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Marketing Opportunities in Smart Home Energy Management

Abstract

Introduction

Since initial reports were published on the development of the smart grid, it has become increasingly clear that conventional wisdom is being challenged by new entrants. At first sight, this appeared to be alternative suppliers providing the same services as major suppliers. However, it is argued here, evidence is growing that suppliers are actually promoting a wholly alternative business model.

Features and benefits

  • Overview of the “standard narrative” in respect of home energy management systems.
  • Review of HEMS developments on a region-by-region basis and comparison of regional strategy.
  • Factors impeding development of the vision.
  • Disruptive factors - specifically, the development of cloud services in this area.
  • Alternative frameworks for the development of home energy management systems; likely providers.

Highlights

The development of home energy management systems is highly variable by region, in large part due to the different start points of various economies. Further development will continue to reflect this, with economies such as China focused on infrastructure development and the US and OECD more concerned with the dissemination of smart appliances.

Different countries are also promoting a range of different political strategies in an effort to help their industries to strategic dominance in this area: Japan is one of the most interventionist nations in this respect.

Development of smart grid in general and HEMS in particular is creating a need for a range of new niche service providers (data management, security, control, and networking systems), and these are frequently being provided by new and smaller entrants to the marketplace.

Your key questions answered

  • What is the current vision for HEMS development globally?
  • How is this playing out on a region-by-region basis, and how are individual nations adapting their political strategies to create business advantage?
  • What are the main obstacles to business development in this area?
  • Which are the key “interlopers” and disruptive influences (e.g. cloud services)?
  • What are the key concerns of consumers?

Table of Contents

About the authors

  • Professor Merlin Stone
  • Jane Fae Ozimek
  • Disclaimer

EXECUTIVE SUMMARY

  • Report outline
  • Defining the opportunity: smart 1.0
  • Sizing the opportunity
  • National perspectives
  • The smart 1.1 ecosystem: new suppliers
  • Business issues
  • The consumer perspective
  • Alternative models

Report outline

  • Caveats in respect of the optimistic scenario

Defining the opportunity: smart 1.0

  • Traditional value chain
  • Alternative value chains
    • Benefit case
    • The home energy management system, by function
    • Smart 1.0 delivery: key roles

Sizing the opportunity

  • Overall size of market(s)

National perspectives

  • Europe
    • Support
    • Progress
    • Detail
    • Context and insight
  • US
    • Context and insight
  • China
    • Context and insight
  • Japan
    • Context and insight
  • India/Brazil

The smart 1.1 ecosystem: new suppliers

  • Areas for growth: new support services
    • Data analysis
    • CRM enablement/enhancement
    • Connectivity and integration
    • Alliances
  • New solutions
  • Mature vs developing technologies: obsolescence

Business issues

  • First to blink: which technology?
  • Lock out?
  • Issues of speed, complexity, and systems
    • Security
    • The role of standards
    • Market limits: critical path issues
  • Misinterpretation: “hype”
  • Squaring the utility circle
    • Focus on limited achievable objectives

The consumer perspective

  • Perceived needs
    • The need for a step change
    • More information: more savings
    • Actionable information leads to action
    • Consumers pay for utility benefit
    • Consumers opt for 80/20 benefits

Alternative models

  • smart 2.0: the smart home, bottom-up
  • Alternative models

Appendix

  • Glossary/abbreviations
  • Bibliography/references

TABLES

  • Table: Future investors in the smart grid (rank order by country), 2010
  • Table: Western European smart home systems and services market forecast ($bn), 2011 - 17
  • Table: Forecast highlights for smart grid-related future in the US
  • Table: SGCC Strengthened Smart Grid Plan, 2009 - 20
  • Table: Japan smart grid market value forecasts, by technology ($m), 2011 - 16
  • Table: Conflicting assessment of the benefits of smart home energy management: consumers vs energy providers
  • Table: Four models of HEMS development

FIGURES

  • Figure: Traditional versus smart grid structure, 2011
  • Figure: New vs old value chains, 2009
  • Figure: Home energy management box in the home, 2012
  • Figure: Western European smart home systems and services market forecast ($bn), 2011 - 17
  • Figure: SGCC Strengthened Smart Grid Plan spend, by phase ($bn), 2009 - 20
  • Figure: Japan smart grid market value forecasts, by technology ($m), 2011 - 16
  • Figure: Schematic for a wireless (ZigBee) HAN served by both a broadband Internet gateway and an AMI network
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