A new analysis from LCP Delta shows that Germany is Europe’s largest market for home energy management systems and predicts that European annual sales will more than double by the end of the decade.
According to new analysis from LCP Delta, 800,000 new Home Energy Management (HEM) systems were installed across Europe in 2023, bringing the continent’s total installed base to over 2.4 million. The British consultancy has also predicted that the market for systems that monitor, control and optimize the generation, storage and consumption of energy within households will reach an annual turnover of more than 7 million by 2030.
Germany had the largest number of HEM installations in 2023, helped by its large solar and battery storage base, while the UK was the second largest market. LCP Delta told it pv magazine that Germany had an installed base of 1.1 million HEM systems in 2023, while the United Kingdom had 500,000. The main sales factors in 2023 were high electricity prices, the increasing use of connectable electrical appliances in the home, and the liberalization of electricity market mechanisms, according to LCP Delta.
LCP Delta has predicted that growth in the home energy management and appliance optimization market in the coming years will be driven by the increasing number of major electrical appliances installed in European households, new companies offering optimization services, market and technology expanding from existing solutions, and increasing partnerships that allow different assets and brands to be optimized through a range of solutions including EV charging points and heat pumps.
Other key findings from LCP Delta’s analysis include the increasing development of partnerships between HEM suppliers and equipment manufacturers in an effort to expand the reach of devices that integrate with HEM platforms. According to LCP Delta, there are now more than 140 HEM and device optimization offers across Europe.
The consultancy did warn that interoperability issues between devices and HEM platforms and a lack of standardization will continue to hinder growth. LCP Delta believes the development of common standards will accelerate market growth beyond current forecasts.
Ricardo Lopez, home energy management research manager at LCP Delta, said consumers want to become “smarter” about the way they use energy. “The growing use of heat pumps, solar panels and other major electrical assets are contributing to the rise of the HEM market. As the transition to renewable energy sources continues, there is room for substantial growth in European countries.
“While we see an increase in drivers, there are some barriers to growth in several markets, such as the slow rollout of smart meters, poor interoperability, supplier tariff structures, the removal of subsidies and uncertainty about regulatory direction.”
This content is copyrighted and may not be reused. If you would like to collaborate with us and reuse some of our content, please contact: editors@pv-magazine.com.
