What is the Historic and Current Scenario of the Distributed Energy Resource Management System Market?
The distributed energy resource management system market has seen considerable growth due to a variety of factors.
• The market size for the distributed energy resource management system has seen a rapid expansion in the past few years. Its rise is projected to continue, escalating from a valuation of $0.55 billion in 2024 to $0.64 billion in 2025, with a compound annual growth rate (CAGR) of 17.3%.
This historic growth trend is due to various factors such as the adoption of renewable energy, an escalation in energy requirements, an increase in governmental incentives and regulations, a push towards grid modernization, and a heightened awareness regarding energy efficiency and sustainability.
What Is The Expected Growth In The Distributed Energy Resource Management System Market Size?
The distributed energy resource management system market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market for distributed energy resource management systems is set to witness significant expansion. By 2029, it is projected to reach a value of $1.2 billion, delivering a compound annual growth rate (CAGR) of 17.0%.
This projected surge during the forecast period is due to several factors including the growing acceptance of renewable energy sources, the escalating demand for energy efficiency, the increased rollout of smart grids, the broader utilization of electric vehicles, an increase in supportive governmental policies, and the growing requirement for superior grid resilience and reliability. The forecast period will also see key trends such as AI-powered grid optimization advancements, integration of renewable energy sources, increased usage of IoT and smart sensors, developments in virtual power plant (VPP) abilities, upgraded cybersecurity measures, the use of blockchain for energy transactions and the adoption of cloud-based platforms for real-time energy management.
What Are the Critical Driver Fuelling the Distributed Energy Resource Management System Market's Growth?
As more renewable energy sources are utilized, it is anticipated that the distributed energy resource management system (DERMS) market will see growth. These renewable sources, which include sunlight, water, wind, and organic materials, naturally occur and are used for energy creation. There's a surge in the usage of these resources due to escalating environmental concerns, advancements in technology, and energy security necessities. By synchronizing and balancing the output from these renewable energy sources with demand, the DERM system enhances the performance and integration of these sources, improving grid efficiency and stability. In 2024, a landmark was reached in the United States, according to the World Resources Institute, a non-profit organization based in the US. A significant 31 gigawatts (GW) of solar energy capacity was installed in 2023, marking a significant 55% rise from 2022 and breaking the record previously set in 2021. Hence, the DERMS market is being propelled by this growing use of renewable energy sources.
What Are The Primary Segments In The Global Distributed Energy Resource Management System Market?
The distributed energy resource management system market covered in this report is segmented –
1) By Component: Virtual Power Plant (VPP), Management And Control, Analytics, Software Services
2) By Technology: Wind Distributed Energy Resources, Photovoltaic (PV) Distributed Energy Resources
3) By End-User: Residential, Commercial, Industrial And Utilities
Subsegments:
1) By Virtual Power Plant (VPP): Grid Aggregation VPP, Renewable Energy Integration VPP, Battery Storage-based VPP, Demand Response-based VPP, Microgrid-based VPP, Hybrid VPP (combining multiple energy sources)
2) By Management and Control: Energy Dispatch Control, Load Balancing and Optimization, Demand-Side Management (DSM) Systems, Real-time Monitoring and Control, Frequency and Voltage Regulation
3) By Analytics: Predictive Analytics for Energy Generation, Demand Forecasting Analytics, Performance Optimization Analytics, Asset Management Analytics, Real-time Data Analytics
4) By Software Services: Cloud-based DERMS Solutions, On-premise DERMS Software, Energy Trading and Market Participation Software, Integration and Interoperability Software, Energy Efficiency Management Software
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Which Key Trends Are Driving Changes In The Distributed Energy Resource Management System Market?
Key industry players in the distributed energy resource management system marketplace are incorporating cloud technology into their systems to enhance real-time data processing, boost scalability, and refine energy management across dispersed networks. Cloud technology facilitates concentrated data processing, storage, and access, hence offering remote monitoring and control of distributed assets. For example, in July 2023, Schneider Electric SE, an energy management company based in France, collaborated with PG&E Corporation, a US-based energy utility company, to launch EcoStruxure DERMS. It is a cloud-propelled software platform designed to optimize distributed energy resources like solar panels, electric vehicles, and battery storage. The platform, running on Microsoft Azure, offers real-time data collection and analytical capabilities for distributed energy resources, providing grid operators with enhanced visibility and control over their energy resources.
Who Are the Key Players in the Distributed Energy Resource Management System Market?
Major companies operating in the distributed energy resource management system market are include:
•Engie SA
• Hitachi Ltd.
• Tesla Inc.
• Siemens AG
• General Electric Company
• Oracle Corporation
• Schneider Electric SE
• Mitsubishi Electric Corporation
• Honeywell International Inc.
• ABB Ltd.
• LONGi Group
• Emerson Electric Co.
• Doosan Group
• Goldwind Science & Technology Co. Ltd.
• Energy Hub Inc.
• Generac Holdings Inc.
• Itron Inc.
• Enel X
• Open Access Technology International Inc.
• Spirae LLC
• Uplight Inc.
• GreenSmith Energy Management Systems Inc.
• AutoGrid Systems Inc.
• Smarter Grid Solutions
• Envision Group
What Is The Most Dominant Region In The Distributed Energy Resource Management System Market?
North America was the largest region in the distributed energy resource management system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the distributed energy resource management system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
