Smart Demand Response Market To Generate Revenue Of $24.71 Billion By 2022: Grand View Research, Inc.

October 14 12:44 2019
Smart Demand Response Market To Generate Revenue Of $24.71 Billion By 2022: Grand View Research, Inc.

Grand View Research, Inc. – Market Research And Consulting.
According to report published by Grand View Research,Advancements in technology in utilities vertical coupled with the introduction of regulatory frameworks are expected to increase smart grid deployment, which is estimated to drive smart demand response market growth.

According to a report,”Smart Demand Response Market Analysis By Application (Residential, Commercial, Industrial) And Segment Forecasts To 2022″, published by Grand View Research, Inc., The global smart demand response market size is expected to reach USD 24.71 billion by 2022, Increasing grid deployment is expected to favorably impact market growth. Demand response plays an important role in electric grid operation by reducing electricity usage during peak hours.

Introduction of grid technologies is expected to open avenues for the traditional energy infrastructure vendors. Smart grids when coupled with metering systems; provide information on real time consumption to the customers as well as suppliers.

Spread of ubiquitous wireless networks as well as internet access, along with the growing level of intelligence built into HVAC systems, industrial controls, lighting networks and varied other big building loads is expected to drive the automated DR market.

Key Takeaways from the report:

  • Residential segment is poised to grow at a CAGR higher than the global average, which is a direct consequence of financial incentives and rebates offered by utilities to domestic customers to persuade them in the participation of several direct load control programs. The participation of smart buildings in DR programs to protect electrical grids for the duration of peak energy demand is expected to reduce loads during high-cost periods, thereby reducing bills.

  • Industrial applications contributed to over 50% of the revenue in 2014; this large share can be attributed to DR programs offered by several utilities for maximizing power utilization through adoption of high efficiency variable speed drives and motors. Industrial customers are also encouraged to participate in such programs on account of lucrative financial incentives offered to them.

  • Asia Pacific contributed to over 15% of the market revenue in 2014. DR programs are expected to increase significantly in the countries of Asia Pacific. Power utilities offer initiatives to reduce peak load demand on power grids. Components of the initiative include expansion of transformation to thin-tube (T8) lamps, Time-of-Use (TOU) metering programs, high efficiency refrigerators, and promotion of compact fluorescent lamps (CFLs) which are expected to boost the DR market growth.

  • The market is highly fragmented, with no particular company occupying a majority of the revenue share. The industry is characterized by companies having a strong hold over a particular region with little or no influence globally. However, through mergers & acquisitions, key participants have started expanding globally. Upcoming smart grid projects in countries such as Australia, India, China, and Japan have attracted prominent players in these regions.

North America smart demand response market by application, (USD Million)

North America smart demand response market by application, (USD Million)

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Regional Insights
Asia Pacific region accounted for over 15% of the global revenue in 2014. This can be attributed to the growing adoption of smart meters in the region. Increasing penetration of the meters allows the homes to connect to the data on usage as well as price. Time-based electricity pricing options which are enabled by the mass roll outs of such meters is also expected to open new avenues for the region.

North America accounted for nearly 60% of the global share in 2014. In California, buildings are expected to contribute to the highest peak load. The Demand Response Research Center (DRRC) focuses on commercial as well as residential applications of the technologies for dynamic peak load reduction with different response durations.

Competitive Market Share Insights
Leading players such as Schneider Electric offers solutions electric utilities. For instance, in December 2015, Schneider Electric announced the introduction of a Wi-Fi thermostat. Wiser Air thermostat is equipped with ZigBee to interface with smart meters as well as other intelligent home devices.

The DR program helps in improving distribution, control, optimization, monitoring through the optimization, development, as well as dispatch of Virtual Power Plants. In December 2015, ABB announced the installation of 363 kilovolts which disconnects the circuit breaker along with the Fiber Optic Current Sensor, thereby integrating three substation functions which include current measurement, disconnecting and circuit-breaking into one single component, henceforth reducing the space needed for a substation bay.

In May 2015, Honeywell announced the use of OpenADR 2.0b, the latest version of the open standard which is developed in the U.S to allow utilities as well as DR aggregators to communicate with networked building control systems. This is the same technology that Honeywell has used in nearly 20 projects in the regions of Europe, U.S., and China. Furthermore, in Asia Pacific region, the OpenADR Alliance announced a partnership with the India Smart Grid Forum to boost adoption of smart grid technology. Additionally, in March 2014, Honeywell announced the introduction of a two-year program with CPS Energy to use ADR technology & services to connect and collaborate with industrial as well as commercial customers, and thereby adjust electricity consumption during peak energy demand.

Notable companies include Comverge, Itron, ABB, Siemens, Opower, Eaton Corporation plc, Johnson Controls, General Electric, and EnerNOC.

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About Grand View Research, Inc.

Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S.-based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.

For more information: www.grandviewresearch.com

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