The number of Home Energy Management Systems (HEMS) is forecast to increase from 4.5 million at the end of 2024 to 12.3 million in 2029, Berg Insight concludes in a new report.
According to the market research provider in their report, The Home Energy Management Systems Market, 4.5 million systems were installed across Europe and the US by the end of last year. This figure is expected to grow at a compound annual growth rate of 22.3% to 2029.
Of the 4.5 million, Europe accounts for the lion’s share at 3.8 million, with an estimated 1.2 million systems added to the installed base in 2024. This figure includes both new installations of solar PV + battery storage systems as well as installations of battery storage systems in existing solar PV systems (i.e. retrofits).
Berg Insight defines HEMS as a system that, at a minimum, consists of a solar PV system, battery storage system and a web-based management portal or smartphone app that allows for remote monitoring and control of the system. A wider HEMS also integrates backup generators, EV chargers, heat pumps, home appliances and other connected products and systems in the home.
The penetration rate for the market is still low in Europe, says the company in a release, at around 3.2%. Germany is the clear market leader, accounting for close to half of the installed base and shipments in Europe in 2024.
Growing at a CAGR of 22.8%, the installed base of HEMS in Europe is estimated to reach 10.6 million systems at the end of 2029. This corresponds to a penetration rate of 8.5%.
Across the pond, there were an estimated 700,000 HEMS installed in North American homes at the end of 2024. Shipments including both new installations and retrofits reached 200,000 systems in 2024.
About 0.6% of the houses and multi-dwelling units in the region had an HEMS installed at the end of the year.
The US is estimated to account for about 95% of the North American market, while Canada accounts for 5%. California, Texas, Hawaii and Puerto Rico were found to be some of the largest HEMS markets in the US.
Growing at a CAGR of 18.9%, the installed base of HEMS in North America is estimated to reach 1.7 million systems at the end of 2029. This will then correspond to a penetration rate of 1.4%.
The Northeast faces distinct challenges, including transportation electrification, aging infrastructure, renewable integration, grid modernization, and increasingly severe weather. DTECH® Northeast will assemble leading stakeholders to tackle these issues head-on, offering insights into cutting-edge technologies and strategies that ensure reliability, sustainability, and customer satisfaction. Join us in Boston, Massachusetts, from November 17-19, 2025!
Policy, supply chain and companies involved
On the policy side of things, says Berg Insight, Germany and California, the two largest markets in Europe and North America respectively, recently introduced new regulations that favor the adoption of home battery storage systems.
NEM 3.0 in California makes solar PV systems without home batteries less economical, while Paragraph 14a of the Energy Industry Act and the Solarspitzengesetz (translated as Solar Peak Act) in Germany also increase the value of installing battery storage systems.
Government policies, including regulations, subsidies and tax incentives, have a major impact on the market, they add, and it is uncertain how these may evolve over the coming years.
Berg Insight points out several megatrends, including the growing adoption of EVs and the increasing reliance on intermittent renewable energy sources – highlight the growing importance of battery storage systems and energy optimization solutions.
Regarding companies, Berg Insight lists companies from various industry sectors, both in Europe and the US.
Leading Germany-based companies include E3/DC (Hager Group), Sonnen (Shell), Senec (EnBW), Solarwatt, SMA Solar, RCT Power and Viessmann Climate Solutions (Carrier).
Additional leading European companies include UK-based GivEnergy and Myenergi, Austria-based Fronius, France-based Schneider Electric and Denmark-based Emaldo.
Leading US-based HEMS players include Tesla, Enphase Energy, FranklinWH, Generac, Lunar Energy and Savant Systems.
Several significant players active on the HEMS market in North America and Europe are based outside of the two regions, including China-based Huawei, BYD, Growatt and Sungrow; Israel-based SolarEdge; and South Korea-based LG Energy Solution.
There are also several companies that specialize in providing software platforms that enable integration of home batteries, EV chargers, heat pumps and smart home devices from various manufacturers, combined with intelligent energy optimization solutions.
Companies in this segment include GridX, Kiwigrid, Eniris, Enpal, Homey, Loxone, Greenely and Tibber.
Commenting in a release on the report was Martin Apelgren, principal analyst at Berg Insight: “The adoption of HEMS in Europe and North America increased significantly in 2024…There is no doubt that HEMS will be an important part of homes in the coming years.”
Originally published in Smart Energy International by Yusuf Latief
