The Asia-Pacific demand response management system market is expected to grow at a CAGR of over 7.2% during the forecast period. The demand response system is for end-use customers to reduce their use of electricity in response to power grid needs, economic signals from a competitive wholesale market, or special retail rates. Most of the demand response action today is in the commercial and industrial sectors. Moreover, technology giants of the respective countries are leading the market space, with smaller companies supporting them with constant innovations and smarter software products. The scenario acts as a driver for the adoption of demand response management systems for utilities and customers. However, privacy concerns regarding the consumers as there is a threat of hacking or extracting data related to the end-users are expected to hinder the growth of the market studied.
Key Highlights
- The automated demand response system is expected to witness significant growth during the forecast period owing to the increasing deployment of smart grids across the globe with the advancement in software technology.
- The integration of smart technologies in the existing grid structure is expected to create an ample amount of opportunities for the market players in the coming years.
- China expected to be the largest market in the region owing to many upcoming renewable projects to decrease the share of coal in power generation. Furthermore, the uncertainty in the power generation through renewables propel the demand for the ADRMS in the country.
Key Market Trends
Automated Demand Response System Likely To Drive The Market
- Industrial demand response is a dynamic energy infrastructure management program designed to support the stability of the electricity grid, and meet the global growing demand for energy with the assistance of large and very large energy users in both the industrial and commercial sectors who agree to switch off certain production processes or turn down certain electrical loads during periods of peak demand.
- Developed countries are implementing large-scale smart grid technologies and many developing countries are also in the process of adopting various smart grid components including automated demand response system into their power systems.
- Demand-side management is the need of the hour for any grid. With a rise in smart grid technologies and automated demand response system, DRMS is a key demand-side management strategy that is expected to provide a cost-effective alternative to traditional supply-side solutions, to address growing electricity demand during times of peak load or when prices are high.
- Therefore, the Asia-Pacific demand response system is expected to grow because of the ability of automated demand response to the greatest control on the electricity consumption, allowing customers to automatically manage energy consumption at times of peak demand.
China to Witness a Significant Growth
- The market for demand response management systems in the Asia-Pacific region is expected to witness significant growth majorly in China during the forecast period.
- As a vast industrial nation with a forecasted peak load of more than one terawatt by 2020, China is a potentially large market for demand response management systems. The country has experienced shortages in power availability because of rapid economic growth, a situation that has ebbed in recent years. To manage this mismatch in electricity demand and supply, large customers were instructed to undertake administratively rationed, uncompensated load reductions to reduce peak demand.
- Furthermore, as of 2019, the Chinese government from the past five years are implemented several policies and initiatives to promote the uptake of renewable energy sources in the net electricity generation mix to encourage energy efficiency and to minimize transmission and distribution losses in the country.
- Besides, on the supply side, a massive build-out of renewable energy sources is not only expected to increase the need for grid connection, and demand response management systems to handle the intermittency of these renewable sources but also offer China a viable alternative to fossil-fuel generation.
- Therefore, factors such as increasing efforts to modernize the power sector across the country by the Chinese government are expected to drive the market studied during the forecast period.
Competitive Landscape
The Asia-Pacific demand response system market is moderately fragmented due to many companies operating in the industry. The key players in this market includeSchneider Electric, Inc., Siemens, Hitachi Ltd, Mitsubishi Electric Corporation, GE Energy, ABB (Ventyx), and others.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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