Home energy management predicted revenue of $7.8bn in 2025: Navigant
The global market for home energy management (HEM) devices such as smart thermostats is predicted to reach $7.8bn in 2025, according to a report published by Navigant Research. The North American market is predicted to represent the lion’s share, growing from $1.4bn in 2016 to $3.1bn in 2025. Europe and Asia Pacific will both reach 2025 with a $2.2bn HEM market, while Latin America, the Middle East and Africa are not expected to see much growth at all. The report also highlighted trends such as in-home displays losing traction in the market.

The global market for home energy management devices such as smart thermostats is growing, and expected to continue to grow, with a new report predicting global revenue for the market to reach $7.8 billion in 2025.

Navigant Reserch published its findings in a new report this week, entitled Market Data: Home Energy Management, in which it examines the global home energy management market with a focus on four separate categories — home energy reports (HERs), digital tools, standalone Home Energy Management (HEM), and networked HEM. Together, these four categories comprise the current technologies currently allowing consumers to better manage and control their energy consumption, as well as providing utilities and non-energy services to better engage with their consumers.

The authors of the report predict global revenue in the HEM market to grow from almost $2.3 billion this year, to $7.8 billion in 2025, a compound annual growth rate of 14.4%. Unsurprisingly, Navigant predicts the North American market to represent the lion’s share of the market, growing from $1.4 billion in 2016 to $3.1 billion in 2025. Europe and the Asia Pacific will both reach 2025 with a $2.2 billion HEM market, while Latin America and the Middle East & Africa are not expected to see much growth at all.

HEM Revenue by Region, World Markets: 2016-2025

The report also highlights several trends shaping the HEM market. In-home displays are losing traction in the market, with a number of digital channels such as web-portals and mobile applications making this particular market obsolete in North America — though these technologies are still at play in several European regions, including the United Kingdom.

Additionally, Navigant sees new players transitioning from the market from HEM to smart homes. According to Navigant, utilities have taken a much less active part in the HEM market, driving non-energy service providers to fill the gap. As a result, the HEM market is transitioning from a focus on holistic energy management to energy management as part of a smart-home solution, including other products such as home security, automation, and entertainment.

“Non-traditional players have a claim on the HEM market with their existing in-home offerings, and are driving a shift in the market from holistic HEM to energy management as a component of the connected home,” says Paige Leuschner, research analyst with Navigant Research. “Relatively flat electricity prices and the ability to offer HEM without smart metering has caused utilities to take a passive role in this market in place of non-energy service providers.”

Sign up for Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast: I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ... Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps —— grow. So ...