DERMS Market Global Forecast to 2029: Rapid Expansion in Renewable Energy Sector Drives DERMS Market Forward Registering a Forecasted CAGR of 18.8% During 2024-2029

December 31, 2024

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The report defines, describes, and forecasts the DERMS market by mounting type, voltage range, type, application, verticals, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report comprehensively reviews the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. A detailed analysis of the key industry players has been done to provide insights into their business overview, solutions, and services; key strategies; Contracts, partnerships, agreements, new product launches, mergers and acquisitions, and recent developments associated with the DERMS market. Competitive analysis of upcoming startups in the DERMS market ecosystem is covered in this report.

DERMS Market

DERMS Market
DERMS Market

Dublin, Dec. 31, 2024 (GLOBE NEWSWIRE) — The “DERMS Market by Offerings (Software, Services), Application (Solar PV Systems, Wind Energy Systems, Energy Storage, Combined Heat & Power Systems, EV Charging Solutions), End-User (Residential, Commercial, Industrial) & Region – Global Forecast to 2029” report has been added to ResearchAndMarkets.com’s offering.

The Distributed energy resource management systems (DERMS) market is expected to grow from an estimated in USD 0.61 billion in 2024 to USD 1.44 billion by 2029, at a CAGR of 18.8% during the forecast period. More use of renewable sources, such as solar and wind power, and decentralized energy systems and grid upgrading, has fostered rapid growth in the business for DERMS.

Key drivers include government clean energy programs, development of smart grid technologies, and concerns about enhancing system stability and energy efficiency. Market opportunities include expanded use of DERMS applications in emerging markets, integration with AI and IoT to leverage predictive analytics, and increased focus on virtual power plants and microgrids. DERMS solutions are critical for maximizing distribution, lowering costs, and ensuring sustainability as energy systems become increasingly complex.

Services market by offerings, is expected to be the largest segment from 2024 to 2029.

The services sector tops the DERMS market because it provides critical functions towards successful deployment, operation, and maintenance of distributed energy resource management systems. Consulting, system integration, training, and continuous support with services help in DERMS deployment optimization across different kinds of energy settings. Tailor-made solutions for end-users are possible by ensuring seamless integration with existing energy infrastructure. In addition, a more complex solution also requires more advanced DERMS solutions. Therefore, services demand grows further, by which the service segment dominates the market.

Industrial, by end-user, is expected to be the fastest-growing market from 2024 to 2029

Industrial end-user is the fastest-growing sector in the DERMS market because of the high energy consumption level and the need for efficient management solutions in the sector. Manufacturing, Mining, Logistics, are a few sectors where it is increasingly adopted for the optimization of energy consumption, integration of renewable sources, and reduction in operational costs. Increasing Pressure for Sustainability and Compliance adds to the cause of adoption of DERMS in industrial sectors. Further, industries will benefit from DERMS, as it ensures grid reliability, minimizes downtime, and provides real-time energy insights, all of which make it imperative for any business to invest in advanced energy management solutions.

North America is estimated to hold the largest market & Asia Pacific having highest CAGR for the forecasted period in DERMS market.

The DERMS market is dominated by North America due to its advanced energy infrastructure, early adoption of renewable energy technologies, and strong regulatory support for grid modernization. The region’s focus on sustainability, combined with significant investments in smart grids and distributed energy solutions, drives market growth. The Asia-Pacific is the fastest-growing market due to rapid industrialization and rising energy demand and an increased adoption of renewable energy sources like solar and wind. Government initiatives, subsidies, and progress in smart grid technologies further drive the growth of DERMS in emerging economies such as China, India, and Southeast Asian nations.

The DERMS market is dominated by a few major players that have a wide regional presence. Some of the major players in the DERMS market Siemens (Germany), General Electric Company (US), Schneider Electric (France), ABB (Switzerland), and Hitachi, Ltd. (Switzerland), among others. The major strategy adopted by the players includes new product launches, joint ventures, acquisitions, and expansions.

The report provides insights on the following:

  • Analysis of key drivers (Growing adoption of renewable energy in power generation due to robust government policies, Pressing need to enhance grid reliability and resilience to mitigate power outage risks), restraints (High installation costs of DERMS, Limited adoption of DERMS due to uncertainties and varying regulations across different jurisdictions), opportunities (Increasing investments in modernizing aging power infrastructure Expansion of electric vehicle infrastructure), and challenges (Interoperability issues among different energy systems and technologies, Cybersecurity risks associated with DERMS)

  • Product Development/ Innovation: The DERMS market is seeing substantial product development and innovation, driven by rising environmental concerns. Companies are investing in improved DERMS technology to manufacture advanced DERMS technologies.

  • Market Development: In July 2023, Schneider Electric and Pacific Gas and Electric Company (PG&E) partnered to implement a DERMS on Microsoft Azure. This collaboration aims to enhance grid reliability and promote the adoption of distributed energy resources (DERs), including electric vehicles, energy storage solutions, and rooftop solar systems.

  • Market Diversification: In June 2024, Hitachi Energy invested an additional USD 4.5 billion in manufacturing, engineering, digital, R&D, and partnerships by 2027, doubling the investments done in the last three years. It will also support the deployment of power electronics-based solutions, grid automation and software solutions, and services in line with the Hitachi Energy 2030 Plan. Investments will also go into partnerships, supply chain, digitalization, and automation, which are enablers to support capacity expansion and increase speed to market.

  • Competitive Assessment: In-depth analysis of market share, growth plans, and service offerings of top companies in the DERMS market, including Siemens (Germany), General Electric Company (US), Schneider Electric (France), ABB (Switzerland), and Hitachi, Ltd. (Switzerland), among others.

Key Attributes:

Report Attribute

Details

No. of Pages

279

Forecast Period

2024 – 2029

Estimated Market Value (USD) in 2024

$0.61 Billion

Forecasted Market Value (USD) by 2029

$1.44 Billion

Compound Annual Growth Rate

18.8%

Regions Covered

Global

Key Topics Covered:

Premium Insights

  • Attractive Opportunities for Players in Distributed Energy Resource Management System Market

  • Distributed Energy Resource Management System Market, by Geography

  • Distributed Energy Resource Management System Market, by Offering

  • Distributed Energy Resource Management System Market, by Application

  • Distributed Energy Resource Management System Market, by End-user

  • Distributed Energy Resource Management System Market in North America, by Offering and Country

Market Dynamics

Drivers

  • Growing Adoption of Renewable Energy in Power Generation due to Robust Government Policies

  • Pressing Need to Enhance Grid Reliability and Resilience to Mitigate Power Outage Risks

Restraints

  • High Installation Costs of DERMS

  • Limited Adoption of DERMS due to Uncertainties and Varying Regulations Across Different Jurisdictions

Opportunities

  • Increasing Investments in Modernizing Aging Power Infrastructure

  • Expansion of Electric Vehicle Infrastructure

Challenges

  • Interoperability Issues Among Different Energy Systems and Technologies

  • Cybersecurity Risks Associated with DERMS

Case Study Analysis

  • Burns & Mcdonnell Helps Evergy to Install Distributed Energy Resource Management System to Reduce Energy Consumption

  • Smarter Grid Solutions Helps Nrel Increase Penetration of Ders in Over 50% of Homes, Communities, and Grid Levels to Manage Power Flow Using PV System

Distributed Energy Resource Management System Market, by Offering

  • Software

    • Energy Analytics Software – Growing Requirement for Real-Time Visibility into Network Operations to Boost Demand

    • VPP Software – Ability to Forecast Energy Production and Consumption Patterns to Accelerate Demand

    • Management & Control Software – Potential to Increase Grid Resiliency by Automatically Adjusting Output of DERS to Increase Adoption

  • Services – Grid Stability and Reliability Requirements to Drive Demand

Distributed Energy Resource Management System Market, by Application

  • Solar PV Systems – Potential to Monitor, Control, and Optimize Energy Production and Distribution in Real Time to Boost Demand

  • Wind Energy Systems -Significant Need for Efficient Use of Wind Energy to Spur Adoption

  • Energy Storage Systems -Strong Focus on Grid Modernization to Stimulate Market Growth

  • CHP Systems -Government Programs and Incentives to Improve Grid Reliability and Resiliency to Promote Deployment

  • EV Charging Solutions – Huge Investment and High Adoption of Electric Vehicles to Fuel Market Growth

Distributed Energy Resource Management System Market, by End-user

  • Residential – Rising Adoption of Smart Home Technology to Fuel Segmental Growth

  • Commercial -Pressing Need to Effectively Utilize Power During Peak Hours to Trigger Demand

  • Industrial – Surging Demand for Energy to Ensure Uninterrupted Plant Operations to Foster Market Growth

Company Profiles

Key Players

  • Schneider Electric

  • Siemens

  • ABB

  • Hitachi

  • General Electric

  • Emerson Electric Co.

  • Oracle

  • Itron

  • Enel Spa

  • Eaton

  • Aspen Technology

  • Mitsubishi Electric Power Products

  • Energyhub

  • Honeywell International

  • IBM

Other Players

  • Open Access Technology International

  • CGI

  • Doosan Gridtech

  • Evergen

  • Virtual Peaker

  • Gridx

  • Gridpoint

  • Connected Energy

  • Autogrid Systems

  • Mprest

For more information about this report visit https://www.researchandmarkets.com/r/gitk9l

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