LCP Delta: European Energy Management Market to Nearly Double by 2030

A new analysis from LCP Delta reveals that Germany leads Europe in home energy management (HEM) systems, with European annual sales expected to double by the decade's end.

In 2023, 800,000 new HEM systems were installed in Europe, increasing the total installed base to over 2.4 million. LCP Delta predicts that the market for systems that monitor, control, and optimize household energy generation, storage, and consumption will exceed 7 million annual sales by 2030.

Germany topped the list for HEM installations in 2023, driven by its extensive solar and battery storage infrastructure, with the UK being the second-largest market. Germany had a 1.1 million HEM system installed by 2023, while the UK had 500,000. High electricity prices, the rise of connectable home electrical assets, and the liberalization of electricity markets were critical factors driving these sales.

LCP Delta forecasts a significant and promising growth in the HEM market. This growth is driven by the increasing number of large electrical assets in European homes, new optimization services, expanding market and technology solutions, and partnerships that enable diverse assets and brands to be optimized, including EV charge points and heat pumps.

The analysis also highlights the growing partnerships between HEM providers and equipment manufacturers to expand the range of devices compatible with HEM platforms. Europe currently has over 140 HEM and appliance optimization offerings.

However, LCP Delta cautions that interoperability issues and a lack of standardization remain obstacles to growth. The consultancy believes developing common standards would accelerate market growth beyond current projections.

Ricardo Lopez, HEM research manager at LCP Delta, highlighted the role of consumers in driving the HEM market. He stated that consumers aim to "get smarter" about energy consumption, and this drive is fueling the deployment of heat pumps, solar panels, and other large electrical assets. Despite the potential for growth as Europe transitions to renewable energy, challenges such as slow smart meter rollouts, poor interoperability, supplier tariff structures, subsidy removals, and regulatory uncertainties persist.