Energy Management - South Korea

South Korea

Revenue in the Energy Management market is projected to reach US$451.6m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.92%, resulting in a projected market volume of US$724.7m by 2029.
In the Energy Management market, the number of active households is expected to amount to 5.0m users by 2029.
Household penetration will be 16.8% in 2024 and is expected to hit 22.0% by 2029.
The average revenue per installed Smart Home currently is expected to amount to US$118.30.

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Analyst Opinion

The Energy Management market in South Korea is experiencing significant growth and development.

Customer preferences: Customers in South Korea are increasingly demanding energy-efficient solutions to reduce their carbon footprint and lower energy costs. They are looking for advanced technologies and systems that can effectively monitor and control energy consumption in buildings, industries, and transportation. Additionally, there is a growing awareness among customers about the importance of renewable energy sources and the need to transition towards a more sustainable energy future.

Trends in the market: One of the key trends in the Energy Management market in South Korea is the adoption of smart grid technologies. Smart grids enable efficient energy distribution and management by integrating renewable energy sources, energy storage systems, and advanced metering infrastructure. The government has been actively promoting the development of smart grids through various initiatives and investments, which has led to the increased deployment of smart grid solutions across the country. Another trend is the implementation of energy management systems in commercial buildings. With the rising energy costs and the need for energy conservation, building owners and operators are investing in energy management systems to monitor and optimize energy consumption. These systems provide real-time data and analytics, allowing them to identify energy-saving opportunities and improve overall energy efficiency.

Local special circumstances: South Korea has a high population density and limited natural resources, which makes energy management a critical issue for the country. The government has set ambitious targets to reduce greenhouse gas emissions and increase the share of renewable energy in the overall energy mix. This has created a favorable environment for the growth of the Energy Management market, as companies are encouraged to develop innovative solutions to meet these targets.

Underlying macroeconomic factors: The South Korean government has been actively supporting the development of the Energy Management market through various policies and incentives. These include tax benefits, subsidies, and grants for companies investing in energy management technologies. The government's focus on green growth and sustainable development has also attracted foreign investments in the sector, further driving the market growth. In conclusion, the Energy Management market in South Korea is experiencing significant growth due to customer preferences for energy-efficient solutions, the adoption of smart grid technologies, and the implementation of energy management systems in commercial buildings. The local special circumstances, such as high population density and limited natural resources, along with the government's support through policies and incentives, are also contributing to the market's development.

Methodology

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.