Technology market research firm, Technavio, forecasts the global grid-interactive water heater market to grow by over 12% between 2017 and 2021.
According to the study, the top three drivers of the market growth are:
- Growing adoption of smart technologies
- Ability to manage load and generate revenue
- Growth in energy consumption
Growing adoption of smart technologies
Increasing focus towards achieving energy-efficiency has resulted in the development and deployment of smart equipment such as smart grids. Globally, utilities are adopting smart grid technologies as a measure to improve the reliability of the grid and for achieving energy efficiency. Technologies such as RTUs, intelligent electronic device (IED), and other supervisory control and data acquisition (SCADA)-based systems are being adopted in T&D infrastructure. Smart meters are being installed at consumer homes.
Gaurav Mohindru, a lead analyst at Technavio for tools and components research, said: “Smart meters are the essential link between utilities and homeowners. They enable utilities to have a bi-directional communication with customers. Smart meters provide real-time or near real-time energy consumption data, enabling consumers to evaluate the pattern of energy consumption. The information provided helps consumers to adopt energy conservation measures such as the deployment of smart thermostats and grid-interactive water heaters that can effectively control the temperature and store energy in the form of hot water.”
Ability to manage load and generate revenue
The stabilisation of the grid is probable with the integration of grid-interactive water heaters (GIWH) with the power grids. The GIWH and the grid have the capability for real-time interaction which allows load stabilisation. In addition, from the perspective of the stabilization, GIWHs also allow frequency regulation, which is real-time load matching with power generation. This provides numerous opportunities for economic benefits for both the consumers as well as third-party aggregators.
With the smart interaction of the GIWH with the grid, there is a possibility for a charging and discharging cycle of the GIWH, based on the power and load pricing. For instance, GIWH can be charged only when the prices are low. This translates into cost savings for the consumers as well. Furthermore, intelligent load control is possible with the GIWHs.
Growth in energy consumption
The rising population and the economic growth of the world will lead to growth in demand for energy. Emerging economies accounted for 97% of the global energy demand. China, despite its decreased consumption, recorded the world’s largest increment in primary energy. Furthermore, it is projected that the world’s GDP will double by 2035, with India and China accounting for almost half of the growth in GDP. With the growth in global economy, the demand for energy will increase.
“The growing population and economic growth are expected to drive the consumption of electricity. As a result, more renewable power will come online, and grids will face extra load. However, the use of GIWH can help grids in redistributing the load. Therefore, it is expected that the global GIWH will witness significant growth because of the increased consumption of energy over the forecast period,” added Mohindru.