Global Commercial Demand Response Management Systems Market - Growth Trends and Forecasts (2018 - 2023)
The electricity generation, transmission, distribution, and consumption process, within the vast industry landscape, is undergoing a dramatic change. On the production side of the business, the pressure is on the utility companies to include greener approaches to production and improve efficiency at every stage of the process to the extent possible. Whereas, on the consumption side of the business, the governments are encouraging optimal energy use and providing incentives for the same, through various programs. The future of the electricity generation, transmission, and distribution market is expected to rely on the demand response management system.
Need for Efficient Energy Management Systems -Driving the Market
Rapid economic development (over the past two decades) has led to a surge in the world’s energy consumption, and this trend is expected to continue in the future. The global electricity domestic consumption in 2016 was 21,190 TWh, which is roughly 30% higher than the consumption in 2006. By 2030, the electricity demand is set to proliferate even further. With the energy supply growth estimated to be slower, a mismatch in supply and demand is expected to be a significant problem for countries. Thus, an increase in the stress on the power grid is expected, which has raised concerns among various nations to introduce efficient energy management systems in their grids. As a result, governments, worldwide, have begun to pay unprecedented attention to energy efficiency and grid stability, which is likely to support the growth of the global commercial demand response management systems market during the forecast period.
North America - The Region with Highest Market Share
The United States and Canada are expected to lead the North American market for commercial demand response management systems. There has been a huge increase in installation of smart meters, laying the groundwork for demand response management systems. With 100% electrification in the United States, the country is focusing toward improving the efficiencies of their grid network. In the United States, various incentives and programs are being offered by utilities in increasing participation in the use of demand response management systems. Moreover, the Caribbean and Central American regions have unique near-term opportunities for smart grid investment. This, in turn, provides ample opportunities for commercial demand response management systems in the region.
United States’ Focus on Efficiency Improvement of Power Transmission Sector
The US Department of Energy (DOE) has been focusing more toward increasing the efficiency of electricity distribution and transmission systems, rather than focusing on electricity generation. The US Energy Information Administration (EIA) estimates the electricity transmission and distribution losses to be about 5% in the United States. The country has 100% electrification rate, which was achieved decades ago, the electric companies are presently installing smart meters across the United States on a large scale. Deployments reached approximately 70 million smart meters by the end of 2016, and are projected to reach 90 million by 2020. The growing adaptation of smart meters and the focus of efficiency improvement is expected to increase the demand for commercial demand response management systems.
Key Developments in the market
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