INCREASING DEMAND FOR DEMAND RESPONSE

Demand Response; Curtailment Services, Systems Integration and Consulting Services, and Outsourcing Services for Commercial, Industrial, and Residential Markets: Global Market Analysis and Forecasts
4Q 2011 (Pike Research)

"Demand response (DR) continues to evolve as the smart grid’s ‘killer application’, leveraging technology infrastructure to deliver measurable value to utilities, grid operators, and customers…

"The demand response market encompasses hardware, software, and services, but it is the services sector that is defining [its] future direction…in the United States which is the leading market for DR…[and] in Europe and Asia Pacific, where the DR market is developing quickly…"

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"The DR services market is segmented into three main areas: curtailment services, systems integration/consulting services, and outsourcing services…[It is still] an evolving market…with an estimated worldwide spending of $1.3 billion in 2011…[It] is projected to experience a robust compound annual growth (CAGR) rate of 37% to become a multi-billion market by 2016…

"Of the three key segments, curtailment services are the largest with an expected global market of $748 million in 2011. The systems integration/consulting services and outsourcing markets…[are expected to have] CAGRs of 32% and 31% respectively, on a worldwide basis. All world regions offer good demand response services prospects, but North America is currently the leading region and is projected to represent the biggest and best market opportunity over the next 5 years…"