Smart grid initiatives have graced millions of life with time and energy saving solutions. They play a pivotal role in creating long-term energy management in terms of correct ratio between energy generation and demand. Time-based electricity pricing, smart metering and smart grid technologies are driving the demand response management system market. Growing adoption of these technologies and rising demand for power are some major drivers for the industry as well. Overall demand for the industry is creating great business opportunities for the key players within the industry. Major investors are looking for big investment in the industry considering the huge potential that the market has in store.
Segmentation in DRMS Market
Global market is categorized into different segments. Analysis of these segments helps in drawing conclusions about the current market trends, opportunities, threats, and competition within the industry. in order to understand all these aspects, researchers have segmented the DRMS market into various solutions, devices, services, business verticals, and geographic regions. Following are the details of the sub-segmentation in the industry:
- Devices: Smart appliances, load control switches, network home energy management, smart plugs, and smart thermostats
- Services: System integration and consulting services, curtailment services, and managed services
- Solutions: Residential, commercial, and automated demand response management systems
- Verticals: Energy and power, manufacturing, consumer goods, agriculture, offices and commercial buildings, MUSH systems (municipal, university, school and hospital)
- Geography: Latin America, North America, Europe, Middle East & Africa, and Asia Pacific
As mentioned before, rising demand and deployment of the smart metering, grids, and energy solutions are driving the demand for demand response management systems across the world. Along with the developed regions like North America and Europe, the market is also showing strong growth prospects across Asia Pacific, Latin America, and Middle Eastern countries. The current area of focus for the industry is majorly within industrial and commercial customers. Increasing efforts for outsourcing and technological advancements in the existing systems are expected to create cost effective and wide range of deployment for these systems across developing parts of the world as well.
According to the market research reports, the demand response management system market is expected to grow at a CAGR of around 30% from 2014 to 2019. At the estimated compound annual growth rate, the industry is expected to jump from the current $6.68 billion (in 2014) to around $24.64 billion by the end of the year 2019. North America, especially, United States of America is estimated to dominate the global market. Although these systems have been around for years, absence of a uniform market model has restricted its growth. Regulatory mandates across the Europe are also responsible for the slow growth of the industry within these areas. However, increasing implementations of DR solutions are changing these conditions across the global market.