Energy Management - EU-27 | Statista Market Forecast

Revenue in the Energy Management market is projected to reach US$2.3bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.07%, resulting in a projected market volume of US$3.5bn by 2029.
In the Energy Management market, the number of active households is expected to amount to 44.0m users by 2029.
Household penetration will be 18.8% in 2024 and is expected to hit 22.5% by 2029.
The average revenue per installed Smart Home currently is expected to amount to US$58.83.

Definition:

Energy Management market covers the sale of products for the control and reduction of energy consumption (e.g., automated heating control and timers) as well as connected sensors (e.g., temperature, sunlight, and precipitation sensors).
Networked light bulbs (see Comfort & Lighting) and smart sockets/plugs (see Control & Connectivity) are not included. Unlike in previous releases, smart plugs are no longer part of this segment but can now be found in the Control & Connectivity market. Smart Meters are not part of our Smart Home market.

Additional Information:

The market comprises revenue, average revenue per smart home, number of smart homes so as the household penetration rate by smart home, and key players. Figures are generated through both online and offline sales channels and include exclusive spending by consumers (B2C). Market leaders include Xiaomi, Google, Honeywell, LG, and other brands renowned for their innovation, brand recognition, and expansive distribution channels within their respective categories. For more information on the data displayed, use the info button right next to the boxes.

Digitally connected and controlled devices for energy saving
Thermostats (e.g., Sonoff Smart Radiator Thermostat TRVZB, Bosch Smart Home Room Thermostat II), radiator controls (e.g., TESLA Smart), temperature/wind/humidity sensors with connection to a broader smart home (e.g., TP-Link Tapo T310, Sonoff SNZB-02D)

Bulbs, window and door sensors (see Comfort & Lighting)
Connected household appliances (see Smart Appliances)
B2B/C2C sales of any kind (e.g., to hotels or office buildings)

The Energy Management market in EU-27 is experiencing significant growth and development due to increasing customer preferences for energy efficiency, rising environmental concerns, and supportive government initiatives. Customer preferences in the Energy Management market in EU-27 are shifting towards energy-efficient solutions and technologies.

Consumers are becoming more conscious of their energy consumption and are actively seeking ways to reduce their environmental footprint. This has led to a growing demand for energy management systems that can monitor and control energy usage in residential, commercial, and industrial buildings. Additionally, customers are increasingly interested in renewable energy sources and are investing in technologies such as solar panels and wind turbines to generate their own energy.

One of the key trends in the Energy Management market in EU-27 is the adoption of smart grid technology. Smart grids enable the efficient distribution and management of electricity by integrating advanced communication and control systems. This technology allows utilities to monitor and optimize energy usage in real-time, resulting in improved reliability, reduced costs, and increased renewable energy integration.

The implementation of smart grids is being driven by government initiatives and regulations aimed at promoting energy efficiency and reducing greenhouse gas emissions. Another trend in the Energy Management market in EU-27 is the increasing use of energy management software. This software allows businesses and organizations to track and analyze their energy consumption, identify areas of inefficiency, and implement energy-saving measures.

Energy management software provides real-time data and analytics, enabling companies to make informed decisions and optimize their energy usage. The adoption of energy management software is being driven by the need to reduce energy costs, comply with environmental regulations, and improve overall operational efficiency. Local special circumstances in the Energy Management market in EU-27 include the diversity of energy sources and the varying energy policies across member countries.

EU-27 countries have different energy mixes, with some relying heavily on fossil fuels while others have a higher share of renewable energy. This diversity creates opportunities for companies offering energy management solutions tailored to specific energy sources and infrastructure. Additionally, the EU has set ambitious renewable energy targets, which are driving the adoption of energy management technologies and practices.

Underlying macroeconomic factors driving the development of the Energy Management market in EU-27 include increasing energy prices, the need to reduce energy dependence, and the transition towards a low-carbon economy. Rising energy prices are incentivizing businesses and consumers to invest in energy-efficient solutions to reduce costs. The EU is also striving to reduce its dependence on imported energy and promote energy security by increasing the use of renewable energy sources.

Furthermore, the EU has committed to reducing greenhouse gas emissions and transitioning to a low-carbon economy, which requires the implementation of energy management practices and technologies. Overall, the Energy Management market in EU-27 is experiencing growth and development due to increasing customer preferences for energy efficiency, supportive government initiatives, and the need to address environmental concerns. The adoption of energy management systems, smart grid technology, and energy management software are key trends driving the market.

Local special circumstances, such as the diversity of energy sources and varying energy policies, create opportunities for companies offering tailored solutions. Underlying macroeconomic factors, including rising energy prices and the transition towards a low-carbon economy, are also contributing to the market's development.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of smart home products, excluding taxes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market category. As a basis for evaluating markets, we use the Statista Global Consumer Survey, market data from independent databases and third-party sources, and Statista interviews with market experts. In addition, we use relevant key market indicators and data from country-specific associations, such as household internet penetration and consumer spending for households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting innovative products due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward smart home integration.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated once a year, in case market dynamics change we do more frequent updates.

This report presents a comprehensive analysis and additional information on the Consumer market, in a PDF format.

Smart homes use connected devices and appliances to perform actions, tasks, and automated routines to save money, time, and energy. They are the ongoing revolution of the humble home appliance mixed with AI, robotics, and improvement in IoT technologies. AI in particular, speeding up response times and working as an automation bridge between homeowner and home is already having an impact.