The strong European market for energy management systems may be an indicator for growth in the stateside, according to a recent report from Global Market Insights, a Delaware-based research organization.
The number of European households with energy management systems – which are designed to make homes more energy efficient through monitoring devices that cool, generate heat and consume electricity – has doubled between 2015 and 2016. About 40,000 European households were equipped with energy management systems in 2016 as consumers are seeking to save money through energy-efficient buildings. Many European energy management systems tout savings of about €1,000 per year, or about $1,160.
The energy management system market will be a more than $38 billion business by 2024 with several types of businesses, including battery storage, data analytics, and energy supply companies, contributing to the market.
Aiding the advances in the European market has been a European Union directive to promote energy efficiency. For all members of the European Union, the directive sets a goal of 20 percent energy efficiency by 2020 within all segments of the energy chain from production to consumer.
The energy management system trend is being driven by homeowners and commercial tenants who are willing to pay more for energy-efficient properties. Also, energy-efficient commercial buildings have higher occupancy rates, according to the report. Energy management systems allow building owners to promote building efficiency to prospective tenants and investors.
As the desire for renewable energy increases and consumers seek to reduce greenhouse emissions, current buildings will be retrofitted with energy management systems along with the new buildings being constructed with such systems built-in. While the worldwide energy management system market is still developing, the growth is expected to notch a double-digit compound annual growth rate increase from 2016 to 2024.