BOULDER, Colo.--(BUSINESS WIRE)--A recent report from Navigant Research analyzes the global market for residential demand response (DR) in five major geographic regions, including global market forecasts for residential DR sites, capacity, and revenue through 2023.
The development of smart grid technology – particularly advanced metering infrastructure (AMI) and smart, two-way communicating thermostats – is enabling utilities in many countries to offer residential demand response programs. These systems allow utilities to discreetly dispatch customers according to the load on the grid, and customers to control their own devices through mobile applications, giving them more control over their energy usage and spending. Click to tweet: According to a recent report from Navigant Research, worldwide revenue from residential DR is expected to grow from $332 million in 2014 to $2.3 billion in 2023.
“Advanced two-way thermostats are changing the business model for utility residential DR programs,” says Brett Feldman, senior research analyst with Navigant Research. “The so-called ‘bring your own thermostat’ model, in which consumers purchase thermostats at retail stores, can vastly reduce the acquisition costs for programs and lead to greater customer satisfaction, since they are the parties choosing their own devices and initiating the participation process.”
At the same time, residential DR will be an integral part of the development of a more resilient grid and the spread of microgrids, trends that have gained increased urgency following recent extreme weather events. The advent of grid modernization is closely tied to these new approaches to designing the grid, according to the report. In the United States, residential plug-in electric vehicles are being eyed as DR assets, and almost every domestic auto manufacturer has launched some sort of energy use optimization pilot.
The report, “Residential Demand Response,” analyzes the global market for residential DR in five major geographic regions. It provides an analysis of the market drivers and barriers, as well as global players and dynamics, associated with residential DR. Global market forecasts for residential DR sites, capacity, and revenue, broken out by DR program (DLC and dynamic pricing) and region, extend through 2023. The report also examines the main technologies related to residential DR and identifies the strengths and challenges of key industry players. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals provide services that extend from expert and advisory work through implementation and outsourcing. The firm combines deep technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism to address clients’ needs in highly regulated industries including Construction, Energy, Financial Services and Healthcare. More information about Navigant can be found at navigant.com.
* The information contained in this press release concerning the report, “Residential Demand Response,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.