Demand Response Management System (DRMS) Market Size To Reach USD 40.68 Billion In 2032

2025-09-25 09:08:03

(MENAFN- Market Press Release) September 24, 2025 2:36 am - The Demand Response Management System (DRMS) market was valued at USD 11.24 Billion in 2024 and is expected to register a revenue CAGR of 17.8%.

September 24, 2025 - Increasing adoption of renewable energy sources is a key driver of revenue growth in the DRMS market. Solar, wind, and other renewable sources are now integrated into power grids. Their intermittent and variable nature creates a pressing need for flexible demand-side management to maintain grid stability and reliability. DRMS solutions enable utilities and grid operators to balance fluctuations in supply by dynamically adjusting consumer demand, optimizing energy usage during peak and off-peak periods. It also reduces reliance on costly backup generation. This growing reliance on renewables is prompting utilities to invest in advanced DRMS platforms and drives revenue growth of the market.

In May 2023, Open Access Technology International, Inc. (OATI) announced the successful deployment of its award-winning and innovative demand response management system (DRMS) platform, webSmartEnergy DRMS, at San Diego Gas & Electric (SDG&E). With this implementation, OATI strengthens its partnership with SDG&E by delivering advanced expertise to enhance customer service, support compliance with California Independent System Operator (CAISO) requirements, and help the utility achieve its sustainable and renewable energy objectives.

However, limited consumer awareness and participation are major factors restraining revenue growth in the Demand Response Management System (DRMS) market. Many residential, commercial, and industrial consumers remain unfamiliar with the concept of demand response, its potential cost savings, and its role in supporting grid stability. This lack of understanding leads to low enrollment rates and minimal engagement in demand response programs, reducing the overall effectiveness of DRMS solutions.

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Segments Market Overview And Growth Insights:
Based on technology, the Demand Response Management System (DRMS) market is segmented into conventional demand response and automated demand response.

The automated demand response segment is projected to witness rapid revenue growth during the forecast period, driven by the rising demand for automated DRMS solutions that offer faster, more accurate, and cost-effective load management without the need for manual intervention. These systems leverage advanced communication technologies, IoT-enabled devices, and AI-driven controls to automatically adjust energy consumption in response to grid signals. In February 2023, Tata Power, one of India's largest integrated power companies, announced a landmark collaboration with AutoGrid, a leading provider of Virtual Power Plant (VPP) and Distributed Energy Resource Management System (DERMS) solutions, to roll out an AI-driven smart energy management system in Mumbai. The initiative will focus on behavioral demand response across residential, commercial, and industrial customers.

Regional Market Overview and Growth Insights:
The North American market held the largest revenue share in 2024, driven by the region's advanced smart grid infrastructure and widespread smart meter deployment, particularly in the U.S. and Canada. Supportive regulatory frameworks and incentive programs, such as energy efficiency mandates and initiatives like FERC Order 2222, have further encouraged distributed energy resource (DER) participation, boosting the adoption of DRMS across utilities and commercial sectors. Additionally, in April 2024, the U.S. Department of Energy (DOE) introduced the USD 13 million VoltAIc initiative to accelerate siting and permitting processes for critical clean energy infrastructure.

Competitive Landscape and Key Competitors
The Demand Response Management System (DRMS) market is characterized by a fragmented structure, with many competitors holding a significant share of the market. List of major players included in the market report are:

oSiemens AG
oGeneral Electric Company
oABB Ltd.
oSchneider Electric SE
oHoneywell International Inc.
oIBM Corporation
oUplight, Inc.
oEaton Corporation
oItron Inc.
oEnel X
oEnergyHub, Inc.
oJohnson Controls, Inc

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Major Strategic Developments By Leading Competitors
ABB: On March 31, 2025, ABB launched InSite Energy Pro, a cloud-based platform designed to streamline energy management across multiple locations. As part of the ABB Ability portfolio, InSite Energy Pro delivers actionable insights and automated optimization through a single, intuitive interface. Powered by AWS's secure and scalable cloud infrastructure, the platform leverages real-time analytics and benchmarking to improve decision-making, strengthen demand response, and lower energy costs.

Sympower: On 13 November 2024, Amsterdam-based startup Sympower secured €21 million (USD 37.5 million) in funding to scale up its grid-balancing technology. The company partners with high-energy-consuming businesses, obtaining access to specific energy assets that can be turned on or off as required to help stabilize the grid-a process commonly referred to as demand response.

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Navistrat Analytics has segmented global Demand Response Management System (DRMS) market on the basis of component, connectivity type, technology, application, and region:
.Component (Revenue, USD Billion; 2022-2032)
oSolution
oServices
a Services
b Integration & Consulting
c Services
d & Maintenance

.Connectivity Type Outlook (Revenue, USD Billion; 2022-2032)
oWired
a Line Communication Wi-Fi
c Cellular
e

.Technology Outlook (Revenue, USD Billion; 2022-2032)
oConventional Demand Response
oAutomated Demand Response

.Application Outlook (Revenue, USD Billion; 2022-2032)
oResidential
oCommercial
oIndustrial

.Regional Outlook (Revenue, USD Billion; 2022-2032)
oNorth Benelux
g Countries
h of Europe

oAsia Pacific
a Japan
d Oceania
f Countries
g of APAC

oLatin Brazil
b of LATAM

oMiddle East & Africa
a Countries
b Turkey
e of MEA

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