Global Home Energy Management Systems Products Market17 Oct 2011 • by Natalie Aster
New York – Success of the home energy management system (HEMS) products industry is highly contingent upon the proliferation of demand side management (DSM) programs that enable consumers to take control of their electricity use through utility-driven dynamic pricing programs and household smart appliances.
Global total for spending on all HEMS products is currently estimated at $54 billion and SBI Energy expects that to grow to nearly $85 billion in 2015, representing a CAGR of 9%. Much of the spending is associated with integrated communications products, a sector that will benefit from more than $16 billion in sales in 2011. Spending will grow at a five-year CAGR of 13% to reach $29.2 billion in 2015.
Manufacturing of HEMS products categories will likely accelerate at similar paces across Asia and in Europe through 2020. The fragmented approach of European Union officials to overall Smart Grid development and lack of a clear regulatory framework are leading indicators of Europe’s moderate production pace for Smart Grid products. Meanwhile, production of HEMS products across Europe will stabilize sharply after 2011 when the EU member countries begin to assess their initial return on product investments and local utilities sort through the intricacies of pricing electricity programs to consumers on the revamped grid.
Date: October 2011
Price: US$ 4,950.00
Report Sample Abstract
SBI Energy estimates that since 2006 the number of HEMs and HANs deployed globally exceeds 1,840,000. Year-over-year growth was 35% between 2009 and 2010, the largest growth period since 2006 and steady annualized growth rates are expected through 2020 when the total HEMS installed base will exceed 5.5 million. The installation estimate is derived from the definition of components that constitute HEMS and HANs:
- HEMS consist of Control and Protection products (such as smart meters and performance measurement systems), Monitoring and Recording products (such as sensors and demand response systems), Interfaces and Decision Support products (such as user interfaces and information displays), and Smart Devices (such as smart refrigerators, programmable thermostats, and smart switches.
- HANs are comprised of the integrated communications hardware and software required to run a HEMs over a computer network. The hardware includes routers, hubs, and switches, and the backbone networking platform (such as ZigzBee or WiFi); software is required for networking management and data delivery to utilities and homes.
The global market for HEMS product manufacturing is currently valued at $55.6 billion, which represents a nearly 13% compound annual growth since 2006 when it was valued at $30.5 billion. Much of the market value continues to come from the manufacturing of integrated communications products, which include goods that enable the exchange of information and data between the household and the utility. The fastest growing HEMS product category since 2006, however, has been in the interfaces and decision support category, which includes IHDs and other in-home displays. It is valued globally in 2011 at an estimated $11.7 billion, a 17.6% CAGR growth since 2006.
Trends to Watch
By 2015, the global market value of HEMS products manufacturing is projected to reach $78.4 billion, representing a modest five-year CAGR of 7%. Much of the growth will again stem from manufacturing of communications-related products. The category is expected to grow to more than $28 billion by 2015, a five-year CAGR rate of 10%. Fueling growth within the communications sector will be manufacturing of products for home networking, including HAN software and hardware (such as routers, hubs and gateways).
Opportunities for HEMS product manufacturers will be most fruitful in the sectors of integrrated communications and in-home interfaces and decision support. Nearly 60% of the global spending is estimated to occur in these product groupings currently. As utilities in nations increasingly commit to HEMS deployment, immediate spending will be in areas that lay the foundation for a successful long-term infrastructure for in-home energy management and energy demand response. This foundation is typically focused on networking infrastructure, communication hardware and software, and consumer products that receive and monitor electricity use.
More information can be found in the report “Global Home Energy Management Systems Products Market” by SBI.
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