Distributed Energy Resource Management System Market Size, Share, Growth, And Industry Analysis, By Type (Solar PV, Wind, Energy Storage, Combined Heat & Power, Others), By Application (Government & Municipalities, Industrial, Commercial, Residential, Military), Regional Insights, and Forecast To 2031

Updated On: 22 April 2024

Distributed Energy Resource Management System Market Report Overview:

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The global distributed energy resource management system market size was USD 370.2 million in 2021 & the market is expected to reach USD 1262 million in 2031, exhibiting a CAGR of 12.7% during the forecast period. The top companies operating in the distributed energy resource management system market include ABB, Schneider Electric, Siemens, Landis+Gyr and Fluvius.

The distributed energy resource management system (DERMS) Market is a rapidly growing industry that is revolutionizing the way energy is managed and regulated. DERMS is a computerized management system that enables electricity customers, utilities, and other stakeholders to successfully manage distributed energy resources (DERs) that include wind, solar, energy storage, and microgrids. It allows for better energy planning, efficient pricing, secure communication, forecasting, and predictive analysis. DERMS also provides grid reliability and energy security, resulting in reduced energy costs for users. DERMS is a reliable, secure, and easy-to-install technology that is increasingly being adopted in various applications ranging from residential to commercial and industrial. It is an effective way to increase the reliability and efficiency of energy management systems while providing the necessary cost savings.

The distributed energy resource management system (DERMS) market is currently undergoing rapid growth due to increasing demand for energy independence and improved energy efficiency. As renewable energy sources such as wind and solar power become increasingly viable, the need for system integration, demand-side management, and grid optimization is increasing. DERMS is becoming a necessary tool for electrical companies looking to better manage and optimize the power that is produced from distributed energy sources. As companies race to reduce energy costs and grid losses, DERMS is becoming increasingly important for energy producers and consumers alike. The demand for DERMS is expected to continue growing in the foreseeable future, as the technology becomes more advanced, its application more widespread, and its importance to energy markets undeniable.

COVID-19 Impact: Pandemic Stimulates Accelerated Demand for DERMS for Cost Savings, Grid Stability, and Reliability

The COVID-19 pandemic has had a significant effect on the Distributed Energy Resource Management System (DERMS) Market, as the demand for energy storage solutions and renewable energy technology accelerates. The pandemic has created a need for reliable, distributed electricity resources to operate independently and safely, creating immense opportunities for DERMS technology. Furthermore, the pandemic has created a need for system optimization, real-time monitoring, and cost savings, which is fueling the demand for DERMS technology. Further, the rise in the need for grid stability and increased safety due to the large penetration of renewables is driving the uptake of DERMS technology. Going forward, the market for DERMS is expected to witness sturdy growth, with more countries and utilities making investments in the technology.

Latest Trends

"Rising Demand for Efficient Power Systems Leads to Rapid Market Growth for Distributed Energy Resource Management Systems (DERMS)"

The Distributed Energy Resource Management System (DERMS) market growth is rapid due to the rising demand for managing and monitoring distributed energy resources. In recent times, new technologies and products related to the DERMS market are being launched – from high-powered algorithms to automated SCADA systems – as more and more companies aim to manage and efficiently control their distributed power systems. Leading companies in the DERMS space are actively developing and launching innovative technologies such as cloud computing and artificial intelligence to optimize their energy systems. Additionally, utilities are implementing advanced analytics and automation to improve reliability and reduce operating costs. With the increasing scarcity of energy resources and rising costs, the DERMS market is set to grow exponentially in the coming years.

Distributed Energy Resource Management System Market Segmentation:

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• By Type

According to type, the market can be segmented into Solar PV, Wind, Energy Storage, Combined Heat & Power, and Others. The solar PV segment dominates the market share globally.

• By Application

Based on application, the market can be divided into Government & Municipalities, Industrial, Commercial, Residential, and Military. The government & municipalities segment is likely to capture the maximum market share through 2031.

Driving Factors

"Significant Rise in Adoption of Renewable Energy Sources Fuels the Market "

 The Distributed Energy Resource Management System (DERMS) market has been witnessing strong growth in recent years, driven by various factors. One of the major factors driving the market is the increasing governmental support for the adoption of clean energy technologies and distributed energy resources. Governments across the globe have been providing various policy incentives such as feed-in-tariffs and subsidies, to increase the deployment of renewable energy sources and to support grid stability. Governments have also been providing funds for research and development to support the development of new and advanced DERMS technologies.

The increasing adoption of renewable energy sources is another key factor driving the market for DERMS. Renewable energy sources such as solar, wind, and hydropower, as well as energy storage technologies, allow for more efficient utilization of energy resources, leading to improved grid reliability. Furthermore, the rapid technological advancements in distributed energy resource management systems are further spurring the growth of the market

"Rise in Environmental Pollution Drives Increased Demand for DERMS and Boost the Market"

As the environment becomes more and more polluted, the increased demand for DERMS is another factor boosting the market. DERMS help in controlling the demand and supply of electricity, as well as its optimal utilization to reduce the emissions of hazardous air pollutants. With the government campaigns to promote clean energy, the number of installations of DERMS is witnessing a surge, leading to increasing demand for this product. Moreover, the increasing awareness of energy security is further boosting the market’s growth.

The need for better integration of distributed energy resources is also augmenting the demand for DERMS. By integrating distributed energy resources into the traditional grid, it is possible to improve grid stability and optimize energy utilization. Furthermore, the integration of distributed energy resources can significantly reduce the cost of electricity as well as reduce carbon emissions.

In conclusion, several factors are driving the DERMS market including governmental support for the adoption of clean energy technologies, increasing adoption of renewable energy sources, growing demand for energy security, and the need for better integration of distributed energy resources. With the growing awareness of energy security and the rapid technological advancements in distributed energy resource management systems, the DERMS market is expected to experience continuous growth in the coming years.

Restraining Factors

"High Cost, Reliability, and Cybersecurity Challenges to Implementing a Distributed Energy Resource Management System"

The Distributed Energy Resource Management System (DERMS) market is a rapidly growing segment of the global renewable energy market, with many companies investing in their development to enable smarter energy use. Despite the advantages of the technology, factors are restraining the market growth. One such factor is the lack of reliable electric utilities to monitor and implement an effective distributed energy resource management system, which can cause delays or impede the installation. Furthermore, the cost of implementing these systems is still relatively high, deterring some consumers from investing in them. Lastly, there are some concerns surrounding the cyber-security of these systems, which could also be hindering their adoption. Therefore, to ensure the proper and full utilization of DERMS, strategic planning and investment from electric utilities is necessary.

Distributed Energy Resource Management System Market Regional Insights

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"North America Leading the Way in the Market with Advanced Technologies"

The distributed energy resource management system market is expected to witness growth over the forecast period, owing to its ability to provide optimized energy usage and cost savings. North America is the leading region in the market which holds the majority of the distributed energy resource management system market share and is anticipated to be the leading region coming of age with distributed energy resource management systems, owing to the high demand from commercial, industrial, residential, and other avenues. The development of advanced energy management technologies is also driving growth in the region. The presence of major players such as Enbala Power Networks, Open Access Technology International Inc., AutoGrid Systems, and Gridwise among others, further fosters market growth in this region.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• GE Grid Solutions
• ABB Ltd.
• Siemens AG
• Open Access Technology International
• Schneider Electric
• Enbala Power Networks
• Doosan Gridtech
• Sunverge
• Blue Pillar
• Autogrid Systems, Inc

Report Coverage:

This report examines an understanding of the distributed energy resource management system market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.