Dive Brief:

• Almost 85% of homes with a broadband internet connection took some action in the last year to reduce their energy costs, and almost 10% of those households own a smart energy device, according to new research from Parks Associates.
• But the study also found that​ awareness of smart energy devices remains low, with only about 14% of U.S. broadband households familiar with energy management products.
• Parks Associate said it anticipates that smart products and home services will accelerate the adoption of other energy services, with targeted messaging being key to the spread of these services.

Dive Insight:

New analysis from Parks Associates finds households with a broadband energy connection have overwhelmingly been looking for ways to reduce energy costs, but the penetration of home energy management devices remains low.

Almost 85% of homes with a broadband connections took steps to reduce energy usage in the last year, but those also include replacing standard light bulbs with more efficient light sources, the firm said. 

But only 10% of U.S. broadband households own a smart energy device — including a programmable thermostat, light bulb, power strip, outlet, or plug adapter capable of connecting to the internet — and the research shows most are not aware of the devices.

“Many energy-saving actions increased from 2013 to 2014, but awareness of smart energy devices remains low — only 14% of U.S. broadband households are familiar with energy management products,” said Tom Kerber, director of research and home controls and energy for Parks Associates.

The firm believes smart products and home services will accelerate the adoption of other energy services.

“Getting a consumer to change their behavior and allowing the right messaging delivered at the right time through one’s smart device is a way to do this," said Justin Segall, president and founder of Simple Energy. "Customers are more likely to adopt this model as it proves convenient and easy to digest.  If you want mass adoption in the market, there needs a way to meet a customer where they are and continue to move them up the adoption cycle."

The research also showed 34% of consumers who are able to see their daily electricity usage online find the feature “very valuable.”

The home energy management market is expected to reach an annual value of $2.2 billion in North America by 2022, more than doubling the industry's value today, which hovers around $1 billion.