Like renewable energy and electric vehicles, another technology is now being enlisted in the fight against global warming.
According to a recent study, the market for all electric homes is on the upswing.
“Home Electrification. Fuel Switching Technology for All-Electric Homes: Global Market Analysis and Forecast,” published by market research company Navigant Research, examines the global market for fully electrified homes (FEHs) in five major regions. It presents a forecast and market sizing from 2020–2029.
The paper projects strong growth for the technology over ten years.
According to the study, approximately 70 million American homes burn fuel in the form of natural gas, oil or propane on-site to heat interior space and water. This combustion generates 560 million tons of CO2 each year, and according to the U.S. Environmental Protection Agency, represents a tenth of total U.S. emissions. It also represents just under half of all residential end-use energy consumption nationally.
However, electrification technologies are rapidly becoming more cost-effective and more reliable than these fossil fuel systems. According to Navigant, several factors will contribute to this growth. At the top of the list are government policies designed to curtail greenhouse gas emissions. High demand for efficient technology, improving cost and performance metrics and high job creation will also help.
Navigant defines the fully electrified home as one where space heating, water heating and cooking are electrified through the use of air source heat pumps, heat pump water heaters and induction cooking technologies. It also includes insulation and energy management systems.
Navigant projects global revenue for FEH technologies in the residential sector to increase from $2.4 billion in 2020 to $12.9 billion in 2029. This represents a compound annual growth rate of 20.4%.