Asia-Pacific Demand Response Management System Market - Segmented by System Type and Geography - Growth, Trends, and Forecast (2018 - 2023)
In order to shorten their demand-side management and energy efficiency project timelines, governments across various nations are implementing demand-side response management technologies. Additionally, the increasing regulatory support from various governments in developing and implementing the green solutions, along with smart grid solutions, has further increased the role of DRMS in the Asia-Pacific region. With the growing trend of smart energy consumption, countries in the Asia-Pacific region, such as China, Japan, and India, have attracted significant investments, which has created huge potential for the demand response management system market during the forecast period.
The developing countries of the Asia-Pacific region, such as China, India, Indonesia, Malaysia, and others, are experiencing rapid urbanization and industrialization activities. The Asia-Pacific region is expected to lead the global demand for electricity, which is expected to be doubled by 2060. Failing to meet up with the growing electricity demands, due to multiple factors, the utilities in Asia-Pacific pass the cost to the end users. The increasing demand for the implementation of price-responsive load mechanism on similar lines, with the North American or the European regions is expected to further drive the implementation of Demand Response Management System (DRMS) in Asia-Pacific.
Integration of Smart Grid - Accelerates the Market Growth
Demand response management systems are the most capital efficient and carbon neutral way to strengthen the power grid that helps to overcome peak loads. In order to respond to high peak demand, utilities build very capital-intensive power plants and lines. Peak demand happens just a few times a year, so the assets run at a mere fraction of their capacity; however, end users’ need to pay for this idle capacity through the prices they pay for electricity. Hence, demand response is a way for utilities, to not only reduce the need for large capital expenditures but also reduce the per unit consumption rates lower. Moreover, with the increasing roll-out of smart grids and growing application of advanced metering infrastructure (AMI) meters, utilities get real-time usage data of customers, which has led to increasing participation of consumers in the demand response programs over the past few years. As a result, the growing integration of smart grid is expected to propel the growth of the demand response management system market during the forecast period. India is expected to witness the largest potential for smart grid deployment, with smart grid infrastructure investments projected to reach USD 44.9 billion during 2017-2027, according to EAI. As a result, India is expected to witness enormous growth in the demand response management system market, during the forecast period.
Japan - Promising Market
In Japan, the phasing out of all of the country's nuclear plants has created an acute need for demand response, home energy management, and smart meter deployments. The demand response management system market in the country is expected to surge during the forecast period, on account of a mature transmission grid, a pressing need to reduce energy demand, and the opportunity to become a world leader in a new technology market.
Key Developments in the Market