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Germany Demand Response Management Systems Market - Growth, Trends, and Forecasts (2020-2025)

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  • 90 Pages
  • June 2020
  • Region: Germany
  • Mordor Intelligence
  • ID: 5025470
UP TO OFF until Mar 31st 2024
The Germany demand response management system market is expected to grow at a CAGR
of greater than 4.2%. Demand response system (also known as load response or DRS) is for end-use customers for reducing their use of electricity in response to power grid needs, economic signals from a competitive wholesale market, or special retail rates. Most of the demand response action today is in the commercial and industrial sectors. Moreover, technology giants of the respective countries are leading the market space, with smaller companies supporting them with constant innovations and smarter software products. The scenario drives the adoption of demand response management systems for utilities and customers. However, privacy concerns regarding the consumers as there is a threat of hacking or extracting data related to the end-users are expected to hinder the growth of the market studied.
  • The automated demand response management systems are expected to be the fastest growing segment in the Germany demand response management system, owing to the increasing deployment of smart grids across the region with the advancement in automated demand response system & software technology.
  • The integration of intelligent technologies in the existing grid structure is expected to create an ample amount of opportunities for the market players in the coming years.
  • Demand-response services are still relatively new and in the development phase in the electricity market, but their importance is only expected to grow as power grids come under increasing strain from intermittent renewable energy sources. The need for efficient energy management systems is likely to drive the market during the forecast period.

Key Market Trends

Automated Demand Response System to be the Fastest Growing Segment
  • Industrial demand response is a dynamic energy infrastructure management program designed to support the stability of the electricity grid, and meet the globally growing demand for energy with the assistance of broad and extensive energy users in both the industrial and commercial sectors who agree to switch off specific production processes or turn down specific electrical loads during periods of peak demand.
  • In 2018, Germany’s power consumption was approximately 601 TWh, which is 14.04% higher than the previous year. However, Germany's electricity generation saw its most significant increase in renewable power in the last five years.
  • The Germany government wants to minimize consumption by deploying DRMS in various sectors. As of 2019, Germany did not have any national-level policies or infrastructure supporting DRMS. Still, at the local level, Germany has multiple companies investing in DRMS, especially in automated demand response management systems (ADRMS), which uses the Internet of Things to manage industrial and commercial load as well as distributed energy resources.
  • Moreover, demand-side management is the need of the hour for any grid. With a rise in smart grid technologies and automated demand response system, DRMS is a key demand-side management strategy that is expected to provide a cost-effective alternative to traditional supply-side solutions, to address growing electricity demand during times of peak load or when prices are high.
  • As of 2018, many local companies in Germany are using DRMS, such as water treatment plants, manufacturing industry, etc. currently, Germany is running a pilot project for ADRMS in populated cities to lower down the cost and electricity consumption rate. This, in turn, is expected to propel ADRMS in Germany.
  • Therefore, the Germany demand response management system is expected to grow because of the ability of automated demand response to the most significant control on electricity consumption, allowing customers to automatically manage energy consumption at times of peak demand.

Increasing Renewable Power Generation to Drive the Market
  • The German electric energy system is currently undergoing a significant transformation and will most likely continue to do so until 2050. According to Germany's government goals, by 2050, the contribution of renewable energy sources shall have a share of 80% in the electric energy mix.
  • Germany's total renewable energy installed capacity reached 120,014 MW, in 2018, majorly from wind energy. Most of the generated electricity is connected to the primary power grid of Germany, while some projects are under process.
  • The increasing share of renewable energies in electricity generation is within the scope of the energy transition and will lead to a more volatile generation of electricity. More flexible energy demand could contribute to handling the resulting challenges in electricity grid management.
  • Moreover, supermarkets, hotels, and office buildings can be found in regions throughout Germany, which are the most promising subsectors of the service sector regarding demand response potential since they have a high stock in flexible cooling appliances, air conditioning, and ventilation.
  • This, in turn, growth in power generation from renewable energy and profit associate from ADRMS, is likely to drive the Germany demand response management system during the forecast period.

Competitive Landscape

The Germany demand response system market is moderately fragmented due to many companies operating in the industry. The key players in this market include Schneider Electric, Inc., Siemens AG, Centrica plc, Enel X Inc., Eaton Corporation PLC, and others.

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Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in USD million, until 2025
4.3 Recent Trends and Developments
4.4 Market Dynamics
4.4.1 Drivers
4.4.2 Restraints
4.5 Supply Chain Analysis
4.6 PESTLE Analysis
5.1 Type
5.1.1 Conventional Demand Response
5.1.2 Automated Demand Response
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Schneider Electric
6.3.2 Siemens AG
6.3.3 Centrica PLC
6.3.4 Eaton Corporation PLC
6.3.5 Enel X Inc.
6.3.6 ABB Ltd
6.3.7 REGEN Energy
6.3.8 Autogrid Systems Inc.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Schneider Electric
  • Siemens AG
  • Centrica PLC
  • Eaton Corporation PLC
  • Enel X Inc.
  • ABB Ltd
  • REGEN Energy
  • Autogrid Systems Inc.