Dublin, March 27, 2025 (GLOBE NEWSWIRE) -- The "Smart Demand Response Market Report 2025" has been added to ResearchAndMarkets.com's offering.
The smart demand response market size has grown rapidly in recent years. It will grow from $31.4 billion in 2024 to $36.33 billion in 2025 at a compound annual growth rate (CAGR) of 15.7%. The growth in the historic period can be attributed to energy policy and regulation, grid reliability concerns, environmental awareness, pilot programs and demonstrations, energy price volatility.
This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The smart demand response market size is expected to see rapid growth in the next few years. It will grow to $59.16 billion in 2029 at a compound annual growth rate (CAGR) of 13%. The growth in the forecast period can be attributed to renewable energy integration, policy support and incentives, electric vehicle adoption, resilience and grid modernization, energy storage integration. Major trends in the forecast period include digitalization and IoT, technological advancements, grid modernization initiatives, dynamic pricing models, expansion of IoT and smart devices.
The rapid increase in energy prices is expected to drive the growth of the smart demand response market moving forward. For example, in April 2023, Eurostat, a Belgium-based governing body, reported that in the second half of 2022, average household electricity prices in the EU saw a significant increase compared to the same period in 2021, rising from €23.5 per 100 kWh ($24.58) to €28.4 per 100 kWh ($29.92). At the same time, average gas prices rose from €7.8 per 100 kWh ($8.34) to €11.4 per 100 kWh ($12.27), highlighting substantial upward pressure on energy costs. Thus, the rapid increase in energy costs is driving the expansion of the smart demand response market.
The mounting power demand is set to propel the advancement of the smart demand response market in the coming years. For example, in December 2023, according to the Energy Information Administration, a US-based government agency, the United States recorded a total electricity consumption of approximately 4.07 trillion kWh in 2022, marking a 3.2% increase compared to the previous year, 2021. Hence, the escalating power demand is propelling the growth of the smart demand response market.
Major companies are actively engaged in the development of innovative solutions, particularly those focused on grid-balancing in the smart demand response market. For example, in June 2022, CPower Energy, a US-based energy solutions provider, rolled out four nationwide demand response programs. These initiatives are intended to capitalize on the company's ongoing efforts in delivering grid-balancing solutions, especially during the summer season. The demand response programs incentivize energy users to curtail their energy consumption during peak usage periods.
Prominent players in the smart demand response market are increasingly concentrating on introducing new products optimized for the electric grid to enhance their market profitability. For instance, in September 2022, Rheem Manufacturing Company, a US-based manufacturer of water heaters and ventilators, launched a demand-response-enabled smart electric water heater. Engineered to meet stringent energy standards, this water heater seamlessly integrates with the power grid. With a UEF of up to 93, the product proves to be an energy-efficient choice for residents seeking to lower their energy expenses. The water heater is equipped with features such as built-in demand response capabilities, scheduled operation based on time-of-use, real-time energy consumption tracking, and advanced EcoNet Wi-Fi technology.
In October 2022, CPower, a leading US-based national energy solutions provider, successfully acquired Centrica Business Solutions LLC for an undisclosed sum. This strategic acquisition propelled CPower's distributed energy resource (DER) capacity from 5.6 GW to 6.3 GW, cementing its position as a premier national player harnessing the potential of distributed energy resources. Centrica Business Solutions LLC, a US-based integrated energy solutions company, specializes in providing energy management solutions to commercial and industrial organizations.
Asia-Pacific was the largest region in the smart demand response market in 2024. The regions covered in the smart demand response market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart demand response market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Report Scope
Markets Covered:
1) By Type: Voluntary Demand Response; Contractual Mandatory Demand Response
2) By Technology: Automated Demand Response; Direct Load Control; Dynamic Pricing
3) By Application: Residential; Commercial; Industrial
Subsegments:
1) By Voluntary Demand Response: Incentive-Based Demand Response; Emergency Demand Response
2) By Contractual Mandatory Demand Response: Capacity Market-Based Demand Response; Regulatory Demand Response
Key Companies Profiled: Enel S.p.A.; Hitachi Ltd; Siemens AG; General Electric Company; Cisco Systems Inc
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2025-2029 |
| Estimated Market Value (USD) in 2025 | $36.33 Billion |
| Forecasted Market Value (USD) by 2029 | $59.16 Billion |
| Compound Annual Growth Rate | 13% |
| Regions Covered | Global |
Some of the major companies featured in this Smart Demand Response market report include:
- Enel S.p.A.
- Hitachi Ltd
- Siemens AG
- General Electric Company
- Cisco Systems Inc
- Oracle Corporation
- Mitsubishi Electric Corporation
- Schneider Electric SE
- Honeywell International Inc
- ABB Ltd.
- Johnson Controls
- Toshiba Corp
- Eaton Corporation PLC
- Con Edison Solutions
- Itron Inc
- Landis+Gyr
- Aclara
- EnerNOC
- LS Power Development LLC
- Opower Inc.
- Comverge Inc.
- GridPoint
- Uplight
- Bidgely
- Echelon Corporation
- AutoGrid
- Blue Pillar
- Virtual Peaker
- Axiom Exergy
- Powerley
For more information about this report visit https://www.researchandmarkets.com/r/df70hj
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