Report

The North America automated demand responses management market size is projected to grow at a CAGR of 24.50% between 2025 and 2034. The market is being driven by the growing adoption of renewable energy sources and the rising focus on optimising energy consumption.

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.

Aug. 31st 2023

San Diego Gas & Electric pilot tested a unique virtual power plant, which connects smart thermostats within a centralised system to minimise energy demand and reduce the load on electrical grids.

Aug. 29th 2023

Copeland signed a deal with Enersponse to enable food retailers to reduce their electricity consumption and stabilise the power grid during peak demand times.

July 10th 2023

LG Electronics partnered with OhmConnect (an energy solutions company which serves 200,000 American households) to provide automated demand response services to people residing in California, Texas, and New York.

May 19th 2022

Virtual Peaker and FortisBC decided to launch a pilot testing program for ADR systems in Canada.

Rising electricity costs

In 2023, the monthly electricity bill paid by an average American household was $133, an increase of 5% from 2022

Increase in usage of Distributed Energy Resources (DERs)

As consumers switch towards solar panels, battery storage systems, and other sources of energy, the need for integrating ADR systems can become increasingly important for ensuring efficient usage.

Increase in construction of smart buildings in North America

In October 2021, the United States government invested $61 million into the construction of smart buildings to promote grid resilience and renewable sources of energy.

Increase in consumer participation in the energy market

Many energy companies are expected to incentivise consumers who reduce their electricity consumption and contribute towards stabilising the demand-supply gap during peak hours.

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 2025-2034" offers a detailed analysis of the market based on the following segments:

Market Breakup by Service

- Curtailment Services
- System Integration and Consulting Services
- Managed Services
- Support and Maintenance Services

Market Breakup by End User

- Manufacturing
- Commercial Building
- Agriculture
- Energy and Power
- Public Buildings

Market Breakup by Region

- United States of America
- Canada

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.