Distributed Energy Resource Management System Market Forecasts to 2028 – Global Analysis By Component (Software, Services), Application (Solar PV, Biomass, Biogas), End User (Industrial, Residential) and By Geography

Distributed Energy Resource Management System Market Forecasts to 2028 – Global Analysis By Component (Software, Services), Application (Solar PV, Biomass, Biogas), End User (Industrial, Residential) and By Geography

According to Stratistics MRC, the Global Distributed Energy Resource Management System Market is accounted for $198.07 million in 2021 and is expected to reach $726.45 million by 2028 growing at a CAGR of 20.4% during the forecast period. A distributed energy resource management system (DERMS) allows utilities to manage distribution grids with a variety of connected distributed energy generation (DEG) assets and capitalizes on the benefits from the distributed resources including behind-the-meter and larger utility-grade resources. They play a crucial role in catering to the rising energy demand.

Market Dynamics:

Driver:

Increasing supporting government mandates and renewable energy policies

Renewable energy generation has been growing rapidly due to the mounting energy demand. The growing awareness for clean energy or green energy and renewables, such as solar, biomass, and wind & tide energy, propels the market demand. Moreover, conventional energy generation sources, such as fossil fuels, coal, and natural gas, substantially contribute to carbon emission. Fossil fuels are increasingly being replaced by renewable sources, such as wind energy and solar energy which increases the market growth.

Restraint:

Higher initial installation costs

The initial phase of distributed energy resource management system deployment is capital intensive. The technology requires huge investments initially to set up the transmission network between the customers and the smart grid. High operational and maintenance costs post-deployment are also a huge concern for the utility providers.

Opportunity:

Increasing government initiatives

The government initiatives to promote the installation of DERMS augment the growth of the market globally. For instance, the US government has taken up a number of initiatives including policies and incentives, such as USDA- Rural Energy for America Program (REAP) Grants, Residential Renewable Energy Tax Credit, and corporate tax incentives, which bolsters the market growth, promoting the installation of DERMS in the country.

Threat:

Installation challenges of DERMS

There are technical challenges facing the installation of DERMS by utilities and grid operators. For instance, to unlock all the benefits of DERMS, a fairly accurate representation of the distribution system is needed, including how and where loads and DERs are connected.

The industrial segment is expected to be the largest during the forecast period

There is huge demand for DERMS from industrial sector due to the rising demand for power in the industrial sector and the need for effectively utilizing the power. Thus, increasing demand from the industries is driving the segment growth in market.

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

The DERMS software allows aggregating thousands of electricity producers, consumers, and storage units. It also enables offering their power and flexibility into different markets by intelligently controlling their feed-in and consumption. The virtual power plants software is used to provide grid services such as demand response, frequency regulation, and operational reserves.

Region with highest share:

Asia Pacific is projected to hold the largest market share due to growing demand of renewable energy resources in developing countries such as India and China and the region is driven mostly by the increasing electricity consumption and the need to upgrade aging infrastructure. Countries in this region are shifting toward energy efficiency in residential buildings to meet the growing energy demands.

Region with highest CAGR:

North America is projected to have the highest CAGR driven by the increasing in utilization of renewable energy and increasing demand for new advanced security systems in the region. Moreover, the huge increase in demand for electricity in North America increases the market growth. Moreover, growing implementation of IoT and associated services are propelling the expansion of the market in North America.

Key players in the market:

Some of the key players profiled in the Distributed Energy Resource Management System Market include Schneider Electric, Emerson, General Electric, ABB, Siemens, Oracle, Mitsubishi Electric Corporation, Advanced Control Systems, PXiSE Energy Solutions, LLC, Open Access Technology International, Inc. , Sunverge Energy Inc and EnerNOC, Inc.

Key developments:

In November 2019: Schneider Electric launched EcoStruxure DERMS that provides centralized analysis and control of all types of DERs, regardless of ownership entity, to deliver value to the grid and all energy stakeholders.

In October 2020: Siemens and Macquarie’s Green Investment Group entered into a joint venture to offer onsite Energy-as-a-Service (EaaS) solutions for its customers, including corporate and industrial clients, municipalities, universities, schools, and hospitals.

In September 2019: ABB collaborated with the US technology supplier Humless on a home energy storage system (ESS) with solar management.

Components Covered:
• Services
• Software

Applications Covered:
• Hybrid Systems
• Biomass
• Energy Storage/Uninterruptible Power Source (UPS) Systems
• Internal Combustion Engines
• Fuel Cells
• Stirling Engines
• Electric Vehicles (EV) Charging Stations
• Combined Heat & Power Generation Systems
• Geothermal Power
• Wind Generation Units
• Micro Turbines & Microgrids
• Biogas
• Solar Photovoltaic (PV) Units

End Users Covered:
• Government and Municipalities
• Commercial
• Defense
• Residential
• Industrial

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 2020, 2021, 2022, 2025 and 2028
- 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

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances