Distributed Energy Resource Management System Market Research Report—Global Forecast till 2027

Distributed Energy Resource Management System Market Research Report: Information by Technology (Solar PV, Energy Storage, Wind, Combined Heat & Power,and Others), Software (Analytics, Virtual Power Plants, and Management & Control), End Use(Industrial, Commercial, Residential, Government & Municipalities, and Military), and Region (North America, Europe, Asia-Pacific, and Rest of the World) - Forecast till 2027

ID: MRFR/E&P/8143-CR | July 2020 | Region: Global | 119 pages

Distributed Energy Resource Management System Market Synopsis:


Distributed energy resource (DER) management is the management of the distribution grid, which is integrated with DERs. In order to tackle the current challenges related to the distribution grid, electric utilities need new sets of tools to manage DERs. These tools feature a combination of different hardware and software that are integrated to manage these resources properly. A distributed energy resource management system (DERMS) is a module that manages the DERs and traditional distribution assets such as capacitor banks, voltage regulators, and tap changers.


Bytechnology, the distributed energy resource management system market has been segmented into solar PV, energy storage, wind, combined heat & power, and others. The wind segment accounted for the largest market share of 31.25% in the distributed energy resource management systemmarket. Based on software, the distributed energy resource management system market has been segmented into analytics, virtual power plants, and management & control.The analytics segment accounted for the largest market share of 48.60% of the global distributed energy resource management system market. Based on end use, the distributed energy resource management systemmarket has been segmented into industrial, government & municipalities, commercial, residential, and military. The industrial segment accounted for the largest market share of 38.63% of the global distributed energy resource management systemmarket.


COVID-19 Analysis:


COVID-19 has led to severe impact across all the industries around the world. The rapid spread has led governments across the globe to take stricter actions for the operations of industrial plants and offices, leading to stricter lockdowns. The COVID-19 pandemic has had widespread economic impacts on households and businesses across the world, which has implications on the outlook for future DERMS adoption.


Market Dynamics:


Drivers:


  • Increasing Share of Renewable Energy in the Power Generation Mix


The global electricity demand is expected to grow at a significant rate in the next few years due to the rise in population, rapid development in urbanization, growing infrastructure activities, and enhanced access to electricity. Conventional energy generation sources such as coal, petrol, and natural gas are the primary contributors to carbon emissions.


Restraints:


  • Cyber Threats


The threat of cyber-based attacks targeting the electricity grid is a prime concern for the energy sector. Cyber threats are an important concern for the effective functioning of the DERMS. Cyber threat refers to a malicious act, which leads to damage and disruption of systems, and data theft, hindering system effectiveness.


Opportunities:


  • Development of Smart Grids


A smart grid is an electricity network that allows two-way communication between electricity suppliers and end users. Smart grids monitor, control, and analyze electricity load to manage the demand and supply of electricity, reduce costs, and save energy. They involve the use of renewable energy resources and a variety of operations and energy measurement systems, including smart meters and smart appliances.


Segment Overview:


By Technology:


  • Solar PV


Solar PV harnesses energy from solar radiation and is increasingly being adopted globally, primarily due to the declining prices of solar equipment and installation. Furthermore, solar PVs can be installed on rooftops, which has further propelled their installations in commercial buildings.



  • Energy Storage


Energy storage is the storage of energy for use at a later point. Energy generation companies are increasingly focusing on energy storage to reduce the impact on end users during energy shortages and peak energy consumptions.



  • Wind


Wind energy is generated from wind by rotating turbines, which generate energy. The technology has evolved steadily in the last decade and has been adopted in numerous countries to generate electricity.



  • Combined Heat & Power


In combined heat & power generation technology, both heat and electricity are produced together, improving the system's efficiency. The technology is being widely adopted in the industrial and commercial sectors.



  • Others


The others segment includes energy generation technologies such as hydro, tidal, and flywheel. These energy generation resources can be located at vast distances. However, they can be connected to the grid through DERMS to supply power to end users.


By Software:


  • Analytics


The analytics segment includes various software used to analyze various aspects of electricity generation and consumption. The software assists utilities in analyzing consumption data, through which energy generation and energy storage plans can be made for the future.



  • Virtual Power Plants


Virtual power plants are cloud-based software, which enables utilities to connect distributed energy resources, primarily for the trade of electricity. As the energy generation continues to grow with numerous facilities, the virtual power plant segment will witness substantial growth during the forecast period.



  • Management & Control


Utilities have to supply electricity according to the variations in electricity demand. Software for management & control allows utilities to regulate the use of resources according to demand. DERMS management & control software also helps utilities determinethe possible peak electricity demand and develops efficient contingency plans to reduce the impact on end users.


By End Use:


  • Industrial


Industries use large amounts of energy for various processes and are further using various energy sources to reduce their dependence on the grids. Industries are adopting the use of solar and combined heat & power technologies to increase their energy efficiencies.



  • Commercial


Commercial includes infrastructures such as malls, airports, and railway stations. As the per capita disposable income among individuals is rising, individuals visiting malls have increased substantially in the past decade. Similar growth has been witnessed in airports and railway stations.



  • Residential


Residential end users have been increasing the use of solar energy and combined heat & power technologies for the efficient use of energy. Further, many residential users generate surplus energy, which can be traded with utilities for various other provisions.



  • Government & Municipalities


Government bodies globally are increasing their infrastructure to support the public. This has led to a substantial rise in demand for electricity from such facilities. Additionally, municipalities are installing energy generation technologies such as combined heat & power and solar to reduce their dependency on the grid.



  • Military


Military units primarily have remote locations and have been using various technologies to provide power to their remote locations. Some of the popular technologies increasingly being used by the military are solar, fuel cell, and combined heat & power.


Regional Analysis:


  • North America


North America is a prominent market for DERMS, owing to an increase in the share of renewable energy sources and rising initiatives by government bodies to promote the installation of DERMS. The demand for renewable energy resources is anticipated to witness positive and notable growth is also expected for in 2021, thereby boosting the demand for DERMS.


  • Europe


Europe is one of the prominent markets for DERMS. The growing demand for renewable energy sources and the developments in distributed generation drive the growth of the distributed energy resource management market in the region.


  • Asia-Pacific


The demand for DERMS in Asia-Pacific is expected to grow significantly due to the growing demand for renewable energy sources and the increasing use of software applications in transportation, government & municipalities, military, and other sectors in the region.


  • Rest of the World


The rest of the world comprises Saudi Arabia, the UAE, South Africa, Brazil, and other neighboring countries. The growing demand for renewable energy and the rising developments in the distributed generation fuel the growth of DERMS in the region.

Competitive Landscape:



  • The distributed energy resource management system marketis characterized by the presence of many local, regional, and international vendors. The global market is highly competitive, with all the players continually competing to gain a larger market share.

  • ABB is engaged in the business of electrification of products, industrial automation, power grids, utility services, and transport & infrastructure services. It operates through four segments, namely, electrification products, robotics & motion, industrial automation, and corporate & others.

  • The prominent players operating in the global distributed energy resource management system marketareABB (Switzerland), Siemens (Germany), General Electric (US), Schneider Electric (France), Doosan Corporation (South Korea), Enbala, A Generac Company (Canada), Autogrid Systems, Inc. (US), Spirae, LLC (US) and Enel X North America, Inc. (US).



Report Scope:
Report Attribute/Metric Details
  Market Size   
  CAGR   
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Technology , Software , End-Use
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Siemens (Germany), ABB (Switzerland), General Electric (US), Doosan Corporation (South Korea), Schneider Electric (France), Enbala (Canada), Open Access Technology International Inc. (US), AutoGrid Systems Inc. (US), Spirae LLC (US), Enel X North America Inc. (US), Blue Pillar (US)
  Key Market Opportunities   Emerging Nations to Present Robust Opportunities
  Key Market Drivers   Increasing Share of Renewable Energy to Bolster Growth


Frequently Asked Questions (FAQ) :


A distributed energy resource management system can be described as a module that helps manage the DERs along with the traditional distribution assets such as voltage regulators, tap changers and capacitor banks.

The market expansion is expected to take place at a rate of 15.46% during the review period.

The leading industry contenders profiled in the study are ABB (Switzerland), Siemens (Germany), General Electric (US), Schneider Electric (France), Doosan Corporation (South Korea), Enbala (Canada), AutoGrid Systems, Inc. (US), Open Access Technology International, Inc. (US), Spirae, LLC (US), Blue Pillar (US), and Enel X North America, Inc. (US).

Depending on technology, the market segments that have been listed in the report include energy storage, solar OV, combined heat & power, wind and more.

North America is believed to emerge as the global leader in the next few years.

The primary end-users in the market include government & municipalities, industrial, residential, military and commercial.

The chief growth inducers in the global market are increasing share of renewable energy in the power generation mix and the shift from centralized to distributed generation. The global electricity demand is expected to grow at a significant rate in the next few years owing to the rise in population, rapid development in urbanization, growing infrastructure activities, and enhanced access to electricity.