers
- Growing Demand for Electricity – Recent statistics revealed that the world’s electricity consumption has continuously risen in the past 50 years by almost 50% to reach around 25,300 terawatts-hours in 2021. Moreover, the rising demand for electricity in the residential sector is significantly increasing owing to the usage of electricity for lighting, heating, cooling, ventilation, and other appliances. As this is adding to the cost payable and the global carbon footprint, there is a rising need for an Energy Management System (EMS) to monitor, control and optimize energy usage and transmission.
- Surging Number of Smart Homes & Smart Buildings – The count for smart buildings is anticipated to rise from around 44 million in 2022 to nearly 118 million in 2026, an increase of more than 152% worldwide. The increasing advancement and adoption of smart grid technology globally in smart home and the rise of residential energy consumption are creating numerous opportunities for residential energy management as Smart Home Energy Management Systems (SHEMS) aid in simplifying, reducing, and managing energy consumption.
Challenges
- Requirement of Higher Initial Investment – As latest technologies are used in residential energy management, usually the cost of such technologies is high which is subsequently hampering the market growth during the forecast period. Also, the additional charges such as installation charges and maintenance costs are lowering the adoption rate of residential energy management among the population with middle and low income.
- Lack of Awareness about Standard Guidelines Laid by the Government
- Unavailability of Skilled Workforce to Implement Modern Solutions
Residential Energy Management Market: Key Insights
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
12.1% |
|
Base Year Market Size (2024) |
USD 3.77 billion |
|
Forecast Year Market Size (2037) |
USD 16.65 billion |
|
Regional Scope |
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