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Demand Response Management Systems (DRMS) - Global Market Trajectory & Analytics

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    Report

  • 450 Pages
  • February 2022
  • Region: Global
  • Global Industry Analysts, Inc
  • ID: 3619386

Global Demand Response Management Systems (DRMS) Market to Reach $10.1 Billion by 2026


Demand Response Management Systems (DRMS) represents an operational system used for controlling distribution demand response (DR) resource and is similar to the legacy load management systems of yesteryears. Growth in the global market is being driven by fluctuating electricity prices, ongoing move towards smart grid, growing demand in areas such as distribution automation (DA) and renewable energy integration, rapid penetration of Advanced Metering Infrastructure (AMI), and favorable government initiatives. The increased demand from utilities is attributed to mounting pressures on utility operators to step up and modernize their grid operations and improve distribution efficiency to suffice the growing demand from various end-use sectors including residential, commercial and industrial. Furthermore, emerging technologies such as IoT, data analytics and blockchain would lead to major improvements in DR programs for utilities going forward. Increase in EV numbers worldwide would also be a major driver for DR programs. Blockchain technology would enable a disruptive and innovative approach for automated DR programs thus leading to a decentralized and more secure ecosystem of smart energy grid management.

Amid the COVID-19 crisis, the global market for Demand Response Management Systems (DRMS) estimated at US$4.3 Billion in the year 2020, is projected to reach a revised size of US$10.1 Billion by 2026, growing at a CAGR of 15.2% over the analysis period. Hardware, one of the segments analyzed in the report, is projected to grow at a 14.6% CAGR to reach US$6.7 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Software segment is readjusted to a revised 17.6% CAGR for the next 7-year period. This segment currently accounts for a 24.7% share of the global Demand Response Management Systems (DRMS) market.



The U.S. Market is Estimated at $3.1 Billion in 2021, While China is Forecast to Reach $608.5 Million by 2026


The Demand Response Management Systems (DRMS) market in the U.S. is estimated at US$3.1 Billion in the year 2021. The country currently accounts for a 64.25% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$608.5 Million in the year 2026 trailing a CAGR of 21.2% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 13.7% and 15.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 15.2% CAGR while Rest of European market (as defined in the study) will reach US$735.5 Million by the end of the analysis period. The US market dominates demand for DR management systems and services, reflecting the mounting pressure on electrical system operators to manage demand and supply imbalances and volatile wholesale electricity market prices and curb grid expenditure. Moreover, utilities and grid operators in the region are actively leveraging DR resources as stop gap for managing emergency and scheduled downtime for power generation plants. Growth in the Asia-Pacific region is being spearheaded by regional economies striving to strike a balance between industrial growth and rapidly rising electric power demand. Compelled by the European Union`s 20-20-20 energy directive, and national carbon emission and energy efficiency regulations, European governments and regulators are removing the hurdles that constrained the growth of the demand side management.

Services Segment to Reach $1.4 Billion by 2026


Demand response programs play a critical role in offering grid regulation services. The increasing uptake of DR management systems is also generating demand for a host of related services including system integration, consultancy services, managed services and system maintenance services, among others. In the global Services segment, USA, Canada, Japan, China and Europe will drive the 13.4% CAGR estimated for this segment. These regional markets accounted for a combined market size of US$601.8 Million in the year 2020. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$96.8 Million by the year 2026.

Select Competitors (Total 83 Featured) -

  • Aclara Technologies LLC
  • Ameresco, Inc.
  • AutoGrid Systems, Inc.
  • CPower, Inc.
  • Direct Energy, LP
  • Eaton Corporation plc
  • Enel X S.r.l.
  • General Electric Company
  • Honeywell International, Inc.
  • Itron, Inc.
  • Johnson Controls International Plc
  • Landis+Gyr AG
  • Lockheed Martin Corporation
  • Nexant, Inc.
  • NRG Energy, Inc.
  • Open Access Technology International, Inc. (OATI)
  • Schneider Electric S.E.
  • Siemens AG
  • Tantalus Systems Corp.
  • Trilliant Holdings, Inc.
Frequently Asked Questions about the Global Market for Demand Response Management Systems (DRMS)

What is the estimated value of the Global Market for Demand Response Management Systems (DRMS)?

The Global Market for Demand Response Management Systems (DRMS) was estimated to be valued at $4.3 Billion in 2020.

What is the growth rate of the Global Market for Demand Response Management Systems (DRMS)?

The growth rate of the Global Market for Demand Response Management Systems (DRMS) is 15.3%, with an estimated value of $10.1 Billion by 2026.

What is the forecasted size of the Global Market for Demand Response Management Systems (DRMS)?

The Global Market for Demand Response Management Systems (DRMS) is estimated to be worth $10.1 Billion by 2026.

Who are the key companies in the Global Market for Demand Response Management Systems (DRMS)?

Key companies in the Global Market for Demand Response Management Systems (DRMS) include Aclara Technologies LLC, Ameresco, Inc., AutoGrid Systems, Inc., CPower, Inc., Direct Energy, LP, Eaton Corporation plc, Enel X S.r.l., General Electric Company and Itron, Inc..

Table of Contents

I. METHODOLOGY


II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Influencer Market Insights
  • World Market Trajectories
  • Impact of COVID-19 Pandemic and Looming Global Recession
  • DRMS Holds Significance for Effective Management of Power Demand Changes Amid the Pandemic
  • Pandemic Crisis Weakens Economic Environment, Triggering Negative Tide in GDP
  • World Economic Growth Projections (Real GDP, Annual % Change) for 2019, 2020 & 2021
  • An Introduction to Demand Response Management Systems (DRMS)
  • Primary Objectives of Demand Response
  • Approaches to Implement Demand Response Programs
  • Classification of Demand Response Programs
  • Key Components/Technologies Enabling Demand Response
  • Demand Response: An Essential Tool to Support Economic, Eco-Friendly and Efficient Optimization of Power Generation & Distribution
  • Global Market Prospects & Outlook
  • Industrial DRMS: The Largest Segment
  • Focus on Enhancing Power Efficiency Drives the Commercial DRMS Market
  • United States Dominates the Global Demand Response Market
  • European DRMS Market to Benefit from Favorable Policy Changes and Expanding Renewables Portfolio
  • Developing Economies to Spearhead Future Market Growth
  • Competition
  • Recent Market Activity
  • Demand Response Management Systems (DRMS) – Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

  • Myriad Economic and Operational Benefits Drive Widespread Market Adoption
  • Key Benefits of ADR Programs
  • Technology Disruptions in the Global Electric Power Industry: The Fundamental Growth Driver
  • Growing Prominence of Electrification for Cutting down Carbon Emissions
  • DR Holds Importance Amidst Decentralization of Power Grid
  • Digitalization Enables Increased Communication among Devices
  • Demand Side Response Leveraging AI and ML Approaches
  • Need for Newer DR Models for Replacing Manual Energy Curtailments Drive Demand for ADR Technologies
  • Advanced Demand Response 3.0: The Future of DR
  • DR 1.0 to DR 3.0: Tracing the Progression of DR
  • Integration of Internet of Things (IoT) with Demand Response Drives the Evolution of Connected Utilities
  • Global Number of IoT Connected Devices (In Billion) for the Years 2016, 2018, 2020, 2022 & 2025
  • Sub-Greedient: The IoT-Based DR Approach
  • Demand Response Holds Promises to Transform Smart Homes of the Future
  • Growing Investments into Smart Homes Bode Well for DRMS Market: Global Smart Homes Market (In US$ Billion) for the Years 2019, 2021, 2023 & 2025
  • Integration of Smart Buildings into Smart Grids Using ADR
  • Building Simulation Software for Assessing Effectiveness of DR in Residential Buildings
  • Rise of Smart Cities and Focus on Smart Energy Management Spurs Growth
  • Global Market for Smart City Technologies in US$ Million for the Years 2019 and 2025
  • DRMS Remain a Vital Computing Platform for Enhancing Operation of Smart Grids
  • Global Market for Smart Grids in US$ Billion) for the Years 2018 and 2020
  • DRMS Emerges as a Critical Technology for Smart Grids
  • ToUPS DR Program Beneficial for DSOs and Customers
  • Smart Grids Implementation Augurs Well for Residential DRMS Market
  • Disaster Response Sector Relies on Power Generators for Ensuring Power Supply during Outages
  • Use of Big Data Analytics by Utilities to Benefits Analytical and Behavioral DSM
  • Surging Demand for DRMS from Electric Utilities Worldwide to Boost Market Expansion
  • Changing Electricity Demand Dynamics Compel Utilities to Adopt DRMS
  • Projected Global Demand for Electricity (MWh): 2015, 2020, 2025, 2030 & 2035
  • China and India Lead the Global Rise in Demand for Electricity: Change in Gross Electricity Demand in TWh for 2017-50
  • DR Resources Play a Critical Part in Stabilizing Electricity Supply for Utility and Grid Operator
  • DR Reduces Need for Investments into New Power Generation and Grid Infrastructure
  • Differentiation in Service Offerings: A Major Benefit with DR Services
  • DR Promises to Curtail Unnecessary Expenditure on New Distribution Grid Infrastructure
  • Enhancing Profitability of DR on the Small-Scale
  • Incentives for Electricity-usage Curtailments to Boost Penetration in Industrial, Commercial, and Residential Sectors
  • Commercial Buildings Offer Huge Market Potential for Demand Response
  • Residential Sector to Exhibit Fastest Growth in the Near Term
  • Inevitable Shift to Intermittent Renewable Sources of Energy Drives Demand for DRMS
  • Global Energy Mix: 1990 Vs 2020 Vs 2030
  • Global Renewable Energy Breakdown by Type: 2010 Vs 2030
  • Global Energy Production: Breakdown of Electricity (Billion Kilowatt Hours) and Percentage Share by Energy Source (2030 & 2040)
  • Increasing Establishment of Microgrids to Spur Demand for DRMS
  • Anticipated Surge in EV Usage Presents DR as a Vital System to Ensure Load Balance
  • Global Electric Car Fleet Size (In Thousand Units) for the Years 2014, 2016, 2018 and 2021
  • DR Innovations & Advancements Spearhead Market Growth
  • Stricter Regulations and Climate-Change Policies Post COVID-19 to Boost DRMS Market
  • Domestic Targets for Greenhouse Gas Emissions of Select Regions/ Countries
  • Multiple Benefits Driving Participation of Load Aggregators in the DR Market
  • Favorable Demographic & Urbanization Trends Strengthen Market Prospects
  • World Population (in Thousands) by Geographic Region for the Years 2019, 2030, 2050, 2100
  • World Urban Population in Thousands: 1950-2050P

4. GLOBAL MARKET PERSPECTIVE


III. MARKET ANALYSIS

UNITED STATES

  • Demand Response Management Systems (DRMS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • Huge Cost Savings Offered by Advanced DR Programs to Drive Healthy Long-term Growth
  • Need to Save Electricity during High Demand Periods Drives DRMS Deployments
  • Notable Trends in DRMS Market
  • Increasing Significance of BDR
  • Maturing Domestic Energy Management Systems
  • Increasing Importance of Big Data Management
  • Disruptive Competition from Retailers
  • EVs to Emerge as a Viable Alternative
  • Growing Influence of Millennials
  • Residential Consumers to Play an Increasingly Important Role
  • DER Aggregation to Increase
  • Increasing Relevance of Third Party Service Providers
  • Surging Popularity of Smart Thermostats with DR Strategies Benefit Market Adoption
  • Evolution of Smart Thermostats
  • Types of Smart Thermostat-DR Programs
  • The Many Challenges
  • Steady Electric Vehicles Penetration Drive Demand for Managed Charging
  • US Utilities Adopt Demand Response Initiatives to Balance Energy Supply and Demand Situation
  • Smart Grid Initiatives and Increase in AMI Installations Provides the Perfect Platform for DR Adoption
  • Aging Grid Infrastructure Augments Utility Distribution Spending, Augurs Well for the DRMS Market
  • DR Market to Significantly Benefit from Grid Modernization Initiatives
  • Energy Storage and DR Offer Huge Market Growth Potential
  • Focus on Renewables and Natural Disasters: A Strong Business Case for DR
  • DR Market Makes Major Strides Driven by Favorable Policy Development

CANADA

  • Market Overview

JAPAN

  • Demand Response Management Systems (DRMS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)
  • Market Overview

CHINA

  • Demand Response Management Systems (DRMS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
  • Demand Side Management Gains Importance Amidst Focus on Power Sector Reforms

EUROPE

  • Demand Response Management Systems (DRMS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
  • Focus on Energy Sustainability Drives Demand for DRMS
  • Significance of Demand Response
  • Capacity Markets and Primary Reserves Markets Presents Opportunities
  • Industrial, Commercial, and Residential Consumers Offer Huge Untapped Growth Potential
  • Demand Response Holds Potential to Cut Down Energy Consumption in Residential Buildings
  • Smart Metering and Home Automation: Important Enablers of DR
  • DR Aggregators to Play a Critical Role in the European Market

FRANCE

  • Demand Response Management Systems (DRMS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)

GERMANY

  • Demand Response Management Systems (DRMS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)
  • Market Overview

ITALY

UNITED KINGDOM

  • Demand Response Management Systems (DRMS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)
  • Market Overview

REST OF EUROPE

ASIA-PACIFIC

  • Demand Response Management Systems (DRMS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
  • India: Market Overview

REST OF WORLD

  • Middle East: Market Overview

IV. COMPETITION

  • Total Companies Profiled: 83

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Aclara Technologies LLC
  • Ameresco, Inc.
  • AutoGrid Systems, Inc.
  • CPower, Inc.
  • Direct Energy, LP
  • Eaton Corporation plc
  • Enel X S.r.l.
  • General Electric Company
  • Honeywell International, Inc.
  • Itron, Inc.
  • Johnson Controls International Plc
  • Landis+Gyr AG
  • Lockheed Martin Corporation
  • Nexant, Inc.
  • NRG Energy, Inc.
  • Open Access Technology International, Inc. (OATI)
  • Schneider Electric S.E.
  • Siemens AG
  • Tantalus Systems Corp.
  • Trilliant Holdings, Inc.