More than 31.2 million North Americans installed smart home systems in 2016 by connecting devices, systems and home appliances via the internet to save money, time and energy. It is changing customer behavior as households take charge of their energy consumption.
The rise of a more demanding customer and new and established entrants from other industries mean utilities companies need to work harder to retain their customers and search for new revenue streams.
For the second year, the World Energy Market Observatory (WEMO) report provides valuable insights into the health of the North American industry and where the next opportunities lie. From environmental regulations to alternative energy to electric cars, the industry needs to prepare for transformation and disruption.
Disruptive market entrants
Established tech giants Google, Apple, Facebook, Amazon and Microsoft have all entered into the smart home market and are tempting retail customers to choose new energy solutions. The traditional utilities business models are coming under more pressure as technology changes, costs fall for distributed generation and competition increases.
Automation and efficiency
Electricity demand is declining and consumers are shifting to clean energy. At the same time, alternative energy technologies continue to become more cost-competitive with conventional generation. The industry needs to make investments to boost efficiency.
Focus on innovation
2017 was a year of significant transformation and accelerated disruption, with utilities reacting more aggressively to technological advances. Energy and utilities companies must address two seemingly two contradictory requirements: the need to innovate and the need to economize.
The fusion of smart mobility and the digital edge will keep utilities companies relevant in the connected energy economy. Read the 2018 WEMO report to learn more.