UK Deployment will Drive the Global In-Home Display (IHD) Market Until 2016

Thursday 26 January 2012, Amsterdam

The report provides information related to the past deployment trends and the outlook for IHDs in key countries such as including the US, the UK, Canada, Australia, Denmark, Sweden, Finland and Norway. IHDs are constituents of Home Energy Management Systems (HEMS) that help to track energy consumption on a periodic basis. An IHD provides near real time feedback on energy consumption to consumers. This real time information helps consumers to save money on energy bills by regularly monitoring energy consumption and energy pricing details. The IHD market is expected to be driven by the deployment of smart meters. In the UK market, the deployment of smart meters will run from 2014–2019 according to a government mandate. The UK IHD market is expected to grow during this period as the mandatory roll out of smart meters also requires the installation of IHDs. The UK market has recorded the highest IHD penetration to date. In the future, it is expected that the UK market will drive the IHD market globally. The report covers market factors for the IHDs such as drivers, restraints and price trends besides providing a brief overview on the IHD technology and comparison of product features from different vendors. The report provides brief profiles of key IHD vendors such as Control4 Corporation, Comverge, Inc., Home Automation, Inc. and Tendril


Poor Short Term Outlook for Global In-Home Display (IHD) Markets in Key Regions

The IHD market is not global and the absence of policies or guidelines from governments has acted as a barrier for IHD penetration on a global level. A number of pilot projects have been enacted in European countries such as Denmark, Norway and Sweden; however, there has been no announcement about the installation of IHDs in Europe. Global IHD vendors are not involved in deployments in these areas due to a lack of bulk orders.

Figure: In-Home Displays Market, Global, Price Trend ($), 2009-2020
 

Mandatory Deployment of In-Home Displays (IHD) with Smart Meters will Lead to Growth in the Global IHD Market

The introduction of mandatory plans by governments to deploy IHDs with smart meters will lead to growth in the global IHD market. In the US and in European countries the market is expected to grow after smart meter deployment. In the absence of a mandate, consumers tend not to be willing to buy IHDs, which can be expensive. As a result, the uncertain global IHD market could be due to a lack of mandatory policies from regional governments. The mandatory installation of IHDs is required in order to motivate consumers to save money on energy bills.  

UK Deployment will Drive the Global In-Home Display (IHD) Market Until 2016

The largest deployment of IHDs at present is in the UK market, and this is expected to continue until 2016. The UK IHD market is currently contributing 30%-50% to the global IHD market and is expected to continue to be a market leader in future IHD deployment. The mandatory installation of smart meters will drive the market for IHDs in the UK, as the deployment of smart meters includes the installation of IHDs. The UK IHD market is expected to increase steadily from 2014-2016.

Deployment of In-Home Displays (IHD) is Restricted to a Few Regions at Present

At present, IHDs are deployed in North American and European Region. In NORDIC countries such as Sweden, Finland, Norway and Denmark, IHD deployment is in the introductory stage and the devices are currently being tested at the pilot level. In Asia-Pacific there is currently no deployment of IHDs, as countries in this region aim to reduce power transmission and distribution losses from their power grid system. A lack of awareness about the product is a major reason for poor global IHD penetration.

High Price of In-Home Displays (IHD) is a Barrier to Market Growth

The high price of IHDs is a major barrier to growth for IHDs in the global market. The average global price of an IHD is around $80, and in some regions it can be as high as $500. Many customers are discouraged from buying IHDs because of their high price. Large scale deployments can reduce the price of IHDs because of the effects of economies of scale, although there is no plan at present for large scale deployment. Price will remain a deciding factor for the market prospects of IHDs unless utility companies decide to install IHDs with no cost to the consumer.