When will the maturation process take hold for the global Home Energy Management market? The answer to this question and more will be answered in an upcoming report published by Pike Research, “Home Energy Management.” Some initial thoughts are as follows:
First, the major categories of EIDs [energy information displays] are:
Of course, many vendors will provide a melding of the three major categories. For example, a vendor providing an in-home display will also enable the end-user to check energy consumption remotely (either through an internet-enabled user interface), or a mobile phone app, or both. What is very interesting, and what the upcoming report will research extensively, is what path to market will be exercised by vendors.
One prevailing theory is that the HEM [home energy management] market will be driven primarily by the actions of utilities. Here, the utility will subsidize, or even provide at no-cost, an EID to the end-user. This idea pivots on residential DR [demand response] and other enabling DSM [demand side management] applications that will assist the utility in reducing peak demand, adhering to potential energy efficiency mandates, and to provide energy information to an increasingly sophisticated energy consumer in a competitive energy market.
Another path to market for EID vendors is through commercial retail outlets (e.g. Best Buy and Amazon). Here, the end-user is responsible for purchasing an EID on their own. This consumer-led adoption will present numerous hurdles to the industry, yet if the devices are priced right, many believe an increased sense of energy efficiency and management in the residential sector will be a strong driver. Additionally, with entrants like Google and Microsoft spurring the market along, customer motivations will be increased by massive marketing campaigns from the vendors who can afford it. These campaigns will highlight the use cases for EIDs in the home, including increased energy usage awareness, DR opportunities, and budgeting applications.
The upcoming HEM report will quantify the different business models of HEM vendors and dive into the HEM application within the home area network (HAN) structure and technology framework.
Jevan Fox is a research analyst contributing to Pike Research’s smart energy practice.
Article appearing courtesy Matter Network.