The Global Smart Demand Response Market is expected to reach $51.47 billion by 2025, according to a new market report published by Transparency Market Research.
This market was valued at $5.04 billion in 2013 and will grow at a CAGR of 21.6 percent from 2014 to 2025.
The global smart demand response capacity market in 2013 was dominated by North America, a region that accounted for over 80 percent of the global market share.
Growth in the North America's smart demand response capacity market is increasing because electricity markets have recognized that demand response programs can effectively manage scheduled or emergency downtime for power plants.
Demand response has also mitigated higher wholesale prices and lower overall grid costs in North America.
Although North America is currently leading the market, analysts expect Asia Pacific's demand response capacity to rise at the highest rates in the future.
Growth in Asia Pacific’s demand response capacity market will be driven by increased adoption of demand response in the region.
Key players in the Global Smart Demand Response Market are Honeywell International, Inc., EnerNOC, Inc., Eaton Corporation PLC., Landis+Gyr, Itron, Inc. Schneider Electric (News - Alert), General Electric, and Siemens AG among others.
Transparency Market Research notes that increasing demand of power gives a boost to the adoption of demand response programs. Looking forward, the roll-out of smart grid technologies is expected to drive growth in the global smart demand response market.
Other factors that will boost this market include policies that encourage demand response programs, increasing installations of smart meters and other smart grid technologies.
Factors that can challenge the market’s growth are limited customer awareness of demand response programs and their benefits, as well as the high cost of technology and equipment for implementing demand response programs.
Edited by Alisen Downey