Over 25 Million 'Smart' Energy Management Devices will be Shipped to US Consumers in the Next Five Years
Smart thermostats, smart energy displays, and smart appliances with the ability to communicate with smart meters, will be shipped in the U.S. in the next five years
Austin, TX, 1 March 2012 - According to a new report by IMS Research, a leading supplier of market research and consultancy to the global electronics industry, over 25 million 'smart grid-enabled' devices, such as smart thermostats, smart energy displays, and smart appliances with the ability to communicate with smart meters, will be shipped in the U.S. in the next five years.
"The United States is often considered to be at the forefront of smart grid development, and energy reform is high on the U.S. Government's agenda," says Lisa Arrowsmith, Senior Analyst, IMS Research. "The American Recovery and Reinvestment Act of 2009 stimulated large investment in 'smart meters' which provide two-way communication between people's electricity meters and utility companies, enabling the utility company to remotely measure how much electricity consumers are using and send signals to the meter, enabling functions such as variable pricing tariffs. Increasingly, smart meters will be able to 'talk' to in-home devices, such as smart thermostats or appliances."
As smart meter deployments in the US continue, so too does the debate regarding the merits of variable tariffs such as dynamic pricing or demand-response. 'Dynamic pricing' involves market-led tariffs whereby the highest unit prices are charged when demand is highest. This can help to smooth out demand, and avoid utilizing the most costly (and often least environmentally-friendly) power plants which are kept in reserve to satisfy demand peaks. Longer-term, there is the potential for widespread load-shedding or demand-response programs. Here, the utility company sends a signal to the smart meter (via the AMI network) to request that electricity consumption (often of a particular device) is reduced or temporarily halted. This can be automated through the deployment of devices such as 'smart thermostats' to adjust HVAC settings and through 'smart load control switches', which may be used with air conditioner compressors and electric storage water heaters.
"At times of peak electricity demand, a utility company may send a request that air conditioners reduce power consumption, and - with advanced customer agreement - a thermostat then automatically adjusts itself slightly," Arrowsmith adds, "By enrolling many customers in such a program, even minor adjustments become significant. Load shedding programs - including those which do not require a smart meter - have been employed in several countries, with consumers offered a variety of incentives to participate. These include rebates, electricity price discounts, or even, as seen in the case of a specific Canadian utility company, an iPod Touch as a reward".
In the U.S., while there are a number of utility companies already using the smart meter as a gateway to enable variable pricing tariffs and demand-response programs, there have been a number of barriers which have inhibited widespread deployment. Importantly, there have been some major consumer concerns ranging from privacy and data security, through to potential negative health effects from RF emissions. Additionally, utility companies need to ensure that any variable pricing tariffs are carefully designed such that low-income customers are not harshly impacted and that, to avoid public backlash, even heavy users do not face massive bill increases -as was the case with the infamous Bakersfield case, where consumers blamed PG&E's smart meters for a massive bill hike.
Currently, many consumers in the U.S. are limited in the extent that in-home devices can interact with smart meters, even where they have already been installed. In the U.S., most smart meters shipped now have the hardware to enable communication with in-home devices. Yet, in many cases, this ability to 'talk' to the smart meter is disabled by the utility company. However, as variable pricing tariffs and load shedding programs become more common, and as more utility companies enable smart meters to communicate with in-home devices, the U.S. is set to be a major market for smart home energy management systems.
"The management of residential electricity consumption is a rapidly growing business in the U.S., not only as a result of utility companies programs, but also of others - such as major telecommunications companies and security companies - entering the market," Arrowsmith concludes. "As more in-home devices, such as thermostats and appliances, have communications functionality, it paves the way for other companies to offer additional services, as a means of increasing subscriber revenues or reducing customer churn. These include services such as online electricity consumption monitoring, and web-portals enabling consumers to control devices in their home from anywhere, using devices such as smart phones."
About the Report 'The World Market for Smart Home Energy Management Systems - 2012 Edition
This study projects the market for a range of eleven smart home energy management devices - including smart meters, IHDs and smart appliances - in 26 different countries and sub-regions. It assesses country-specific legislative and technological factors, providing projections (to 2016) for device shipments and revenues, further segmenting the market by supply channel (that is, directly via utility company or government channel, or through other organizations such as retailers and service providers), and by the connectivity technologies used. The report includes over 300 data tables, with full qualitative analysis for each country and device type.
About IMS Research
IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, custom research and consultancy services. Clients include most of the household names in the industry. IMS Research has offices in Europe, the US, China, Taiwan, South Korea, and Japan. To find out more, contact IMS Research: firstname.lastname@example.org; T: +44 (0) 1933 402255; http://imsresearch.com