Global Distributed Energy Resource Management System Market Size, Share, Growth Analysis, By Component(Software platforms, hardware devices), By Application(Residential, commercial) - Industry Forecast 2024-2031

Global Distributed Energy Resource Management System Market size was valued at USD 348.96 million in 2022 and is poised to grow from USD 425.03 million in 2023 to USD 2058.74 million by 2031, growing at a CAGR of 21.8% during the forecast period (2024-2031).

One new and quickly expanding industry is the distributed energy resource management system (DERMS) market worldwide. DERMS is primarily used to control how different renewable energy sources-like hydropower, wind, and solar-are integrated with conventional power grids. DERMS is now an essential part of contemporary energy management systems due to the growing demand for clean energy and the requirement to lower carbon emissions. The growing use of distributed energy resources (DERs), such as rooftop solar panels, small-scale wind turbines, and energy storage devices, is one of the major factors propelling the DERMS industry. DERs are becoming more and more popular since they can give a dependable and affordable power source, particularly in isolated locations.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Distributed Energy Resource Management System Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Distributed Energy Resource Management System Market Segmental Analysis

Worldwide Dispersed Energy Resource Administration System Based on component, application, and region, the market is divided into segments. The market is divided into three segments based on component types: communication systems, hardware, and software platforms. The market is divided into utility-scale, commercial, industrial, and residential segments based on the application. The market is divided into Latin America, Middle East and Africa, Asia Pacific, North America, and Europe.

Drivers of the Global Distributed Energy Resource Management System Market

The use of renewable energy sources has significantly increased as a result of the increased attention being paid on a worldwide scale to cut carbon emissions and move towards a sustainable energy future. In order to effectively utilize renewable energy, distributed energy resources must be integrated and optimized, which is made possible by DERMS. The demand for DERMS solutions is driven by the necessity of efficiently managing these many energy sources. To guarantee optimal power generation and grid stability, for instance, a utility firm using DERMS can monitor and manage a network of dispersed solar panels and wind turbines.

Restraints in the Global Distributed Energy Resource Management System Market

The intricate legislative and policy frameworks controlling the integration and use of distributed energy resources present difficulties for the DERMS industry. Implementing DERMS may be hampered by regional laws that differ from one another as well as the requirement to adhere to grid norms and standards. Widespread adoption of DERMS solutions is impeded by policy development delays and regulatory uncertainties. The economic viability and feasibility of DERMS projects, for instance, may be impacted by modifications to interconnection regulations or net metering policies.

Market Trends of the Global Distributed Energy Resource Management System Market

The ability to modify power use in response to supply conditions or pricing signals is known as demand response. Demand response features are being added to DERMS platforms more often in order to maximize the use of distributed energy resources and maintain grid stability. DERMS can enable dynamic pricing systems and demand response programs by facilitating real-time monitoring of energy supply and demand. In order to help balance the grid and prevent blackouts, a DERMS, for instance, can automatically lower the electricity use of a collection of residential buildings during times of high demand.