According to a recent report from Navigant Research, worldwide revenue from home energy management systems will grow from $512 million in 2013 to $2.8 billion in 2020. The market is expected to decline significantly after that, to $1.8 billion in 2022, the report finds.
Until 2012, home energy management (HEM) systems, which help residential customers monitor and adjust their energy use, struggled to gain market traction. More recently, however, non-utility stakeholders have moved into this segment, increasing awareness of new tools and helping to drive steady growth.
The primary driver for HEM systems is consumers desire to reduce their electricity bills. At the same time, the advent of smart thermostats–which include two-way communications capabilities that can take advantage of demand response signals–is creating new appeal among consumers and utilities alike. The acquisition of smart thermostat maker Nest Labs by Google, for a reported $3.2 billion, is seen by many industry observers as a potential watershed moment for the overall HEM market.