Until 2012, home energy management (HEM) systems, which help residential customers monitor and adjust their energy use, struggled to gain market traction. More recently, however, non-utility stakeholders have moved into the segment, increasing awareness of new tools and helping to drive steady growth. According to a recent report from Navigant Research, worldwide revenues from home energy management systems will grow from US$512 million in 2013 to US$2.8 billion in 2020.
The market is expected to decline significantly after that, to US$1.8 billion in 2022, the firm added.
"Companies like Comcast, ADT, Verizon, and AT&T in the US have added energy management as an option that can be bundled with home security, automation, or Internet access," said Neil Strother, senior research analyst with Navigant Research. "The uptake of home energy management by consumers is still relatively low, but these service providers are seeding a market that has reasonable potential over the next several years."
The primary driver for HEM systems is consumers' desire to reduce their electricity bills. At the same time, the advent of smart thermostats, which include two-way communications capabilities that can take advantage of demand response signals, is creating new appeal among consumers and utilities alike. The acquisition of smart thermostat maker Nest Labs by Google, for a reported US$3.2 billion, is seen by many industry observers as a potential watershed moment for the overall HEM market, the firm noted.
Article translated by Alex Wolfgram
