PUBLISHER: The Business Research Company | PRODUCT CODE: 1658980
PUBLISHER: The Business Research Company | PRODUCT CODE: 1658980
Demand response management systems play a crucial role in optimizing the performance of smart grids, with demand response (DR) serving as a key element. DR effectively addresses peak demand concerns, contributing to the overall efficiency of electric power networks. The adoption of demand response by residential consumers may lead to Home Energy Management System accreditation (HEMS).
The primary components of demand response management systems encompass hardware, software, and services. Hardware refers to the tangible components or delivery systems on which the demand response management system application runs. In the context of computer systems, hardware includes the physical parts of computers and related devices. Technologies associated with demand response management systems range from conventional to automated solutions, offering consulting, curtailment, maintenance, and managed services. The end-user sectors benefiting from these systems span energy and power, agriculture, public buildings, and commercial spaces.
The demand response management systems market research report is one of a series of new reports from The Business Research Company that provides demand response management systems market statistics, including demand response management systems industry global market size, regional shares, competitors with a demand response management systems market share, detailed demand response management systems market segments, market trends and opportunities, and any further data you may need to thrive in the demand response management systems industry. This demand response management systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The demand response management systems market size has grown exponentially in recent years. It will grow from $60.47 billion in 2024 to $77.72 billion in 2025 at a compound annual growth rate (CAGR) of 28.5%. The growth in the historic period can be attributed to increasing energy demand, cost savings for consumers, increasing focus on energy efficiency, regulatory support and policy initiatives, increased awareness.
The demand response management systems market size is expected to see exponential growth in the next few years. It will grow to $202.45 billion in 2029 at a compound annual growth rate (CAGR) of 27.0%. The growth in the forecast period can be attributed to focus on customer engagement, evolving business models, market liberalization, demand for demand-side management, policy support and incentives. Major trends in the forecast period include smart grid initiatives, advancements in IoT and communication technologies, demand response in virtual power plants, AI and predictive analytics integration, e-mobility integration, collaboration between utilities and technology providers.
The increasing penetration of renewable energy is driving the growth of the demand response management systems market. Renewable energy is sourced from natural resources that replenish more quickly than they are consumed. The rising use of renewable energy fuels the demand for advanced demand response management systems to regulate load and promotes the adoption of smart grid technologies. For example, in July 2023, a report from the International Energy Agency, a France-based intergovernmental organization, highlighted that solar photovoltaic (PV) generation experienced a significant increase of 270 terawatt-hours (26%), reaching nearly 1,300 terawatt-hours in 2022. Projections suggest that the installed power capacity of solar PV is set to surpass that of coal by 2027, positioning itself as the world's largest source of power capacity. The cumulative capacity of solar PV is expected to nearly triple in the forecast period, expanding by almost 1,500 gigawatts, and will exceed that of natural gas by 2026 and coal by 2027. Consequently, the demand for demand response management systems is anticipated to rise alongside the increased penetration of renewable energy.
The increasing adoption of electric vehicles is anticipated to drive the growth of the demand response management system market in the future. An electric vehicle (EV) is defined as a vehicle that operates using an electric motor powered by a battery, which can be charged from an external source. The rise of electric vehicles significantly impacts the demand response management system market by requiring solutions that improve grid management, optimize energy distribution, and promote sustainability amid the growing demand for electric vehicle charging. For example, in January 2023, a report from the US Department of Energy, a US-based agency responsible for nuclear infrastructure and energy policies, indicated that monthly sales of new plug-in electric cars (PEV), encompassing both all-electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV), reached 7.4%, surpassing 7% for the first time since September 2022, with 1.2% of these being PHEVs. Thus, the rising adoption of electric vehicles is fueling the growth of the demand response management system market.
Technological advancements are a prominent trend in the demand response management systems market, with companies actively developing innovative products to strengthen their market positions. Tata Consultancy Services (TCS) is an example, having launched a suite of sustainability solutions, including TCS Clever Energy, Intelligent Power Plant, and TCS Envirozone. These solutions empower businesses to understand and optimize their energy usage, with TCS Clever Energy addressing crucial aspects of demand response. The integration of cutting-edge technologies into demand response management systems reflects the industry's commitment to providing efficient and sustainable solutions.
Major companies in the demand response management system market are pursuing a strategic partnership approach to deliver incentive-linked behavioral demand response programs to individuals, businesses, and governments. Strategic partnerships involve companies utilizing each other's strengths and resources to achieve mutual benefits and success. For example, in May 2024, Honeywell International Inc., a US-based multinational conglomerate, formed a partnership with Enel North America, a US-based green energy firm. This collaboration aims to enhance building automation and demand response solutions for commercial and industrial entities by employing automation to manage and regulate energy loads, thereby contributing to power grid stability. This strategic alliance combines Enel's extensive expertise as a global leader in demand response with Honeywell's renowned automation systems, resulting in solutions that improve energy efficiency, flexibility, and revenue generation potential for customers.
In October 2022, CPower Energy Management, a US-based energy solutions provider, acquired the U.S. demand response business of Centrica Business Solutions LLC for an undisclosed sum. As a result of this acquisition, CPower specifically obtained Centrica Business Solutions Optimize, LLC (CBSO), a registered electric broker in Ohio. Centrica Business Solutions LLC is a US-based provider of demand response management systems.
Major companies operating in the demand response management systems market are Aclara Technologies LLC, Ameresco Inc., AutoGrid Systems Inc., CPower Inc., Eaton Corporation PLC, Enel X Srl, 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., Schneider Electric SE, Siemens AG, Opower Inc., Convergence Inc., Accenture PLC, Elster Group SE, Dragos Inc., Cisco Systems Inc., Oracle Corporation, Toshiba Corporation, Customized Energy Solutions Ltd., Echelon Corporation, GridPoint Inc., Lime Energy Co.
North America was the largest region in the demand response management systems market in 2024. The regions covered in the demand response management systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the demand response management systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The demand response management systems market consists of revenues earned by entities by providing design and management services, technical support, installation services, and energy consulting. The market value includes the value of related goods sold by the service provider or included within the service offering. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Demand Response Management Systems Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on demand response management systems market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for demand response management systems ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The demand response management systems market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.