A new report by US market research company IHS states that revenue generated from smart appliances (US$3 billion) will surpass demand-response enabled smart home energy management devices (US$57 million) by 2025.
The Colorado-based firm notes that demand-response enabled smart home energy management devices, in-home displays (IHDs) and smart thermostats will "lead the way" in terms of installed base numbers, but won’t match smart appliances in terms of revenue numbers.
It adds that among the array of smart home energy management devices, IHDs are expected to have the highest installed base and unit shipments from 2011 to 2025, followed by smart thermostats that are predicted to have an installed base of 21.4 million by the end of 2025.
The lower revenue numbers for IHDs and demand response-enabled smart thermostats says IHS, can be attributed to the fact that these devices are often subsidised by the government or utility companies.
According to an IHS release, smart appliances such as washing machines and refrigerators - are projected to have the highest revenues by the end of the forecast period, growing from US$600,000 in 2014 to approximately US$3 billion in 2025, due to their higher unit price.
The IHS report ‘The Smart Home Energy Management Devices Report – 2015’ analyses the market potential for smart home energy management devices that connect to a smart meter in over 20 individual countries and regions (Americas, EMEA, and Asia). The report provides forecasts by country, device type and connectivity protocol.
Market growth factors
IHS explains that market growth and rate of adoption of home energy management devices and smart appliances differ from region to region.
Several factors however, such as a country’s energy profile, condition of electricity infrastructure, government policies on energy efficiency and technology investment, and citizen engagement are some of the key considerations when looking at market penetration of such technologies.