Distributed Energy Resource Management System Market Forecasts to 2030 - Global Analysis By Component, Application, End User and By Geography

According to Stratistics MRC, the Global Distributed Energy Resource Management System Market is accounted for $0.7 billion in 2024 and is expected to reach $2.1 billion by 2030 growing at a CAGR of 20.3% during the forecast period. The Distributed Energy Resource Management System (DERMS) market focuses on software and solutions that manage and optimize distributed energy resources (DERs), such as solar panels, wind turbines, and battery storage. DERMS enhances grid reliability, efficiency, and flexibility by integrating and coordinating these resources, enabling utilities and energy providers to balance supply and demand, reduce costs, and support renewable energy integration.

According to the EIA's Annual Energy Outlook 2021, the share of renewables in the U.S. electricity generation mix is projected to increase from 21% in 2020 to 42% in 2050.

Market Dynamics:

Driver:

Growing demand for energy efficiency and sustainability

The increasing focus on energy efficiency and sustainability is a significant driver for the Distributed Energy Resource Management System (DERMS) market. As industries and governments aim to reduce carbon footprints and enhance energy utilization, DERMS provides the necessary tools to manage and optimize distributed energy resources (DERs) like solar, wind, and battery storage. This shift towards renewable energy sources and the need for efficient energy management systems are propelling the growth of the DERMS market.

Restraint:

High initial cost of setting up DERMS

Implementing DERMS requires substantial investment in infrastructure, technology, and integration with existing systems. These costs can be prohibitive for smaller utilities and organizations, limiting the widespread adoption of DERMS. Additionally, ongoing maintenance and operational expenses further add to the financial burden, making it challenging for some entities to justify the investment.

Opportunity:

Adoption of distributed power generation in low-electrified areas:

The adoption of distributed power generation in low-electrified areas presents a significant opportunity for the DERMS market. Regions with limited access to centralized power grids can benefit from DERMS by integrating renewable energy sources like solar PV and wind turbines. This not only provides reliable electricity but also promotes sustainable development. The increasing focus on rural electrification and government initiatives to support renewable energy projects are expected to drive the demand for DERMS in these areas.

Threat:

Integration challenges and interoperability concerns

Integration challenges and interoperability concerns pose significant threats to the Distributed Energy Resource Management System market. As various distributed energy resources like solar, wind, and storage systems are integrated, ensuring seamless communication and compatibility among diverse technologies becomes complex. This complexity can lead to inefficiencies, increased costs, and potential system failures. Furthermore, the lack of standardized protocols exacerbates these issues, hindering widespread adoption and ultimately impacting the market's growth.

Covid-19 Impact:

The Covid-19 pandemic had a moderate impact on the DERMS market. While it caused delays in project implementations and reduced capital investments, it also highlighted the importance of resilient and flexible energy systems. The shift towards remote work and the increased reliance on digital solutions accelerated the adoption of DERMS. As economies recover and investments in renewable energy resume, the DERMS market is expected to regain momentum.

The solar photovoltaic (PV) segment is expected to be the largest during the forecast period

The solar photovoltaic (PV) segment is anticipated to dominate the DERMS market due to its widespread adoption and declining costs. Solar PV systems are increasingly being integrated into residential, commercial, and industrial applications, driven by government incentives and the push for renewable energy. The ability of DERMS to optimize and manage solar PV generation enhances grid stability and efficiency, making it a crucial component of modern energy systems. The growing installed capacity of solar PV globally supports the segment's leading position.

The industrial segment is expected to have the highest CAGR during the forecast period

The industrial segment is projected to experience the highest CAGR in the DERMS market. Industries are increasingly adopting DERMS to manage their energy consumption, integrate renewable energy sources, and improve operational efficiency. The rising demand for reliable and cost-effective power solutions in the industrial sector, coupled with the need to meet sustainability goals, drives the growth of this segment.

Region with largest share:

North America is expected to dominate the DERMS market, driven by supportive government policies, significant investments in renewable energy, and advanced technological infrastructure. The region's focus on decarbonization and energy efficiency, along with the presence of major market players, contributes to its leading market share. The increasing adoption of distributed energy resources and the development of smart grid projects further bolster the market in North America.

Region with highest CAGR:

The Asia Pacific region is anticipated to witness the highest CAGR in the DERMS market due to rapid urbanization, industrialization, and increasing energy demand. Countries like China, India, and Japan are investing heavily in renewable energy projects and grid modernization. The growing need for reliable and sustainable power solutions, coupled with government initiatives to promote clean energy, drives the rapid growth of the DERMS market in this region.

Key players in the market

Some of the key players in Distributed Energy Resource Management System Market include Siemens AG, Schneider Electric SE, General Electric Company, ABB Ltd, Emerson Electric Co., Oracle Corporation, Itron Inc., Mitsubishi Electric Corporation, Engie SA, Doosan Corporation, Uplight Inc., Open Access Technology International Inc., Blue Pillar, Spirae, Autogrid, Hitachi ABB, Generac, Energy Hub, Sunverge and Enel.

Key Developments:

In April 2024, ABB has made a minority investment in GridBeyond, a leading technology player providing energy management solutions based on artificial intelligence and data science, through its investment arm ABB Ventures. The strategic partnership will contribute to the continued expansion of ABB's sustainability advisory services portfolio, and help customers and operators across utilities, industry, infrastructure and transportation to transition to net zero, the company adds.

In March 2024, Itron, Inc, which is innovating the way utilities and cities manage energy and water, and Schneider Electric, the leader in the digital transformation of energy management and automation, are collaborating to improve energy and grid management for utilities as homeowners and businesses increasingly adopt distributed energy resources (DER)-like rooftop solar, battery energy storage, electric vehicles and microgrids-at the grid edge. In a stepwise approach, the companies will integrate their intelligent grid and distributed energy resource (DER) management solutions to digitalize the demand and supply of electricity.

In February 2023, Siemens has partnered with EnergyHub to expand its ecosystem of partners for its grid software business. Siemens and EnergyHub will interface their complementary solutions to empower utilities to move towards a holistic and scalable end-to-end next generation DER management solution. This means utilities will have better DER visibility, forecasting, and management, which will enable them to better plan, operate and maintain an increasingly DER-centric grid in the future by breaking down silos across utilities.

Components Covered:

• Software
• Analytics
• Management & Control
• Virtual Power Plant (VPP) Services

Applications Covered:

• Solar Photovoltaic (PV)
• Wind Energy
• Energy Storage Systems (ESS)
• Combined Heat and Power (CHP)
• Electric Vehicle (EV) Charging Infrastructure
• Hydropower
• Biomass
• Other Applications

End Users Covered:

• Residential
• Commercial
• Industrial
• Utilities
• Government and Municipalities
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
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