The rollout of smart grid technology in Europe will drive the growth of the market for demand response management systems (DRMS), according to predictions from US market research company Micromarket Monitor.
Analysts at the company expect the market to grow from US$1.3 billion in 2014 to US$6.3 billion by 2019.
Europe has seen several new entrants in the DRMS market, especially aggregators, which indicates that the market is becoming a "lucrative option" for demand response service providers, says the report.
Driving the DR market
Leading players in this market, such as GE, Siemens, Schneider Electric, Johnson Controls, ABB, EnerNOC and Honeywell are taking steps to develop European demand response market.
The company said the increasing number of DRMS vendors, in addition to a favorable legislative structure, are considered as key driving factors fueling the adoption of DRMS in Europe.
Another area of scope of demand response (RD) for the residential segment, which has been largely ignored by providers.
Residential demand response
Micromarket Monitor said in a statement: "Energy intensive C&I consumers have been the major contributor towards the overall market of DR.
"DR in the residential segment is largely undermined by DR providers, however, it has significant scope of growth which is now corroborated with increasing mass deployments of smart meters and increasing shipments of energy management devices which can be used for interfacing with DR platforms."
The new reports breaks the market into segments on the basis of solutions into C&I DRMS, Residential DRMS and Automated DRMS (ADR).
It is further segmented on the basis of devices which include smart appliances (DR Enabled), networked home energy management (HEM), smart thermostats, Load Control (LC) switches and smart plugs.