December 12th, 2016 by Joshua S Hill
The global market for home energy management devices such as smart thermostats is growing, and expected to continue to grow, with a new report predicting global revenue for the market to reach $7.8 billion in 2025.
Navigant Reserch published its findings in a new report this week, entitled Market Data: Home Energy Management, in which it examines the global home energy management market with a focus on four separate categories — home energy reports (HERs), digital tools, standalone Home Energy Management (HEM), and networked HEM. Together, these four categories comprise the current technologies currently allowing consumers to better manage and control their energy consumption, as well as providing utilities and non-energy services to better engage with their consumers.
The authors of the report predict global revenue in the HEM market to grow from almost $2.3 billion this year, to $7.8 billion in 2025, a compound annual growth rate of 14.4%. Unsurprisingly, Navigant predicts the North American market to represent the lion’s share of the market, growing from $1.4 billion in 2016 to $3.1 billion in 2025. Europe and the Asia Pacific will both reach 2025 with a $2.2 billion HEM market, while Latin America and the Middle East & Africa are not expected to see much growth at all.
HEM Revenue by Region, World Markets: 2016-2025
The report also highlights several trends shaping the HEM market. In-home displays are losing traction in the market, with a number of digital channels such as web-portals and mobile applications making this particular market obsolete in North America — though these technologies are still at play in several European regions, including the United Kingdom.
Additionally, Navigant sees new players transitioning from the market from HEM to smart homes. According to Navigant, utilities have taken a much less active part in the HEM market, driving non-energy service providers to fill the gap. As a result, the HEM market is transitioning from a focus on holistic energy management to energy management as part of a smart-home solution, including other products such as home security, automation, and entertainment.
“Non-traditional players have a claim on the HEM market with their existing in-home offerings, and are driving a shift in the market from holistic HEM to energy management as a component of the connected home,” says Paige Leuschner, research analyst with Navigant Research. “Relatively flat electricity prices and the ability to offer HEM without smart metering has caused utilities to take a passive role in this market in place of non-energy service providers.”
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About the Author
Joshua S Hill I’m a Christian, a nerd, a geek, and I believe that we’re pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.
