Energy Management - Nigeria

Nigeria

Revenue in the Energy Management market is projected to reach US$12.4m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 11.38%, resulting in a projected market volume of US$19.1m by 2028.
In the Energy Management market, the number of active households is expected to amount to 2.3m users by 2028.
Household penetration will be 1.5% in 2024 and is expected to hit 4.2% by 2028.
The average revenue per installed Smart Home currently is expected to amount to US$16.64.

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Analyst Opinion

The Energy Management market in Nigeria is experiencing significant growth and development.

Customer preferences: Customers in Nigeria are increasingly looking for energy management solutions to address the challenges of unreliable power supply and rising energy costs. With frequent power outages and the high cost of diesel generators, businesses and households are seeking more efficient and sustainable ways to manage their energy consumption. This has created a demand for energy management systems that can help optimize energy usage, reduce waste, and lower electricity bills.

Trends in the market: One of the key trends in the Energy Management market in Nigeria is the adoption of smart grid technologies. Smart grids enable real-time monitoring and control of electricity distribution, allowing for better management of energy resources and improved reliability of the power supply. This technology is being implemented by both utility companies and large industrial consumers to optimize energy usage and reduce losses in the distribution network. Another trend in the market is the increasing use of renewable energy sources, such as solar power. Nigeria has abundant solar resources, and the government has implemented policies and incentives to promote the adoption of solar energy systems. This has led to a growing number of businesses and households installing solar panels to generate their own electricity and reduce their reliance on the national grid.

Local special circumstances: Nigeria has a large population and a rapidly growing economy, which has led to a significant increase in energy demand. The country's power generation capacity has struggled to keep up with this demand, resulting in frequent power outages and a reliance on backup generators. This has created a need for energy management solutions that can help businesses and households reduce their energy consumption and become more self-sufficient.

Underlying macroeconomic factors: The Energy Management market in Nigeria is also influenced by broader macroeconomic factors. The government has recognized the importance of energy efficiency and sustainability, and has implemented policies and regulations to promote the adoption of energy management systems. Additionally, the increasing cost of energy and the volatility of oil prices have made energy management a priority for businesses and households looking to reduce their operational costs. In conclusion, the Energy Management market in Nigeria is experiencing growth and development due to customer preferences for more efficient and sustainable energy solutions. The adoption of smart grid technologies and the increasing use of renewable energy sources are key trends in the market. The local special circumstances of unreliable power supply and rising energy costs have created a demand for energy management systems. Furthermore, underlying macroeconomic factors such as government policies and the cost of energy have also contributed to the development of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of smart home products, excluding taxes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market category. As a basis for evaluating markets, we use the Statista Global Consumer Survey, market data from independent databases and third-party sources, and Statista interviews with market experts. In addition, we use relevant key market indicators and data from country-specific associations, such as household internet penetration and consumer spending for households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting innovative products due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward smart home integration.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated once a year, in case market dynamics change we do more frequent updates.