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Home energy management market will surpass 2 billion by 2020

May 16, 2012 - Even as deployments of smart grid infrastructure have accelerated in recent years, Pike Research says the home energy management (HEM) market has struggled to gain traction... but that is starting to change.


May 16, 2012
By Anthony Capkun

According to a new report from Pike, global annual shipments of standalone HEM systems will grow from a quarter million in 2011 to nearly 4.7 million in 2020, with a compound annual growth rate (CAGR) of 38.3%. Combined revenue for all HEM segments will grow from a base of $93 million in 2011 to more than $2 billion in 2020.

“The home energy management market will make steady progress over the coming eight years,” said senior analyst Neil Strother. “It will be driven by government mandates, utility programs and a growing number of consumers looking to manage their energy bills. Also, a combination of consumer desire to be more green, home construction and retrofits with energy management objectives, and new technologies surrounding plug-in electric vehicles will help stimulate the market.”

HEM products can be viewed in five groups, or segments, along a continuum that moves from paper bills (a mailed statement from the utility showing a customer’s energy usage as it compares to households nearby), through standalone HEM systems that include some device-level tracking and automated device control capabilities, up to networked HEM, comprising auto-pricing response capabilities, demand-response (DR) load control, and home automation controls. Of these, networked-HEM revenue will see the strongest growth (76.8% CAGR) as utilities attempt to drive volume sales of networked HEM systems in an effort to make DR and Time-of-Use (ToU) pricing schemes feasible.

Pike Research’s report, “Home Energy Management”, examines global and regional home energy management trends as they play out along a continuum of five segments: paper bills; web portals; standalone systems; in-home displays; and integrated HAN (home automation network)/HEM systems. The study also explores the drivers and inhibitors shaping the market, plus major technology issues. An Executive Summary is available for free on the firm’s website.

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