Technology has altered the way we generate and consume energy. Now, it is impacting the way we manage our energy use, and an entire market is emerging around this trend.
A published report by Guidehouse Insights finds that the residential energy management system (REMS) market is undergoing rapid transformation and expansion.
The report, “Market Data: Residential Energy Management Solutions,” was published in September by the emerging technologies research firm. It cites a number of factors that are contributing to the changes taking place in the market for utilities, consumers and the ways in which the two connect.
For example, customer engagement has become a high priority for energy providers. Innovations in software, smart phone apps and online portals are enabling utilities to enhance demand management by providing timely and relevant information to help their customers save energy.
At the same time, the growth of the smart home device market is expanding the energy monitoring and usage control capabilities available to homeowners. The report notes that smart thermostats have become common in 2020. They provide residential users with greater control over their energy-consuming HVAC systems. That increases cost savings and helps them participate in utility-sponsored demand response programs that offset peak demand loads.
The report also notes that homeowners are spending more time at home because of shelter-in-place orders implemented during the COVID-19 pandemic. This has buoyed home improvement spending and raised awareness of the home environment and home energy use.
Guidehouse Insights projects revenue in the global REMS market 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 is projected to increase from $2.5 billion in 2020 to $5.2 billion in 2029 at a CAGR of 8.3%.