Demand Response Market


Global Demand

Response Market

Share, Global Trends,

Analysis, Research, Report,


Segmentation and Forecast,


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Report Description

Peak energy demand periods – the period when energy demand is significantly higher

than usual energy supply – can disrupt the entire energy distribution system leading to

more number of blackouts. This typically takes place amid 4 pm and 8 pm on weekdays,

when businesses are open and simultaneously people are back to their home from work;

turn on their lights, HVAC equipment and other appliances. Also during extreme

meteorological conditions like heat wave, demand for energy considerably outstrips

energy supply and, around hours of peak energy demand, homeowners face serious risk

of blackout or power outage. Demand response is a mode for energy firms to discourage

energy consumption by rewarding homeowners & businesses with bill credits for

reduction in energy use. Utilities and other energy system operators are increasingly

getting inclined towards demand response as a environmentally responsible and costeffective

way to mitigate peak load while on the other hand customers are gradually

looking to demand response programs to help cope energy costs.

Demand Response Market: Segmentation

Demand response market is segmented on the basis of type, vertical and region. On the

basis of type, demand response market can be segmented into hardware, software and

service. Hardware is further sub-segmented into thermostat, smart meters and gridinteractive

electric water heater. According to service, demand response market can be

further segmented into system integration service, curtailment & consulting service,

maintenance service and managed service

Report Description

On the basis of software, demand response market can be sub-segmented as industrial &

commercial demand response management system, residential demand response

management system and mobile applications. Demand response market can be

segmented according to vertical which includes public, retail, manufacturing, media &

entertainment, transportation & logistics, IT & telecommunication, banking, financial

service and insurance (BFSI), healthcare and energy & utility. Regionally, demand

response market can be segmented into North America, Latin America, Western Europe,

Eastern Europe, Middle East & Africa (MEA), Asia Pacific excluding Japan (APEJ) and


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Demand Response Market: Regional Outlook

Demand response market is witnessing steady growth and is anticipated to witness

double digit CAGR during the projected period. North America was the dominant regional

market in 2014 followed by Western Europe. These two regions combined represented

market share of more than 70%, but are expected to lose their share to some extent to

other regions during the forecast period. Asia Pacific is expected to exhibit highest

growth among all the regions due to evolving economy of countries like India, Philippines

and China.

Report Description

Demand Response Market: Drivers

Grid modernization in countries across the globe is accelerating the growth of demand

response market. Introduction of smart grids coupled with introduction of regulations

pertaining to emissions saving and power demand management are further anticipated

to boost the growth of demand response market during the projection period. Also,

introduction of connected appliances and concept of dynamic pricing are further

expected to fuel the growth of demand response market. However, lack of awareness

regarding demand response products and services in developed and developing regions

is expected to restrain the growth of demand response market. Furthermore, budgetary

constraints for utilities coupled with high implementation cost associated with demand

response product & service are likely to deter the progression of demand response

market amidst the forecast period 2016-2026.

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Demand Response Market: Key Players

The key vendors in the demand response market include ABB Ltd., Schnieder Electric SE,

Eaton Corporation, Honeywell International Inc., Johnson Controls Inc., Comverge Inc.,

Siemens AG, Lockheed Martin Corporation, EnerNOC Inc., Alstom SA, CPower Inc. and

others. Major players in the demand response boost their market share by enhancing

sales channels across the globe. Furthermore, introducing economical products &

services is another strategy followed by major demand response market vendors to

gain competitive edge.

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