By identifying this prevailing need, many emerging start-up companies in the home energy monitoring market are unveiling massive business growth opportunities.
New analysis from Frost & Sullivan, Energy Industry – Overview of Home Energy Monitoring, finds that the UK is the largest market in Europe for start-up companies targeting energy monitoring products. Scandinavian countries, Australia and New Zealand are also ranked high in the growth markets. Following the UK as a close second, Scandinavian countries have proven to be the most rapidly growing region. Potentially promising markets still in the embryonic phase include France, Italy and Iberia. Countries like Germany will see a less significant market growth, due to the already-efficient energy consumption typically practiced.
The main focus of the start-up companies is to deliver reliable and affordable alternatives that empower users to monitor their domestic energy consumption. Thereby, consumers can use the innovative and functional monitoring technologies to take steps to cut costs and reduce their carbon footprints. As customers have been trying to cut costs whenever possible, home monitoring device manufacturers are gaining a first-mover advantage by promising to help consumers save up to 15% off energy bills. This money-saving solution is propelling energy monitoring companies to great heights, with some key players realising over 200% growth levels. Interestingly, even despite the recession, the home energy monitoring market best performed in 2009 with companies witnessing tremendous growth levels. High growth rates at current levels are expected to maintain at least for the next two years.
The strategic players in the home energy monitoring market are providing innovative, yet simple products such as mains powered devices that are differentiated on the lines of product features and price. To ensure success, customers are being reached through a variety of distribution channels: primary utilities, online retailers, direct selling and retail stores.
The Frost & Sullivan analysis expects that as the home energy monitoring market will continue to maintain high levels of growth it will certainly attract the interest of players from neighboring industries such as ICT companies. Google and Microsoft have already become involved in the market and will surely drive it forward by offering software solutions, making monitoring more manageable remotely. Moreover, partnerships at distribution and technology levels with other players from adjacent sectors are an important factor that will help ensure market success. For home energy monitoring devices manufacturers, establishing strong relations with other market players will be critical in not only helping to realise economies of scale, but also to reach a significant customer base and ensure sustainability.
Research Analyst Hammam Ahmed points out that "a number of entrepreneurs spotted a gap in the market for tools that enable consumers to save money on energy bills by monitoring domestic energy consumption. With a very modest start, these small start-ups have found a great response." The companies have a unique competitive edge because of their deep understanding of how monitoring and regulating energy consumption will become an integral part of our life-style in the future. They are gaining momentum through their responsiveness to market needs and by pioneering domestic energy alternatives. Ultimately, the expanding success of the home energy monitoring market rests on the companies' leadership in filling a gap in the marketplace with vast potential.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Home Energy Monitoring Markets, then send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.
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