The growing adoption of smart technologies, ability to manage load and generate revenue, and growth in energy consumption will drive the global grid-interactive water heater market, which is expected to grow at a CAGR of more than 12% through 2021, according to market research from Technavio.
Growing Adoption of Smart Technologies
Increasing focus towards achieving energy-efficiency has resulted in the development and deployment of smart equipment such as smart grids. Globally, utilities are adopting smart grid technologies as a measure to improve the reliability of the grid and for achieving energy efficiency. Technologies such as RTUs, intelligent electronic device (IED), and other supervisory control and data acquisition (SCADA)-based systems are being adopted in T&D infrastructure.
Ability to Manage Load and Generate Revenue
The stabilization of the grid is probable with the integration of the grid-interactive water heaters (GIWH) with the power grids. The GIWH and the grid have the capability for real-time interaction which allows load stabilization. In addition, from the perspective of the stabilization, GIWHs also allow frequency regulations, which is real-time load matching with power generation. This provides numerous opportunities for economic benefits for both the consumers as well as third-party aggregators.
With the smart interaction of the GIWH with the grid, there is a possibility for a charging and discharging cycle of the GIWH, based on the power and load pricing. For instance, GIWH can be charged only when the prices are low. This translates into cost savings for the customer as well. Furthermore, intelligent load control is possible with the GIWHs.
Growth in Energy Consumption
The rising population and the economic growth of the world will lead to the growth in demand for energy. Emerging economies accounted for 97% of the global energy demand. Alternatively, China, despite its decreased consumption, recorded the world’s largest increment in primary energy. Furthermore, it is projected that the world’s GDP will double by 2035, with India and China accounting for almost half of the growth in GDP. With the growth in global economy, the demand for energy will increase.