Subscribers to Home Energy Management Services Offered by Broadband Service Providers in North America Will Reach Nearly 900,000 by 2020, Forecasts Pike Research
BOULDER, Colo.--(BUSINESS WIRE)-- Aiming to add energy management services to their home automation or home security packages, broadband service providers (BSPs) have begun offering home energy management (HEM) services in recent years. Although these services promise to help consumers reduce or more efficiently control their energy consumption, and thus their utility bills, adoption so far has been tepid. Nevertheless, according to a new research brief from Pike Research, a part of Navigant's Energy Practice, the number of subscribers to HEM services from BSPs in North America will grow steadily through the end of this decade, reaching nearly 900,000 by the end of 2020.
"This nascent market has yet to find real traction among consumers even though market drivers do exist," says senior research analyst Neil Strother. "Consumers' desire to reduce their monthly energy bills, new-home construction, and home remodeling present opportunities to install the necessary hardware, and the increasing competition among BSPs in this space demonstrates some market validation. BSPs, however, will need to lower barriers in order to maximize this somewhat limited opportunity."
Those barriers include the relatively high cost of HEM hardware, in addition to recurring service fees; contracts that require multi-year commitments; uncertain returns on investment for consumers; energy costs that, for the moment, are relatively low and stable; a lack of technology standards; a crowded, confusing market; and lukewarm utility support. Most U.S. consumers (63 percent) say they are interested in HEM, according to a recent Pike Research survey, but most are not aware that BSPs currently offer HEM services.
The research brief, "Home Energy Management from Broadband Service Providers", analyzes the market opportunity for broadband service providers seeking to drive adoption of home energy management products among their residential customers. The report provides an assessment of the demand drivers, basic technologies, and the typical bundles available in the evolving HEM market. Results from one recent U.S. consumer survey that gauged consumer sentiment toward home energy management are also included. Key industry players are highlighted, and regional and worldwide revenue and subscriber forecasts are provided through 2020. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYS: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, "Home Energy Management from Broadband Service Providers," is a summary and reflects Pike Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
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