March 17, 2014: Home Energy Management Systems to Reach $2.8 Billion in Revenue by 2020
Non-Utility Providers and Smart Thermostats to Help Drive Steady Growth
BOULDER, Colo. — Until 2012, home energy management systems struggled to gain market traction, noted Navigant Research. More recently, however, non-utility stakeholders have moved into this segment, increasing awareness of new tools and helping to drive steady growth. According to a report from the firm, worldwide revenue from home energy management systems is forecast to grow from $512 million in 2013 to $2.8 billion in 2020.
“Companies like Comcast, ADT, Verizon, and AT&T in the United States 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 home energy management 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 $3.2 billion, is seen by many industry observers as a potential watershed moment for the overall home energy management market.
For more information, visit www.navigantresearch.com/research.
Publication date: 3/17/2014