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Published Date: 2014-08-21Number of Pages: 142

Smart Demand Response Market (By End User - Residential, Commercial, and Industrial) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2025

Demand response refers to the change in electricity usage by an end-user in response to signals from the grid operators or utilities. The end-user’s participation in a program of this nature is a response to factors such as: greater awareness, an increased sense of responsibility, incentive pricing and new tariff schemes. Demand response programs are designed primarily to shift or curtail load for a short period of time; they are primarily of two types: price-based response (voluntary) and incentive-based demand response (contractually mandatory).

Price-based demand response is change in electricity usage by end-users in response to the price signals. Price-based demand response includes: critical-peak pricing (CTP), real-time pricing (RTP), and time-of-use (TOU) rates. Incentive-based demand response programs are established by grid operators, utilities, or load-serving entities. The participating customers are paid to reduce their power consumptions as requested by the market participants. Incentive-based demand response programs includes: ancillary service market programs, capacity market programs, emergency demand response programs, demand bidding/buyback programs, direct load control, and interruptible/curtailable services.

Burgeoning power demand propels the adoption of demand response programs. The roll-out of smart grid technologies, including smart meters and communication systems are likely to augment growth in the global smart demand response market. Increasing demand for power supplemented by capacity constraints is projected to boost growth in the global smart demand response market. Additionally, policies that encourage demand response programs are likely to accelerate the global smart demand response market growth in the future. Moreover, increasing installations of smart meters and other smart grid technologies are estimated to bolster growth in the global smart demand response market. Albeit, limited customer awareness of demand response programs and their benefits can restrain market’s growth. Further, high cost of technology and equipment for implementing demand response programs is likely to dampen the global smart demand response market’s growth. However, technological advancements and developments by leading market players are likely to augment the market’s growth.

Unprecedented energy challenges such as increased dependence on energy imports, lack of grid access to customers, growing energy security and environmental concerns, electricity infrastructure challenges, and surging power demand necessitates the modernization of electricity grids. Investment in demand response offsets investments in additional power infrastructure, averting the heavy cost of new power generation, transmission and distribution infrastructure. It further limits greenhouse gas emissions.

Industrial end user segment is expected to dominate the global smart demand response market over the coming years. Demand for a cost-effective and environmentally sensible means to meet electricity system needs is likely to drive growth in the end-user segment. The residential segment is one of the fastest growing end user segments. Roll out of smart meters and communication technology is likely to allow utilities to control residential loads. Thus, the factors mentioned above are anticipated to augment the market’s growth in the residential end user segment. Lucrative financial incentives for commercial and industrial end user segment are expected to register a significant growth in these segments.

The global smart demand response capacity market was dominated by North America followed by Europe and Asia Pacific. Electricity markets are increasingly recognizing the need for demand response programs to manage scheduled or emergency downtime for power plants. Additionally, demand response in North America is also recognized as a mechanism to mitigate higher wholesale prices and lower overall grid costs. Thus, the factors mentioned above are likely to drive growth in the North America’s smart demand response capacity market. Expected regulatory support through change in the demand response policies is anticipated to augment growth in the Europe’s smart demand response capacity market. Asia Pacific is likely to grow at the highest rates in the future. Increased adoption of demand response in Asia Pacific is estimated to drive growth in the regions’ demand response capacity market.

The global smart demand response market was dominated by North America followed by Europe and Asia Pacific. All the regions are likely to grow at significant rates over the forecast period. Ongoing development in the utility industry is likely to drive growth in North America’s smart demand response market. Significant smart demand response expenditure is estimated to accelerate growth in Europe’s smart demand response market. Asia Pacific’s smart demand response market is likely to grow at the highest rates in the future. High energy consumption and developments in the manufacturing sector is anticipated to drive growth in Asia Pacific’s smart demand response market.

The global smart demand response market is fragmented in nature; and leading market players are adopting a strategy of mergers and acquisitions to pursue growth in the market. The strategic alliances allow companies to enhance its smart demand response offerings to their residential/commercial/industrial customers. Key participants in the global smart demand response market include: Honeywell International, Inc., EnerNOC, Inc., Eaton Corporation PLC., Landis+Gyr, Itron, Inc., Schneider Electric, General Electric, and Siemens AG among others. Other major market players analyzed in this report includes: Johnsons Control, Inc., ABB, Comverge, Inc., and Opower, Inc.

Demand response refers to the change in electricity usage by an end-user in response to signals from the grid operators or utilities. The end-user’s participation in a program of this nature is a response to factors such as: greater awareness, an increased sense of responsibility, incentive pricing and new tariff schemes. Demand response programs are designed primarily to shift or curtail load for a short period of time; they are primarily of two types: price-based response (voluntary) and incentive-based demand response (contractually mandatory).

Price-based demand response is change in electricity usage by end-users in response to the price signals. Price-based demand response includes: critical-peak pricing (CTP), real-time pricing (RTP), and time-of-use (TOU) rates. Incentive-based demand response programs are established by grid operators, utilities, or load-serving entities. The participating customers are paid to reduce their power consumption as requested by the market participants. Incentive-based demand response programs includes: ancillary service market programs, capacity market programs, emergency demand response programs, demand bidding/buyback programs, direct load control, and interruptible/curtailable services.

The present research is designed to estimate, analyze, and forecast the market revenue of the global smart demand response market. The research provides in-depth analysis of the market size of the global smart demand response market in terms of revenue and demand response capacity. This research report covers key end-users of smart demand response market; and they are segmented as: residential, commercial, and industrial. This market study on smart demand response also provides historical data, detailed analysis and statistically refined forecast for the end-user, demand response capacity, and geographical segments.

The global smart demand response market size has been estimated on the basis of indicators in the end-user and demand response capacity segment. Furthermore, the market size for smart demand response has been derived considering the investments in demand response programs and smart grid technologies including smart meters and communication systems. This market study provides detailed analysis and forecast of the smart demand response market on a global, regional, and country level (Asia Pacific) from 2014 to 2025.

On the global level, the smart demand response market has been segmented based on the market revenue (USD Million) and demand response capacity (MW) from 2014 to 2025. For in-depth understanding of the smart demand response market at regional and country level, market’s growth has been forecasted in terms of market revenue (USD Million) and demand response capacity (MW) from 2014 to 2025. The smart demand response market is regionally segmented into North America, Europe, Asia Pacific, and Rest of the World (RoW). The country-wise segmentation of Asia Pacific’s smart demand response market includes: Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Philippines, India, and Rest of Asia Pacific. For the purview of this report, Rest of Asia Pacific segment includes countries such as: China, Japan, Singapore, Australia, South Korea, and New Zealand.

The smart demand response market research report includes market drivers, market restraints and market opportunities and their impact on the growth of the global smart demand response market over the forecast period. Furthermore, the smart demand response market study encompasses opportunities for market growth at the global, regional and country level (Asia Pacific). In order to collate the global smart demand response research report, we have conducted in-depth primary interviews and discussion with numerous key industry opinion leaders and participants. Primary research represents the bulk of our research efforts coupled with an extensive secondary research. We have also reviewed key players’ product portfolio, annual reports, press releases and relevant documents for competitive analyses and better understanding of the smart demand response market. Secondary research includes in-depth research on current trends, internet sources, trade journals, technical writing, and statistical data from associated approach for obtaining concise data, capturing industry participants’ insights and recognizing growth opportunities.

The report provides a detailed analysis of various factors influencing the global smart demand response market with the help of Porter’s five force analysis. The analysis helps to understand the bargaining power of buyers, bargaining power of suppliers, the threat from substitute, threat from new entrant, and degree of competition in the global smart demand response market. The study analyses the value chain of the global smart demand response market. Moreover, the study comprises a market attractiveness analysis, wherein numerous applications are benchmarked based on market size, growth rate and general attractiveness.

Profiles of leading companies have been provided in the global smart demand response market report along with the detailed analysis of their market share. This study also features profiles of leading global smart demand response companies such as Honeywell International, Inc., EnerNOC, Inc., Eaton Corporation PLC., Landis+Gyr, Itron, Inc., Schneider Electric, General Electric, and Siemens AG among others. Other market players analyzed in this research report includes: Johnson Controls, Inc., ABB, Comverge, Inc., and Opower, Inc. 

The global smart demand response market has been segmented as below:
  • Global Smart Demand Response Market: End User Analysis
    • Residential
    • Commercial
    • Industrial
  • Global Smart Demand Response Market: Capacity Analysis
    • North America
    • Europe
    • Asia Pacific
      • Indonesia
      • Malaysia
      • Thailand
      • Vietnam
      • Myanmar
      • Philippines
      • India
      • Rest of Asia Pacific (China, Japan, Australia, Singapore, South Korea, and New Zealand)
    • Rest of the World (RoW)

  • Global Smart Demand Response Market: Regional Analysis
    • North America
    • Europe
    • Asia Pacific
      • Indonesia
      • Malaysia
      • Thailand
      • Vietnam
      • Myanmar
      • Philippines
      • India
      • Rest of Asia Pacific (China, Japan, Australia, Singapore, South Korea, and New Zealand)
    • Rest of the World (RoW)


 
 
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