Managing energy costs will be a driving force for the near term adoption of home automation systems

Control technologies, such as programmable and communicating thermostats, will allow utilities and homeowners to monitor usage patterns and reduce demand during peak periods.

Managing energy costs will be a driving force for the near term adoption of home automation systems, according to a report by ABI. While automatic meter reading (AMR) technologies are deployed in some markets to reduce costs, the latest advancements of utility monitoring will include real -time pricing and energy management for the residential market.


Control technologies, such as programmable and communicating thermostats, will allow utilities and homeowners to monitor usage patterns and reduce demand during peak periods. ABI estimates that the annual market for heating ventilation and air conditioning (HVAC) control units will grow from $204 million in 2002 to $564 million by 2007, in the U.S. alone.

Energy companies are beginning to embrace the benefits of these technologies. Pilot programs are underway, which implement time -of -use pricing, charging premiums during peak hours and offering discounts during off peak periods. These programs result in reduced costs, improved customer service and more voluntary energy conservation.

In addition to the energy management control market, the report explores several emerging technologies impacting home automation, including emerging wireless and wireline technologies for a variety of applications. Many manufacturers are focusing on the development of low cost, reliable solutions that have broad appeal.

The report, "Home Automation Systems & Control Networks: Market Segmentation & Drivers, Technology Review and Forecasts," looks at the growing interest in energy management, demographic trends and the technological advances that will impact the future of home automation and drive industry revenues to $3.17 billion by 2007, from $1.34 billion in 2001.

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