Thursday, 2 April 2015

Smart Demand Response Market to be Propelled by Increasing Demand for Power Worldwide


The global smart demand response market, which in 2013 was valued at US$5041.4 million, is anticipated to reach a market value of US$51,478.9 million by 2025. The report titled “Smart Demand Response Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2025” is available for sale on the website.

Browse Smart Demand Response Market Report with Full TOC at http://www.transparencymarketresearch.com/smart-demand-response.html

The TMR report states that factors such as surging demand for power and the global launch of smart grid technologies drive the global smart demand response market. It is anticipated that increasing demand for power along with capacity constraints will be a key factor that will also drive this market in the forthcoming years. When users alter their usage pattern of electricity in response to signals that are received from grid operators and utilities, it is known as demand response. Such responses are because of factors such as new tariff schemes, incentive pricing, and greater sense of responsibility. The main aim of designing demand response programs is to either curtail or shift the load for a certain time period.

According to this market research report, the global smart demand response market is segmented on the basis of end users and geography. On the basis of end users, the global smart demand response market is classified into industrial, commercial, and residential. The industrial end-user segment holds the highest share in the overall market and is expected to lead this market during the forecast period as well. However, it is the residential end-user segment that will be expanding the fastest.


The two types of demand response programs used are incentive-based demand response and price-based demand response. The former is contractually mandatory and the latter is voluntary. Three main types of price-based demand response are time-of-use rates, real-time pricing, and critical-peak pricing. Load-serving entities, grid operators, and utilities help in establishing demand response programs that are incentive-based. Under this, people get paid for decreasing their power usage as per the requests of the market players.


Geographically, the research report segments the global smart demand response market into Europe, Asia Pacific, North America, and Rest of the World. With a market share exceeding 80%, North America led the overall smart demand response market in 2013. The fact that demand response helps in mitigating high wholesale prices and also reduces the total grid costs, is the main factor that propels the North America smart demand response market. Widespread adoption of demand response will drive the Asia Pacific smart demand response market during the forecast period. High technology costs and limited awareness amongst the masses about demand response programs are likely to hinder the growth of the global smart demand response market in the years to come.

Some of the prominent companies in the smart demand response market include Siemens AG, Schneider Electric, Opower Inc., Itron Inc., Johnson Controls Inc., and Comverge Inc.

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