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17 Million Home Energy Management Systems Forecast to Ship in 2014, According to ABI Research

Starting from a negligible base, the market for systems that help homeowners improve management of their energy consumption is expected to grow rapidly, with 17 million such systems forecast to ship in 2014, according to the latest data from ABI Research.

“There’s a lot of flux in the home energy management systems market,” comments practice director Sam Lucero. “Companies of many different kinds are trying to enter it, offering four main configurations: standalone systems, components of larger home automation systems, managed systems from service providers, and those offered by electrical utilities, often as part of their Demand/Response deployments. Large software companies such as Microsoft and Google are also making a play in this market.”

Of the four main avenues for home energy management, standalone systems are expected to remain the smallest part of the market, and to show the least growth over the forecast period. Systems provided by utilities will form the market’s largest segment, accounting for more than half of the total system shipments in 2014. Those offered as part of home automation packages, and those delivered as managed services by providers such as telcos, will occupy the market’s middle ground. ABI Research expects this market to start taking off seriously in 2010-2011.

Google and Microsoft, which offer user-interface solutions and application software for some systems, might at first seem unlikely contenders in this area. Indeed, says Lucero, “HEMS vendors should not be overly concerned” by their entrance into the market: “HEMS are well outside their areas of core competency and it will take these companies considerable time and effort to catch up with the leading innovators in this space.” However their interest is symptomatic of a wider drive towards smarter energy management as part of the “clean tech” movement.

ABI Research’s new “Energy Management and Home Area Networks” study ( analyzes each of the important market segments, their adoption drivers and challenges, key competitive landscape trends, and major technological issues. It profiles the key players in the market and quantifies the market opportunity in five-year unit shipment and revenue forecasts, given both by market segment and region.

This report is part of the Wireless Sensor Networks Research Service (

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advise thousands of decision makers through 28 research and advisory services. Est. 1990. For more information visit, or call +1.516.624.2500.

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