Control4: Cutting Edge Home Energy Automation

Already at the forefront in home automation software, Control4 last year announced the launch of MyHome for IPhone, Ipad, tablets and PCs. The app allows individuals already leveraging Control4’s home product line to control lights, temperature, and energy usage as well as movies, music, and security, from the touch screen of their mobile device.




An exciting extension to the MyHome platform was released in Europe in February 2011. This excerpt was taken from a Control4 Press Release:

“The Control4 My Energy application works with energy monitoring devices to help homeowners manage their energy consumption. The app offers two views - Dashboard and Electricity Use. In the Dashboard setting, customers can monitor their home’s electricity price per KwH, cost per hour, current use and daily use. In the Electricity Use setting, the user can also view two-hour real-time data, historical data for the week, month and year, and run comparisons of current consumption to previous periods at a granular level, to the extent that it can be plotted to average daily outside temperature. In this way the homeowner is able to identify spikes in usage to adjust their settings and/or routine to save energy and reduce bills. (1)”

The functionality sounds very similar to the work already being done by Google Powermeter and Microsoft Hohm; however, the interface comes with the critical ability to directly adjust current settings and automate routines to save energy. Unfortunately for the average consumer, this added benefit comes at a high additional cost. According control4 dealer forums(3), installation and set-up for a home can cost $100,000+. Certainly, less integrated systems would carry significantly lower costs. If the goal is automated energy control, however, such a high investment may be necessary. At the present time, the costs likely outweigh the benefits. It may be a few years before these systems become an attractive investment for home owners.


NOTES:
(1) Control4 brings energy management application and more to Europe. http://www.control4.com/about-us/press/2011/02/01/ise-apps/
Accessed April 24,2011
(2) This video provides more information on the My Energy platform



(3) Control4 Dealer Forums: http://www.c4dealers.com/viewtopic.php?pid=35849

The Growing Enterprise Energy Management Market

Global business spending on application software in 2010 was $168 billion. Of that, only $163 million was spent on enterprise carbon and energy management systems (ECEM). Vendors in this market, however, report an average annual growth of 235% since inception. Taking the launch of the Apple App store in 2008 to be the start of this market, revenues in this space have more than doubled from 2009 to 2010. As the technology matures and mobile platforms proliferate, adoption rates are expected to increase. The smart phone is truly transforming the way businesses think about energy management.

According to a Forrester Market Analysis, the ECEM industry is expected to grow at a CAGR of 83%, reaching $903 million in 2013(1). The report goes on to say that North America and Europe will provide the major market opportunities and that manufacturing, utilities, and the public sectors will provide the most significant areas for growth. The following graph from the report provides a more specific brake-down:



Though a $1 billion market will represent significantly less than 1% of the mobile application software market in this aggressively growing space, it certainly provides a significant opportunity for developers and vendors to provide valuable and demanded services. Given the relatively young nature of the industry and the low barriers to entry, one can reasonably anticipate quite a bit of market crowding to occur over the next few years. Things will get interesting once the big players (e.g. Microsoft, Google) find ways to effectively enter the scene. Even if they are unable to do so successfully, expect market consolidation as dominant players emerge.

NOTES:
(1) Data and Image from a December 2010 Forrester Report: The Evolution of Enterprise Carbon and Energy Management Software. Available here:
http://www.ca.com/~/media/Files/IndustryAnalystReports/forrester_evolution_of_enterprise_carbon_and_energy_management.pdf