Tuesday 4 August 2020

Home energy management sector nets over $5bn in investments

ABU DHABI, 18 days ago

More than $5 billion has been invested in the home energy management (HEM) sector since the beginning of the new century, with venture investments worth $3.2 billion during the past five years alone, according to a report by Lux Research. 
These investments show a strong innovation interest, as attention is coming from incumbents in the space such as electric utility companies and appliance manufacturers but also smart home solution developers, energy service providers, energy storage solution developers, and automotive OEMs, stated Lux Research in its "Delivering Smart Home Energy Management" report. 
Residential buildings have a major impact on energy use globally and are second only to industry energy use. Despite this fact, the home ecosystem is siloed between smart home and extended home ecosystems with very little overlap, 
The report outlines what can be done to connect the two and deliver a better solution to aid in the transition to clean energy.
“Today, there are no smart home/energy management offerings that deliver on all home ecosystem capabilities,” said Jessica Hernandez, the analyst at Lux and lead author of the report. 
"The home ecosystem is currently broken down into two siloed parts: the smart home ecosystem, which covers aspects of security, convenience, and comfort, and the extended home ecosystem, which covers on-site energy generation, energy storage, and electric vehicle charging," explained Hernandez. 
"The only area of overlap between these two ecosystems is in HEM, which will be key to uniting the home ecosystem," she added.
“Up to this point, service providers and appliance manufacturers have focused on unique smart home use cases, leaving room for an integrator that takes the middle ground approach to unifying it all,” noted Hernandez.
“Energy management is the only area that the smart home and the extended home have in common, and so far, this connection has remained relatively ignored by companies focusing on either branch of the home ecosystem,” she added.
Lux Research encourages emerging players in the extended home space to focus on developing smart home solutions that deliver both energy management and comfort to appeal to the needs of consumers.
In order to move forward, energy providers and smart home developers need to develop partnerships that enable unification across the entire home ecosystem. Service providers should partner with players offering a high amount of flexibility in enabled capabilities, it added.-TradeArabia News Service


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