According to a recent report from Navigant Research, North America is expected to spend $405 million on integrated demand-side management in 2025.
As energy efficiency goals increase globally, integrated demand-side management is being driven by regulatory pressure, cost reduction potential, grid modernization and targeted demand-side management.
Places like California, where the combination of energy efficiency and demand response programs have been used as a fundamental part of the state’s energy planning and strategy, are leading the charge.
“Key drivers that take technical, policy, and economic factors into account are pushing the IDSM market forward, particularly in North America,” says Paige Leuschner, research analyst with Navigant Research. “Barriers slowing the rate of IDSM program development include utility resistance to change, misaligned budgets, siloed energy audits, and vendor conflicts among other factors.”
Global growth in IDSM programs is expected to be robust between 2016 and 2025 as other regions follow North America’s lead, according to the report. It is anticipated that by 2025, global IDSM spending will reach $1.2 billion.