As data about home energy use expands, the next big thing could come from new products and services companies create to analyze and use that data.
In June, Navigant Research released a study titled “Smart Home Data Analytics.” It explores the global market for smart home data analytics solutions in the residential space. The study builds on a logical correlation. As the use of smart home devices increases, data from those devices expands multifold.
The Navigant study looks closely at how companies are using that new data stream.
According to Navigant, the market is still emerging, and participants “are just beginning to realize the opportunity offered by volumes of data.”
The study finds that three things are driving the market. The use of smart home devices, like learning thermostats and Wi-Fi-enabled appliances, is expanding rapidly. These devices help create massive amounts of data about home energy use. And, that data opens new opportunities for companies to engage with consumers.
The greatest potential, according to Navigant, could be in the development of home automation.
However, Navigant identifies several barriers to growth in this market. Data privacy and security issues erode consumer trust. Lack of education creates a deficit of knowledge about what a company can do with this data. Lastly, products must be interoperable to pave the way for widespread adoption of data analytics solutions.
While these obstacles will push growth out into the future, Navigant is ultimately bullish. The company projects annual smart home data analytics revenue to increase from $1.3 billion in 2017 to $11.0 billion in 2026 at a compound annual growth rate (CAGR) of 27.1 percent. Navigant also expects North America to generate the most revenue compared to other international markets, increasing from $800.5 million in 2017 to $4.5 billion in 2026 at a CAGR of 21.0 percent
About The Author
LAEZMAN is a Los Angeles-based freelance writer who has been covering renewable power for more than 10 years. He may be reached at [email protected].