The global demand response management system market is expected to grow at a CAGR of more than 7% over the period of 2020-2025. The market for demand response management system is growing faster than it previously was and the benefits offered include enhanced cybersecurity and integration of sources of power generation. Moreover, technology giants of the respective countries are leading the market space, with smaller companies supporting them with constant innovations and smarter software products. The scenario acts as a driver for the adoption of demand response management systems for utilities and customers. However, privacy concerns regarding the consumers as there is a threat of hacking or extracting data related to the end-users is expected to hinder the growth of the market studied.
- The automated demand response management system is expected to witness significant growth during the forecast period owing to the increasing deployment of smart grids across the globe.
- The advent of industrial 4.0 and integration of smart technologies in the existing grid structure is expected to create an ample amount of opportunities for the market players in the coming years.
- Asia-Pacific is expected to witness significant growth owing to the rapid deployment of smart grids and other related technologies.
Key Market Trends
Automated Demand Response Management System to Witness a Significant Growth
- There are many types of demand response programs distinguished by the markets in which they operate. However, the effectiveness of most demand response programs also depends on the degree to which response is automated.
- Automation helps simplify communication during the event, which leads to faster reaction times and more energy savings. This rapid reaction helps limits distortions between the wholesale and retail markets and helps keeps prices lower for everyone.
- Automated demand response can be used by commercial, government, industrial and institutional enterprises to maximize energy savings or develop an additional source of revenue.
- Automated demand response controls coupled with on-site generation using geothermal, solar, wind, biomass or landfill-gas-to-energy provide the off-grid power needed to keep facilities running while reducing energy use from the grid. Moreover, Automated demand response management systems offer the greatest control, allowing customers to automatically or remotely manage energy consumption at times of peak demand.
Asia-Pacific to Witness a Significant Growth
- The market for demand response management system in the Asia-Pacific region is expected to witness significant growth during the forecast period.
- As a large industrial nation with a forecasted peak load of more than one terawatt by 2020, China is a potentially large market for demand response management systems. The country has experienced shortages in power availability because of rapid economic growth, a situation that has ebbed in recent years. To manage this mismatch in electricity demand and supply, large industrial customers were instructed to undertake administratively rationed, uncompensated load reductions to reduce peak demand.
- In April 2002, Jiangsu became the first Chinese province to issue its own demand-side management regulations and activate a pilot demand response project that consisted of ToU rate structures, interruptible tariffs, voluntary load shifting, and deployment of storage devices to facilitate load curtailment.
- Adding to this, the Japanese demand response management systems market is likely to witness robust growth in the near future, on account of structural reforms in the country's power sector, which is aimed at market liberalization. Furthermore, the planned closure of nuclear power plants in the country is necessitating the demand response programs in the country.
- The Japanese government is planning to modernize the country's power sector, by creating a competitive consumer market. For Japan, an open market is considered to be vital in creating the change that is essential for developing a sustainable energy sector. Since 2016, the Japanese electricity market has undergone a massive transformation through deregulation. The regulated tariff is scheduled for phase-out by 2020.
- Therefore, factors such as increasing efforts to modernize the power sector across the regions by the governments of respective countries are expected to drive the market studied during the forecast period.
The demand response management market is moderately consolidated. Some of the key players in this market include ABB Ltd, Schneider Electric SE, Siemens AG, General Electric Company, and Enel SpA.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support