Energy Management - Israel | Statista Market Forecast

Revenue in the Energy Management market is projected to reach US$10.3m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.21%, resulting in a projected market volume of US$16.8m by 2029.
In the Energy Management market, the number of active households is expected to amount to 693.2k users by 2029.
Household penetration will be 20.1% 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$16.97.

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 Israel has been experiencing significant growth in recent years, driven by customer preferences for more sustainable and efficient energy solutions.

Customer preferences: Customers in Israel have shown a growing interest in energy management solutions that can help them reduce their energy consumption, lower their carbon footprint, and save costs. This shift in customer preferences can be attributed to several factors. Firstly, there is a growing awareness of the environmental impact of energy consumption, and customers are increasingly looking for ways to minimize their carbon emissions. Secondly, rising energy costs have made energy efficiency a priority for businesses and households alike. By implementing energy management solutions, customers can optimize their energy usage and reduce their energy bills. Lastly, the Israeli government has introduced various incentives and regulations to promote energy efficiency, further driving customer demand for energy management solutions.

Trends in the market: One of the key trends in the Energy Management market in Israel is the adoption of smart energy management systems. These systems leverage advanced technologies such as Internet of Things (IoT) and artificial intelligence (AI) to monitor and control energy usage in real-time. Smart energy management systems enable customers to track their energy consumption, identify areas of inefficiency, and make data-driven decisions to optimize their energy usage. This trend is driven by the increasing availability and affordability of IoT devices and AI technologies, as well as the growing need for real-time energy monitoring and control. Another trend in the market is the integration of renewable energy sources into energy management systems. Israel has set ambitious targets to increase its renewable energy capacity, and customers are increasingly looking to incorporate solar panels, wind turbines, and other renewable energy sources into their energy management systems. This trend is driven by the declining cost of renewable energy technologies and the desire to reduce dependence on fossil fuels. By integrating renewable energy sources into their energy management systems, customers can further reduce their carbon emissions and achieve greater energy independence.

Local special circumstances: Israel faces unique challenges and opportunities in the Energy Management market. Despite being a small country with limited natural resources, Israel has made significant investments in renewable energy and energy efficiency. The country has a strong innovation ecosystem and is home to several startups and research institutions focused on energy management technologies. This has created a favorable environment for the development and adoption of advanced energy management solutions. Furthermore, Israel's geographical location and climate present opportunities for specific energy management solutions. For example, the country has abundant sunlight, making solar energy a viable option for many customers. Additionally, Israel has a highly developed water desalination industry, which requires significant energy inputs. Energy management solutions that can optimize energy usage in desalination plants can help address this specific challenge.

Underlying macroeconomic factors: The growth of the Energy Management market in Israel is also influenced by underlying macroeconomic factors. Israel has a strong economy with a high level of technological innovation and entrepreneurship. This provides a conducive environment for the development and adoption of energy management solutions. Additionally, the Israeli government has been proactive in promoting energy efficiency and renewable energy through regulatory frameworks, financial incentives, and research and development programs. These government initiatives have played a crucial role in driving the growth of the Energy Management market in Israel.

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.