Demand Response System Market
Global Market Study on Demand Response Systems: Growing Need for Efficient Energy Utilization Spurring Market Growth
Demand Response Systems Market Segmented By Smart Thermostats, Load Control Switches, Smart Meters, Smart Plugs Hardware Components with Design and Management Services, Technical Support, Installation Services and Energy Consulting Services
A demand response system is an energy solution, which enables the settlement of distributed and demand-side resources, and helps end users change the pattern of energy use in response to changes in electricity prices over time, or to provide incentive designed to induce lower electricity use at high market rates.
The demand response system market is driven by the need of end users to lower electricity costs (or associated price and volume risks). This goal can be achieved through a contract or tariff for saving the cost of retail electricity.
On the demand side, when the retail price is high, the customer can reduce electricity consumption, and increase consumption when the retail price is low, to reduce the overall cost of electricity.
Find Out More about the Report Coverage
- General Electric
- Honeywell International Inc.
Software & Service Vendors
- Enel X
- Ormat Technologies Inc.
- Trilliant Holdings Inc.
- AutoGrid Systems, Inc.
Rising Adoption of Demand Response Systems to Manage Electricity Cost
If a company implements a demand response system to reduce electricity use when wholesale prices rise or the grid is overloaded, that company is eligible for monthly payments. Moreover, the utility organization may also ask these companies to reduce electricity usage to avoid crisis by offering these monthly payments.
Also, if a company shifts to a back-up generator to relieve stress on the grid during emergencies, it could receive similar payments, which is driving the growth of the demand response system market across the globe.
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Rapid Electric Vehicle Penetration to Spur Market Growth
Utilities need to focus on the high adoption rate of electric vehicles (EV), which differs substantially from one region to another, driven by a lot of factors. There are different ways to optimize the impact of load growth from electric vehicles.
In the present era of transportation electrification, there are very few utilities that can see the need for distribution systems for EV charging equipment with large-scale active demand response systems at current adoption levels. This can be a huge opportunity for utilities to increase revenue in the demand response system market.
Market Research Methodology - Perfected through Years of Diligence
A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.
Lack of Awareness for Demand Response System Restricting Market Growth
Small businesses and the residential sector pose significant challenges for price-based demand response systems. Many households and small businesses lack technical and operational understanding about large-load appliances consuming high energy, and are unfamiliar with demand response-enabling technologies that can promote efficient energy management.
Additionally, there are less number of associations that spread knowledge or raise awareness and prove feasibility. These are some of the key factors that are expected to hamper the growth of the demand response system market.
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North America Dominating Global Demand Response System Market
North America is expected to be the dominating region in terms of value in the global demand response system market. Moreover, in the coming years, the region is expected to generate substantial revenue, owing to the rising need for reliable and effective electrical networks to facilitate the establishment of buildings as integral components of smart grids.
Furthermore, the market in Asia Pacific excluding Japan is estimated to record significant growth during the forecast period, owing to the increasing adoption of demand response system solutions in the residential sector and small & medium enterprises in the region.
A comprehensive view of the demand response system market has led our analysts to conclude that, the market is progressing at a remarkable rate. The market in Asia Pacific excluding Japan is anticipated to grow at a significant rate during the forecast period.
Product expansion and strategic partnerships with other demand response system providers are some strategies opted by key players to push their sales growth. Strong financial position and new technological innovations by key market players will also drive the growth of the demand response system market in the years to come.
Demand Response System Market: Segmentation
PMR’s research study on the global demand response system market offers a detailed market taxonomy, wherein, key segments have been discussed in detail.
Segmentation of the demand response system market has been offered on the basis of component, system type, end user, and region. Every segment has been analyzed in detail and data pertaining to the growth of each segment has been included in the study.
Key Questions Answered in Report
- How much is the demand response system market worth?
The demand response system market is expected to reach US$ 33 Bn in the year 2021.
- What will be the demand outlook?
The demand response system market is slated to witness a CAGR of 21% between 2021 and 2031.
- What was the last 5 year market CAGR?
The demand response system market recorded a CAGR of 19% between 2015 and 2020.
- What are the key trends of demand response system market?
The latest trend witnessed by demand response system market is that of influx of smart appliances, which have the ability of responding to the signals sent through the utility companies for optimizing electricity usage when there are peak hours. Electricity consumption could be analyzed precisely.
- What is driving demand for demand response system?
Increase in energy efficiency by active participation of service providers and users is the factor driving the demand for demand response system.
- What is the market share of top 5 players?
The top 5 players (ABB, Eaton, GE, Honeywell International Inc., and Schneider Electric) hold more than 70% of the market share.
- What are the top 5 countries driving demand?
The top 5 countries driving demand include the US, Germany, UK, Japan, and South Korea.
- What is the North America’s market Outlook?
North America holds the largest market share in terms of revenue generation.
- At what percentage demand response system market is going to register growth in Europe?
Europe will register growth rate of 20% in the demand response system market between 2021 and 2031.
- What is the key market statistics in Korea and Japan?
Japan and Korea will continue to lead the market in Asia-Pacific in the forecast period.