The emergence of direct-to-consumer home energy management systems (HEMS) solutions offered by telecom, security, and third-party vendors has prompted GTM Research to develop a new perspective on HEMS market segmentation, shown in the following figure.
FIGURE: HEMS Market Segmentation
The HEMS market is segmented into the categories of basic hardware, end-user products, and services.
The hardware is often shared between utility and non-utility solutions, as are the services offered. End users for these products, however, have different value propositions.
Non-utility solutions are focused on both quantitative and qualitative benefits, such as increased comfort and quality of life, as well as reductions in energy use. Utility solutions, on the other hand, must be based on clearly defined return-on-investment calculations that satisfy the reliability or economic needs of the utility.
Some companies are interested in straddling the domains of non-utility and utility solutions and are targeting both markets; analytics and web portals are two universal services that are employed in both utility and non-utility HEMS solutions. The temperature displayed in the diagram illustrates how each segment is trending in the market.
The 300-page report contains a more detailed market segmentation chart which takes the solutions sets and transforms them into specific value propositions.