As residential customers expand their role in the energy field, as generators and consumers, their ability to maximize their own behavior also grows.
Digital technology is helping homeowners manage their energy use, and the market for these products is experiencing a transformation.
According to the Boulder, Colo.-based market research firm, Guidehouse Insights, the residential energy management system (REMS) market is undergoing rapid expansion. The firm released its report, “Market Data: Residential Energy Management Solutions,” in September of this year. The report examines the REM market globally and presents a 10-year forecast, from 2020 through 2029.
According to Guidehouse Insights, new digital and software approaches are changing behavioral demand-side management solutions and home energy management software. The report notes that tools such as smart thermostats and smart lighting are gaining traction among residential customers. Data analytics applications are also evolving. Having access to data on home energy use is creating cost savings for residential customers and more opportunities for utilities to engage with them. Mobile, online and social network channels, as well as improved digital interfaces, are adding to these opportunities.
Guidehouse Insights also notes in the report that new edge controls are also emerging. It cites examples such as the Andover, Mass.-based Schneider Electric's recently launched InsightHome, a smart edge device and app-based system that enables homeowners to optimize energy use if they have a solar-plus-storage system installed. Guidehouse Insights also points to a new smart device designed by researchers at Texas A&M that improves the flow and control of energy between the grid and residential solar-powered systems.
Guidehouse Insights expects healthy growth for the worldwide REM market during its 10-year forecast. Global REM revenue is projected to grow from $6 billion in 2020 to $16.8 billion in 2029, at a compound annual growth rate (CAGR) of 12.2%. In North America, revenue from REM solutions is expected to increase from $2.5 billion in 2020 to $5.2 billion in 2029, at a CAGR of 8.3%.