Smart home energy management segment to grow by 30% in 2021 /$8B globally
Smart homes are becoming more popular with millions of households worldwide using some form of smart technology. The energy management segment is one of the most popular in the Smart Home market. According to data presented by Trading Platforms, the energy management segment of the smart home industry is projected to experience a 29.9% growth in global revenue amounting to $8.01B in 2021.
Energy Management to Generate $8B in Revenue by 2021; US Holds Largest Share – $2.6B
In the energy management sector, smart technology is increasingly being recognized for its true value. This segment includes products and services that control and reduce energy consumption, as well as those connected to sensors. Smart plugs and bulbs, however, are not included in this segment.
The revenue from the energy management sector is expected to rise 29.9% YoY to $8.01B in 2021. The energy management segment is expected to grow at a compound annual rate of growth (CAGR), of 15.23% over 2021-2025, and reach $14.12B by end of the forecast period.
China and the US lead the world in smart home energy management revenue generation. With $2.57 billion in revenue in 2021, the US is expected to be the largest country in the world. China was the only country that generated more than $1B of revenue in an estimated total $1.12B.
Increased Active Households to 100M by 2022
In 2021, the number of households that are active in energy management will reach 89.1M and then cross the 100M mark in 2022. The CAGR for active households in energy management will reach 263.9M by 2021-2025.
In 2021, the penetration rate of smart home energy management is expected to be 4.2%. The rate will likely surpass the 10% benchmark in 2025, when it will reach 11.6%. The Netherlands had a 15.2% penetration rate in 2021. The UK had a 14.5% penetration rate.
Smart Thermostats Most In-demand Product
Globally, smart thermostats accounted for 1.8% of the global market share. Smart thermostats are more widely used in the US market, which is the largest smart home market. It is expected that they will reach 8.9% by 2021 and surpass the 10% mark sometime in 2022.
Radiator controllers and AC controls are next in line for smart home energy management technology, surpassing the 1% mark at 1.4% & 1.1% respectively.
Rex Pascual, Editor at Trading Platforms commented "Smart technology was once a party trick that was used to impress houseguests by using the latest voice activation technology. Recent developments have shown the true value of smart technology in homes, with many aiming to make the home more efficient. Despite being in its infancy, the industry has plenty of growth potential for the energy management sector in the future, despite the low global penetration rates."