June 22, 2018 - 12:39 PM EDT
Print Email Article Font Down Font Up
Demand Response Market to Propel to $3.5 Billion by 2025 aided by IoT-enabled Systems

The rise of smart cities to accelerate the adoption of DR solutions in the residential segment, finds Frost & Sullivan

SANTA CLARA, California, June 23, 2018 /PRNewswire/ -- Europe has the required infrastructure to implement customer-centric demand response (DR) programs; however, the region is showing slow adoption rates due to the lack of homogenous regulations and consumer awareness. Nevertheless, utilities are starting to perceive DR as a useful resource rather than a complication. Aided largely by the advances in ICT, DR can demonstrably help the European Union (EU) achieve close to 40 percent of its 2020 energy savings and CO2 emission reduction targets.

Frost & Sullivan's recent analysis, European Demand Response (DR) Market, 2018–2025, includes revenue forecasts, discussion on the competitive structure, and market share analysis. The base year of the study is 2017, and the forecast period is 2018 to 2025.

For further information on this analysis, please visit: http://frost.ly/2kb

"The rising installation of smart meters, influx of new energy service companies (ESCOs) and specifically technology-savvy start-ups are expected to play a huge role in impelling the $0.9 billion market toward $3.5 billion by 2025," said Swagath Navin Manohar, Research Analyst, Energy & Environment. "As smart cities are mushrooming all over the region, DR systems with Big Data, predictive analytics, Artificial Intelligence (AI) and the Internet of Things (IoT) will inevitably attract greater interest from utilities, aggregators, and other software companies."

Utilities and DR aggregators will invest substantially in innovative DR technologies and predictive tools to reduce power generation costs as well as grid failures and outages. DR will especially thrive in the residential sector, electric vehicles (EVs), and data center application segments. Their combined share is projected to increase from 5 percent in 2017 to 15 percent by 2025.

ESCOs or aggregators looking to establish a strong presence in this market need to target countries or regions with a wide installed base of renewable energy systems (RES), high electricity prices, and favorable policies and regulations.

Other significant growth opportunities highlighted in the analysis include:

  • IoT-enabled building services: IoT-enabled DR is better aligned with the priorities of customers seeking smart energy solutions. Aggregators and utilities need to collaborate with IoT gateway providers to stay ahead of the competition.
  • Data analytics and cloud: DR companies need to adopt transparent software platforms that allow the client to understand DR-enabled cost savings. Energy management software providers could incorporate machine learning algorithms to meet the dynamic requirements of energy management.
  • Novel business models: With the energy market shifting to a decentralized structure due to the advent of IoT and RES, utilities need to embrace customer-centric models like flexible payment models, Software-as-a-Service (SaaS), and shared savings. Many utilities are positioning themselves as energy partners rather than electricity providers; notable examples include Actility in Belgium and E.ON and RWE in Germany.

"Utilities, aggregators, software solution providers, data analytics firms, and communication vendors are expected to increasingly consolidate to offer best-in-class service to end users," noted Manohar. "Meanwhile, in emerging markets, investments in cost allocations and tariff structures will drive the commercialization of DR programs, even beyond 2020."

European Demand Response (DR) Market, 2018–2025 is part of Frost & Sullivan's global Distributed Energy Growth Partnership Service program.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

European Demand Response (DR) Market, 2018–2025
MDBB-18

Contact:
Jaylon Brinkley
T: +1 210 247 2481
E: [email protected]
http://ww2.frost.com

SOURCE Frost & Sullivan


Source: PR Newswire (June 22, 2018 - 12:39 PM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice