According to a new report provided by Research and Markets.com, the global residential energy management market is projected to reach USD 4.1 billion by 2025. This forecast comes from an estimated USD 2.2 billion in 2020, at a CAGR of 12.9% during the forecast period.
Possibly of your interest: Emera and Novonix launch new battery partnership in North America
Residential Energy Management Industry: with positive trends in North America
Research and Markets.com today announced it has released a new report regarding the global residential energy management industry’s growth. Consequently, the report shows this market will probably reach USD 4.1 billion by 2025.
According to the report, the market’s growth is mainly driven by investments in smart grids and the upgrade of the existing power infrastructure. Also, the growth might result from the increasing focus on energy efficiency and the replacement of aging infrastructure.
“Moreover, upcoming smart city projects in developing economies provide opportunities for the residential energy management market in this region. Thus, creating a lucrative opportunity for the market,” the paper states.
Furthermore, high initial costs related to deploying residential energy management systems need to ensure the privacy and security of residential consumer data. Simultaneously, this is likely to hamper the growth of the residential energy management market.
As a result of the research, the website reported most of the flexible load management, by application, will be the fastest-growing market from 2020 to 2025.
To explain, the residential energy management market has the following component-based segments: power monitoring & control, load shedding & management, and flexible load management.
More predictions
Therefore, flexible load management will be the fastest market due to the need to reduce stress on the electricity grid during peak periods. Furthermore, it will enable building systems to act as distributed energy assets for the grid to achieve significant cost savings. Besides, North America will probably hold the largest flexible load management market.
Moreover, the wired segment will probably witness a larger market share than the wireless segment from 2020 to 2025. This analysis is based on communication technology.
Furthermore, wired communication technology transmits large volumes of data, analyzes the data, and provides actionable information for grid operators. Hence, this wired communication technology segment’s growth is the result of increased security, lack of interference, and high speed.
Finally, North America will probably lead the residential energy management market during the forecast period. Therefore, the region can become the largest market for residential energy management during the forecast period.
In brief, increasing investments in grid expansion projects to increase energy efficiency, grid reliability; and increased power consumption residential sector are fostering the demand for residential energy management in this region.
