Nov. 17, 2014: Home Energy Management Systems Market to Surpass $2 Billion by 2020
North America Is Expected to Emerge as the Most Dominant Regional Market
SAN FRANCISCO — The global home energy management systems (HEMS) market is expected to exceed $2 billion by 2020, according to a new study by Grand View Research Inc. Owing to increasing energy cost coupled with growing environmental concerns, energy management has emerged as a priority, which is expected to fuel the HEMS market. The need to conserve and optimize energy use is expected to serve as a key market driver. Increased connectivity and widespread adoption of smartphones is also expected to favorably impact market growth. Energy management product demand has gained momentum over the last few years owing to use of variable pricing schemes offered by service providers. Favorable regulatory initiatives in the United States pertaining to energy conservation are expected to propel regional HEMS market growth.
High installation cost coupled with system complexity, however, is expected to pose a challenge to market growth over the forecast period. Lack of consumer awareness regarding home energy management systems and the benefits they offer may also hinder the HEMS market. Technological proliferation along with decreased sensor and display costs, improved device-level information processing capability, and roll-out of smart utility meters provide avenues for market growth.
Additional key findings from the study include:
• Wi-Fi emerged as the dominant segment in 2013; it is expected to continue accounting for considerable market share over the forecast period. ZigBee, a standard for wireless networks, is expected to be a high growth segment over the forecast period. This can be attributed to its ability to support the needs of various utilities, government groups, and product manufacturers.
• The HEMS market is dominated by control devices and systems; these include thermostats, whole home lighting systems, and home automation systems. Enabling technologies are expected to witness high growth over the next six years due to popularity of technologies such as home area networks, ZigBee, and sensing.
• Due to favorable government initiatives and the growing need to address issues related to aging infrastructure, North America is expected to emerge as the most dominant regional market over the forecast period. Smart meter mandates by utilities are primarily expected to drive the HEMS market in Europe.
• For companies in the HEMS market, innovation and extensive product development are expected to be the key growth strategies over the forecast period.
For more information on the report, click here.
Publication date: 11/17/2014