Assessment of Strategy and Execution for 16 HEM Vendors

Home energy management (HEM) is a broad market segment covering technologies and services that consumers use to help them better manage and control their home energy consumption. According to Navigant Research’s definition, HEM technologies and services include home energy reports, web portals, standalone HEM, in-home displays (IHDs), and networked HEM. In the 2 years since the last iteration of this report, the HEM market has seen tremendous change. Some companies have pulled ahead, some have left the market to pursue other goals, and some have settled into their specialized HEM roles.

Navigant Research expects steady growth for HEM products and services through 2023. The HEM market has struggled to gain traction in the past, particularly from a utility standpoint. However, it began picking up momentum in 2014, when non-utility stakeholders started making bolder moves. The initial jolt came from Google’s early 2014 purchase of Nest Labs, which signaled that a giant tech company saw something valuable in smart thermostats and connected home devices. Thermostat vendors have followed suit by becoming active outside of hardware devices. According to Navigant Research, the global HEM revenue is expected to peak at a little over $3 billion in 2020.