Demand response (DR) is becoming an increasingly important strategy for utilities to make sure that enough electricity is available on the grid to meet demand in order to avoid power outages. A critical development in this strategy is automated demand response (ADR) technology. This technology automates the notification process – from the utility or grid operator notifying DR program participants to reduce or shift their energy use to actually implementing the predefined adjustments via control systems on their premises. ADR is gaining increasing attention in the market, especially with the use of open standards such as the OpenADR specification.
Thanks to ADR, it is now possible for DR to evolve to the next level by reaching a broader end-user market with increased access to sophisticated and advanced types of program options, such as ancillary services. Although ADR has so far primarily been a U.S. phenomenon, it has recently been introduced to other countries, such as Canada, the United Kingdom, China, Hong Kong, and New Zealand. As pilot programs demonstrate the improved cost-effectiveness, predictability, reliability, and responsiveness of ADR, there is a high likelihood that the implementation of ADR will spread around the world – even in countries that have not yet embarked on conventional DR. Pike Research believes that these countries will leapfrog directly to ADR rather than spending years relying on a traditional and manual approach to DR.
This Pike Research report 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.
Key Questions Addressed:
- How has the automated demand response (ADR) market evolved in the last few years?
- What is the size of the total ADR market on a year by year basis – worldwide and regionally – through 2018?
- What are the growth trends in the ADR market on a global and regional basis and which market segments offer the most promising opportunities?
- What are the various market forces driving and inhibiting growth with respect to ADR?
- What are the market opportunities for the OpenADR specification?
- What does the competitive landscape look like? Which are the key vendors in the ADR market? What are their capabilities and what type of competition do they face?
Who needs this report?
- Demand response and energy management companies
- IT hardware and software vendors
- Building systems vendors
- Consulting firms and systems integrators
- Commercial, industrial, and institutional energy users
- Utilities
- Government agencies
- Investor community
Table of Contents
1. Executive Summary
1.1 Introduction to the Automated Demand Response (ADR) Market
1.2 Market Opportunities
1.3 Market Forces
1.4 Competitive Landscape
2. Market Issues
2.1 Introduction and Background
2.1.1 ADR Technology
2.1.2 ADR Benefits
2.1.2.1 Fast Response Time
2.1.2.2 Accommodate Intermittency of Power from Renewables
2.1.2.3 Support Ancillary and Regulation DR Services
2.1.2.4 Facilitate Price-Based DR Programs
2.1.2.5 Provides Versatility
2.2 Definition of Demand Response and ADR
2.2.1 Definition of Demand Response
2.2.2 Definition of ADR
2.3 Open Automated Demand Response (OpenADR)
2.3.1 OpenADR 2.0 Specification
2.3.2 The OpenADR Alliance
2.3.3 Adoption of OpenADR
2.4 Drivers
2.4.1 Advantages of ADR
2.4.1.1 Quality and Predictability of ADR
2.4.1.2 Effectiveness in Power Demand Reduction
2.4.2 Integration of Renewable Resources into the Grid
2.4.3 ADR and Distributed Generation Resources
2.4.4 Increased Reliance on Ancillary and Regulation Services
2.4.5 The Growing Adoption of Smart Meters
2.4.6 ADR Incentives
2.4.7 Improved Building Performance
2.4.8 Leadership in Energy and Environmental Design (LEED) ADR Credits
2.4.9 American Recovery and Reinvestment Act (ARRA) Funding
2.4.10 Small to Medium Enterprise (SME) Market Growth Potential
2.4.11 The Residential Market Opportunity
2.5 Inhibiting Market Forces and Challenges
2.5.1 Unwillingness to Relinquish Control
2.5.2 Lack of Building Automation Systems
2.5.3 Costs
2.5.4 Lack of Understanding and Knowledge
2.6 Global Market Adoption of ADR
2.6.1 North America
2.6.1.1 The United States
2.6.1.1.1. California
2.6.1.1.2. Florida
2.6.1.1.3. Hawaii
2.6.1.1.4. Kentucky
2.6.1.1.5. Massachusetts
2.6.1.1.6. Nevada
2.6.1.1.7. Oregon
2.6.1.1.8. Washington State
2.6.1.2 Canada
2.6.2 Europe
2.6.3 Asia Pacific
2.6.3.1 China
2.6.3.2 Hong Kong
2.6.3.3 Australia and New Zealand
2.6.3.4 India
2.6.3.5 Japan
2.6.4 Latin America
2.6.5 The Middle East and Africa
3. Technology Issues
3.1 Introduction
3.2 ADR Infrastructure with OpenADR
3.3 Technology Issues
4. Key Industry Players
4.1 Introduction
4.2 ADR Equipment Companies
4.3 ADR Software Vendors
4.4 ADR Services Market
4.5 Emerging Market Players
4.5.1 Major Chain Retail Stores
4.5.2 Energy Management Services Companies
4.5.3 Power Generation Equipment Manufacturer
4.6 Pursuit of a Complete Portfolio of Offerings – a Winning Value Proposition with Partners
4.7 ADR Vendor and Organization Profiles
4.7.1 ADR Providers
4.7.1.1 Constellation Energy
4.7.1.2 Cypress Envirosystems
4.7.1.3 Echelon
4.7.1.4 EcoFactor
4.7.1.5 EnerNOC
4.7.1.6 Honeywell
4.7.1.7 Johnson Controls, Inc. (JCI)
4.7.1.8 Pacific Gas and Electric Company (PG&E)
4.7.1.9 Powerit Solutions
4.7.1.10 Pulse Energy
4.7.1.11 REGEN Energy
4.7.1.12 Schneider Electric
4.7.1.13 Siemens
4.7.1.14 Tendril
4.7.1.15 Vedero Software
4.7.2 Organizations with an OpenADR Focus
4.7.2.1 Demand Response Research Center (DRRC)
4.7.2.2 OpenADR Alliance
5. Market Forecasts
5.1 Forecast Introduction
5.2 The Market Conditions for ADR
5.3 The Development and Launch of OpenADR
5.4 Assumptions Guiding this Forecast
5.5 Worldwide ADR Sites by Region
5.6 Worldwide ADR Spending by Region and Building Type
5.6.1 ADR Spending by Type of Building and Region
5.6.1.1 ADR Spending for Smart Buildings by Region
5.6.1.2 ADR Spending for “Semi-Smart” Buildings
by Region
5.6.1.3 ADR Spending for “Dumb” Buildings by Region
5.6.2 ADR Product and Services Spending
5.7 Worldwide OpenADR Market Size
5.7.1 ADR Sites with OpenADR Specification
5.7.2 Spending on ADR with OpenADR
6. Company Directory
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study
10.1 Overview
10.2 Data Collection
Sources and Methodology
Notes
List of Charts and Figures
- ADR-Enabled Sites by Region, World Markets: 2011-2018
- Type of Participants of PG&E’s ADR Program with OpenADR Standard: 2011
- Share of ADR-Enabled Sites by Region, World Markets: 2012
- Share of ADR Enabled Sites by Region, World Markets: 2018
- Growth of ADR-Enabled Sites, Year-to-Year, World Markets: 2012-2018
- Compound Annual Growth Rate of ADR Sites by Region, World Markets: 2011-2018
- ADR Spending by Region, World Markets: 2011-2018
- Growth of ADR Spending, Year-to-Year, World Markets: 2012-2018
- Share of ADR Spending by Type of Building, World Markets: 2012
- ADR Spending by Type of Building, World Markets: 2011-2018
- ADR Spending for Smart Buildings by Region, World Markets: 2011-2018
- ADR Spending for “Semi-Smart” Buildings by Region, World Markets: 2011-2018
- ADR Spending for “Dumb” Buildings by Region, World Markets: 2011-2018
- Share of OpenADR Sites of Total ADR Sites by Region, World Markets: 2012
- Share of OpenADR Sites of Total ADR Sites by Region, World Markets: 2018
- ADR Sites with OpenADR by Region, World Markets: 2011-2018
- Growth of ADR Sites with OpenADR, Year-to-Year, World Markets: 2012-2018
- Compound Annual Growth Rate of ADR with OpenADR by Region, World Markets: 2011-2018
- Growth of Total ADR and ADR with OpenADR, Year-to-Year, World Markets: 2012-2018
- Spending on ADR with OpenADR by Region, World Markets: 2011-2018
- OpenADR Infrastructure
- Reported Potential Peak Load Reduction by Type of Program and by Customer Class, United States
- Sample of Vendors that Have Developed Products with OpenADR Standard
- Tendril OpenADR Implementation
- An Example of OpenADR Infrastructure Using a DRAS Client
List of Tables
- ADR Spending by Region, World Markets: 2011-2018
- ADR Spending by Type of Building, World Markets: 2011-2018
- ADR Spending for Smart Buildings by Region, World Markets: 2011-2018
- ADR Spending for “Semi-Smart” Buildings by Region, World Markets: 2011-2018
- ADR Spending for “Dumb” Buildings by Region, World Markets: 2011-2018
- ADR Sites with OpenADR by Region, World Markets: 2011-2018
- Spending on ADR with OpenADR by Region, World Markets: 2011-2018
- Share of OpenADR Sites of Total ADR Sites by Region, World Markets: 2012 and 2018
- Growth of ADR Sites with OpenADR Standard, Year-to-Year, World Markets: 2012-2018
- Compound Annual Growth Rate of ADR with OpenADR by Region, World Markets: 2011-2018
- Growth of Total ADR and ADR with OpenADR, Year-to-Year, World Markets: 2012-2018
- ADR-Enabled Sites by Region, World Markets: 2011-2018
- Share of ADR-Enabled Sites by Region, World Markets: 2012 and 2018
- Growth of ADR-Enabled Sites, Year-to-Year, World Markets: 2012-2018
- Compound Annual Growth Rate of ADR Sites by Region, World Markets: 2011-2018
- Growth of ADR Spending, Year-to-Year, World Markets: 2012-2018
- Share of ADR Spending by Type of Building, World Markets: 2012