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 2030

Distributed Energy Resource Management System Market Overview

Distributed Energy Resource Management System Market to grow at 17.4% CAGR during forecast period 2022-2030. The management of the distribution grid, which is integrated with DERs, is known as distributed energy resource (DER) management. Electric utilities require new sets of tools to manage DERs to address present distribution grid difficulties. These tools are made up of a mix of hardware and software that work together to appropriately manage these resources. A distributed energy resource management system (DERMS) is a module that controls distributed energy resources (DERs) as well as traditional distribution assets including capacitor banks, voltage regulators, and tap changers.

Due to rising population, fast urbanization, expanding infrastructure operations, and improved access to energy, worldwide electricity demand is likely to grow at a high rate in the coming years. CO2 emissions are mostly caused by conventional energy generation sources such as coal, gasoline, and natural gas. A smart grid is an electricity network that allows end consumers and electricity suppliers to communicate in real-time. To manage power demand and supply, cut costs, and save energy, smart grids monitor, control, and analyze electricity load. They entail the use of renewable energy sources as well as a wide range of operational and energy monitoring technologies, such as smart meters and smart appliances.

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.

Distributed Energy Resource Management System 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.

Distributed Energy Resource Management System Market Segment Outlook:

Insights 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.

Insights 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.

Distributed Energy Resource Management System Market Regional Analysis:

North America

North America is a prominent market for Distributed Energy Resource Management System Market, 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 distributed energy resource management system market.

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 System Market in the region.

Asia-Pacific

The demand for Distributed Energy Resource Management System Market 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.

Distributed Energy Resource Management System Market Insight - Competitive Landscape

The distributed energy resource management system market is 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 market are 

ABB (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).

By technology, 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 system market. 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 system market 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 system market.

Industry News

Many local, regional, and international manufacturers compete in the market for distributed energy resource management systems. The worldwide market is fiercely competitive, with all competitors constantly vying for a larger slice of the pie. ABB is a company that specializes in product electrification, industrial automation, power grids, utility services, and transportation and infrastructure services. Electrification products, robotics & motion, industrial automation, and corporate & others are the company's four segments.

During the forecast period, the most popular tactic used by leading companies in the market was contracts and agreements. New product advancements, investments and expansions, and mergers and acquisitions followed.