PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1290792
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1290792
Distributed Energy Resource Management System Market size was valued at USD 390.8 million in 2022, expanding at a CAGR of 16.4% from 2023 to 2030.
DERMS is a cutting-edge system that combines high penetrations of solar energy and other distributed energy resources into the grid. When effectively used, their skills provide several advantages to enterprises and their customers. It comprises of a set of software management tools that enable distribution services and wire operators to manage a variety of DERs and so contribute to near real-time grid asset control.
Due to rising energy demand, renewable energy output has been fast increasing. The market in the United States is thriving as a result of increased renewable energy output. Growing consumer demand for clean energy, also known as green energy, and renewables such as solar, biomass, and wind and tide energy drives market demand. Global power demand is expected to rise significantly in the next years as a result of rising population, fast urbanization and industrialization, increased infrastructural activity, and improved access to electricity. Furthermore, traditional energy sources such as fossil fuels, coal, and natural gas contribute significantly to carbon emissions. Renewable energy sources such as wind and solar energy are increasingly replacing fossil fuels.
Furthermore, government initiatives to encourage the installation of DERMS contribute to the expansion of the global distributed energy resource management system market. For example, the US government has launched 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 breaks, all of which boost market growth and encourage the installation of DERMS in the country. Furthermore, due to favorable government policies encouraging Foreign Direct Investment (FDI), China and Japan account for significant shares of the regional market. There are further technical hurdles that utilities and grid operators must overcome while installing DERMS. To take advantage of all of the benefits of DERMS, for example, a fairly accurate depiction of the distribution system is required, including how and where loads and DERs are connected.
The Global Distributed Energy Resource Management System Market is segmented based on software, application, end-user, and Region.
Based on the application, the solar segment is expected to dominate the market during the forecast period. The segmental expansion can be ascribed to an increase in the demand for renewable energy sources, as well as an increase in government investments in the distribution of energy resources with the goal of decarbonizing energy sourcing.
Based on the end-user, the industrial segment is expected to grow at the highest CAGR during the forecast period. Because of the global increase in the number of industrial establishments, the segmental expansion may be vulnerable to a high demand for power supply in the industrial segment.
North America is expected to have a large market share in the Distributed Energy Resource Management System Market owing to the adequate power generation and the availability of transmission and distribution networks, natural calamities like storms and flooding create power outages in some parts of the region. The problem will probably be lessened by the use of remote power systems, like DERMS, to control distributed energy systems. For Instance, The United States added 5.4 gigawatts (GWdc) of solar PV capacity in Q3 2021 to reach 113.5 GWdc of total installed capacity, which is sufficient to power 21.8 million American households, according to the Solar Energy Industries Association 2021. Distributed energy resource management systems are anticipated to see an increase in demand as a result. On the other hand, the Asia Pacific is expected to grow at the highest CAGR over the forecast period.
In December 2021, the first cloud-hosted distributed energy resource management system (DERMS) in Australia has been renewed, according to mPrest. CitiPower and Powercor kept the option to employ mPrest's mDERMS technology, which offers low voltage network demand response (DR) and load management as it strives to support Australia's energy transformation, with the deployment in an air conditioning trial.
The scope of this report covers the market by its major segments, which include as follows: