Distributed Energy Resource Management System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast. 2018-2028F, Segmented By Software (Virtual Power Plant, Management & Control, and Analytics), By Application (Solar PV, Energy Storage, Wind, EV Charging Stations, and Others), By End-User (Residential, Commercial, and Industrial), By Region
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Power | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationDistributed Energy Resource Management System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast. 2018-2028F, Segmented By Software (Virtual Power Plant, Management & Control, and Analytics), By Application (Solar PV, Energy Storage, Wind, EV Charging Stations, and Others), By End-User (Residential, Commercial, and Industrial), By Region
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 0.38 Billion |
| Fastest Growing Segment | Industrial |
| CAGR (2023-2028) | 15.48% |
| Largest Market | North America |
Distributed Energy Resource Management Systems (DERMS) is a software programme, used to manage and regulate various Distributed Energy Resources (DERs). DERMS refers to a broad integration system or a variety of unique use cases. Many different energy sources, including solar, wind, and battery storage, are included in these DERs.
DERMS enable better grid management and lower levels of electricity waste. For both the user and the utility providers, DERMS boost efficiency and dependability. To meet particular use case scenarios, utility providers can have large number of DERMS and also helps in reducing consumers’ carbon footprints.
Over the upcoming years, the market for distributed energy resource management systems (DERMS) is anticipated to be driven by an increase in distributed energy resources, a change from centralized to distributed generation, and falling solar PV & energy storage costs. Grid modernization, energy transition, supportive policies, and the need for efficient energy management are driving the adoption of DERMS. DERMS enable the integration, control, and optimization of DERs, ensuring grid stability and facilitating the transition to a low-carbon energy system. They also support energy efficiency and demand response efforts. With the rise of renewable energy and the need for grid flexibility, DERMS play a crucial role in managing the complexities of a decentralized energy landscape.
The top companies in the global Distributed Energy Resource Management System (DERMS) market are offering DERMS solutions with advanced distributed energy resources (DERs) management and control capabilities such as storage, solar, and other renewable sources, demand response, grid optimization, and preventive maintenance. The top companies operating in the market are helping clients to reduce their electricity bills, identify outages, and cut their carbon footprint. These companies are also collaborating with local utilities on the deployment of DERMS, further driving the market growth.
Effective Implementation of Smart Grid Technology By the Government
There is a continuous and extensive expansion of smart grids, globally, making them a key component of national energy strategies. Energy policies in these nations prioritize efficiency enhancement and CO2 emission reduction. To expedite the replacement of outdated grid structures, governments are spending significantly in the smart grid industry. For instance, the U.S. Trade and Development Agency granted the Régie Autonome de Distribution d'Eau et d'Electricité de Marrakech (RADEEMA), the city's electricity and water utility in July 2022, to study the conversion of Marrakech's power infrastructure into a smart grid that would serve as a model for other Moroccan cities. Additionally, the United States government passed a new Infrastructure Investment and Jobs Act in November 2021, under which the nation made numerous significant investments for the construction of smart and distribution grids. One such investment was of USD3 million under Smart Grid Investment Matching Grant Program. Thus, the rising investments for smart grid technology are expected to drive the growth of global distributed energy resource management system market, for the upcoming years.
Increased EV Production to Boost Global Distributed Energy Resource Management System Market
The demand for electric vehicles has expanded globally due to the growing responsibility for environmental protection through sustainable development. According to the International Energy Agency (IEA), around 10 million Electric Vehicles (EVs) were sold in 2022 and the numbers are projected to reach 14 million in sales by the end of 2023, with a rise of 14%. Moreover, in 2021, EVs accounted for about 10% of all car sales worldwide, up from 4% in 2019. The price ranges of EVs are falling as a result of technological advancements going on in the market, leading to the growth in the demand for electric vehicle market. Moreover, governments from several countries have backed electric vehicles and implemented the necessary regulations to hasten the switch to zero-emission automobiles. These factors are expected to drive the market growth of global distributed energy resource management system market.
Growth Opportunities by Increasing Demand Response Management Software
There is a large demand for items such as electronics, construction materials, transportation equipment, medical supplies, etc. due to fast-growing population that increases the need for manufacturing activities across numerous industries. This is due to the constantly changing industrial landscape and growing urbanization. In addition, massive consumption and rising digitization have also raised the demand for raw materials, industrial capacity, and output. The industrial environment all around the world occasionally encounters high peak load conditions to meet power demands. Due to the significant need for demand response management software and systems as well as the rising development of intelligent infrastructures and higher power consumption, these factors are expected to drive the market.
Additionally, the International Energy Agency (IEA) claims that rapid development in demand-response management is necessary in order to achieve net-zero emissions targets. The ongoing expansion of renewable energy projects would require 500 GW of response capacity, by 2030. Moreover, over the next ten years, many countries, including Canada, Singapore, the European Union countries, and China, are expected to announce renewable energy targets and infrastructure development programmes for EV charging stations, significantly increasing the need for distributed energy resource management system market, globally.
Increasing Spending on Updating Deteriorating Grid Infrastructure
The market for global distributed energy resource management systems (DERMS) is expected to experience significant expansion, due to increased investments in grid digitalization and the adoption of advanced communication technologies. This trend is exemplified by China's plan to invest USD6 trillion in infrastructure over the next decade as part of its urban development plan. Additionally, the estimated value of corporate and public investments in the UK for infrastructure urbanization amounts to USD375 billion. Consequently, these investments are anticipated to drive the growth of the global DERMS market.
IoT-Related Cybersecurity Risks are Expected to Hinder Market Growth
The Internet of things (IoT), automated control, energy storage, and demand management, are all used in distributed energy resource management systems. The system data is gathered for analysis. Cyberattacks and data breaches present a risk of data breaching. For instance, NPower, a gas and electricity provider, permanently removed their mobile app in February 2021, after hackers utilized it to access the personal data of their clients. Customers were vulnerable to fraud since the attackers gained access to their accounts using login information. The high expenditure on cybersecurity and data breach protection raises the price of management systems. Thus, adoption of distributed energy resource management is hampered by high cost, which results in the slow expansion of the market expansion.
Latest Developments Fueling the Market Growth
- EnergyHub, a DERMS provider, achieved a significant milestone in 2022, by managing over one million distributed energy resources (DERs), including smart thermostats, electric vehicles (EVs), energy storage systems, and more. With collaborations with over 60 utility clients in North America and numerous device partners, EnergyHub enables the creation of DER-based Virtual Power Plants (VPPs) in 2022 that play a crucial role in maintaining grid reliability and expediting the decarbonization process.
- Opus One Solutions Energy Corporation, a Canadian software provider assisting electric utilities in optimizing their energy planning and operations, was acquired by GE Digital in 2021. This acquisition allows companies to benefit from Opus One's expertise in renewable energy planning and GE Digital's portfolio in network management and optimization, facilitating the integration of renewables and distributed energy resources (DERs) into the electric grid.
- Generac Grid Services, a division of Generac Power Systems specializing in energy technology solutions, secured a multi-year contract in August 2022 with Arizona Public Service (APS), to provide additional grid capacity through home battery storage systems. Generac Grid Services will utilize their Concerto Distributed Energy Resource Management System (DERMS) to deliver the required capacity and advanced grid services (AGS) such as voltage management, real power orchestration, fleet energy control, and targeted responses.
Market Segmentation
Market players
The main market players in the Global Distributed Energy Resource Management System Market are
|
Attribute |
Details |
|
Base Year |
2022 |
|
Historic Data |
2018– 2022 |
|
Estimated Year |
2023 |
|
Forecast Period |
2024 – 2028 |
|
Quantitative Units |
Revenue in USD Million and CAGR for 2018-2022 and 2023-2028 |
|
Report coverage |
Revenue forecast, company
share, growth factors, and trends |
|
Segments Covered |
Software Application End-User Region |
|
Regional scope |
North America, Asia-Pacific,
Europe, South America, Middle East & Africa |
|
Country scope |
United States, Canada, Mexico, China, India, Japan, South Korea,
Australia, Germany, United Kingdom, France, Italy, Spain, Brazil, Argentina, Colombia,
Saudi Arabia, South Africa, UAE |
|
Key companies profiled |
General Electric Company, Siemens
AG, ABB Ltd, Schneider Electric SE, Engie SA, AutoGrid Systems Inc., Doosan
Corporation, Open Access Technology International Inc., Mitsubishi Electric
Corporation, Emerson Electric Co. |
|
Customization scope |
10% free report customization with purchase. Addition or alteration to
country, regional & segment scope. |
|
Pricing and purchase options |
Avail customized purchase
options to meet your exact research needs. Explore purchase options |
|
Delivery Format |
PDF and Excel through Email (We can also provide the editable version
of the report in PPT/Word format on special request) |
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