Smart demand response is the method to monitor and track the electricity consumption by various industries and helps to reduce consumption by charging according to time and demand. It offers opportunity for customers to play an important role in the operation of the electrical grid by decreasing their electricity consumption during peak hours in response to time-based prices or other types of financial incentives. Demand response systems are used by various electric system developers and operators for balancing the supply and demand of electricity. These programs can lower the cost of electricity in the wholesale market, and in turn, result in lower electricity rates in the market. Methods of engaging customers in demand response attempts include offering time-based prices such as time-of-use pricing, critical peak pricing, variable peak pricing, real-time pricing, and critical peak discounts. It also includes direct load management programs which offer the ability for companies to adjust air conditioners and water heaters on and off during peak demand periods in return for the financial incentive and reduce electric bills.
COVID-19 Scenario Analysis:
- The spread of the COVID-19 resulted in the shutdown of the industries and the government asked the companies and people to adopt work from home culture to reduce the spread of the infectious virus. There has been a shift in the electricity consumption by the consumer. Residential housing electricity consumption has increased whereas the drop in the consumption of electricity has been witnessed in commercial premises as they were asked to shut down throughout the pandemic.
- The decline in the sales of electric vehicles and use of charging points has reduced because of less traveling. Several countries were badly hit by the coronavirus and have recorded a reduction in demand for electricity as industries, schools, and commercial industries are closed. Therefore, the smart demand response market was experiencing a stable growth rate.
Top Impacting Factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis
The increasing power demand in various industries including manufacturing, government, and others, growing installations of smart meters, and the usage of smart grid technologies are the factors driving the growth of the smart demand response market. In addition, the ability of the system to generate real-time data for both producers and consumers to monitor energy consumption propels the growth of the market. However, the high cost of implementation & maintenance of power grids and lack of regulatory policies are the factors hampering the growth of the market. Furthermore, advances in technology and the increasing use of communication systems & smart meters are the factors providing lucrative opportunities to the growth of the smart demand response market.
The Market Trends for Smart Demand Response Market:
Increase in the Adoption of Smart Grid Technology:
Smart grid technologies are being utilized across power systems including power generation, transmission, distribution, services, and consumption. With the widespread advancement of smart grids, countries are expecting high-quality electric power service, better system reliability, and better quality of service. Therefore, increased energy usage and energy savings, higher penetration, and large use of renewable power sources can be enabled. Energy suppliers are flooded with challenges in keeping grid stability and keeping the power supply consistent. Peak-load fluctuation is on the rise and the solutions like construction of more fossil fuel-powered plants are solving energy issues.
Asia-Pacific Region to Dominate the Market in the Forecasted Period:
Asia-Pacific region is expected to dominate the market during the forecast period. The government's focus to reduce reliance on coal-based power generation has boosted the demand for the use of renewable energy sources. The development in countries like China & India has resulted in to increase in electricity demand, which has created the demand for the smart grid system in the region. With the large-scale deployment of electric vehicles in the countries, a substantial load is likely to be added to the electricity grid and is expected to increase the need for managing the peaks and troughs in the total supply and demand across the various end-user sectors thus boosting the growth of smart demand response market.
Key Benefits of the Report:
- This study presents an analytical depiction of the smart demand response market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the market share.
- The current market is quantitatively analyzed to highlight the smart demand response market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed market analysis based on the present and future competitive intensity of the market.
Questions Answered in the Smart Demand Response Market Research Report:
- Who are the leading market players active in the smart demand response market?
- What would be the detailed impact of COVID-19 on the smart demand response market?
- What current trends would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the smart demand response market?
- What are the projections for the future that would help in taking further strategic steps?
Smart Demand Response Market Report Highlights
By Enterprise Size
Key Market Players
General Electric Company, Schneider Electric SE, Siemens AG, Itron Inc, Cisco Systems Inc, LS Power Development LLC, ABB Ltd., Toshiba Corp, Honeywell International Inc, Mitsubishi Electric Corporation