Demand Response Management System (DRMS) Market: Current Analysis and Forecast (2024-2032)

The demand response management system (DRMS) market is expected to have high growth due to the rising global energy demand, strict energy efficiency policies and trends, and integration of renewable energy technologies. DRMS helps to check and control power use in an innovative real-time manner for utilities and consumers to conserve energy and costs and increase demand-side management to support the grid in demand response. The use of innovative technologies including AI, IoT, and blockchain improves the system's performance; the growth of renewable energy has made demand-side management more pronounced. Some of the key areas that apply DRMS are residential, commercial, and industrial areas where utilities and energy aggregators are major users. The market stays highly saturated, and the key participants aim to introduce new products and forge partnerships to address new energy challenges and requirements for compliance.

The demand response management system market is set to show a growth rate of about 29.4%. This is due to the growing global energy consumption. Also, increasing R&D, investment, product advancements, and collaborations in this industry drive the demand response management system market. For instance, in June 2024, ABB and Cleanwatts Digital s.a., a software solutions provider of artificial intelligence (AI)-driven energy-sharing in connected, sustainable communities, executed a memorandum of understanding for building developed energy management and efficiency technologies for societies and buildings.

Based on service, the market is segmented into curtailment services, system integration & consulting services, managed services, and support & maintenance services. The curtailment services category is expected to have the largest market share of the demand response management system market. This is mainly due to the utilities and grid operators being able to reduce and shift demand during peak times with consumers only through these services. It improves grid stability, cuts blackouts, and is important for industries with high energy requirements, providing monetary benefits for participation. The integration of renewable energy, which is intermittent, only increases the need for curtailment hence increasing the need for these solutions. This segment is enhanced due to regulatory requirements and energy market trends promoting demand-side management.

Based on the application, the market is segmented into residential, industrial, and commercial. Among these, the residential segment is the largest contributor to the demand response management system industry. The main factors motivating the development of DRMS also affect the residential sector based on smart technologies and energy efficiency. Smart thermostats, energy-efficient appliances, and home energy systems enable homeowners to engage in demand response programs usually on a dynamic tariff or time-of-use tariff. Rooftop solar and batteries improve the grid's flexibility, which means that consumers' participation should be considered crucial to the DRMS market growth.

For a better understanding of the market adoption of demand response management system, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Among these, North America's DRMS market is among the most promising and innovative ones, primarily backed by sound energy infrastructure and favorable legislation. DRMS is being deployed by utilities and energy aggregators in the US and Canada to keep the reliability of the grid, manage peak demand, and incorporate renewable energy. Demand response incentives and policies and state and federal renewable portfolio standards are some of the main drivers. Technology improvements such as smart grids and IoT devices drive the popularization of DRMS in residential, commercial as well as industrial segments. At the same time, new EVs and distributed energy resources such as solar PV systems and batteries require flexible energy management. This means North America's dedication to sustainability is helping propel innovation and keep the market.

Some major players running in the market include ABB; Eaton; Enel X North America, Inc.; EnergyHub; GE Vernova; Honeywell International Inc; Itron Inc.; Johnson Controls; Landis+Gyr; and Siemens.