63M using home energy-saving systems by 2020

More people will be using smartphone apps and Web portals to manage their energy consumption by 2020

For those of us that come thatclose to writing an angry letter to our local congressman every time we see our monthly utility bills, we can rest assured knowing that home energy savers like energy-friendly appliances, electronics, and even household items and furniture are on the rise. In fact, a report released Wednesday by Pike Research finds that the number of people using home energy management (HEM) systems will reach 63 million by the year 2020, a nearly 63x increase over 2011.

By “home energy management systems,” Pike Research is referring to Web-based portals, in-home display devices (smart meters) that will show energy consumed, and smartphone apps that will allow users to gauge and manage their energy consumption, all of which will lead to smarter energy choices. It makes sense. The average smartphone user can check his/her phone to see how much data has been used and minutes wasted on mindless chitchat. Why not find a way to monitor how much energy you’re consuming at home?

In 2011, just over one million people were using such systems, but Pike researchers are forecasting a gradual rate of change as the HEM market becomes less fragmented. Currently, the HEM market is a fairly crowded and competitive space, and smartphone apps and display devices will be offered by both pure-play HEM vendors as well as multi-product/multi-channel companies, particularly consumer electronics companies and broadband providers.

Interestingly, in 2009, Pike researchers estimated that some 28 million people would be using home energy management systems by the year 2015, but they’re now saying that only 15 million people will be using such solutions by 2015 (still a 15x increase in just four years). The lag, they say, is due to a slower than anticipated adoption of home energy management systems and a lack of consumer demand.

Nevertheless, Pike Research believes consumer demand will explode by 2020.

“Utility programs are picking up steam, and are aided in some regions by a strong government push,” said research director Bob Gohn in a statement. “In addition, new technologies such as electric vehicles will be a significant driver of HEM adoption in the long term. When the garage becomes the gas station, consumers will demand more sophisticated energy management capabilities, and utilities will need greater visibility into residential energy consumption patterns.”

The report examines global and regional home energy management trends, go-to-market strategies, market forecasts by technology and region, and utility programs. 

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