Summary
Description
How should the utility and mobile industries address the vast business opportunity in home energy management systems? Berg Insight estimates that the installed base of HEMS in Europe and North America will grow at a compound annual growth rate of 18.9 percent from 6.0 million in 2025 to 14.2 million in 2030. Get a 360-degree perspective on the rapid evolution of the HEMS market in this comprehensive 210-page strategy report.
The Home Energy Management Systems Market is a comprehensive report from Berg Insight analysing the latest developments and trends on the home energy management systems market in Europe and North America. This strategic research report from Berg Insight provides you with 210 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.
Highlights from this report:
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Insights from 20 executive interviews with market leading companies.
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Comprehensive overview of the HEMS value chain and key applications.
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In-depth analysis of market trends and key developments.
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Statistical data on residential solar PV system adoption in Europe and North America.
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Profiles of 81 companies active in the solar PV, battery storage and HEMS industry.
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Detailed market sizing and forecasts lasting until 2030.
The number of Home Energy Management Systems in Europe and North America reached 6.0 million in 2025
The residential sector accounts for around 25 percent of the total energy consumption in Europe and 15 percent in North America. Household electricity consumption is anticipated to increase substantially during the coming years due to the continued adoption of electric vehicles and heat pumps. Solutions that enable homeowners to reduce their overall energy consumption, optimise when electricity is consumed and increase the share of energy coming from renewable sources therefore play a vital role in the transition to carbon neutrality and mitigating climate change. In order to support this transition, governments in Europe and North America have introduced targeted incentives and subsidies to encourage residential investments in renewable energy and energy optimisation technologies. Higher and increasingly volatile electricity prices in some markets during recent years, combined with concerns over grid reliability and more frequent power outages in certain regions, have also strengthened homeowners’ incentives to invest in such solutions.
In this report, a home energy management system (HEMS) is defined 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 enables remote monitoring and control of the system. A wider HEMS also integrates backup generators, EV chargers, heat pumps, home appliances and other connected devices and systems in the home. A HEMS enables households to actively participate in the electricity market, reduce their monthly electricity bills and help alleviate strain on the electricity grid during periods of high demand.
At the end of 2025, there were an estimated 5.1 million HEMS installed in European homes. An estimated 1.3 million systems were added to the installed base in 2025. 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). The penetration rate is still low in Europe, at around 4.3 percent. Germany is by far the leading market, accounting for close to half of the installed base and shipments in Europe. Growing at a CAGR of 19.4 percent, the installed base of HEMS in Europe is estimated to reach 12.5 million systems at the end of 2030. This corresponds to a penetration rate of 10.0 percent.
The North American HEMS market is smaller in terms of the number of installed and shipped systems compared to Europe. At the end of 2025, there were an estimated 850,000 HEMS installed in North American homes. Shipments, including both new installations and retrofits, reached 200,000 systems in 2025. About 0.7 percent of the houses and MDUs in the region had a HEMS installed at the end of the year. The US is estimated to account for about 95 percent of the North American market while Canada accounts for about 5 percent. California, Texas, Hawaii, Arizona and Puerto Rico are among the largest HEMS markets in the US. Growing at a CAGR of 15.2 percent, the installed base of HEMS in North America is estimated to reach over 1.7 million systems at the end of 2030. This will correspond to a penetration rate of 1.4 percent.
The HEMS value chain includes a diverse range of companies operating across different parts of the residential energy ecosystem. Some companies offer complete HEMS solutions that combine proprietary hardware, software and energy management capabilities. Other companies specialise in individual components, such as battery storage systems, inverters, EV chargers or energy management hardware, which can be integrated with third-party products to form a complete HEMS. There are also companies that focus primarily on software and energy management platforms, enabling hardware manufacturers, utilities and other market participants to integrate, monitor and optimise distributed energy resources in the home. Leading US-based players include Tesla, Enphase Energy, Generac, FranklinWH Energy Storage, Base Power, Lunar Energy and Savant Systems. Leading Germany-based companies include E3/DC (Hager Group), Sonnen, Senec (EnBW), Solarwatt, SMA Solar, RCT Power, Fenecon and Viessmann Climate Solutions (Carrier). Austrian Fronius, UK-based Puredrive Energy and Denmark-based Emaldo are also leading providers. Several major players on the HEMS market in North America and Europe are based outside of the two regions. These include China-based Huawei, Growatt, Sungrow, Sigenergy, AlphaESS, and BYD Electronic; Israel-based SolarEdge; and South Korea-based LG Energy Solution.
This report answers the following questions:
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How will the HEMS market evolve in the next five years?
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What are the main drivers behind growth in Europe and North America?
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How important are government subsidies and tax reductions for adoption?
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Which are the leading HEMS providers in Europe and North America?
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Which are the main connectivity technologies and standards?
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What are the business models and channels-to-market for HEMS solutions?
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What is the potential market size for cellular IoT in the HEMS market?
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Which are the main trends in the industry?
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How is AI impacting the HEMS market?
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Table of Contents
Table of Contents
Table of Contents
List of Figures
Executive summary
1 Introduction
1.1 Home Energy Management Systems (HEMS)
1.1.1 Solar PV panels
1.1.2 Inverters and power optimisers
1.1.3 Battery storage systems
1.1.4 Smart electrical panels, load controllers and energy managers
1.1.5 EV chargers
1.1.6 Heat pumps and home appliances
1.1.7 Smart meters and dynamic electricity pricing
1.1.8 Management portal and smartphone app
1.1.9 Levelized Cost of Energy (LCOE) and household investment economics
1.1.10 Value chain
1.2 The electricity market
1.2.1 Europe
1.2.2 North America
1.2.3 Smart grids
1.3 Solar power generation
1.3.1 Residential solar PV system installations and shipments
1.4 Market drivers for HEMS
1.4.1 Government subsidies and incentives
1.4.2 Net metering and feed-in tariffs
1.4.3 Load management, demand response and VPP programmes
1.4.4 Rising electricity prices
1.4.5 Declining costs of solar PV and battery storage solutions
1.4.6 Grid independence and power outage protection
1.4.7 Growth of EVs and electrical heating systems
2 Communications Technologies and Standards
2.1 3GPP cellular and LPWA technologies
2.1.1 2G/3G/4G/5G cellular technologies and IoT
2.1.2 LoRa and LoRaWAN
2.1.3 Sigfox
2.2 Home networking technologies and standards
2.2.1 Bluetooth
2.2.2 EEBus
2.2.3 Home Connectivity Alliance (HCA)
2.2.4 KNX
2.2.5 Matter
2.2.6 Modbus
2.2.7 OpenADR
2.2.8 Open Charge Point Protocol (OCPP)
2.2.9 OpenTherm
2.2.10 SG-Ready
2.2.11 SunSpec
2.2.12 Thread
2.2.13 Wi-Fi
2.2.14 Zigbee
2.2.15 Z-Wave
3 Home Battery Storage System Providers
3.1 European companies
3.1.1 E3/DC (Hager Group)
3.1.2 Emaldo
3.1.3 Fenecon
3.1.4 Ferroamp
3.1.5 Fimer (Motion Applied)
3.1.6 Fronius
3.1.7 Kostal
3.1.8 Myenergi
3.1.9 Polarium Energy Solutions
3.1.10 Powervault Plus (EBIS GB Holdings)
3.1.11 Puredrive Energy
3.1.12 RCT Power
3.1.13 SAX Power
3.1.14 Senec (EnBW)
3.1.15 SMA Solar Technology
3.1.16 Solarwatt
3.1.17 Sonnen
3.1.18 VARTA
3.1.19 Viessmann Climate Solutions (Carrier)
3.2 North American companies
3.2.1 Base Power
3.2.2 Briggs & Stratton Energy Solutions
3.2.3 Canadian Solar
3.2.4 Enphase Energy
3.2.5 Fortress Power
3.2.6 FranklinWH Energy Storage
3.2.7 Generac
3.2.8 Lunar Energy
3.2.9 NeoVolta
3.2.10 Savant Systems
3.2.11 Tesla
3.2.12 Tigo Energy
3.3 Rest of World companies
3.3.1 AlphaESS
3.3.2 APsystems (Yuneng Technology)
3.3.3 Bluetti Power (PowerOak Newener)
3.3.4 BYD Electronic
3.3.5 EcoFlow
3.3.6 GoodWe
3.3.7 Growatt New Energy
3.3.8 Hanwha Qcells
3.3.9 Huawei
3.3.10 JinkoSolar
3.3.11 LG Energy Solution
3.3.12 Pylon Technologies
3.3.13 Samsung SDI
3.3.14 Sigenergy
3.3.15 SolarEdge
3.3.16 SolaX Power Network Technology
3.3.17 Sungrow Power Supply
3.3.18 TeraHive (Liteon Technology)
4 Home Energy Management Solution Providers
4.1 HEMS platform providers and integrators
4.1.1 1KOMMA5°
4.1.2 Beegy
4.1.3 Clever-PV
4.1.4 Consolinno Energy
4.1.5 Currentt
4.1.6 Derapi
4.1.7 Eniris
4.1.8 Enjoyelec
4.1.9 Enode
4.1.10 Enpal
4.1.11 GridX (E.ON)
4.1.12 Kiwigrid
4.1.13 Reduxi FlexCo
4.1.14 Saveeye
4.1.15 Solar Manager
4.1.16 Xemex
4.1.17 Zerofy
4.2 Smart home, electrical panel and load control solution providers
4.2.1 Eaton
4.2.2 Homey (LG Electronics)
4.2.3 Legrand
4.2.4 Leviton
4.2.5 Loxone
4.2.6 Lumin (ABB)
4.2.7 Schneider Electric
4.2.8 Shelly Group
4.2.9 Smappee
4.2.10 SPAN
4.2.11 Theben
4.3 Electricity retailers
4.3.1 Greenely
4.3.2 Octopus Energy
4.3.3 Ostrom
4.3.4 Tibber
5 Market Analysis and Trends
5.1 Market forecasts
5.2 Value chain analysis
5.2.1 Leading home battery storage system providers
5.2.2 Companies from other industry sectors enter the HEMS market
5.3 Trends
5.3.1 Lower solar export compensation boosts battery storage demand
5.3.2 Virtual power plants to become more powerful as more DERs are connected
5.3.3 EV batteries emerge as a source of home backup power
5.3.4 Interoperability will be key for the adoption of wider HEMS
5.3.5 Energy aggregation and trading create new revenue opportunities
5.3.6 Small-scale HEMS increases in popularity in Europe
5.3.7 Intelligent and AI-driven solutions simplify home energy management
5.3.8 Energy-as-a-Service removes investment barriers for households
Glossary
Press Release
2026-09-15 Press releases
The number of Home Energy Management Systems in Europe and North America reached 6.0 million at the end of 2025
Berg Insight, the world’s leading IoT market research provider, today released a new market report covering the Home Energy Management Systems (HEMS) market. In this study, a HEMS is defined 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 which allows for remote monitoring and control of the system. A wider HEMS can also integrate backup generators, EV chargers, heat pumps, home appliances and other connected products and systems in the home.
At the end of 2025, there were an estimated 5.1 million HEMS installed in European homes. An estimated 1.3 million systems were added to the installed base during the year. This figure includes both new installations of combined solar PV and battery storage systems and battery storage systems added to existing solar PV installations. The penetration rate is still low in Europe, at around 4.3 percent. Germany is by far the leading market, accounting for almost half of both the installed base and shipments in Europe. Growing at a CAGR of 19.4 percent, the installed base of HEMS in Europe is estimated to reach 12.5 million systems at the end of 2030. This corresponds to a penetration rate of 10.0 percent.
The North American HEMS market remains smaller than the European market in terms of both the installed base and annual shipments. At the end of 2025, there were an estimated 850,000 HEMS installed in North American homes. Shipments, including both new installations and retrofits, reached 200,000 systems during the year. About 0.7 percent of houses and multi-dwelling units in the region had a HEMS installed at the end of 2025. The US is estimated to account for about 95 percent of the North American market while Canada accounts for about 5 percent. California, Texas, Hawaii, Arizona and Puerto Rico are among the largest HEMS markets in the US. Growing at a CAGR of 15.2 percent, the installed base of HEMS in North America is estimated to reach over 1.7 million systems at the end of 2030. This will correspond to a penetration rate of 1.4 percent.
The HEMS value chain includes a diverse range of companies from different industry sectors. Leading US-based HEMS players include Tesla, Enphase Energy, Generac, FranklinWH Energy Storage, Base Power, Lunar Energy and Savant Systems. Leading Germany-based companies include E3/DC (Hager Group), Sonnen (Shell), Senec (EnBW), Solarwatt, SMA Solar, RCT Power, Fenecon and Viessmann Climate Solutions (Carrier). Additional leading European providers include Austria-based Fronius, UK-based Puredrive Energy and Denmark-based Emaldo. Several leading players serving the European and North American HEMS markets are based outside the two regions. These include China-based Huawei, Growatt, Sungrow, Sigenergy, AlphaESS and BYD; Israel-based SolarEdge; and South Korea-based LG Energy Solution. There are also several companies that specialise in providing hardware devices and software platforms that integrate home batteries, EV chargers, heat pumps and smart home devices from various manufacturers and intelligently optimise household energy use. Companies in this segment include GridX, Clever-PV, Kiwigrid, Eniris, Enpal, 1KOMMA5°, Homey, Shelly, Loxone, Greenely and Tibber.
“The European and North American HEMS markets continued to expand in 2025”, says Martin Apelgren, Principal Analyst at Berg Insight. At the same time, coordinating and optimising the growing number of energy assets in the home is becoming more complex, with systems having to account for factors such as solar PV generation, electricity prices, export tariffs and household consumption patterns. The next phase of the HEMS market will not only be about installing more batteries, but also about extracting more value from the energy assets already installed in the home. “As households become increasingly electrified, intelligent energy management will play a more important role”, concludes Mr. Apelgren.
