Smart homes are becoming more common globally, with millions of households around the world now utilizing some form of smart technology, especially 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. Of that, the U.S. has the largest share, with $2.57 billion in sales.
“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,” said Rex Pascual, editor at tradingplatforms.com. “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.”
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.) 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 number of active households in the energy management segment is projected to amount to 89.1 million in 2021 and cross the 100 million 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 263.9 million 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.
