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TMCNet:  Spending on Automated Demand Response Will Total More Than $7 Billion Through 2018, Forecasts Pike Research

[October 25, 2012]

Spending on Automated Demand Response Will Total More Than $7 Billion Through 2018, Forecasts Pike Research

BOULDER, Colo. --(Business Wire)--

For years, utilities have had to use a labor-intensive approach to demand response programs, by relying on operators at customer sites to manually turn off lights, equipment, and systems in response to peak demand signals. For both utilities and end users, automating this process eliminates a significant number of manual interventions that are not always reliable, consistent, predictable, and responsive. Today, automated demand response (ADR) is an increasingly viable alternative to conventional, manual demand response (DR). According to a recent report from Pike Research, a part of Navigant's Energy Practice, annual spending for ADR will grow from $401 million globally in 2012 to more than $1.7 billion by 2018. Worldwide investment from 2012 to 2018 will total $7.2 billion.

As a result of that spending, nearly 170,000 sites worldwide will be enabled for ADR by 2018, the study concludes.

"For utilities and grid operators, one of the most important benefits is the increased speed of executing load management, especially when a DR action is required within minutes or even seconds," says senior research analyst Marianne Hedin. "As more and more utilities, independent system operators, and curtailment service providers begin to offer these types of DR programs, it will become even more critical for business and building owners to retrofit their facilities for ADR in order to reap the financial incentives of participating in DR initiatives."

In many cases, these incentives can be quite lucrative. One major barrier for ADR, however, is the reluctance on the part of business owners or facility managers to hand over control of their mission-critical equipment or opeations to a third-party provider. This is especially true in the industrial sector, according to the report, where there are many mission-critical manufacturing and production processes. Vendors have tried to ease these concerns by enabling customers to override any DR signals or events.

Pike Research's (News - Alert) report, "Automated Demand Response", examines the market opportunity for ADR technologies and services with a particular focus on the OpenADR specification. The study analyzes market drivers and technology issues associated with ADR adoption, in addition to a detailed review of deployment scenarios in different types of buildings. Key industry players are profiled in depth and global market forecasts, segmented by world region, are provided through 2018. An Executive Summary of the report is available for free download on the Pike Research website.

About Pike Research

Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of 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 Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.

About Navigant

Navigant (NYSE: NCI) 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 combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

* The information contained in this press release concerning the report, "Automated Demand Response," is a summary and reflects Pike 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 Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.


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