Since 2010, demand response (DR) systems have matured in the electricity market and have been afforded the opportunity to bid directly against traditional electricity generation. Today, a number of factors point toward accelerating DR adoption in North America and other regions of the world. In particular, the changing resource mix in electric grids globally is creating more potential for DR to play a pivotal role in conserving energy use and maintaining grid stability. Click to tweet: According to a new report from Navigant Research, worldwide revenue from DR programs will grow from $1.6 billion annually in 2014 to $9.7 billion in 2023.
'States like New York, Massachusetts, California, Hawaii, and Maryland are at the forefront of grid modernization, and are transforming the utility business model to incentivize more active customer participation in DR programs,' says Brett Feldman, senior research analyst with Navigant Research. 'At the same time, technology advances in metering, controls, and end-use devices are making it easier for customers to participate in DR programs and manage their energy usage.'
While North America will remain the largest market for DR programs through 2023, demand response is also growing internationally, as Europe is poised to open more markets and the developed countries of Asia Pacific embrace automated DR. Several countries in Europe are in the process of changing their electricity market structures, according to the report, and opening up more opportunities for demand response to compete against generators.
The report, 'Demand Response', examines the global DR market with a focus on two key sectors: commercial/industrial and residential. It provides an analysis of the regional market dynamics and players, global market drivers and barriers, and key technologies related to DR. Global market forecasts for DR sites, capacity, spending, and revenue, segmented by sector and region, extend through 2023. The report also analyzes the competitive landscape of DR to identify and highlight the strengths and weaknesses of the major players in the market. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
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* The information contained in this press release concerning the report, 'Demand Response,' is a summary and reflects Navigant Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.