Press Release / News & Society / Residential Energy Management Market is Set to $15,620.9 Million by 2019

Residential Energy Management Market is Set to $15,620.9 Million by 2019

Residential Energy Management (REM) is any device or an integrated system which is capable of controlling the energy consuming devices in the home, that is, to identify the energy saving opportunities and evolve best practices for managing consumption of energy resources. REM supervises the energy consumption of all the devices that are used in the resident and also manages the energy intake.With the decrease in the natural resources there has been a demand for optimizing energy consumption and increasing energy efficiency. REM also identifies oppurtunities to save energy and provides information to the reisdents about it.

The necessity of REM has grown in recent years across the globe. There has also been a notable growth in the interest of the consumers in adoption of the technology for optimizing the use of energy. This has attracted many top players in the industry to invest in the new technology solution for REM. The Residential energy management market is expected to grow at a faster rate as both the regions NA and Europe are at the growth stage and they form the major market for REM. , British Gas, one of the U.K.s leading energy service provider has signed up more than 1,00,000 customers for REM. North America (NA) region is one of the prime region for REM with repsect to the adoption of the technology. In 2014 the NA market has the largest market share of 41.87% followed by Europe. APAC and MEA are at the adoption stage of REM.

Major vendors dealing in the Residential energy management market include Elster Group, General Electric Company, Itron Incorporate, Landis+Gyr AG, Schneider Electric SE, Opower Incorporate, Silver Spring Network, Aclara Technologies LLC, AlertMe.com Ltd, Tendril Networks, Inc.

Worldwide, major developed and developing countries face similar challenges when it comes to energy rising demand, high cost, and security and environmental concerns. Hence, there is a crucial need for changing the way that energy resources are generated and distributed. As a result, utilities around the world are in need of efficient, reliable, and secure ways to manage energy generation, transmission, and distribution. The residential sector alone consumes 18% of worlds total energy that is 92 quadrillion British thermal unit (Btu) energy is consumed. Out of this, 40 quadrillion Btu energy is loss in the form of electricity. Hence, to bridge this gap between the consumption and loss, there is a need for an efficient energy management system with stringent policies and standards.

In recent years, a number of countries have made substantial investments in energy management technology and the global market is expected to continue to grow throughout the decade. According to the industry analysis, the global market for EMS is estimated to reach $38.44 billion by 2018. A majority of this growth is expected to take place in the NA and European region, while the residential sector is likely to be the fastest growing market in these regions. Stringent government policies and fiscal incentives are the primary drivers of demand for REM in a multitude of markets. Eventually, the market tends to attract manufacturers that are seeking to expand their global presence. The governments have been playing a vital role in the advancement of the Residential energy management market.

Government initiatives such as smart meter rollouts, standardization of energy management policies, and incentives grab the interest of the residential consumer to adopt EMS. In 2008, the U.K. mandated that 53 million smart electric and gas meters be deployed in residential and commercial sectors by the end of 2019. Similarly, Europe will be completing its smart meters rollout initiative by 2020; which will cover almost 80% of the consumers. Also, China strategically placed the smart gird technology initiative in its 12th Five-Year Plan (2011 2015) and announced to deploy 300 million smart meters by 2015. Such initiatives by the regional government create substantial new markets for both domestic and foreign investments in the region.

MarketsandMarkets forecasts the Residential Energy Management market to grow from $2,860.4 Million in 2014 to $15,620.9 Million by 2019, with a Compound Annual Growth Rate (CAGR) of 40.4%. In terms of regions, North America and Europe are expected to be the biggest markets in terms of revenue contribution, while Asia-Pacific, Middle East and Africa, and Latin America are expected to experience increased market traction, during the forecast period.