About Demand Response (DR)
Demand response (DR) is defined as the change in power consumption by a utility's customers to reduce the gap between demand and supply of electricity. DR solutions help capture the benefits of time-based rates or financial incentives by consumers. This is done by reducing or shifting their electricity consumption during the peak hours of demand. DR further helps electricity providers to decrease costs by reducing the peak demand and prevents power companies from investing in new plants to meet the excess energy demand. Thus, the power and energy industries consider DR programs as an extremely valuable resource whose capabilities are expanded by grid modernization efforts.
Technavio’s analysts forecast the global demand response (DR) market to grow at a CAGR of 15.85% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global demand response (DR) market for 2017-2021. To calculate the market size, the report considers the new installations sales, revenue, aftermarket, and services market.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Demand Response (DR) Market 2017-2021
Technavio recognizes the following companies as the key players in the global demand response (DR) market: ABB, CPower, EnerNOC, Honeywell International, Itron (Comverge), Schneider Electric, and Siemens.
Other Prominent Vendors in the market are: ALSTOM, Cisco, Eaton, Landis+Gyr, Oracle, and Toshiba.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Emerging concept of Internet of Things (IoT). Internet of Things (IoT) is moving toward being the future technology for utility companies and electricity aggregators to distribute power between grids and consumers. At present, IoT has found its pathway into grid automation to revolutionize the modernized communication.”
According to the report, one of the major drivers for this market is Increasing gap between electricity supply and demand. The growing urbanization and population are increasing the need for electricity worldwide. This is creating a huge mismatch between electricity supply and demand for the last two decades. Similarly, a variation in load demand to a greater extent throughout the year has become a major difficulty that further complicates the situation. Thus, utility and generation companies must constantly match supply and demand throughout the year to maintain reliability on the power system.
Further, the report states that one of the major factors hindering the growth of this market is growing threat of hacking. Strict authentication is essential while maintaining DR for electricity consumers through software. The rising number of users in DR pose a threat to these automation systems by making the data vulnerable to unauthorized access. Likewise, wireless devices, such as smart thermostats and smart meters are highly prone to getting hacked. Thus, information related to processes, people, and critical data become insecure.
ABB, CPower, EnerNOC, Honeywell International, Itron (Comverge), Schneider Electric, and Siemens. ALSTOM, Cisco, Eaton, Landis+Gyr, Oracle, and Toshiba.