North America Automated Demand Responses Management Market Report and Forecast 2024-2032

North America Automated Demand Responses Management Market Outlook

The North America automated demand responses management market size is projected to grow at a CAGR of 24.5% between 2024 and 2032. The market is being driven by the growing adoption of renewable energy sources and the rising focus on optimising energy consumption.

Key Takeaways

• As per the Canada Green Building Council, buildings account for 30% of the total greenhouse gas emissions.

• Retail electricity prices surged by 2.5% y-o-y in 2022 in the USA, which is expected to favour the market.

• The US government has invested $61 million in retrofitting buildings, which can contribute to market growth.

Automated demand response (ADR) management systems are designed to minimise energy consumption during peak demand periods by relying on automated technologies. This enables commercial property owners to reduce their carbon footprint and save money on electricity bills. By utilising real-time information from energy meters and building control systems, ADR systems can automatically modify the settings of HVAC and lighting systems in unused areas to prevent energy wastage.

The market is being driven by technological developments in the power sector, rising electricity consumption, and the shift towards sustainability. During peak hours, electrical grids bear an overwhelming surge in electricity demand, which necessitates the need for an ADR system to prevent wasteful consumption and still meet consumer demand.

Extreme climatic conditions are leading to an increase in the consumption of energy from non-renewable sources, which is prompting a consumer shift towards renewable sources. This is expected to lead to the North America automated demand responses management market growth in the forecast period.

Key Trends and Developments

Rising electricity costs; increase in usage of Distributed Energy Resources (DERs); rise in construction of smart buildings; and a surge in consumer participation are the major trends impacting the market growth.

North America Automated Demand Responses Management Market Trends

The monthly consumption of electricity in the United States rose from 886 kWh to 907 kWh between 2021 and 2022. This was due to an increase in cooling and heating requirements during the hot and cold weather, respectively. ADR management systems can prevent the excessive utilisation of electricity when not required and contribute to the energy efficiency of buildings. In the USA, the prices of residential retail electricity increased from 13.66 cents/kWh to 15.12 cents/kWh between 2021 and 2022. This trend is likely to sustain and impact the North America automated demand responses management market development favourably in the coming years.

The investment of $61 million is focused on creating connected communities, in which mechanical devices, including HVAC systems and lighting bulbs, can interact with the electrical grid to conserve energy and decarbonise the construction sector. The beneficiaries of this funding include IBACOS, Inc. (NC), Electric Power Research Institute, Inc., and Portland General Electric, among others.

Market Segmentation

“North America Automated Demand Responses Management Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Commercial and public buildings are expected to constitute a significant portion of the North America automated demand responses management market share

Commercial and public buildings represent a major market share. This can be attributed to the introduction of government regulations to promote the energy efficiency of buildings and increasing investments in the sector for retrofitting existing residential houses and projects. With increasing innovations in the product offerings of energy and power companies, it is expected that the market will witness significant growth in the coming years.

Competitive Landscape

Major players in the North America automated demand responses management market are researching upcoming technologies to boost the potential of innovative ADR management systems.

Other key players in the North America automated demand responses management market include Autogrid Systems, Inc., Johnson Controls International plc, Hubbell Incorporated, and Open Access Technology International, Inc., among others.

North America Automated Demand Responses Management Market Analysis by Region

Canada is expected to dominate the market in the forecast period. This is because of increasing government investments aimed at retrofitting millions of commercial, institutional, and residential buildings in Canada through the Greener Neighborhoods Pilot Program and the Deep Retrofit Accelerator Initiative.

In September 2023, ABB Canada, a technology company, signed a deal with Canada’s export credit agency EDC to drive consumer awareness regarding clean technologies and boost their adoption through a $2.9 million funding support. Retrofitting projects currently being undertaken by Canadian universities, including McMaster University, are expected to drive the North America automated demand responses management market progress.

Meanwhile, the market in the US is expected to grow rapidly in the forecast period due to the increasing electricity prices in the country.

Key Highlights of the Report