Energy Management - Southern Africa

Revenue in the Energy Management market is projected to reach US$35.5m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.91%, resulting in a projected market volume of US$54.3m by 2029.
In the Energy Management market, the number of active households is expected to amount to 3.2m users by 2029.
Household penetration will be 16.2% in 2024 and is expected to hit 17.8% by 2029.
The average revenue per installed Smart Home currently is expected to amount to US$12.51.

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 Southern Africa is experiencing significant growth and development.

Customer preferences: Customers in Southern Africa are increasingly prioritizing energy efficiency and sustainability in their operations. This is driven by a growing awareness of the environmental impact of energy consumption and a desire to reduce costs. Companies are seeking energy management solutions that can help them optimize energy usage, reduce waste, and lower their carbon footprint. Additionally, there is a rising demand for smart energy management systems that provide real-time monitoring and control capabilities.

Trends in the market: One of the key trends in the Energy Management market in Southern Africa is the adoption of renewable energy sources. The region has abundant renewable energy resources, such as solar and wind, and there is a growing recognition of the economic and environmental benefits of transitioning to clean energy. This has led to an increase in the installation of solar panels and wind turbines, as well as the development of large-scale renewable energy projects. Another trend in the market is the integration of energy management systems with other smart technologies. Southern Africa is experiencing rapid urbanization and digitalization, and there is a growing demand for smart city solutions. Energy management systems are being integrated with other smart technologies, such as smart grids and IoT devices, to create more efficient and sustainable cities. This integration allows for better coordination and optimization of energy usage, as well as improved monitoring and control capabilities.

Local special circumstances: Southern Africa faces several unique challenges that impact the Energy Management market. One of the main challenges is the lack of access to reliable and affordable energy in many parts of the region. This has led to a focus on off-grid and decentralized energy solutions, such as mini-grids and solar home systems. These solutions provide energy access to remote and underserved communities, while also reducing reliance on traditional fossil fuels. Another special circumstance is the high prevalence of energy-intensive industries in the region, such as mining and manufacturing. These industries have a significant impact on energy demand and consumption. As a result, there is a growing need for energy management solutions that can help optimize energy usage and reduce costs in these sectors.

Underlying macroeconomic factors: The development of the Energy Management market in Southern Africa is also influenced by several macroeconomic factors. One of the main factors is government policies and regulations. Governments in the region are implementing policies and regulations that promote energy efficiency and renewable energy. This includes incentives and subsidies for renewable energy projects, as well as energy efficiency standards for buildings and appliances. These policies create a favorable environment for the adoption of energy management solutions. Another macroeconomic factor is the availability of financing for energy management projects. Access to affordable financing is crucial for the implementation of energy management solutions, especially for small and medium-sized enterprises. Governments and financial institutions in Southern Africa are working to improve access to financing through initiatives such as green bonds and energy efficiency funds. In conclusion, the Energy Management market in Southern Africa is experiencing growth and development due to customer preferences for energy efficiency and sustainability, as well as the adoption of renewable energy sources and integration with other smart technologies. The market is also influenced by local special circumstances, such as the need for off-grid solutions and the prevalence of energy-intensive industries. Government policies and regulations, as well as the availability of financing, are important macroeconomic factors driving 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.