Europe Automated Demand Response Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 2.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Automated Demand Response Market Analysis
The automated demand response management systems (ADRMS) market is expected to register a CAGR of more than 2% during the forecast period of 2022- 2027. The COVID-19 pandemic slowed the growth of the smart grid market, as various countries worldwide were forced to implement strict lockdowns during the first half of 2020. Governments and local authorities issued strict guidelines, and all non-essential operations were halted. This adversely affected the market owing to the suspension of end-user activities. The market study's significant factors include the need for efficient energy management systems. They increased the penetration of renewable energy, propelling the demand for ADRMS to manage the load and the increasing number of smart grid systems. Moreover, with the narrowing supply-demand gap and rising use of sophisticated electrical appliances, the demand for ADRMS technology is expected to increase significantly during the forecast period. However, the privacy concern and the inability of some industries to comply with the reduction in demand at the need of the hour are likely to act as a restraint for the market.
- The increasing adoption of smart grids is expected to be a significant driver for the market as ADRMS forms an essential part of the smart grids.
- Moreover, Integrated Demand Side Management (IDSM) is defined as any two or more of Energy Efficiency as a Resource (EE), Demand Response (DR), Distributed Generation (DG), and Storage (ST). Using IDSM, closely coordinating multiple demand-side resources, can offer a more forward-thinking and innovative approach to building energy management and help customers maximize cost-effective savings and control. It is likely to act as an opportunity in the future.
- The United Kingdom is expected to witness significant growth in the coming years due to large-scale investments in the market, especially in the innovative grid sector.
Europe Automated Demand Response Market Trends
This section covers the major market trends shaping the Europe Automated Demand Response Market according to our research experts:
Increased Adoption of Smart Grid Technologies
- Automated demand response systems (ADRMS), including intelligent grids, are being applied across power systems, including generation, transmission, distribution, services, and consumption. With the successful and widespread development of smart grids, European countries expect a high-quality electric power service, better system reliability, and improved quality of service. Thus, maximized energy usage and savings, higher penetration, and greater use of renewable energy sources (to capture environmental benefits) can be enabled.
- One of the critical features of ADRMS is that they provide consumers and suppliers with real-time knowledge on system performance, energy consumption, and decision-making tools that empower stakeholders to provide quality power supply and optimum usage of energy resources. Thus, smart grids are also essential for expanding the use of ADRMS. Smart grids can enable demand flexibility and consumer participation in energy systems through ADRMS.
- Further, electricity providers are bombarded with challenges in maintaining grid stability and maintaining the power supply. Peak-load variability is rising, and solutions, like building more fossil fuel-fired peaking plants (once common), are no longer defaults for solving energy issues.
- To meet these challenges, intelligent grid networks have encouraged the widespread adoption and applicability of ADRMS.
- European countries are implementing large-scale smart grid technologies, and many developing countries are also adopting various smart grid components into their power systems. Demand-side management is the need of the hour for any grid. With a rise in smart grid technologies, ADRMS is a key demand-side management strategy that is expected to provide a cost-effective alternative to traditional supply-side solutions, to address increasing electricity demand during times of peak load or when prices are high.
- Further, In European Union, grid expansion plans for 2021-2030 provide the foundation for increased investment, supported by economic recovery schemes. While the European Commission's 2030 climate ambition plan released in September 2020 foresees annual grid investments of ~USD 70 billion during 2021-2030. Moreover, investments are set to be even higher owing to its July 2021 Fit for 55 plan, which aims for emissions in 2030 to be 55% lower than in 1990 (compared with the previous plan's 40% reduction).
- Hence, investments in smrt grids are expected to aid the growth of the market due to its increasing efficiency, investments, and governmental support
United Kingdom to Grow Significantly
- Public and private organizations in the United Kingdom are investing in smart electric grid upgrades, working as a driver for developed innovative products, services, or technologies related to the smart grids.
- Increasing demand, limited supply, re-emphasis on energy security, and challenging carbon emission reduction targets are driving transformation in energy utilities, and smart grid technologies will play a vital role in the coming years.
- The United Kingdom Government has committed itself to a USD 18 billion countrywide smart meter roll-out by keeping the energy suppliers responsible for the roll-out (both in terms of implementation, ownership and financing). The official smart meter roll-out began in 2016 and was initially planned to finish in 2020. However, suppliers have received an additional four years (i.e., till 2024) to keep installing meters. The roll-out start date was pushed back several times, and there have been delays with many parts of the roll-out.
- Furthermore, on the innovation front, in 2021, Northern Powergrid started its pilot smart grid network technology to increase the resilience of 'the micro-regions' of the grid. The UKP 2.5 million program named Microresilience uses energy storage systems (ESS) and innovative communications technology to maintain power supplies to vital infrastructure and remote communities. Innovations are expected to make the technology more accessible across the globe.
- The most important trend to ascertain the growth of the smart grid is the rising demand for energy in the country, which has seen some setbacks due to COVID-19 but is expected to grow significantly in 2021. In 2020, the primary energy consumption of the United Kingdom was around 6.89 Exajoules which was a decrease from 7.73 Exajoules in 2019.
- Hence, the United Kingdom's smart grid market is expected to grow in the forecast period due to increasing investment, government policies, and innovative projects.
Europe Automated Demand Response Industry Overview
The Europe Automated Demand Response Market is consolidated. The major companies include Itron Inc., Hitachi Ltd, Mitsubishi Electric Corporation, Eaton Corporation PLC, and General Electric Company
Europe Automated Demand Response Market Leaders
Itron Inc.
General Electric Company
Eaton Corporation PLC
Mitsubishi Electric Corporation
Hitachi Ltd
*Disclaimer: Major Players sorted in no particular order
Europe Automated Demand Response Market News
- In December 2021, EU's Joint Research Centre reviewed smart grid projects funded by the European Union under its last two FP7 and Horizon 2020 research funding programmes, as well as its competitiveness and innovation programmes on ICT and intelligent energy. Of the total EUR 3.08 billion invested in the projects, the European Union contribution amounted to EUR 2.32 billion serving as a significant driver.
- In September 2021, E.on SE acquired a majority stake in Aachen-based smart grid solutions provider GridX GmbH as part of efforts to expand its portfolio of digital solutions for the transition to green energy.
- In November 2021, In Poland, utility company TAURON has secured a PLN 2.8 billion loan from the European Investment Bank (EIB) to modernise its electricity distribution assets and install an advanced metering infrastructure. The advanced metering infrastructure and smart grid technologies to be installed is expected to enable TAURON to leverage real-time data and analytics to enhance the operations of its grid and customer services.
Europe Automated Demand Response Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast, in Megawatts (MW), till 2027
4.3 Europe Renewable Energy Mix, 2020
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.2 Restraints
4.7 Supply Chain Analysis
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes Products and Services
4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Geography
5.1.1 United Kingdom
5.1.2 France
5.1.3 Germany
5.1.4 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Itron Inc.
6.3.2 Hitachi Ltd
6.3.3 Mitsubishi Electric Corporation
6.3.4 Eaton Corporation PLC
6.3.5 General Electric Company
6.3.6 Autogrid Systems Inc.
6.3.7 Honeywell International Inc.
6.3.8 Schneider Electric SE
6.3.9 Siemens AG
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Automated Demand Response Industry Segmentation
The Europe Automated Demand Response Market includes:
| Geography | |
| United Kingdom | |
| France | |
| Germany | |
| Rest of Europe |
Europe Automated Demand Response Market Research FAQs
What is the current Europe Automated Demand Response Market size?
The Europe Automated Demand Response Market is projected to register a CAGR of greater than 2% during the forecast period (2024-2029)
Who are the key players in Europe Automated Demand Response Market?
Itron Inc., General Electric Company, Eaton Corporation PLC, Mitsubishi Electric Corporation and Hitachi Ltd are the major companies operating in the Europe Automated Demand Response Market.
What years does this Europe Automated Demand Response Market cover?
The report covers the Europe Automated Demand Response Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe Automated Demand Response Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Automated Demand Response Industry Report
Statistics for the 2024 Europe Automated Demand Response market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Automated Demand Response analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
