Companies in the telecommunications network, software, and platform sectors are competing with one another to grab a share of this growing home energy management market.

• A home energy management system would help manage energy consumption in the household not only for lowering the electrical energy cost for the consumer but also for reducing the peak demand of the utility system.

In the past, energy management systems have been specifically designed for energy production and commercialization companies with the aim of monitoring and optimizing energy flows in the power system. More recently, information and communication technologies have played an important role in the energy sector, enabling the development of this type of management system at the end-user level. In this context, the energy end-users experienced a changing role over recent years, from a passive to an active perspective.

 

“The global smart home energy management market size is expected to reach USD 24.47 billion by 2028, according to a new report by Million Insights. It is expected to expand at a CAGR of 14.7% from 2021 to 2028. Consumers’ increased interest to achieve efficient energy management by actively measuring and monitoring the real-time uses and controlling remotely will drive the market. Growing awareness to reduce the carbon footprints and protect the environment by less energy consumption will further fuel the market growth.”

 

These energy management systems were then called home energy management systems. At this stage, the main interest of end-users who have a home energy management system is to reduce the value of the electricity bill.A home energy management system allows a user to monitor appliance activity and power consumption whilst being able to remotely control the on and off times of appliances. Furthermore, the user can specify which appliances are flexible regarding operating times and which appliances must be always on.

In the next phase, in addition to reducing electricity costs, end consumers began to think about energy efficiency and the possibility of producing their own energy. Thus, a home energy management system can be considered a small energy hub, enabling the management of both the energy produced and the energy consumed.

 

• The Internet of Energy appliances has been seamlessly assimilated to the internet at various levels.

The accelerating digitalization of the energy industry has caused its integration with core technologies of the Fourth Industrial Revolution, including artificial intelligence, the Internet of things, cloud, blockchain, and big data.

 

“According to Allied Market Research, the global home energy management industry generated $2.28 billion in 2020 and is expected to reach $8.73 billion by 2030, witnessing a CAGR of 15.6% from 2021 to 2030. Increase in demand for energy-efficient solution, surge in urbanization in developing countries, and rise in number of connected devices through Internet of Things drive the growth of the global home energy management market.”

 

Against the backdrop of increasing digitalization in the energy sector, the home energy management system, which automatically manages home energy consumption, and thus reduces energy usage and greenhouse gas emissions, has become one of the most promising new energy platforms.

The concept of a home energy management system rises from smart home development which has been developing since 1990. This application was initially intended to facilitate users in operating and managing some household appliances so that they can operate automatically and optimally.

In the smart home application, the interaction between users with their home appliances will be formed thereby the devices can be operated and programmed interactively either directly or remotely. In line with the development of technology, and the emergence of environmental problems that encourage smart home applications not only to provide comfort and convenience but also to achieve energy efficiency.

A home energy management system provides customers advantages, such as peak power control and energy savings. The Home energy management system, which is an integral part of the smart home having IoT-oriented technology, has grown rapidly, and demand for it is likely to keep increasing it provides users the ability to directly manage energy efficiency and reduce residential energy consumption.