Homing in on Home Technology
Steve Koenig, Director of Industry Analysis at the Consumer Electronics Association (CEA)

The average U.S. household today owns more than two-dozen non-discrete CE products. Yet, ironically, power can be a scarce commodity when we are on the go, and in places where access to energy is obvious and effortless like at home, electricity can be costly. As a result, energy consumption and conservation has increasingly crept into the consumer consciousness.

New research from CEA examines consumers’ energy use at home, exploring actions to manage home energy consumption and awareness of technology to help with this task. Given rising energy costs and the popularity of the green movement, it is not surprising to learn consumers have real concerns about home energy expenses and are taking steps to reduce them. But are they open to technology solutions to help solve their power predicament?

CEA’s Home Technologies and Energy Efficiency: A Look At Behaviors, Issues and Solutions study found 75% of consumers express concern/great concern over the potential for rising home energy costs. And in the past 12 months, 76% of consumers report taking some action to reduce the amount of energy consumed in their home.

Corroborating these findings, the study shows consumers are generally aware of technology options to achieve greater home energy efficiency options, ranging from aftermarket solutions to professionally installed home technologies. This is good news. Beyond appliances and basic energy management products like programmable thermostats, consumers are not as familiar with more advanced energy efficiency solutions such as intelligent HVAC or home automation systems.

Consumer Behavior

A key finding of the research is that consumers recognize technology is not a silver bullet for reducing energy costs — it will also require behavioral changes related to energy consumption. Some 57% of consumers believe an equal mix of behavioral changes and the use of new technology will help them conserve household energy. So what will it take for consumers to seek out a technology solution to help them manage their home energy costs?

The bad news is consumers say their monthly home energy bills would need to increase 31% before they would seriously investigate technology options to improve energy efficiency within the home. Yet, there may be ways to nudge consumers in the right direction.

Marketing messages focused on financial benefits beyond monthly bills and social responsibility (think green) also may encourage consumers to learn more about energy-saving technology. In addition, 72% of consumers say they would learn more about home technologies if it would add value to their home.

Digging a bit deeper into the research informs how best to reach consumers questing for information about energy-saving home technology. Consumers frequent online resources to research energy management solutions, with 43% visiting technology websites. Interestingly enough, consumers are more likely to visit home improvement stores (66%) and even query utility companies (63%) to get the info they need. CEA’s "2012 Home Technology Forecast" illustrates a category on a growth streak. With total wholesale revenues topping $2.3 billion this year, dollar shipments are expected to climb eight percent to nearly $2.5 billion by 2010. And the market opportunity is expected to expand to the $3 billion level by 2012.

Consumers increasingly are concerned about reducing energy costs at home and are willing to buy technology to help address the issue; but they may not make the right decision without help. The industry must market home technologies effectively to capitalize on the opportunities under every roof. Let’s help consumers be green and, make some green in the process. 

Steve Koenig is the Director of Industry Analysis at the Consumer Electronics Association (CEA). As a part of CEA’s market research team, Koenig directs the Market Activity Report and Analysis Program (MARA), which tracks factory shipments of consumer electronics (CE) products to U.S. dealers, and oversees the semi-annual CE Industry Forecast. The article originally ran in the May/June addition of Vision Magazine and can be viewed at www.CE.org/vision.

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