Home area networks (HANs) are localized systems of hardware and software that enable enhanced energy management to take place inside dwellings. A HAN allows consumers to access consumption information that, when acted upon, can result in reduced use of energy and lower costs. The HAN is seen as one of the last zones of technologies that complete the modern smart grid as envisioned by utilities and technology developers. The HAN leverages consumption information provided by smart meters, which deliver frequent and granular data and power quality measurements to HAN devices that can take advantage of the information – often resulting in both energy and cost savings for the consumer.

Despite the benefits of HANs, adoption has been slowed by a number of factors, including consumer indifference, the cost of new equipment, and evolving technology standards. Utilities themselves have taken a relatively slow approach to HANs, as they have concentrated initial efforts on the deployment of smart meters. A few utilities in North America have started to promote HANs as they move beyond trials and attempt to reduce overall consumption through demand response (DR) programs. In Europe, HAN adoption has been sluggish in this early phase as well, with the exception of the United Kingdom, where regulatory mandates require basic HAN gear to be part of new smart meter deployments.

This Pike Research report examines the global market opportunity for HANs, exploring the drivers and inhibitors that are shaping the market along with major technology issues. The study also provides market forecasts through 2020 for HAN device shipments and associated revenue. Key vendor profiles, analysis of new market players, and case studies are included as well.

Key Questions Addressed:

• What are the major forces shaping the HAN market?
• How many HAN systems will be deployed through 2020?
• How large is the revenue opportunity for the HAN market?
• What technology issues are shaping this market?
• Who are the major players in the home energy management space?
• Which global regions will provide the most opportunities for home energy management vendors?

Who needs this report?

• Utilities
• Home area network vendors
• Home automation system vendors
• Home security vendors
• Consumer electronics companies
• Broadband and telecom service providers
• Networking equipment providers
• Industry associations
• Government agencies
• Investor community

Table of Contents

1. Executive Summary

1.1   Home Area Networks Slowly Gaining Traction

1.2   Home Area Network Market Overview

1.2.1     Drivers

1.2.2     Inhibitors

1.2.3     HAN Products

1.2.4     Market Forecast

2. Market Issues

2.1   Introduction

2.2   Smart Grid Overview

2.2.1     Smart Grid Applications

2.2.2     Smart Metering and AMI

2.2.3     Key Components of AMI systems

2.3   Smart Grid, AMI, and HAN Market Drivers

2.3.1     Market Inhibitors

2.3.2     Energy Conservation

2.3.3     Peak Demand Management

2.3.4     Net Metering, Local Generation, and Plug-In Electric Vehicles

2.3.5     Submetering

2.4   Home Area Network Definition

2.4.1     OpenHAN Definitions

2.4.2     HAN Device Types

2.4.3     Wireless and Wired HANs

2.4.4     Expectations of Consumers and the Home

2.4.4.1     Consumer Pushback

2.4.4.2     Opt-Out Programs

2.5   Market Environment

2.5.1     Utilities

2.5.2     Third-Party DR Vendors

2.5.3     Broadband and Telecom Service Providers

2.5.4     Home Automation and Security Vendors

2.5.5     Hardware and Software OEMs

2.6   Distribution Channels

2.6.1     Utilities

2.6.2     Retailers

2.6.3     Services Providers

2.7   Government and Regulatory Environment

2.8   Market Challenges and Risks

2.8.1     Consumer Acceptance

2.8.2     Pace of Deployment

2.8.3     Interoperability and Standards

2.8.4     Security

2.8.5     Deployment Costs

2.8.6     HAN Data Ownership, Sharing, and Privacy

3. Technology Issues

3.1   HAN Implementation Models

3.1.1     Smart Meter-Controlled HAN

3.1.2     Gateway-Controlled EMS

3.1.3     Externally or Independently Controlled EMS/HAN

3.1.4     HAN Alternatives

3.2   HAN Devices

3.2.1     Simple In-Home Displays

3.2.2     Energy Management Systems

3.2.3     Programmable Communicating Thermostats

3.2.4     Direct Load Control Devices

3.2.5     Smart Appliances

3.2.6     Other Considerations

3.3   HAN Communications Standards

3.3.1     ZigBee

3.3.1.1     SEP 2.0

3.3.2     Z-Wave

3.3.3     Wi-Fi

3.3.4     HomePlug

3.3.4.1     HomePlug Green PHY

3.3.5     HomeGrid/ITU G.hn

3.4   M-Bus

3.5   LonWorks (Echelon)

3.6   KNX

3.7   BidCoS

3.8   Open Services Gateway initiative

3.9   G3-PLC

3.10 USNAP Alliance

3.11 HAN Service Providers

3.12 Case Studies

3.12.1   Oklahoma Gas & Electric

3.12.2   NV Energy

3.12.3   CenterPoint Energy

3.12.4   Hydro One

3.12.5   Swisscom

3.12.6   British Gas (BG)

3.12.7   TXU Energy

4. Key Industry Players

4.1   Introduction

4.2   HAN, HEM Vendors

4.2.1     4Home

4.2.2     AlertMe

4.2.3     Allure Energy

4.2.4     Ambient Devices

4.2.5     Aztech Associates

4.2.6     Blue Line Innovations

4.2.7     Consert

4.2.8     Comverge (H.I.G. Capital)

4.2.9     Ecobee

4.2.10   Eco-Eye

4.2.11   EcoFactor

4.2.12   Efficiency 2.0 (C3)

4.2.13   Energate

4.2.14   Energy Aware

4.2.15   EnergyHub

4.2.16   Green Energy Options

4.2.17   GreenWave Reality

4.2.18   GridPoint

4.2.19   Honeywell

4.2.20   iControl Networks

4.2.21   Navetas Energy Management

4.2.22   Nest Labs

4.2.23   Opower

4.2.24   Savant Systems

4.2.25   Schneider Electric

4.2.26   Tendril

4.2.27   Tri Cascade

4.2.28   Trilliant

4.3   Additional Players

4.3.1     Aclara

4.3.2     Asoka

4.3.3     Belkin

4.3.4     Carrier

4.3.5     Control4

4.3.6     Ember (Silicon Labs)

4.3.7     eMeter (Siemens)

4.3.8     Energeno

4.3.9     HomePlug Alliance

4.3.10   Landis+Gyr (Toshiba)

4.3.11   Swisscom

4.3.12   Vivint

4.3.13   ZigBee Alliance

4.3.14   Z-Wave Alliance

4.4   Utilities

4.4.1     British Gas

4.4.2     Enel

4.4.3     National Grid

4.4.4     NV Energy

4.4.5     Oklahoma Gas & Electric

4.4.6     Oncor (Texas)

4.4.7     Pacific Gas and Electric

4.4.8     Puget Sound Energy

4.4.9     Reliant (an NRG Company)

4.4.10   San Diego Gas & Electric

4.4.11   TXU Energy

4.4.12   Xcel Energy

5. Market Forecasts

5.1   HAN Market Forecast Overview

5.1.1     In-Home Display

5.1.2     Networked HEM Systems

5.2   Market Forecast: HAN Segments Combined

5.3   In-Home Display

5.4   Networked HEM

5.4.1.1     Networked HEM: North America

5.4.1.2     Networked HEM: Western Europe

5.4.1.3     Networked HEM: Eastern Europe

5.4.1.4     Networked HEM: Asia Pacific

5.4.1.5     Networked HEM: Latin America

5.4.1.6     Networked HEM: Middle East

5.4.1.7     Networked HEM: Africa

6. Company Directory
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

• Networked HEM System Shipments by Region, World Markets: 2011-2020
• Revenue by HAN Segment, World Markets: 2011-2020
• Revenue from IHD and Networked HEM Shipments by Region, World Markets: 2011-2020
• In-Home Display Shipments by Region, World Markets: 2011-2020
• In-Home Display Revenue by Region, World Markets: 2011-2020
• Networked HEM System Revenue by Region, World Markets: 2011-2020
• Networked HEM Devices Shipped, North America: 2011-2020
• Revenue Generated by Networked HEM, North America: 2011-2020
• Networked HEM Devices Shipped, Western Europe: 2011-2020
• Revenue Generated by Networked HEM, Western Europe: 2011-2020
• Networked HEM Devices Shipped, Eastern Europe: 2011-2020
• Revenue Generated by Networked HEM, Eastern Europe: 2011-2020
• Networked HEM Devices Shipped, Asia Pacific: 2011-2020
• Revenue Generated by Networked HEM, Asia Pacific: 2011-2020
• Networked HEM Devices Shipped, Latin America: 2011-2020
• Revenue Generated by Networked HEM, Latin America: 2011-2020
• Networked HEM Devices Shipped, Middle East: 2011-2020
• Revenue Generated by Networked HEM, Middle East: 2011-2020
• Networked HEM Devices Shipped, Africa: 2011-2020
• Revenue Generated by Networked HEM, Africa: 2011-2020
• Installed Base of Households with In-Home Displays by Region, World Markets: 2011-2020
• Installed Base of Households with Networked HEM Systems by Region, World Markets: 2011-2020
• Revenue by HAN Segment, World Markets: 2011-2020
• In-Home Displays Shipped by Communication Technology, North America: 2011-2020
• Revenue Generated by In-Home Displays, North America: 2011-2020
• In-Home Displays Shipped by Communication Technology, Western Europe: 2011-2020
• Revenue Generated by In-Home Displays, Western Europe: 2011-2020
• In-Home Displays Shipped by Communication Technology, Eastern Europe: 2011-2020
• Revenue Generated by In-Home Displays, Eastern Europe: 2011-2020
• In-Home Displays Shipped by Communication Technology, Asia Pacific: 2011-2020
• Revenue Generated by In-Home Displays, Asia Pacific: 2011-2020
• In-Home Displays Shipped by Communication Technology, Latin America: 2011-2020
• Revenue Generated by In-Home Displays, Latin America: 2011-2020
• In-Home Displays Shipped by Communication Technology, Middle East: 2011-2020
• Revenue Generated by In-Home Displays, Middle East: 2011-2020
• In-Home Displays Shipped by Communication Technology, Africa: 2011-2020
• Revenue Generated by In-Home Displays, Africa: 2011-2020
• Smart Metering/Advanced Metering Infrastructure Architecture
• Projected U.S. Peak Electricity Demand by Scenario
• Smart Meter-Controlled HAN
• Gateway-Controlled EMS
• Externally Controlled EMS/HAN
• In-Home Display from Aztech Associates
• EnergyHub’s Home Base
• Examples of Smart Thermostats: Nest Labs (left) and Ecobee (right)
• Smart Plug Examples: Digi (left) and ThinkEco (right)
• ZigBee Mesh Network Topology
• Z-Wave Home Control
• Wi-Fi-Based Home Topology
• HomePlug Topology
• Consumer HAN (IHD, Networked HEM): Segments along a Continuum

List of Tables

• Networked HEM System Shipments by Region, World Markets: 2011-2020
• Revenue from IHD and Networked HEM Shipments by Region, World Markets: 2011-2020
• Open Home Area Network Guiding Principles
• HAN Logical Device Types
• Comparison of HAN Energy Bundles, U.S.  Broadband Service Providers
• In-Home Display Shipments by Region, World Markets: 2011-2020
• In-Home Displays Shipped by Communication Technology, North America: 2011-2020
• In-Home Displays Shipped by Communication Technology, Western Europe: 2011-2020
• In-Home Displays Shipped by Communication Technology, Eastern Europe: 2011-2020
• In-Home Displays Shipped by Communication Technology, Asia Pacific: 2011-2020
• In-Home Displays Shipped by Communication Technology, Latin America: 2011-2020
• In-Home Displays Shipped by Communication Technology, Middle East: 2011-2020
• In-Home Displays Shipped by Communication Technology, Africa: 2011-2020
• In-Home Display Average Selling Price by Region, World Markets: 2011-2020
• In-Home Display Revenue by Region, World Markets: 2011-2020
• Installed Base of Households with In-Home Displays by Region, World Markets: 2011-2020
• Penetration Rate of Households with In-Home Displays by Region, World Markets: 2011-2020
• Networked HEM System Shipments by Region, World Markets: 2011-2020
• Networked HEM Devices Shipped, North America: 2011-2020
• Networked HEM Devices Shipped by Communication Technology, North America: 2011-2020
• Networked HEM Devices Shipped, Western Europe: 2011-2020
• Networked HEM Devices Shipped by Communication Technology, Western Europe: 2011-2020
• Networked HEM Devices Shipped, Eastern Europe: 2011-2020
• Networked HEM Devices Shipped by Communication Technology, Eastern Europe: 2011-2020
• Networked HEM Devices Shipped, Asia Pacific: 2011-2020
• Networked HEM Devices Shipped by Communication Technology, Asia Pacific: 2011-2020
• Networked HEM Devices Shipped, Latin America: 2011-2020
• Networked HEM Devices Shipped by Communication Technology, Latin America: 2011-2020
• Networked HEM Devices Shipped, Middle East: 2011-2020
• Networked HEM Devices Shipped by Communication Technology, Middle East: 2011-2020
• Networked HEM Devices Shipped, Africa: 2011-2020
• Networked HEM Devices Shipped by Communication Technology, Africa: 2011-2020
• Networked HEM System Average Selling Price by Region, World Markets: 2011-2020
• Networked HEM System Revenue by Region, World Markets: 2011-2020
• Installed Base of Households with Networked HEM Systems by Region, World Markets: 2011-2020
• Penetration Rate of Households with Networked HEM Systems by Region, World Markets: 2011-2020
• Revenue from IHD and Networked HEM Segments by Region, World Markets: 2011-2020
• Revenue by HAN Segment, World Markets: 2011-2020
• 4Home SWOT Analysis
• AlertMe SWOT Analysis
• Allure Energy SWOT Analysis
• Ambient Devices SWOT Analysis
• Aztech SWOT Analysis
• Blue Line Innovations SWOT Analysis
• Consert SWOT Analysis
• Comverge SWOT Analysis
• Ecobee SWOT Analysis
• Eco-Eye SWOT Analysis
• EcoFactor SWOT Analysis
• Efficiency 2.0 SWOT Analysis
• Energate SWOT Analysis
• Energy Aware SWOT Analysis
• EnergyHub SWOT Analysis
• Green Energy Options SWOT Analysis
• GreenWave Reality SWOT Analysis
• GridPoint SWOT Analysis
• Honeywell SWOT Analysis
• iControl Networks SWOT Analysis
• Navetas SWOT Analysis
• Nest Labs SWOT Analysis
• Opower SWOT Analysis
• Savant SWOT Analysis
• Tendril SWOT Analysis
• Tri Cascade SWOT Analysis
• Trilliant SWOT Analysis