- Opportunities for independent residential energy management networks (iREM
Nets) are developing faster than those for utility-based home area networks
- If the current draft version of ZigBee Smart Energy Profile 2.0 is
approved in mid-March 2011 as is expected, full deployments of utility
solutions based on SE 2.0 are likely to begin in mid-2013.
- Utility-based HANs will dominate energy management networks in the long
term. Therefore, firms must develop parallel go-to-market strategies to
succeed: one that addresses the near-term opportunities for iREM Nets and
another focused on working closely with utilities.
- The market for residential energy management (REM) solutions is entering a
period of “Pervasive Growth” characterized by the entrance of many
more firms with a variety of solutions, growing consumer awareness of the
benefits of REM solutions, and significant growth in sales volumes within the
next five years.
- Large firms with the ability to drive the REM market have entered; more
will enter in 2011 and beyond. These entrants add credibility to the market
and help build consumer awareness for the benefits of REM solutions.
- Consumers find automation and information very appealing attributes in REM
solutions; many also find the ability to remotely monitor their homes very
appealing. It is critical to integrate mobile capability into most REM
- Consumers are motivated to invest in energy management solutions for their
homes equally by enhancing their comfort, improve energy efficiency and saving
- Several billion dollar control and monitoring opportunities are developing
in the REM market including lighting controls, programmable communicating
thermostats and self-monitoring systems and services.
- Opportunities in smart appliances, electric vehicles, batteries and
microgeneration are significant, but will take longer to materialize than
control and monitoring opportunities.
- A total of 13% of households will have an energy management network by
2015; 8% will have an iREM Net; 5% will have a HAN.
- By 2020 to 2021 nearly 50% of households will have an energy management
network; half will be iREM Nets and half HANs; iREM Nets will decline from
that point forward and HANs will begin to dominate residential energy
- There were approximately 23 million AMI-capable meters installed on
residences in the U.S. at the end of 2010; by the end of 2015, more than 55
million meters will be installed on 45% of households.
- Approximately 10% to 11% of all AMI-capable meters (~6M) will be
HAN-activated by 2015 - in other words, enabled to communicate with systems
and devices in a home, as well as with a utility' s backend processing system.
- Approximately 50% of consumers in broadband households find
occupancy-sensing lights and thermostats very appealing; 32% find the ability
to remotely control lights, appliances and thermostats with Web-enabled
devices very appealing.
- Nearly 50% of consumers find email/text notification of smoke, fire, water
or gas leaks very appealing; 31% find email/text notification whenever someone
enters or exits their home very appealing; 28% rated security cameras that can
be remotely monitored through a computer or mobile phone very appealing.
- By 2015, more than 14 million households will have some form of
self-monitoring capability installed; 5 million or 36% of these will pay for
self-monitoring services. The total annual market for self-monitoring systems
and service will reach $1.1 billion by this time.
- The market value of programmable communicating thermostats (PCTs) will
reach $1.1 billion by 2015, up from only $100 million in 2010.
- 17% of households will have some form of in-home display for monitoring
energy consumption by 2015.
Key Questions & Issues Addressed
This report addresses the rapidly changing dynamics in markets for the many
different opportunities to provide residential energy management solutions.
These opportunities are driven by utilities (and retail electricity providers)
seeking to better utilize their assets, financial incentives from government
organizations to support these efforts and consumers' desires to lower their
energy costs and enhance their lifestyles. In addition, major market movers,
such as ADT, Cisco, GE, Google, Ingersoll Rand, Intel, Panasonic, Whirlpool,
and Verizon see energy management solutions as possible contributors to their
The residential energy management (REM) market is different from traditional
consumer electronic markets because some solutions require acceptance by both
consumers and utilities; other solutions require professional installation;
and yet others are only viable when packaged or bundled with existing products
and services. Most REM solutions are not of the type where a consumer can walk
into a big box CE retailer and buy. That this situation may change is one of
the many issues addressed in this report.
This report explains the potential impact of trends we believe will drive the
market in 2011 and beyond. In addition, it covers some of the major
opportunities we see in the market and gives some background about our
forecasting methodology. We firmly believe that there are several $1 billion
opportunities for solutions from the meter into the home. We introduced the
concept of independent residential energy management networks (iREM Nets)
separate from utility-based home area networks (HANs) in our June 2010 report
Forecasts for AMI Deployments and Energy Management Solutions and continue
that discussion here.
Specifically, this report addresses the following questions and issues:
- What are the top trends influencing the REM market?
- Who are the market movers in REM and what are they doing?
- What time is it in the market? How fast ...or slow will opportunities
develop and why?
- What are the major opportunities and who are the key players?
This report focuses on the market for residential energy management products
and services in the U.S. Parks Associates specializes in identifying,
characterizing and quantifying market opportunities at the intersection of
consumers and emerging technologies. This concentration carries through to our
analysis of market opportunities for REM products and services - from the
meter into the home.
Table of Contents
Table of Contents
List of Figures
Residential Energy Management Dashboard
- 1.1 Key Questions & Issues Addressed
- 1.2 Scope
- 1.3 Source of Consumer Data
- 1.4 Definitions and Acronyms
2.0 State of the Residential Energy Management
- 2.1 Key Developments in 2010
- 2.2 Consumer Mindset and Motivations
- 2.3 Standards ...Lots of Choices
- 2.3.1 ZigBee - Smart Energy 2.0 Timeline
- 2.3.2 Z-Wave - A Growing Ecosystem
- 2.3.3 HomeGrid
- 2.3.4 HomePlug
- 2.3.5 Wi-Fi
- 2.4 Entering a Period of Pervasive Growth
3.0 Trends in Residential Energy Management
- 3.1 March of the Market Movers
- Best Buy
- GE Consumer & Industrial
- 3.2 Broadband Service Providers
- Rogers Communications (Canada)
- 3.3 Security Service Providers
- Vivint (formerly APX Alarm)
- 3.3.2 HVAC Manufacturers
- Carrier (United Technologies)
- Trane (Ingersoll Rand)
- 3.4 A Growing REM Ecosystem
- 3.5 Utility AMI Deployments
4.0 Assessment of Major Opportunities
- 4.1 iREMs and HANs - Different Market Dynamics
- 4.2 Control and Monitoring Systems
- 4.3 Energy Management and Monitoring Services
- 4.4 Smart Appliances
- 4.5 Plug-in Hybrid and Plug-in Electric Vehicles
- 4.6 Batteries and Storage
- 4.7 Microgeneration
5.0 Takeaways & Recommendations
List of Figures
- Figure 1. Residential Energy Management Dashboard
- Figure 2. Definitions and Acronyms
- Figure 3. Energy Saving Installations/Activities Performed in Current Home
- Figure 4. Reasons for Making Energy Efficient Home Improvements
- Figure 5. Appeal of Home Energy Control Features
- Figure 6. ZigBee Smart Energy 2.0 Timeline
- Figure 7. Market Lifecycle Phases
- Figure 8. Energy Management Networks: Entering Phase of Pervasive Growth
- Figure 9. Residential Energy Management Ecosystem
- Figure 10. Households with AMI-capable and HAN-activated Meters
- Figure 11. Households with HANs and iREM Networks
- Figure 12. Households with HANs and iREM Nets: 2010 to 2020
- Figure 13. Household Penetration of Selected Energy Management Systems:
2010 to 2015
- Figure 14. Key Residential Energy Management Market Opportunities
- Figure 15. Key Residential Energy Management Market Opportunities
- Figure 16. Smartphone Owners More Interested in Energy Monitoring Service
- Figure 17. Self-monitoring Households and Penetration
- Figure 18. Self-monitoring Households Paying for Monitoring Services
- Figure 19. Selected Smart Appliance Manufacturers
- Figure 20. Selected Electric Vehicle Manufacturers
- Figure 21. Selected Battery Manufacturers
- Figure 22. Selected Solar Panel Manufacturers and Dealers
- Figure 23. Selected Wind Power Manufacturers
- Figure 24. Selected Geothermal Firms