Market overview
The global demand response market is worth USD 4.9 bn in 2026 and is forecast to reach USD 10.5 bn by 2036, growing at a 8.0% CAGR. United States is the largest country market and Capacity and reliability programmes is the largest by programme segment.
| Scope | Revenue from programmes and services that pay or enable customers to reduce or shift electricity use on request, including aggregator fees, enabling software and metering. |
|---|---|
| Industry | Services and Utilities |
| Value 2025 | USD 4.5 bn |
| Value 2026 | USD 4.9 bn |
| Value 2036 | USD 10.5 bn |
| CAGR 2026-2036 | 8.0% |
| Volume 2026 | 86,368 MW |
| Volume 2036 | 177,391 MW |
| Average price 2026 | USD 56,530 per MW |
| Report price | Starts from USD 1,999 |
| Published | November 2026 |
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Demand Response market size and forecast, 2026-2036
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Year | Market value |
|---|---|
| 2026 | USD 4.9 bn |
| 2027 | USD 5.3 bn |
| 2028 | USD 5.7 bn |
| 2029 | USD 6.2 bn |
| 2030 | USD 6.6 bn |
| 2031 | USD 7.2 bn |
| 2032 | USD 7.7 bn |
| 2033 | USD 8.4 bn |
| 2034 | USD 9.0 bn |
| 2035 | USD 9.8 bn |
| 2036 | USD 10.5 bn |
Demand Response market segmentation
By programme
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Capacity and reliability programmes | 44.0% | 38.6% | USD 2.1 bn | 6.6% |
| Time-based pricing programmes | 22.0% | 23.3% | USD 1.1 bn | 8.6% |
| Ancillary and wholesale market programmes | 24.0% | 30.5% | USD 1.2 bn | 10.6% |
| Emergency programmes | 10.0% | 7.6% | USD 488 mn | 5.1% |
By customer
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Industrial | 40.0% | 35.1% | USD 2.0 bn | 6.6% |
| Commercial | 30.0% | 30.2% | USD 1.5 bn | 8.1% |
| Residential | 30.0% | 34.7% | USD 1.5 bn | 9.6% |
By service provider
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Utilities | 36.0% | 31.0% | USD 1.8 bn | 6.4% |
| Demand response aggregators | 44.0% | 45.0% | USD 2.1 bn | 8.2% |
| Technology vendors | 20.0% | 24.0% | USD 976 mn | 10.0% |
By activation method
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Manual response | 32.0% | 19.0% | USD 1.6 bn | 2.5% |
| Semi-automated | 40.0% | 38.0% | USD 2.0 bn | 7.5% |
| Fully automated | 28.0% | 43.0% | USD 1.4 bn | 12.7% |
By controlled load
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| HVAC and refrigeration | 38.0% | 35.0% | USD 1.9 bn | 7.1% |
| Lighting and plug loads | 14.0% | 12.0% | USD 684 mn | 6.3% |
| Industrial process load | 33.0% | 31.0% | USD 1.6 bn | 7.3% |
| EV charging and storage | 15.0% | 22.0% | USD 732 mn | 12.2% |
Top 25 countries for demand response by revenue
Countries are ranked by revenue earned from sales in the country, not by where the product is made. The ten largest hold 88.0% of 2026 revenue and the 25 countries below together hold 96.2%.
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| # | Country | Value 2026 | Share 2026 | Value 2036 | CAGR 2026-36 |
|---|---|---|---|---|---|
| 1 | United States | USD 2.2 bn | 45.0% | USD 4.5 bn | 7.5% |
| 2 | China | USD 439 mn | 9.0% | USD 1.1 bn | 9.6% |
| 3 | Japan | USD 293 mn | 6.0% | USD 611 mn | 7.6% |
| 4 | United Kingdom | USD 293 mn | 6.0% | USD 580 mn | 7.1% |
| 5 | France | USD 220 mn | 4.5% | USD 432 mn | 7.0% |
| 6 | Australia | USD 195 mn | 4.0% | USD 464 mn | 9.0% |
| 7 | Germany | USD 195 mn | 4.0% | USD 443 mn | 8.5% |
| 8 | India | USD 171 mn | 3.5% | USD 559 mn | 12.6% |
| 9 | South Korea | USD 146 mn | 3.0% | USD 306 mn | 7.6% |
| 10 | Canada | USD 146 mn | 3.0% | USD 306 mn | 7.6% |
| 11 | Italy | USD 139 mn | 2.9% | USD 292 mn | 7.7% |
| 12 | Spain | USD 91 mn | 1.9% | USD 191 mn | 7.7% |
| 13 | Netherlands | USD 59 mn | 1.2% | USD 124 mn | 7.7% |
| 14 | Belgium | USD 39 mn | 0.8% | USD 81 mn | 7.7% |
| 15 | Sweden | USD 25 mn | 0.5% | USD 45 mn | 6.0% |
| 16 | Norway | USD 17 mn | 0.3% | USD 35 mn | 7.7% |
| 17 | Chile | USD 11 mn | 0.2% | USD 27 mn | 9.8% |
| 18 | Brazil | USD 6.8 mn | 0.1% | USD 18 mn | 10.1% |
| 19 | Mexico | USD 4.4 mn | 0.09% | USD 12 mn | 10.2% |
| 20 | Taiwan | USD 2.9 mn | 0.06% | USD 6.3 mn | 8.0% |
| 21 | Switzerland | USD 1.9 mn | 0.04% | USD 4.2 mn | 8.0% |
| 22 | Austria | USD 1.5 mn | 0.03% | USD 3.2 mn | 8.0% |
| 23 | Ireland | USD 0.98 mn | 0.02% | USD 2.1 mn | 8.0% |
| 24 | Denmark | USD 0.49 mn | 0.01% | USD 1.1 mn | 8.0% |
| 25 | Singapore | USD 0.49 mn | 0.01% | USD 1.1 mn | 8.0% |
| Rest of world | USD 186 mn | 3.8% | USD 358 mn | 6.8% |
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
Competitive landscape
Group 1: Global leaders
- CPower
- NRG Energy
- Schneider Electric
- Siemens
- Enel X
Group 2: Regional and specialist players
- Voltus
- Itron
- Uplight
- Oracle Utilities
- Honeywell
- Next Kraftwerke
- Flexitricity
- Centrica Business Solutions
Group 3: Emerging and niche players
- EnergyHub
- Leap
- OhmConnect
- Kiwi Power
- AutoGrid Systems
- Olivine
- GridBeyond
Research methodology
Every figure on this page comes from the research framework that we apply to all of the markets we cover. The 2025 base for the demand response market is built from the volume sold and the price that buyers pay, and is cross-checked against the size of the wider industry the market belongs to. Where a market can be sized in more than one way, the routes are compared before a figure is set.
The forecast runs year by year from the 2025 base to 2036. Growth in each year reflects demand from the industries that buy the product, adoption of new technology, pricing, regulation and replacement cycles. Volume and price are modelled together, so revenue in each year equals volume multiplied by average price. The 2026 to 2036 compound annual growth rate of 8.0% is calculated from the resulting values.
The market is divided by programme, by customer, by service provider, by activation method, by controlled load. The 25 largest countries are ranked by revenue earned from sales to buyers in each country, not by where the product is made. Segment values and country values add up to the market total in every year, and every report is checked for consistency before it is published.
Companies are placed in three groups: global leaders, regional and specialist players, and emerging and niche players. The groups describe how companies compete in the market. They are not a ranking and they are not market shares.
Our analysts also carry out primary research. Customized reports add interviews with key opinion leaders, such as senior executives, technical specialists and buyers, to test the assumptions behind the numbers for the question being asked.
Frequently asked questions
How big is the demand response market?
The global demand response market is estimated at USD 4.5 bn in 2025 and USD 4.9 bn in 2026.
How fast will the demand response market grow?
It is forecast to reach USD 10.5 bn by 2036, a compound annual growth rate of 8.0% from 2026, an increase of USD 5.7 bn.
Which country is the largest market for demand response?
United States is the largest market by revenue at USD 2.2 bn in 2026, 45.0% of the global total. The three largest countries together hold 60.0%.
Which country is growing fastest?
Among the ten largest markets, India is growing fastest at 12.6% a year from 2026 to 2036.
Which demand response segment is largest?
In the by programme split, Capacity and reliability programmes is the largest segment with 44.0% of 2026 revenue.
Who are the leading demand response companies?
Global leaders include CPower, NRG Energy, Schneider Electric, Siemens.
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