Some of the major advantages of using a home energy management system are:
- It allows for dynamic pricing, charging comparatively less when the demand is low.
- It eliminates the process of manual meter reading, thus reducing hassles in bill payment.
- It gives a thorough feedback on the energy cost and usage.
- It allows users to identify several ways to save substantially on energy bills.
- It permits for real-time load management by suppliers, reducing blackouts.
According to a research study by Transparency Market Research, in 2012, the global market for home energy management systems (HEMS) was valued at US$393.8 mn and is projected to reach a value of US$1.9 bn by the end of 2019. The market is estimated to register an exponential 25% CAGR between 2013 and 2019.
ZigBee to Surpass Wi-Fi due to High Demand in Europe and North America
The global HEMS market can be segmented on the basis of functionality into enabling technologies, user interface, and control devices. Among these, the control devices segment including automation, thermostats, and home lighting are leading the overall market at present. However, the enabling technologies segment is anticipated to grow rapidly in the next few years.
Furthermore, the global HEMS market can be classified on the basis of technology into Z-wave, HomePlug, ZigBee, Wi-Fi, and others. The others segment is further sub-categorized into EnOcean, Insteon, Ethernet, and Wavenis. Among these technologies, the ZigBee segment is estimated to register the highest growth rate in the near future. The rapid growth of this segment can be attributed to the increasing demand for ZigBee in Europe and North America. Moreover, ZigBee is more compatible and scalable with HAN devices and is interference-tolerant if compared with Wi-Fi technology.
Growing Smartphone Applications to Benefit Global HEMS Market
The global HEMS market is anticipated to witness rapid growth in the coming years owing to the growing demand for HEMS devices in developing nations, rising integration of HEMS with smart devices, and exemption from carbon and energy tax policies. In addition, the growing need for home energy management, rising number of smartphone applications, and variable pricing schemes offered for electric distribution are some of the major factors that are estimated to fuel the growth of the global HEMS market in the near future.
As a result, the players operating in the global HEMS market have huge opportunities to expand their horizon and gain a competitive advantage. Some of the major players dominating the global HEMS market are Cisco Systems, Inc., General Electric Company, Honeywell International, Inc., Intel Corporation, and Panasonic Corporation.