Energy is an important pillar of the converging connected home market. These services, particularly energy management, can attract new customers, increase the stickiness of one's offerings and, once the market moves beyond the first generation of offerings, lead to new recurring revenues.

Parks Associates' Technology Enthusiasts & Adopters of Energy Management reports 65 percent of U.S. broadband households currently rate at least one security or energy value-added services as highly appealing, with demand for energy management broader (although less intense) than the demand for security.

Offering energy monitoring and home security and monitoring services together addresses more than 40 percent of the U.S. market. Energy management bundled with other services is also likely to reduce customer attrition. As energy management applications become embedded in customers' lives, they are less likely to change to another system.

This promise, combined with the convergence of energy, security, and home controls applications, means that multiple channels are now competing for the consumers' business, with players as diverse as Verizon, Comcast, AT&T, and ADT Security all pursuing their own IP-based connected home strategies.

From the article, "Bundled energy management services" by Tom Kerber. 

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