The home energy management systems (HEMS) markets in Europe and North America are expected to see CAGRs of 19.4% and 15.2%, respectively, until 2030, according to market watcher Berg Insight.

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 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%.

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%, the installed base of HEMS in Europe is forecast to reach 12.5 million systems by the end of 2030. This corresponds to a penetration rate of 10%.

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% of houses and multi-dwelling units in the region had a HEMS installed at the end of 2025.

The USA is estimated to account for about 95% of the North American market while Canada accounts for about 5%. California, Texas, Hawaii, Arizona and Puerto Rico are among the largest HEMS markets in the USA.

Growing at a CAGR of 15.2%, the installed base of HEMS in North America is forecast to reach over 1.7 million systems at the end of 2030. This will correspond to a penetration rate of 1.4%.

The HEMS value chain includes a diverse range of companies from different industry sectors. US-based HEMS players include Tesla, Enphase Energy, Generac, FranklinWH Energy Storage, Base Power, Lunar Energy and Savant Systems.

Germany-based companies include E3/DC (Hager Group), Sonnen (Shell), Senec (EnBW), Solarwatt, SMA Solar, RCT Power, Fenecon and Viessmann Climate (Carrier). Additional European providers include Austria-based Fronius, UK firm Puredrive Energy and Denmark-based Emaldo.

Several 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; Israeli firm SolarEdge; and South Korea-based LG Energy.

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,” said 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,” said Apelgren.

Download the report brochure at media.berginsight.com/2026/09/15164612/bi-homeenergy4-ps.pdf.