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