Matt Vulpis 
Energy has always been one of the most essential tools at humanity’s disposal, and amidst the recent and rapid innovation of technology, energy has only grown in value. The notable expansion of the data center industry, coupled with the ongoing electrification efforts of both residential and transport sectors in advanced economies, is driving increased global energy demands.
Global electricity demand is expected to rise at a faster rate over the next three years, growing by an average of 3.4% annually through 2026, while electricity demand in the US is predicted to rise by 2.5% in 2024 alone.
As this demand grows, so will the energy inequality gap, which already plagues approximately 733 million people or one in ten people worldwide. In the US, the disparity will most significantly be felt in the residential sector, as residential energy applications comprise around 17% of the country’s annual energy use.
However, within the residential sector, low-income households will be most noticeably impacted by the rising energy demands due to subsequent rising costs. Low-income households already spend around 16.3% of their income on energy, as compared to 3.5% in non-low-income households, making any increases in expenditures possibly too much to overcome.
While federal programs and initiatives have already sought to ease this burden, such programs and policies often miss low-income households, who don’t always have the resources to take advantage of incentives and upgrade policies.
This has left building managers and landlords looking for ways to optimize energy consumption for their residents and tenants. The most promising application so far has, without a doubt, been the introduction of artificial intelligence (AI) and machine learning (ML), most commonly in the form of home automation.
Referring to a network of hardware, communication, and electronic interfaces that, thanks to IoT technology, work to integrate everyday devices with one another via the Internet, home automation can offer building owners a way to provide their tenants with the increased electrical comfort, convenience, and safety measures they seek through the sensors and controllers they’re given access to.
Home automation technology allows homeowners to remotely power off systems and appliances when they aren’t in use, as well as actively monitor systems and arm homeowners with in-depth, detailed knowledge, insight, and guidance to achieve greater control over their energy usage.
The technology is already gaining a strong foothold, as experts predict growth at a CAGR of 9.82%, estimating a staggering rise from the 2021 market value of USD USD 54561.64 million to a 2027 market value of USD 95710.72 million.
The growth is quite unsurprising, as there are already practical examples of successful home automation implementation, such as the pilot program deployed by Hub Controls, a developer and provider of an award-winning automated personal energy management system. The installation of their Hub Controller technology in Binghamton, New York, resulted in user savings of over 45 percent and a significant reduction in monthly heating bills.
On top of this successful pilot, Hub Controls has recently announced a second pilot program in upstate New York, with NOCO Energy Corp. aimed at multi-tenant building owners looking to cut energy costs by minimizing waste in heating and cooling. Hub Controls has pledged to deploy Hub Controllers at no cost in the Buffalo area, hoping to have the same impact and success they have already seen in thousands of buildings globally.
Ultimately, in a time when energy access is becoming increasingly important, home automation technology is sure to catch the eye of building managers and landlords across the country and worldwide. These types of devices and applications can play a pivotal role in ensuring that residential communities are always provided with reliable, sufficient energy access, regardless of location or income level.
