PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1629312
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1629312
Distributed energy resource management systems (DERMS) Market size was valued at USD 630.09 million in 2024, expanding at a CAGR of 18.43% from 2025 to 2032.
A distributed energy resource management system is essential for facilitating a wide array of advanced and contemporary applications. By enabling the smooth integration and coordination of these innovative technologies, DERMS serves as a foundational step toward future clean energy initiatives. This system can enhance the overall efficiency of the electricity grid. Furthermore, DERMS offers grid operators critical insights into the performance of distributed energy resources (DERs). It proves advantageous for various investors, including electric utilities, grid operators, and energy consumers, by optimizing energy resource utilization and enhancing power grid efficiency. Additionally, DERMS supplies data that can inform decisions regarding energy resource planning and management.
Distributed Energy Resource Management Systems (DERMS) Market- Market Dynamics
The increased use of renewable sources of energy, grid modernization, and rising energy decentralization are anticipated to drive the growth of the market
As governments, corporations, and individuals place greater emphasis on sustainability and environmental stewardship, the integration of renewable energy sources such as solar, wind, hydroelectric, and biomass into the energy portfolio is on the rise. With the advent of additional renewable sources and distributed generation technologies, there is an escalating requirement for the modernization of the electrical grid. In 2020, renewable sources accounted for nearly 5 percent of the total energy consumption across various sectors in the United States, translating to 11.6 quadrillion British thermal units (Btu) out of a cumulative 92.9 quadrillion Btu. Projections indicate that U.S. renewable energy consumption will increase over the next three decades at an average annual rate of 2.4 percent, surpassing the overall energy consumption growth rate of 0.5 percent per year under a conventional scenario. As both consumers and businesses strive for energy autonomy, the necessity for systems capable of managing and coordinating these decentralized resources becomes paramount. Nevertheless, the rising demand for energy storage technologies presents a significant opportunity for the Distributed Energy Resource Management Systems (DERMS) market. Additionally, concerns regarding data security and privacy may pose challenges to market expansion.
Distributed Energy Resource Management Systems (DERMS) Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 18.43% over the forecast period (2025-2032)
Based on Component segmentation, Software was predicted to show maximum market share in the year 2024
Based on application segmentation, Solar PV Units was the leading segment in 2024
Based on End-user segmentation, Industrial was the leading segment in 2024
Based on region, Asia Pacific was the leading revenue generator in 2024
The Global Distributed Energy Resource Management Systems (DERMS) Market is segmented based on Component, Application, End-User, and Region.
The market is divided into two categories based on Components: Software and Service. Software dominates the market. Software solutions play a critical role in enabling the monitoring, control, and optimization of DERs to ensure grid stability and operational efficiency. The DERMS Software Market is a crucial enabler for the energy transition, facilitating the integration and optimization of distributed energy resources. As energy systems become increasingly decentralized, the demand for advanced software solutions is expected to grow, driven by technological advancements, regulatory requirements, and the global push toward sustainability.
The market is divided into four categories based on application: Solar PV Units, Energy Storage Systems, Wind Generation Units, EV Charging Stations, and Others. Solar PV Units dominate the market. Solar PV units, being one of the most widely adopted distributed energy resources, play a crucial role in enabling decentralized energy generation and advancing renewable energy adoption. DERMS solutions ensure the efficient management, optimization, and integration of these units into the energy grid. The integration of solar PV units within DERMS solutions is essential for optimizing distributed energy resources and ensuring grid stability. As solar PV adoption continues to rise globally, DERMS providers are focusing on enhancing their capabilities to manage the unique challenges associated with solar energy.
The market is divided into three categories based on End-User: Commercial, Industrial, and Residential. Industrial dominates the market. The integration of solar PV units within DERMS solutions is essential for optimizing distributed energy resources and ensuring grid stability. As solar PV adoption continues to rise globally, DERMS providers are focusing on enhancing their capabilities to manage the unique challenges associated with solar energy. Industrial facilities benefit from reduced energy costs by optimizing DER utilization and leveraging demand response programs. With the increasing integration of distributed energy resources, DERMS providers are developing advanced solutions to meet the unique needs of industrial facilities.
Distributed energy resource management systems (DERMS) Market- Geographical Insights
This market is geographically extensive, encompassing North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These areas are further categorized based on the countries contributing to business activities. The Asia Pacific region is at the forefront of market growth, driven by the expansion of smart grid technologies that necessitate Distributed Energy Resource Management Systems (DERMS) to enhance the reliability and efficiency of electrical grids. Smart grid technologies play a crucial role in modernizing the energy infrastructure in the Asia Pacific, incorporating advanced metering, real-time data collection, and automated systems to optimize energy distribution and consumption. According to the International Energy Agency, in January 2023, China's State Grid Corporation announced plans to invest USD 77 billion in transmission for the year 2023 and a total of USD 329 billion throughout the 14th Five-Year Plan (2021-2025). Europe ranks as the second-largest region for market growth, attributed to technological advancements in energy management.
The market for Distributed Energy Resource Management Systems (DERMS) is characterized by intense competition, fueled by the increasing incorporation of distributed energy resources (DERs) including solar photovoltaic systems, wind energy, battery storage solutions, and electric vehicles. Key industry participants are channeling investments into cutting-edge technologies, forming strategic alliances, and pursuing acquisitions to enhance their competitive edge. There is a notable emphasis on sophisticated functionalities such as real-time monitoring, predictive analytics, artificial intelligence-driven optimization, and Blockchain technology for energy transactions. Firms that emphasize innovation, collaborative partnerships, and solutions tailored to customer needs are poised to lead the market in the forthcoming years. Additionally, the emergence of decentralized energy systems and the commitment to achieving net-zero emissions will present new avenues for both established entities and new entrants in the sector.
March 13, 2023, ORACLE ENERGY AND WATER EDGE -- With the increasing prevalence of distributed energy resources (DERs), distribution utilities require innovative tools to upgrade the grid and effectively incorporate and oversee the growing number of new energy sources and devices.
Schneider Electric, in collaboration with Pacific Gas and Electric Company (PG&E), has introduced a distributed energy resource management system (DERMS) utilizing Microsoft's Azure platform. This system aims to enhance grid reliability while promoting the integration of electric vehicles, energy storage solutions, rooftop solar installations, and various other distributed energy resources (DER).