The market for home energy management systems is growing sharply in Europe with more than 2,4 million installations

This report covers current and future market developments in 11 European countries: Belgium, Finland, France, Germany, Italy, the Netherlands, Norway, Poland, Spain, Sweden and the United Kingdom.

For Georges Husni, Business Development Manager in Europe at LCP Delta: “Europe's emphasis on renewable energy and energy efficiency has led to the HEM market being even more dynamic than last year. For example, Netatmo which is entering into a partnership with Enode, or 1Komma5 in Germany which has acquired several solar panel installers in Europe. The only barrier that stands and which, if lifted, can boost the market even more, is the subject of interoperability, CAD how to ensure fluid communication between different electrical devices in a house. »

Lessons and figures providing market analysis

European market

By 2023, more than 2,4 million home energy management and appliance optimization systems will have been installed in Europe.

• Home energy management and appliance optimization systems are more popular in markets with more energy asset installations and higher electricity prices:
  • Germany remains the leading European market, followed by the United Kingdom, due to their large installed bases of photovoltaic solar panels and storage batteries but also, the liberalization of the electricity market and high prices having enabled households to access multiple solutions thanks to domestic energy management systems to optimize their consumption.
  • France, alongside Italy and Spain, presents significant potential for energy management systems. A potential resulting from the widespread adoption by households of electric heating systems, hot water tanks and heat pumps.

Despite these figures, these countries remain the most important markets and constitute more than 80% of the total assets sold in Europe in 2023.

• Smart meters are key accelerators of value streams and are expected to drive the growth of the domestic energy market in Europe.
  • By the end of 2023, only 15 of the 27 EU countries reported having reached the target with an installation rate above 80%.
  • Unlike Germany, Poland and Belgium, France has 93% deployment of smart meters. Alongside Italy and Spain, France represents half of smart meter installations in Europe.

French market

In the French market, in 2023, the growth rate of home energy and optimization devices was 49.000. The LCP Delta firm forecasts an annual growth rate of 42%, which could reach 580.000 in 2030.

• In France, the residential energy landscape is marked by the widespread adoption of electric heating systems in 2023.
  • 935.000 annual sales for air conditioners in 2023
  • 3,7 million annual sales for electric heaters
  • 1,49 million annual sales for electric hot water tanks
• In France, solar and storage installations jumped in 2023 but are slowly gaining ground. The increase in energy prices and the reduction in electricity purchase prices have encouraged households to self-consume PV energy.
  • 195.000 annual sales for photovoltaic panels
  • 2.500 annual sales for residential batteries
  • 742.000 annual sales for heat pumps
  • 200.000 annual sales for charging stations dedicated to electric vehicles