Home Energy Management Vendors Battle Home Automation Vendors for Utilities’ $2 Billion Business

Oyster Bay, New York - 17 Mar 2011

Home energy management systems (HEMS) will see moderate growth through 2013, according to ABI Research. But starting in 2014, shipments of these systems are expected to accelerate rapidly until by 2016, nearly 44 million will hit world markets, when they will generate revenue of about $2 billion.

Sam Lucero, M2M connectivity practice director with the analyst firm, explains: “We see utilities as the largest channel for HEMS going to market. Utilities have been focusing their efforts on smart meter deployments. But in the next few years, HEMS will ramp up to deliver the utilities ‘demand response’ benefits on top of their smart meters. This trend will start to have real impact in 2014.”

Utilities will not be making HEMS systems themselves: two groups of vendors provide the actual systems (although the consumer may only deal directly with the utility.) One of these groups is small private HEMS vendors. They now face increasing competition from home automation vendors that offer HEMS as one part of their overall product lineups.

Competing against the home automation vendors won’t be easy, says Lucero. He recommends that, “The pure-play HEMS vendors should differentiate their offerings to focus on the specific needs of utilities, tying their systems effectively into the utilities’ back-end operations. They should also form close relationships and partnerships with the smart grid value chain, and demonstrate a level of vertical energy market expertise that impresses the utilities more than do the home automation vendors.”

The home automation vendors are likely to counter that homeowners are already using their systems (or soon will be) and that further specialization is redundant. They can point to their greater variety of paths to market: retail, service provider, dealer-installer, utility. They can partner directly with smart grid too, in the way that Control4 has partnered with Silver Spring Networks.

Home Energy Management Systems analyzes each of the key market segments, their market adoption drivers and challenges, significant competitive landscape trends, and the major technological issues facing the market. It profiles key players, and provides five-year unit shipment and revenue forecasts.

It is part of two ABI Research Services: Energy and Clean Technology and Home Automation Systems.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 30+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

About ABI Research

ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contact ABI Research

Media: Interview an Analyst

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670