Home Energy Management Systems to Surpass 40 Million Worldwide by 2020, Forecasts Pike Research

There are increasing signals that the market will fulfill at least a portion of its potential in the coming years.

BOULDER, Colo.--Until recently the market for home energy management (HEM) systems has been stuck in near neutral, with anemic customer adoption and a crowded field of struggling vendors. According to a recent report from Pike Research, a part of Navigant's Energy Practice, that is starting to change, as consumers look for ways to save on their energy costs, utilities push to meet higher energy efficiency targets, and vendors deliver products with popular appeal and viable business models. Shipments of HEM systems, both standalone and networked, will rise steadily over the remainder of this decade, and the installed base of households with HEM systems will grow to more than 40 million in 2020, the study concludes.


"The HEM market is not going to be the land rush some foresaw five years ago," says senior research analyst Neil Strother. "But there are increasing signals that the market will fulfill at least a portion of its potential in the coming years. The key factors to accelerating this struggling segment are convincing consumers of the benefits of the technology - slim savings of three percent to five percent may not be enough for them to change - and lowering the costs of HEM hardware."

Ultimately, the question surrounding HEM is: does it actually help consumers reduce their consumption of electricity and therefore save money? The short answer is: yes it can, but recent studies have indicated that the savings, at least for the moment, may be too small to motivate large numbers of consumers. Nonetheless, as the industry moves to more sophisticated types of reporting, including in-home displays and networked HEM systems, the potential cost savings will be more dramatic (10 percent or more), according to the report. This should be encouraging news to vendors of HEM systems.

The report, "Home Energy Management", examines global and regional home energy management trends as they play out along a continuum of five segments: paper bills, web portals, standalone systems, in-home displays, and integrated HAN/HEM systems. The study also explores the drivers and inhibitors shaping the market, plus major technology issues. It provides market forecasts through 2020, with breakdowns by these five segments and by world regions. Key vendor profiles, analysis of new players, and case studies are included as well. In addition to the supply-side analysis, results from a Pike Research consumer survey focus on the demand side of HEM as well, making for a complete market overview. An Executive Summary of the report is available for free download on the Pike Research website.

About Pike Research

Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

Featured Product

ELK Products -M1 GOLD with Two-Way Wireless

ELK Products -M1 GOLD with Two-Way Wireless

The M1 Gold Security & Automation Control combines security, fire, energy management, lighting, and access control to provide total control of the home. Easily integrating with products of industry partner manufacturers, M1 controls offer a truly customized solution. With remote access capabilities and simple, user-friendly interfaces, M1 keeps homeowners informed and in control, anytime, anywhere! ELK's Two-Way Wireless family of products for the M1 offers a truly secure and reliable wireless solution with cutting edge techniques such as frequency hopping and UL approved jamming detection to defend against interference, hacking, and jamming. Advanced features ensure reliability, extend battery life, and provide innovative security enhancements including wirelessly interconnected smoke detectors, motion detectors with built-in security/convenience lights, and key fobs with a system status inquiry button, allowing users to see if an alarm has been activated before entering the home.