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Germany as the lead Market 

Energy management -  a domain with mass market potential

The market and customer needs are the starting point for shaping this programme. This is why both the potential for developing a mass market together with the technological maturity of a product that has been proven in the different areas are key criteria for prioritising individual smart home applications. The driving force of the smart home market development is currently the field of energy management. Even though the actual power consumption savings are relatively small, the possibility of obtaining an energy management system that includes thermal energy (i.e. hot water, heating) is of the highest importance to customers. In this instance, energy management represents a highly promising catalyst in order to raise the acceptance of smart home products. At the same time, health-related applications are gaining relevance as the result of the demographic shift. Further key topics include entertainment, home/building security and comfort/building automation. Here, the concrete presentation of the usefulness of smart home products and also the consideration of a "lifestyle" factor are decisive in raising the profile of smart home technology and obviously increasing customers' willingness to buy.




Narrow Time Frame in which Germany can become a Lead Smart Home Market

Germany still has the opportunity to develop into a leading international smart home market. However, the course needs to be set very soon if this is to be achieved.

  • IP-based system solutions will be a major factor in deciding the future of the smart home market. Yet it will take a further development period of 5 to 10 years (as of November 2012) for the required IP components to become technically viable and affordable. Cloud-based services still require further development in terms of Data Privacy Protection and IT security.

  • Even if IT companies do come to play a major role in the smart home market, it remains unlikely that they will dominate it, due to the complexity of smart home technology. This makes pre-competitive cross-sector and interdisciplinary cooperation even more important in the market development process.
  • In the wake of changse in energy policy, Germany is well placed to become a lead market for energy management. However, the basic framework of the change in energy policy will need to be shaped accordingly in order to achieve this. 

  • Similarly, Germany could also become a leading provider in the field of Ambient Assisted Living (AAL) because of its demographic change. However, the primary focus will be not only on traditional AAL applications but increasingly on the entire spectrum of health applications.

  • The regulatory framework is generally a factor in deciding whether a lead smart home market becomes established - both at the national and European levels.

  • A further factor is the introduction of a transparent pricing system for smart home products and the establishment of a corresponding organised sales and distribution network for customers.


Dr. Cornelia Rieß
Deutsches Dialog Institut GmbH
Tel.: +49 (69) 153003-21
Fax: +49 (69) 153003-66
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