SAN FRANCISCO, April 24, 2017 /PRNewswire/ --
The global demand response management system (DRMS) market size is expected to reach USD 35.9 billion by 2025, according to a new report by Grand View Research, Inc. The integration of Demand Response (DR) with smart grids and the rising awareness and adoption of automated DRMS by utilities and customers are believed to be the key growth drivers.
DRMS acts as a crucial arrangement for balancing energy supply with consumption requirement and stabilizing load on grids during peak hours. An automated demand response is established on AMI, which builds an integrated network between the customers participating in the DR program and the utility for exchanging signals and communicating in real time.
The introduction of cloud-based DRMS can automatically adjust the power consumption of heavy appliances at the users' end by examining data based on the usage pattern, weather condition, room occupancy, and such other factors that are recorded on a day-to-day basis. The data collected by home network is analyzed, based on which the appliances are programmed to be turned off during hours of peak consumption. Continuous improvement in DRMS for efficient energy conservation is expected to favorably impact the adoption of DRMS in the years to come.
The industrial sector accounts for the highest revenue share in the global market, which may be attributed to most DR programs being focused on the industrial sector as they are the highest power consumers, especially during peak hours. With the increasing applicability of Demand Response Management Systems, focus on the participation of residential customers is gaining importance. The residential sector is anticipated to be the fastest growing user segment in the global DRMS market. Rising awareness among residential customers about the price- based and incentive- based DR programs is expected to boost the industry growth.
Lack of awareness among customers about DR programs and their benefits along with a huge initial installation cost of devices for the adoption of DRMS are the challenges posed by the otherwise growing market for the technology.
Browse full research report with TOC on "Demand Response Management Systems (DRMS) Market Analysis By Technology (Conventional, Automated), By Component (Hardware, Software), By Application (Residential, Industrial, Commercial), By Region & Segment Forecasts, 2014 - 2025" at: http://www.grandviewresearch.com/industry-analysis/demand-response-management-systems-drms-market
Further key findings from the report suggest:
- Growing at a CAGR of over 15% over the forecast period, the hardware component segment is expected to account for the majority of the market share by 2025
- Home area network and an integrated network connecting the utility and customers, smart meters, smart thermostats, load control switches, and other DRMS devices are expected to witness a robust growth.
- By application, the residential sector is expected to account for around 25% of the revenue share by 2025. The segment is anticipated to be the fastest growing over the forecast period.
- In 2015, the U.S. accounted for the largest revenue share. Japan and Canada are expected to emerge as the key markets for the technology by 2025.
- The Middle Eastern and Latin American regions are projected to experience the fastest growth rate, which may be attributed to the promotion of OpenADR Alliance, regulations favoring the implementation of Demand Response Management Systems, and the rising awareness of the program among customers.
- Grid modernization and transitioning toward the smart grid technology have facilitated the Automated Demand Response (ADR) management
- Start-ups such as Optimum Energy, Adura Technologies, Lumenergi, Redwood Systems, and Digital Lumens offer innovative ways to conserve energy and balance consumer requirement without creating additional capacity. They offer energy trading platforms and provide software-as-a-service to control electricity supply to heavy appliances.
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Grand View Research has segmented the market for demand response management system (DRMS) Market by technology, component, application, and region.
- DRMS Technology Outlook (Revenue, USD Million; 2014 - 2025)
- Conventional demand response
- Automated demand response
- DRMS Component Outlook (Revenue, USD Million; 2014 - 2025)
- DRMS Application Outlook (Revenue, USD Million; 2014 - 2025)
- DRMS Regional Outlook (Revenue, USD Million; 2014 - 2025)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- North America
Read Our Blog: Automated Demand Response System to Drive Future Growth
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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