BOULDER, Colo. — Shortly after Google purchased Nest Labs in January 2014, home energy management (HEM) stakeholders began reporting increased market activity, as the acquisition signaled to vendors, utilities, service providers, and retailers that the value in home energy management and automation was finally gaining recognition, notes Navigant Research. Similarly, consumer awareness began to increase, bringing into focus products and services that can help better manage and control home energy consumption. According to a report from Navigant Research, cumulative HEM revenue is expected to exceed $22 billion from 2014 to 2023.
“Competition is heating up among vendors and, at the same time, HEM products are becoming more accessible to consumers, with retailers such as Best Buy, Staples, and Lowe’s marketing products that include energy management features,” said Neil Strother, principal research analyst with Navigant Research. “Even though the HEM market is still in its early stages of growth, 2015 is shaping up to be a pivotal year for expansion.”
Annual home energy management revenue is expected to peak in 2020, according to the report, following the government-mandated deployment of millions of smart meters and related HEM equipment in homes and small businesses across Great Britain. After the rollout is complete, industry revenue is expected to continue to be fueled by market-driven forces, including a steady rise in energy costs and the increasing availability of new energy management products and services residential customers are likely to adopt.
Publication date: 3/9/2015