The number of Home Energy Management Systems (HEMS) installed across Europe and North America is set to surpass 13 million by 2028, according to a report from Berg Insight.
HEMS, which typically includes solar PV systems, battery storage, and a web-based monitoring and control system, are gaining traction as households aim to reduce energy costs, enhance energy independence, and lower carbon emissions.
In 2023, approximately 2.2 million HEMS were installed in European homes, with 1.1 million new systems added during the year. Germany leads the European market, accounting for over half of the installed base.
Despite this, the overall penetration rate in Europe remains low, at around 1.8 percent. However, the market is projected to grow rapidly at a compound annual growth rate (CAGR) of 36.7 percent, reaching 10.3 million systems by 2028, equating to a penetration rate of 8.2 percent.
North America had around 600,000 HEMS installed at the end of 2023, with the U.S. comprising 95 percent of the market. Major states driving adoption include California, Texas, and Hawaii. The installed base in North America is expected to grow at a CAGR of 38.3 percent, reaching 3.0 million systems by 2028, with a penetration rate of 2.5 percent.
Major US-based HEMS players include Enphase Energy, Tesla, Generac, Lunar Energy and Savant Systems. Leading Germany-based companies include E3/DC (Hager Group), Sonnen (Shell), Senec (EnBW), Solarwatt, SMA Solar and Viessmann Climate Solutions (Carrier).
Significant UK-based companies include GivEnergy and Myenergi. France-based Schneider Electric is also an important player in the industry.
Several significant players on the HEMS market in North America and Europe are based outside of the two regions, including China-based Huawei, Growatt and Sungrow; Israel-based SolarEdge; Japan-based Panasonic; and South Korea-based LG Energy Solution.
Additional players active on the HEMS market in Europe and North America include Briggs & Stratton Energy Solutions, Canadian Solar, Enpal, Ferroamp, Fimer, FranklinWH Energy Storage, Fronius, GridX (E.ON), Homey, Kiwigrid, Kostal, myGEKKO (Ekon), Pixii, Polarium Energy Solutions, Powervault, Sol-Ark and Tigo Energy.
The growing interest in HEMS is being driven by various factors, including rising electricity costs, the push for energy independence, and the increasing demand for renewable energy.
Government incentives and policy shifts, such as California’s NEM 3.0, have further accelerated the market’s growth. As more households adopt energy-intensive devices like electric vehicles and heat pumps, the role of HEMS in managing peak electricity demand will be crucial for both consumers and the grid.
Baburajan Kizhakedath