Smart home energy management segment to grow by 30% in 2021 – $8B revenue globally
Energy Management to Generate $8B in 2021; US Has Largest Share...
Energy Management to Generate $8B in 2021; US Has Largest Share
Smart Homes are becoming more common with millions of households around the world now utilising some form of smart technology. One of the more popular segments within the Smart Home industry is the energy management segment. According to data presented by TradingPlatforms.com, 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.
More recently, the real value of smart technology has become more and more apparent, particularly in the energy management segment. The segment includes sales of products and services for the control and reduction of energy consumption as well as connected sensors. Notably, smart plugs and bulbs are not included within the segment.
In 2021 revenue from the energy management segment is projected to reach $8.01B – a 29.9% YoY increase. From 2021-2025 the energy management segment is projected to grow at a compound annual growth rate (CAGR) of 15.23%, reaching $14.12B by the end of the forecast period.
The US and China lead the world in generating revenue from the smart home energy management segment. The US is projected to generate the most in the world with $2.57B in 2021 while China was the only other country to generate more than $1B in revenue for an estimated total of $1.12B.
The number of active households in the energy management segment is projected to amount to 89.1M in 2021 and cross the 100M mark sometime in 2022. From 2021-2025, the number of active households in the energy management segment is projected to experience a 31.19% CAGR, reaching 263.9M by the end of the forecast period.
The penetration rate for the energy management segment of the smart home industry is projected to reach 4.2% in 2021. This rate is expected to cross the 10% benchmark sometime in 2025 when it is projected to reach up to 11.6%. In 2021, the Netherlands had the highest penetration rate globally at 15.2% while the UK had the second highest at 14.5%.
Smart thermostats were the most popular form of energy management in the smart home industry, registering a 1.8% penetration rate globally. In the leading smart home market that is the US, smart thermostats have a deeper penetration rate and is projected to reach 8.9% in 2021 and breach the 10% mark some time in 2022.
Radiator Controllers and AC controls are the two next most popular forms of smart home energy management technology also breaching the 1% mark at 1.4% and 1.1% respectively.
Rex Pascual, editor at TradingPlatforms.com, commented:
“Smart technology used to be a party trick used to impress houseguests with the latest craze in voice activation technology. More recently, the real value of smart technology for our homes is slowly being realized with many aimed at making the home more energy-efficient. Still, the industry is in its infancy as the low global penetration rates are quick to show, providing ample growth opportunities for the energy management segment in the coming years.”