Demand Response Management System Market Overview
The demand response management system market in the global market is expected to grow at a high CAGR of 7.8% from 2022-2030, and is expected to reach a value of USD 45.6 billion during the end of the forecasted. The global market was valued at a sum of USD 8.06 billion during the period that ended in 2019.
Demand Response Management System (DRMS) as a prominent aspect of the market can be understood as one of the crucial peak load management tools with considerable benefits in reducing the imbalance between energy supply and demand. Demand Response (DR) and Energy Efficiency (EE) collectively in the global market help in Demand-Side Management (DSM) of energy that encourages consumers to modify their levels and patterns of electricity consumption, along with other advantages like improved grid reliability. DR and EE programs prevailing at the right time can defer the need to build highly cost-intensive power plants for electricity generation that are also detrimental to the environment.
Demand Response Management System Market COVID 19 Analysis
The outbreak of the global pandemic of COVID 19 has affected the working of businesses in a worse way. Owing to the temporary and permanent lockdown situation and post lockdown situation, many manufacturing and production units were shut down as a result it pushed the economies into forced recession. At the start of spreading this deadly disease, the demand response management system has faced a severe downfall in its market position owing to major disruptions and strict functional restrictions.
It is expected that the demand response management system market in the global market will recover at the end of the second quarter of 2021. The upcoming forecast period that ends in 2027 also has positive attributes in store in the name of investments and innovation for the market followed by the benefits rendered during the period.
Demand Response Management System Market Dynamics
The increasing adoption of Internet of Things (IoT) based asset management and the various other advanced technologies available led to the tremendous growth of the demand response management system market in the global market. Not only this, the market helps in providing a cost-effective solution as it helps in declining the cost of the internet of things (IoT) components that drive the growth of the demand response management system market in the global market.
The integration of the Internet of Things (IoT) is an emerging market concept and ots integration with other prominent aspects of the market like the Information and Communications Technology (ICT) into energy has led to tremendous growth in automation along with real-time processing of data. The electricity consumption patterns of the global users are also analyzed by the service providers, which helps in increasing energy efficiency through the cumulative participation of users and service providers. Utilities, therefore, help to organize Demand Response Management System (DRMS) programs and motivate the users to change their usage patterns during peak consumption hours to balance energy supply and demand and grid reliability that adds to the benefits.
Many factors lead to the growth of the demand response management system market in the global market but the traditional organizational culture is the major factor that hinders the growth of the market in the global market as people always resist change for the adoption of new technology. Also, a demand response management system is an expensive solution that also acts as a restraining factor in the overall growth of the global market.
Value Chain Analysis
The advanced technology used in the management of the assets is a boon for the market players as with the demand response management system solution tracking and detecting frauds can easily be observed and quick action is taken at earlier stages to prevent a huge loss. Its presence makes the life of employees simpler and more comfortable as compared to traditional operating assets.
Demand Response Management System Market Segmentation
The demand response management system market in the global market is divided based on the following to cater to the rising demands and add innovation as demanded by the target audience during the period that ends in 2030:
Market on the basis of solutions:
- Commercial DRMS
- Industrial DRMS
- Residential DRMS
Market on the basis of services:
- Curtailment Services
- System Integration & Consulting Services
- Managed Services
- Support & Maintenance
Market on the basis of verticals:
- Office & Commercial Buildings
- Municipal, University, School, & Hospital Systems (MUSH)
- Energy & Power
Market on the basis of regions:
- North America
- Middle-East and Africa
- Latin America
Owing to an increase in the adoption of advanced technology and advancement in proper internet infrastructure, North America holds the largest share in the demand response management system market in the global market and hence dominates the market. It has a high presence of start-ups in countries like the U.S. and Canada that provides strong local solutions.
The most prominent major market players in the demand response management system market in the global market are as follows:
These prominent market players use various strategies to attract potential customers to increase their customer base by providing customized services and products with the judicial use of the resources they possess.
- The concept of demand response had emerged from the traditional practice of load shedding, which was a common practice during the 1970s, where utilities and service providers were made to cut the power supply of some regions during peak demand. With the emergence of traditional rebate-based DSM programs, the analysis of the functions carried out by the load requirements in different conditions began and the determination of load reduction limits came into existence. The crisp amalgamation of innovation had led to the further evolution of DR systems embedded with features such as dynamic pricing, meter data management, analytics, and load management. With a substantial increase in the integration of Information and Communications Technology (ICT) and Internet of Things (IoT) into energy, the application of AMI meters and real-time information monitoring have led to the evolution of smart DRMS solutions.
- Growing roll-outs of smart grids, as a prominent part of the market, has increased the application of AMI meters, enhanced customer energy management systems, automation in the transmission, and distribution (T&D) system, and integration of renewable energy.
- AMI meters render help in providing direct load control capabilities to the utilities as DR units can communicate directly to the AMI meter which controls residential appliances and thermostats for load reduction. Therefore, the roll-out of the smart grid is emerging as the primary driver for the Demand Response Management System market. Other driving forces for the market during the period include energy price volatility and customer switching.
- There has been a prominent emergence of automated DR has also been contributing to the growth of the Demand Response Management System market. The cost benefits offered by a Software-as-a-Service (SaaS) and cloud-based deployment of DRMS solutions provide a wholesome opportunity of growth in the market.
- DR technology is prevailing globally and has been around for a while now but except for the U.S., the global adoption rate of DR programs is relatively slow. However, there has been an absence of a single market model and the lack of regulatory mandates in the European region has been the major factor for the slow growth of the DR market in this region. Many regional areas and participating countries in the APAC region have a strong business case for implementing DR resources and the market in this region is expected to experience significant growth opportunities.
This global demand response management system market research report consists of the following elements:
- Market Overview
- COVID 19 Analysis
- Market Dynamics
- Value Chain Analysis
- Market Segmentation
- Regional Analysis
- Competitive Landscape
- Recent Developments
This global demand response management system research report also contains various factors that drive the growth of the demand response management system market in the global market along with various growth opportunities available in the market and the factors that restrain the growth of the market.