Berg Insight, the world’s leading IoT market research provider, today released a new market report covering the Home Energy Management Systems (HEMS) market. 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 both 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 percent. 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 percent, the installed base of HEMS in Europe is estimated to reach 12.5 million systems at the end of 2030. This corresponds to a penetration rate of 10.0 percent.
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 percent of houses and multi-dwelling units in the region had a HEMS installed at the end of 2025. The US is estimated to account for about 95 percent of the North American market while Canada accounts for about 5 percent. California, Texas, Hawaii, Arizona and Puerto Rico are among the largest HEMS markets in the US. Growing at a CAGR of 15.2 percent, the installed base of HEMS in North America is estimated to reach over 1.7 million systems at the end of 2030. This will correspond to a penetration rate of 1.4 percent.
The HEMS value chain includes a diverse range of companies from different industry sectors. Leading US-based HEMS players include Tesla, Enphase Energy, Generac, FranklinWH Energy Storage, Base Power, Lunar Energy and Savant Systems. Leading Germany-based companies include E3/DC (Hager Group), Sonnen (Shell), Senec (EnBW), Solarwatt, SMA Solar, RCT Power, Fenecon and Viessmann Climate Solutions (Carrier). Additional leading European providers include Austria-based Fronius, UK-based Puredrive Energy and Denmark-based Emaldo. Several leading 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; Israel-based SolarEdge; and South Korea-based LG Energy Solution. There are also several companies that specialize in providing hardware devices and software platforms that integrate home batteries, EV chargers, heat pumps and smart home devices from various manufacturers and intelligently optimize 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”, says Martin Apelgren, Principal Analyst at Berg Insight. At the same time, coordinating and optimizing 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”, concludes Mr. Apelgren.