Home Energy Management – Green Business Opportunity
The home energy management (HEM) market continues to attract attention, especially with the increasing presence of newer stakeholders like broadband service providers (e.g., Verizon, AT&T, and Comcast) and security companies (e.g., ADT and Vivint). However, the products and services that constitute the HEM market continue to struggle for more traction. In recent years, the industry’s expectation had been that a smarter grid would enable a wider use of new tools and incentives for consumers to use energy more efficiently, such as demand response (DR) or dynamic pricing. People would save money and utilities would benefit from lower overall consumption and not having to spend capital so quickly on new power-generating plants.
But the HEM market has been fairly sluggish, with plenty of trials and only a few cases of utility-led deployments or significant consumer uptake. That view is starting to change a bit. Over the coming decade, a continued desire among consumers to reduce bills, regulatory mandates for greater efficiency, wider use of variable pricing schemes, and a strong green sentiment will combine to help drive adoption forward. These market forces will be countered by indifference to potential savings, a resistance to paying extra for HEM hardware, unsettled standards for interoperability, a crowded vendor space, and tepid support by many utilities. Nonetheless, the driving forces will spur some gains, particularly where mandates are strongest.
Navigant Research forecasts that global revenue from various segments of the HEM market will grow from $300.7 million in 2012 to $1.8 billion in 2022.