Market Research Report

Middle East Home Energy Management System Market Research Report: Forecast (2023-2028)

By Offering (Hardware [Control Devices, Communication Devices], Software, Services), By Communication Technology (Z-wave, ZigBee, Wi-Fi, Homeplug, Others), By Country (The UAE, Sau...di Arabia, Qatar, Oman, Turkey, Egypt, Rest of Middle East), By Company (Schneider Electric, Honeywell International Middle East LTD, Eaton Corporation, Panasonic, ABB Group, Bosch GmbH, Hager Middle East, Ista Middle East FZE, ENGISY, ALTEC Energy, Others) Read more

  • Buildings, Construction, Metals & Mining
  • Aug 2023
  • 157
  • PDF, Excel, PPT

Market Definition

A Home Energy Management System (HEMS) is a system designed to monitor, control, and optimize energy generation, storage, and consumption within a household. It involves the integration of smart technologies, renewable energy sources, energy storage systems, and advanced monitoring & control systems. The primary purpose of HEMS is to achieve specific goals such as cost reduction, maximizing self-sufficiency, and minimizing emissions.

It enables homeowners to make informed decisions about their energy usage, adjust settings for maximum efficiency, utilize renewable energy sources effectively, and contribute to a greener & and more sustainable future.

Market Insights & Analysis: The Middle East Home Energy Management System Market (2023-28):

The Middle East Home Energy Management System Market is estimated to grow at a CAGR of around 12.24% during the forecast period, i.e., 2023-28. This growth could be attributed to several factors, including the continuous growth in power consumption, majorly from HVAC & lighting purposes (around 60% of the region's power is consumed by HVAC solutions), increasing adoption of renewable energy resources in the residential sector, and favorable government incentives & regulations to promote energy efficiency.

Countries like UAE, Qatar, and Saudi Arabia in the Middle East are witnessing a rise in residential renewable energy adoption, particularly solar power, due to regulatory measures & annual targets for renewable energy usage & carbon dioxide reduction. Thus, the region has witnessed a steady rise in home energy management systems adoption in recent years. These systems enable homeowners to manage & optimize the integration of renewable energy into their overall energy system, maximizing self-consumption & reducing reliance on the grid.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 12.24%
Country Covered The UAE, Saudi Arabia, Qatar, Oman, Turkey, Egypt, Rest of Middle East
Key Companies Profiled Schneider Electric, Honeywell International Middle East LTD, Eaton Corporation, Panasonic, ABB Group, Bosch GmbH, Hager Middle East, Ista Middle East FZE, ENGISY, ALTEC Energy, Others
Unit Denominations USD Million/Billion

 

Moreover, governments in Middle Eastern countries, such as Saudi Arabia, UAE, Bahrain, etc., are implementing several policies, like the Green Building Regulations & Energy Efficiency Labeling Program, to promote energy efficiency, owing to reducing carbon emissions, energy security, and rapid growth of industries. These policies include setting energy efficiency targets, providing financial incentives, and mandating energy efficiency standards.

  • In 2022, Oman launched the National Strategy for an Orderly Transition to Net Zero as its pathway to achieve carbon neutrality by 2050. The strategy includes several measures to improve energy efficiency.

Hence, these policies would drive the demand for home energy management systems (HEMS) in the forecast period, as they create a favorable environment for market expansions by increasing awareness, providing financial incentives, ensuring regulatory compliance, enabling energy cost savings, and promoting environmental consciousness among homeowners, further driving the Middle East Home Energy Management System Market growth in the future years.


Middle East Home Energy Management System Market Research Report: Forecast (2023-2028)

The Middle East Home Energy Management System Market Driver:

Growing Energy Consumption to Amplify the Market – The Middle East region has been witnessing a substantial surge in electricity consumption in recent years, driven by factors like industrial & technological development, economic growth, and a rapidly expanding population. As industries flourish & new technologies emerge, the power demand continues to rise, placing significant strain on the existing energy infrastructure. According to the Saudi Central Bank, in 2020, residential buildings dominated the demand for electricity in Saudi Arabia.

Homes accounted for around 50% of total electricity consumption in the Kingdom, far more than commercial or government structures in 2022. This escalating need for electricity has prompted homeowners in the Middle East to seek effective solutions to monitor & optimize their electricity usage. This has resulted in the increased adoption of Home Energy Management Systems (HEMS) across the region & fueled market growth in recent years, as it is a viable solution to address the challenges posed by increasing electricity consumption. The rising cost of electricity in some Middle East countries such as Iraq, Lebanon, Iran, etc., has become a significant concern for homeowners.  For instance:

  • In 2022, Lebanon's state power company, Electricite du Liban (EDL), raised the price it charges for electricity, in line with their implementation of the National Emergency Plan.

Thus, with electricity tariffs on the rise, homeowners are increasingly motivated to adopt energy management solutions like HEMS to mitigate the impact of accelerating energy expenses. This could positively impact the market in the coming years. By leveraging HEMS, homeowners could identify areas of inefficiency, reduce energy wastage, and ultimately achieve cost savings on their electricity bills in the coming years.

Middle East Home Energy Management Systems Market Opportunity:

Growing Deployment of Smart Grids & Smart Meters to Upscale the Growth – The increasing deployment of smart grids & smart meters in the Middle East anticipates significant market growth for home energy management systems (HEMS) in the forecast period. Governments of countries such as the UAE, Saudi Arabia, Qatar, etc., are pushing ahead with ambitious programs to ramp up the power supply & integrate renewable energy into their generation portfolios.

Smart grids are beginning to play a much greater role in the Middle East’s utility sector. These grids aim to collect information about consumer habits using smart devices. This information could then help improve the efficiency, reliability, and economic sustainability of the network. As a result, the increasing deployment of smart grids in the Middle East creates a favorable environment for the growth of the Home Energy Management System Market size in the upcoming years.

The seamless integration of smart grid technologies with HEMS empowers homeowners to optimize their energy usage, reduce costs, and contribute to a more sustainable & efficient energy landscape in the region.

The Middle East Home Energy Management System Market Challenge:

Growing Security & Privacy Concerns to Impede Market Expansion – The Middle East region places significant importance on data security & privacy due to cultural & regulatory factors. With HEMS collecting & storing sensitive information about residents' energy usage patterns & daily schedules, consumers are increasingly cautious about the potential risks associated with data breaches and unauthorized access.

These concerns could lead to a lack of trust & hesitation among consumers to adopt HEMS. Furthermore, the Middle East has strict data protection & privacy regulations and any non-compliance. The region's countries, like Israel, Saudi Arabia, UAE, Bahrain, etc., are periodically updating their data protection regulations owing to growing data breaches.

  • In 2021, the Qatar Financial Centre Authority updated the QFC’s 2005 data protection regulations in December 2021 with new regulations & rules aligned with GDPR.

Updating data privacy & security regulations could present challenges for HEMS providers. They might need to allocate additional resources to enhance their infrastructure, invest in cybersecurity measures, and update their systems to meet the new requirements. This could increase operational costs & potentially slow down the pace of innovation in the Middle East Home Energy Management System Market.

The Middle East Home Energy Management Systems Market Trends:

Integration of Advanced Technologies in Home Energy Management Systems – As the demand for advanced technologies continues to rise due to rapid economic growth, the advent of Industry 4.0, and a growing tech-savvy population, companies such as CISCO, Honeywell International Inc., and Schneider Electric are integrating cutting-edge features like tiny signal analysis into their energy management system modules.

The main objective of this integration is to significantly enhance data monitoring capabilities, enabling more precise & comprehensive analysis of energy consumption. By leveraging this detailed data analysis, businesses & homeowners could effectively identify patterns, anomalies, and trends that might remain unnoticed. This valuable information empowers them to implement targeted energy-saving strategies, optimize energy consumption, and ultimately reduce their carbon footprint with greater efficiency.

As a result, the Home Energy Management Systems Market is poised to experience substantial development in the coming years, driven by the demand for energy-efficient solutions & environmentally sustainable practices.

The Middle East Home Energy Management System Market (2023-28): Segmentation Analysis

The Middle East Home Energy Management System Market study of MarkNtel Advisors evaluates & highlights the major trends & and influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. In accordance to the analysis, the market has been further classified as:

Based on Offering:

  • Hardware
    • Control Devices
      • Lighting Controls
      • Sensor
      • Smart Meter
      • Intelligent HVAC Controllers
      • Others (Thermostat, Smart Plug/Strip, etc.)
    • Communication Devices
  • Software
  • Services

Hardware is expected to hold a major share in the Middle East Home Energy Management System Market in the upcoming years. This growth is attributed to surging investment in residential buildings & growing awareness of energy conservation in the Middle East. Countries like UAE, Saudi Arabia, Egypt, Bahrain, etc., are witnessing surging investment in residential buildings, driven by government initiatives like Vision 2030 & Dubai Industrial Strategy 2030 & relaxed foreign investor laws.

Booming progress in the residential sector, fueled by new project announcements & population growth, has intensified concerns about energy consumption & sustainability. Consequently, there is a growing need for energy-efficient hardware solutions, such as lighting controls, sensors, smart meters, etc., in the region.

Moreover, rising awareness about energy conservation & sustainability encourages homeowners & businesses to invest in energy-efficient hardware like lightning controls, Intelligent HVAC Controllers, smart meters, etc., to reduce electricity consumption & operational costs.

Additionally, government initiatives & regulations such as the Saudi Green Initiative, Qatar Energy's Sustainability Strategy, Oman National Strategy for an Orderly Transition to Net Zero, etc., are promoting energy efficiency. Further, boosting the adoption of HEMS hardware in the Middle East, contributing to its significant market share in the foreseeable future.

Based on Communication Technology:

  • Z-Wave
  • ZigBee
  • Wi-Fi
  • Homeplug

ZigBee is poised to grab significant share in the Middle East Home Energy Management System Market during the forecast period due to its suitability for home energy management systems & its wide range of applications in various devices. As a low-power, wireless mesh networking standard, it offers several advantages that appeal to consumers, accelerating its demand in the Middle East. ZigBee's easy setup & user-friendly operation make it a popular choice for smart home applications. Additionally, its cost-effectiveness compared to other wireless sensor networks like Bluetooth & Wi-Fi further drives its growing adoption in the region. These advantages have led to the rapid adoption of ZigBee in the Middle East in recent years.

Moreover, with rising investments in innovative home technologies in cities like Dubai, Doha, and Riyadh, coupled with government support for sustainability & IoT trends, consumers now view voice-activated assistants & smart security systems as essential household items. This drives the application of the ZigBee communication segment, facilitating seamless communication among smart devices & positively impacting market growth in the coming years.

The Middle East Home Energy Management System Market (2023-28): Regional Projection

  • The UAE
  • Saudi Arabia
  • Qatar
  • Oman
  • Turkey

The UAE is expected to hold a major share of the Middle East Home Energy Management System Market in the forecast period. This growth is likely to be fueled by government initiatives like Green Building Regulations and the Energy Efficiency Labelling Programme, along with increasing popularity & awareness of home automation and energy efficiency.

The rise in smart homes would drive the adoption of home energy management systems (HEMS) as a crucial smart home technology for monitoring & controlling energy usage. This would turn into market expansion in the forecast period. Additionally, the growing government support for developing more smart homes in the country would further positively impact market development.

  • In 2022, the Mohammed Bin Rashid Centre for Government Innovation and the Mohammed bin Rashid Housing Establishment of Dubai launched a global competition, challenging architects & designers to design a ‘highly affordable, expandable, innovative and aesthetically pleasing’ house suited to modern Emirati needs.

Moreover, growing energy demand in the country, owing to the border recovery of the economy & continuous rise of population, further accelerates the market growth. According to Dubai Electricity and Water Authority, in 2023, electricity demand reached around 53,180 gigawatt-hours in 2022, compared to 50,401 in 2021. Thus, this increasing energy demand significantly boosts the market expansion of home energy management systems as homeowners & businesses seek effective ways to manage & optimize their energy consumption.

Middle East Home Energy Management System Industry Recent Development:

  • 2023: Schneider Electric launched the Resi9 circuit breaker, which provides greater electrical protection for residential buildings, during an innovation day event in Muscat, Oman.

Gain a Competitive Edge with Our Middle East Home Energy Management System Market Report

  1. The Middle East Home Energy Management System Market Report by MarkNtel Advisors provides a detailed & and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & and make informed decisions.
  2. This report also highlights current market trends & and future projections, allowing businesses to identify emerging opportunities & and potential challenges. By understanding market forecasts, companies can align their strategies & and stay ahead of the competition.
  3. The Middle East Home Energy Management System Market Report aids in assessing & and mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & and optimize their operations.

Frequently Asked Questions

   A. The market size of the Middle East Home Energy Management System is expected to grow at a CAGR of around 12.24% during 2023-2028.

   A. The growing energy consumption is expected to drive the Middle East Home Energy Management System Market during 2023-28.

   A. The top players in the Middle East Home Energy Management System Market are Schneider Electric, Honeywell International Middle East LTD, Eaton Corporation, Panasonic, ABB Group, Bosch GmbH, Hager Middle East, Ista Middle East FZE, ENGISY, ALTEC Energy, and Others.

   A. The hardware segment holds a considerable market share in the Middle East Home Energy Management System Market in 2023.

   A. The UAE would present growth prospects in the Middle East Home Energy Management System Market during 2023-28.

   A. The growing deployment of smart grids & smart meters are the growth opportunities driving the Middle East Home Energy Management System Market through 2028.

   A. Mounting security & privacy concerns are the possible restraints affecting the growth of the Middle East Home Energy Management System Market.

Middle East Home Energy Management System Market Research Report (2023-2028) - Table of Contents

 

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. The Middle East Renewable Industry Outlook, 2022
    1. Total Renewable Energy Capacity, By Source
      1. Solar
      2. Wind
      3. Hydro
      4. Geothermal
      5. Pumped Storage
      6. Bioenergy
    2. Integration of IoT Using Renewable Solar Energy in Smart Home
    3. Government Participation in Renewables Industry
      1. Policies & Targets for Renewable Energy
      2. Initiatives to Promote Renewable Energy
      3. Others
  5. The Middle East Home Energy Management System Market Trends & Development
  6. The Middle East Home Energy Management System Market Dynamics
    1. Growth Drivers
    2. Challenges
  7. The Middle East Home Energy Management System Market Hotspot & Opportunities
  8. The Middle East Home Energy Management System Market Policies & Regulations
  9. The Middle East Home Energy Management System Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Offering
        1. Hardware- Market Size & Forecast 2018-2028, (USD Million)
          1. Control Devices
            1. Lighting Controls
            2. Sensor
            3. Smart Meter
            4. Intelligent HVAC Controllers
            5. Others (Thermostat, Smart Plug/Strip, etc.)
          2. Communication Devices
        2. Software- Market Size & Forecast 2018-2028, (USD Million)
        3. Services-- Market Size & Forecast 2018-2028, (USD Million)
      2. By Communication Technology
        1. Z-wave- Market Size & Forecast 2018-2028, (USD Million)
        2. ZigBee- Market Size & Forecast 2018-2028, (USD Million)
        3. Wi-Fi- Market Size & Forecast 2018-2028, (USD Million)
        4. Homeplug- Market Size & Forecast 2018-2028, (USD Million)
        5. Others (6LoWPAN, Bluetooth, etc.)- Market Size & Forecast 2018-2028, (USD Million)
      3. By Country
        1. The UAE
        2. Saudi Arabia
        3. Qatar
        4. Oman
        5. Turkey
        6. Egypt
        7. Rest of the Middle East
      4. By Competitors
        1. Competition Characteristics
        2. Market Share & Analysis
  10. The UAE Home Energy Management System Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Offering- Market Size & Forecast 2018-2028, (USD Million)
      2. By Communication Technology- Market Size & Forecast 2018-2028, (USD Million)
  11. Saudi Arabia Home Energy Management System Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Offering- Market Size & Forecast 2018-2028, (USD Million)
      2. By Communication Technology- Market Size & Forecast 2018-2028, (USD Million)
  12. Qatar Home Energy Management System Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Offering- Market Size & Forecast 2018-2028, (USD Million)
      2. By Communication Technology- Market Size & Forecast 2018-2028, (USD Million)
  13. Oman Home Energy Management System Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Offering- Market Size & Forecast 2018-2028, (USD Million)
      2. By Communication Technology- Market Size & Forecast 2018-2028, (USD Million)
  14. Turkey Home Energy Management System Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Offering- Market Size & Forecast 2018-2028, (USD Million)
      2. By Communication Technology- Market Size & Forecast 2018-2028, (USD Million)
  15. Egypt Home Energy Management System Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Offering- Market Size & Forecast 2018-2028, (USD Million)
      2. By Communication Technology- Market Size & Forecast 2018-2028, (USD Million)
  16. The Middle East Home Energy Management System Market Key Strategic Imperatives for Success & Growth
  17. Competition Outlook
    1. Company Profiles
      1. Schneider Electric
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      2. Honeywell International Middle East LTD
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      3. Eaton Corporation
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      4. Panasonic
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      5. ABB Group
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
        7.  
      6. Bosch GmbH
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      7. Hager Middle East
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      8. Ista The Middle East FZE
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      9. ENGISY
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      10. ALTEC Energy
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      11. Others
  18. Disclaimer


Middle East Home Energy Management System Market Segmentation