The global residential energy management market had an estimated value of $2.86 billion in 2014 and is forecast to reach $15.62 billion by 2019, with a compound annual growth rate (CAGR) of 40.4 percent between 2014 and 2019, according to a new report from Research and Markets.
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. A majority of the growth is expected to take place in North America and Europe, with the residential sector likely to be the fastest growing in these regions. Stringent government policies and fiscal incentives are the primary drivers of demand for residential energy management. Eventually, the market tends to attract manufacturers that are seeking to expand their global presence.
Government initiatives such as smart meter rollouts, standardization of energy management policies, and incentives grab the interest of the residential consumer to adopt energy management systems. In 2008, the United Kingdom mandated that 53 million smart electric and gas meters be deployed in the 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 percent of consumers. Also, China strategically placed a smart gird technology initiative in its 12th Five-Year Plan (2011-2015) and announced it would deploy 300 million smart meters by 2015. Such initiatives by governments create substantial new markets for both domestic and foreign investments in the region. The intent was to introduce the smart metering technology which would benefit both residential consumers and utilities and then integrate the technology with residential energy management systems to achieve the best result. However, utilities tend to have limited budgets for capital expenditures that restrain the growth of the market.
Seen first at HVACRNews