We have been analysing the Home Energy Management (HEM) space for over a decade at Delta-EE, and the market has come a long way.
10 years ago, energy suppliers were providing energy monitoring devices (or in-home displays) to their customers, in a hope to make them understand their consumption and save energy as a result. That’s what the industry called HEM at the time. History told us however that customers quickly lose interest for these devices, as once you have the information, there isn’t much you can do on an ongoing basis with it.
The picture has changed quite a lot in 2019. Smart meter roll-outs are well advanced in a lot of European countries, the PV market has boomed, batteries are becoming must have with PV in some countries, EVs & chargepoints have become one of the big pillars of new energy, residential demand response values are slowly opening up, and of course electrification of heat is one of the most debated topic across European governments.
In the middle of this energy transition, the digitalisation of everything has turned the energy and heating industries upside down. Customers are now used to control their heating systems remotely, they can follow their energy consumption and pay their bills online, all with easy to use Apps. Customers can also buy their heating systems online. And we are even seeing companies offering Heat-as-a-Service to customers, packaging the appliance, the controls, the financing, the maintenance and energy all together.
The energy transition and the digitalisation of energy & heat is the perfect combination for the HEM market to thrive. Innovations are already coming from all over Europe, from all kinds of companies. The high penetration of large electric loads in the Home, such as heat pumps or hot water tanks, is probably a great place to start for anyone in the market. But the fast growth of EVs – and to a lower extend PV, batteries, flexibility – will bring more competition and innovations into the mix.
To me, it definitely looks like HEM is going to be one of the critical new energy battles of the next decade.
If you are interested in buying our new HEM study, please email me at arthur.jouannic@delta-ee.com.
