DER Management Technologies - DERMSs, VPPs, and DER Analytics: Global Market Analysis and Forecasts

Utilities are in the middle of multiple paradigm shifts as digital transformation and proliferation of distributed energy resources (DER) converge to create increased complexity and opportunity. The gradual rise of DER has differing levels of positive and negative effects on grid stability and health. Some utilities are reactively trying to address DER technical challenges while others are striving to take on a more proactive approach. Most utilities would like to create value internally and for customers by balancing grid operations and planning with demand and DER output. A few utilities are even thinking about how to go a step further by enabling new markets to form around this new body of integrated DER.

For this step to occur, the grid must be reinforced with more intelligence and greater control resolution. Utilities are enabling higher levels of situational awareness through the advancement of digital transformation initiatives. DER management solutions are foundational to enabling this digital transformation while supporting energy industry transformation.

This Guidehouse Insights report analyzes the market for DER management software technologies, including DER management systems (DERMSs), virtual power plant (VPP) management systems, and DER analytics. It aims to enable current and prospective electric utility solutions and service providers to understand the drivers for projected demand and likely investment by utilities in DER integration solutions and services. The report provides forecasts and analysis for five global segments for 2020 through 2029.

KEY QUESTIONS ADDRESSED:

• Which DER management technologies present the largest market potential for vendors?

• What factors are helping to drive the market for DER management technologies?

• What factors are inhibiting the market for DER management technologies?

• What are the most important trends in the DER management space?

• How large will the market for DER management technologies grow and which global regions are growing the fastest?

WHO NEEDS THIS REPORT:

• Utilities and grid operators
• Communications vendors and service providers
• Smart grid vendors and service providers
• Non-utility providers
• Systems integrators
• Government agencies
• Research community
• Investor community

Table of Contents

1. Executive Summary

• 1.1. Introduction
• 1.2. Report Scope
• 1.3. Global Outlook

2. Market Issues

• 2.1. DER Technologies
• 2.2. DER Management Technologies
  • 2.2.1. DERMS
  • 2.2.2. VPP Management Systems
  • 2.2.3. DER Analytics
  • 2.2.4. Ancillary Technologies
• 2.3. Market Trends
  • 2.3.1. Modular Solutions Have Become the Norm
  • 2.3.2. Development of Flexible Delivery Models and Microservices
  • 2.3.3. Increasing Complexity of DER Modeling
  • 2.3.4. Optimized and Accelerated Upgrade Procedures
  • 2.3.5. Diminishing Importance of Complementary Hardware Portfolios
• 2.4. Market Drivers
  • 2.4.1. Rapid Rise in DER Penetration
  • 2.4.2. Digitization and Enhanced IT Investment
  • 2.4.3. Regulatory Drivers
  • 2.4.4. Growing Interest in TE Markets
• 2.5. Market Challenges
  • 2.5.1. System Costs
    • 2.5.1.1. DERMS Pricing
    • 2.5.1.2. VPP Pricing
  • 2.5.2. Communications Requirements
  • 2.5.3. COVID-19
  • 2.5.4. Data Quality Remains a Concern
  • 2.5.5. Availability of System Alternatives
  • 2.5.6. Regulators Trail Industry Megatrends
    • 2.5.6.1. Residential DER Monitoring and Control
    • 2.5.6.2. CAPEX vs. OPEX
    • 2.5.6.3. Investment Cycles
  • 2.5.7. Utility Silos Remain a Barrier

3. Market Forecasts

• 3.1. Forecast Methodology
• 3.2. Global Outlook
  • 3.2.1. North America
  • 3.2.2. Europe
  • 3.2.3. Asia Pacific
  • 3.2.4. Latin America
  • 3.2.5. Middle East & Africa

4. Conclusions and Recommendations

• 4.1. Vendor Recommendations
  • 4.1.1. Focus on Scalability
  • 4.1.2. Integration Capabilities Are Critical
  • 4.1.3. Differentiate with Enhanced Upgrade Frameworks
  • 4.1.4. Sell Value, Not Technologies
  • 4.1.5. Adopt Full Solution Transparency
• 4.2. Utility Recommendations
  • 4.2.1. Break Down Silos
  • 4.2.2. Ensure Ease of Use
  • 4.2.3. Establish Solid Change Management Processes

5. Acronym and Abbreviation List

6. Table of Contents

7. Table of Charts and Figures

8. Scope of Study, Sources and Methodology, Notes

LIST OF CHARTS AND FIGURES

• DER Management Technology Revenue by Region, World Markets: 2020-2029
• Annual Installed Total DER Power Capacity by Technology, World Markets: 2020-2029
• DER Management Technology Revenue by Technology, North America: 2020-2029
• DER Management Technology Revenue by Technology, Europe: 2020-2029
• DER Management Technology Revenue by Technology, Asia Pacific: 2020-2029
• DER Management Technology Revenue by Technology, Latin America: 2020-2029
• DER Management Technology Revenue by Technology, Middle East & Africa: 2020-2029
• ADMS Module Pyramid

LIST OF TABLES

• DER Management Technology Revenue by Region, World Markets: 2020-2029
• DER Management Technology Revenue by Technology, World Markets: 2020-2029
• DER Management Technology Revenue by Technology, North America: 2020-2029
• DER Management Technology Revenue by Technology, Europe: 2020-2029
• DER Management Technology Revenue by Technology, Asia Pacific: 2020-2029
• DER Management Technology Revenue by Technology, Latin America: 2020-2029
• DER Management Technology Revenue by Technology, Middle East & Africa: 2020-2029
• DERMS Revenue by Region, World Markets: 2020-2029
• DERMS Revenue by Category, World Markets: 2020-2029
• DERMS Revenue by Category, North America: 2020-2029
• DERMS Revenue by Category, Europe: 2020-2029
• DERMS Revenue by Category, Asia Pacific: 2020-2029
• DERMS Revenue by Category, Latin America: 2020-2029
• DERMS Revenue by Category, Middle East & Africa: 2020-2029
• Mixed-Asset VPP Capacity by Region, World Markets: 2020-2029
• Mixed-Asset VPP Implementation Spending by Region, World Markets: 2020-2029
• Mixed-Asset VPP Revenue by Region, World Markets: 2020-2029
• DER Analytics Revenue by Region, World Markets: 2020-2029
• DER Analytics Revenue by Category, World Markets: 2020-2029
• DER Analytics Revenue by Category, North America: 2020-2029
• DER Analytics Revenue by Category, Europe: 2020-2029
• DER Analytics Revenue by Category, Asia Pacific: 2020-2029
• DER Analytics Revenue by Category, Latin America: 2020-2029
• DER Analytics Revenue by Category, Middle East & Africa: 2020-2029
• Annual Installed Total DER Power Capacity by Technology, World Markets: 2020-2029
• Annual Installed Total DER Power Capacity by Technology, North America: 2020-2029
• Annual Installed Total DER Power Capacity by Technology, Europe: 2020-2029
• Annual Installed Total DER Power Capacity by Technology, Asia Pacific: 2020-2029
• Annual Installed Total DER Power Capacity by Technology, Latin America: 2020-2029
• Annual Installed Total DER Power Capacity by Technology, Middle East & Africa: 2020-2029