Energy Management - Tanzania | Statista Market Forecast

Revenue in the Energy Management market is projected to reach US$3.5m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.26%, resulting in a projected market volume of US$5.8m by 2029.
In the Energy Management market, the number of active households is expected to amount to 1.2m users by 2029.
Household penetration will be 7.0% in 2024 and is expected to hit 7.9% by 2029.
The average revenue per installed Smart Home currently is expected to amount to US$3.82.

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 Tanzania is experiencing significant growth due to increasing customer preferences for energy-efficient solutions, emerging trends in the market, and local special circumstances.

Customer preferences: Customers in Tanzania are increasingly demanding energy-efficient solutions to reduce their energy consumption and lower their electricity bills. With the rising cost of electricity and the need for sustainable energy practices, there is a growing interest in energy management solutions that can help optimize energy usage and reduce wastage. Customers are also becoming more aware of the environmental impact of their energy consumption and are seeking ways to reduce their carbon footprint. As a result, there is a growing demand for energy management systems and technologies that can provide real-time monitoring and control of energy usage.

Trends in the market: One of the key trends in the Energy Management market in Tanzania is the adoption of smart grid technologies. Smart grids enable efficient and reliable distribution of electricity by integrating advanced sensors, communication networks, and analytics. These technologies can help utilities and consumers monitor and manage their energy consumption more effectively, leading to improved energy efficiency and reduced costs. The government of Tanzania has recognized the potential of smart grids and has initiated several projects to modernize the country's energy infrastructure. Another trend in the market is the increasing use of renewable energy sources. Tanzania has abundant renewable energy resources, including solar, wind, and hydroelectric power. The government has set ambitious targets to increase the share of renewable energy in the country's energy mix to reduce dependence on fossil fuels and promote sustainable development. This shift towards renewable energy is driving the demand for energy management solutions that can integrate and optimize the use of different energy sources.

Local special circumstances: Tanzania faces several challenges in its energy sector, including limited access to electricity in rural areas, unreliable power supply, and high energy costs. These circumstances have created a strong need for energy management solutions that can help address these issues. Energy management systems can help improve the efficiency of power generation, transmission, and distribution, leading to a more reliable and affordable energy supply. Additionally, energy management solutions can help extend electricity access to remote areas by optimizing the use of renewable energy sources.

Underlying macroeconomic factors: Tanzania's economy has been growing steadily in recent years, leading to increased energy consumption across various sectors. Rapid urbanization, industrialization, and population growth are driving the demand for energy management solutions. The government's focus on infrastructure development and industrialization is also contributing to the growth of the Energy Management market. Furthermore, Tanzania has been attracting foreign direct investment in the energy sector, which is fueling the expansion of energy management solutions. In conclusion, the Energy Management market in Tanzania is witnessing significant growth due to increasing customer preferences for energy-efficient solutions, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The demand for energy management solutions is expected to continue to rise as customers seek ways to reduce energy consumption, optimize energy usage, and lower costs. The government's focus on renewable energy and infrastructure development will further drive the adoption of energy management technologies in the country.

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.