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.
Buy Complete Report@:
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.
Grab an exclusive PDF Brochure of this report:
https://www.transparencymarketresearch.com/sample/sample.php?flag=B&rep_id=2057
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.
Read Our Latest Press Release:
About Us
Transparency Market Research is a next-generation market intelligence provider, offering fact-based solutions to business leaders, consultants, and strategy professionals.
Our reports are single-point solutions for businesses to grow, evolve, and mature. Our real-time data collection methods along with ability to track more than one million high growth niche products are aligned with your aims. The detailed and proprietary statistical models used by our analysts offer insights for making right decision in the shortest span of time. For organizations that require specific but comprehensive information we offer customized solutions through ad-hoc reports. These requests are delivered with the perfect combination of right sense of fact-oriented problem solving methodologies and leveraging existing data repositories.
Contact
Transparency Market Research State Tower,
90 State Street,
Suite 700,
Albany NY – 12207
United States
USA – Canada Toll Free: 866-552-3453
Email: [email protected]
