The global home energy management systems market is dominated by companies such as Panasonic Corporation, Sharp Corporation, Honeywell International, Freescale, Cisco Systems Inc., Intel, Schneider Electric, General Electric Company, and Vivint. According to Transparency Market Research, the top three market players - Honeywell, Cisco, and Panasonic - accounted 47.7% of the global home energy management systems market in 2012.
Various players in the home energy management systems market have employed different strategies to further their position. Heavy investment in research and development and maintaining close ties with distributors and other components of the industry’s value chain are two of the key stratagems being applied by leading companies in the home energy management systems market. The annual revenue of the global home energy management systems market is expected to reach US$1.9 bn by the end of 2019.
Increasing Power Costs Driving Demand for Home Energy Management Systems
One of the key drivers for the global home energy management systems market is the steady rise in power costs. As conventional sources of electricity have become scarcer over the years, there has been a corresponding increase in the cost of power across the world. This has led to a growing demand for effective home energy management systems, which can help customers cut back on their use of electricity.
The introduction of variable pricing schemes from various power distributors and utilities companies has also aided the overall demand for home energy management systems. The motive behind the implementation of variable pricing schemes is to reduce the overall consumption of electricity by cutting down peak-time use and distributing the saved electricity to low-priority locations. Home energy management systems, which constantly monitor the usage of electricity in their assigned network, are a massive help in this endeavor, as the collective power savings due to large-scale use of home energy management systems can be notable.
Complexity, High Installation Costs Hold Back Demand for Home Energy Management Systems
One of the prime concerns for the global home energy management systems market is the considerable complexity of deploying, operating, and regularly using advanced home energy management systems. Since home energy management systems have to be connected to other electrical appliances at the site, professional help is often required, which can result in more expenditure. The output provided by home energy management systems can also be difficult for laypeople, although consumers will usually eventually get habituated.
The perceived health risks of home energy management systems are another influential restraint on the global market. Despite the lack of scientific backing, fear about exposure to the radiation from home energy management systems has proliferated to a considerable degree, constraining the growth of the global industry.
Zigbee to Overtake Wi-Fi as Most Popular Communication Mode in Home Energy Management Systems
By technology, the hierarchy of the global home energy management systems market is likely to remain relatively undisturbed over the coming years. Wi-Fi and Zigbee are likely to hold similar weightage in the global market over the coming years, albeit with Zigbee expected to edge out Wi-Fi as the leading revenue generator in the industry. The annual revenue from Zigbee-based home energy management systems is expected to reach US$254.3 mn by the end of 2016 and further rise to US$486.3 mn by the end of 2019.
Geographically, Europe is likely to be the leading contributor to the global home energy management systems market in the coming years. The market in Europe has been helped immensely by the proactive support of several governments in the region to power conservation initiatives and the large-scale deployment of smart grid infrastructure in the region. The annual revenue of the Europe home energy management systems market is expected to reach US$417.8 mn by the end of 2016 and further rise to US$804.3 mn by the end of 2019.
The information in this preview comes from a Transparency Market Research report titled ‘Home Energy Management Systems (HEMS) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019.’
The global home energy management systems market is segmented as follows:
Home Energy Management System (HEMS) Market, by Functionality
- Control devices
- User Interface
- Enabling technologies
Home Energy Management System (HEMS) Market, by Technology
Home Energy Management System (HEMS) Market, by Geography
- North America
- Asia Pacific
- Rest of the World
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