Search
Insights > The future of home energy management
The future of home energy management
03/06/2025
The concept of a "smart home" continues to evolve, moving beyond simple voice-controlled lights and automated thermostats. Today's intelligent homes are beginning to take on a more crucial role: managing and optimizing household energy consumption.
This evolution is evident in the rapid adoption of home energy management systems (HEMSs). North American installations reached approximately 600,000 systems at the end of 2023, and that number is projected to surge to 3 million by 2028, marking a significant shift in how we approach residential energy use.
What is a home energy management system?
Imagine saving 20% on your electricity bills annually. HEMSs make those savings a reality by monitoring, managing and optimizing a household’s energy consumption. These systems integrate with various components, including:
- Solar panels
- Battery storage systems
- Electric vehicle (EV) chargers
- Smart appliances
- Lighting systems
- Smart meters
HEMSs provide insights into energy usage patterns, enabling users to make informed decisions about their energy consumption. Through intuitive interfaces and mobile apps, homeowners can track energy use by appliance, set schedules for peak and off-peak hours, and receive alerts about unusual consumption patterns.
Adoption drives
The rise in HEMS adoption can be attributed to several key factors:
- Energy efficiency and savings: By understanding their energy usage patterns, homeowners can identify wasteful habits and make adjustments, leading to lower utility costs.
- A broader adoption of smart home technology: As homeowners become more comfortable with smart devices, transitioning to a HEMS feels like a natural progression.
- Increased need for connectivity: HEMSs integrate seamlessly with renewable energy sources and smart home devices, such as smart thermostats, lighting systems and security cameras, creating a cohesive home automation experience.
- Convenience: Remotely managing energy use via smartphones or tablets offers unparalleled convenience. Homeowners can adjust settings while away from home or receive real-time notifications about energy use, allowing for proactive management.
- Sustainability: With an increasing focus on environmental responsibility, many homeowners are motivated by the desire to reduce their carbon footprint. HEMSs help facilitate sustainable practices by enabling users to monitor their energy use and shift toward more eco-friendly energy sources.
Adoption challenges
Despite the benefits, HEMS adoption faces several hurdles.
- Cost: The initial investment required to purchase and install a HEMS can be a barrier for many homeowners. While the long-term savings often outweigh these costs, the upfront expense can deter potential buyers.
- Consumer awareness: Many homeowners remain unaware of the benefits and functionalities of HEMSs. Education and outreach efforts are essential to inform consumers about how these systems can enhance energy management.
Looking ahead
The future of home energy management appears promising, with the global HEMS market projected to grow at a compound annual growth rate (CAGR) of 15.7% from now until 2030. This growth trajectory suggests that despite current challenges, the value proposition of HEMSs resonates with an increasing number of homeowners.
As technology advances and awareness grows, HEMSs are poised to become a standard feature in modern homes, fundamentally changing how we think about and manage residential energy consumption.
