Market Size (2017)
2017
$301.20M
Vertical: EnPBase Year: 201810 Sections
Market Size (2017)
2017
$301.20M
Projected (2025)
2025
$938.00M
CAGR (2017–2025)
15.3%
15.3%Key Players
106+
The demand for distributed energy resource management system is growing rapidly in the global market owing to the rising demand for energy primarily from renewable energy sources.
The global distributed energy resource management system market is projected to grow at 15.46% CAGR during the forecast period, 2019–2025. In 2018, the global distributed energy resource management system market was dominated by North America with a 38.17% share, followed by Europe and Asia-Pacific with shares of 32.67% and 20.56%, respectively.
The global distributed energy resource management system market has been segmented on the basis of technology, software, end use, and region. On the basis of technology, the global distributed energy resource management system market has been segmented into solar PV, energy storage, wind, combined heat & power, and others. The wind segment is expected to grow at the fastest rate during the forecast period. In 2018, the solar PV segment held a 27.24% share of the global distributed energy resource management system market.
On the basis of software, the global distributed energy resource management system market has been segmented as analytics, management & control, and virtual power plants. The analytics segment is expected to grow at the fastest rate during the forecast period. In 2018, the virtual power plants segment held a 31.87% share of the global distributed energy resource management system market.
On the basis of end use, the global distributed energy resource management system market has been segmented as industrial, commercial, residential, government & municipalities, and military. The commercial segment is expected to grow at the fastest rate during the forecast period. In 2018, the industrial segment held a 38.63% share of the global distributed energy resource management system market.
The Distributed Energy Resource Management System Market market is projected to grow at a CAGR of 15.3% from 2017 to 2025.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansDistributed energy resource (DER) management is the management of distribution grid, which is integrated with DERs. In order to tackle the current challenges related to distribution grid, electric utilities need new sets of tools to manage highly adopted DERs. Such tools are a combination of different hardware and software that are integrated in order 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. This system increases the grid reliability and performance of the DERs by significantly reducing the voltage excursions and maintain higher network stability. Hence, DERMS manages to significantly increase network hosting capacity for DERs and achieve regulatory targets for renewable generation with minimal investment in network capacity
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2018
Historical Period
2017 – 2018
Forecast Period
2018 – 2025
Primary Interviews
150+
Historical data (2017–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansTHREAT OF NEW ENTRANTS
The global distributed energy resource management system market is expected to witness significant growth, owing to the growing use of combined heat & power (CHP) plants and high investments in electric vehicles (EVs). Factors such as the need for high initial investments and a vast customer base might hinder the entry of new players. The key players operating in the global distributed energy resource management system market have high technical expertise, and they hold a majority of the market share, owing to various innovative and strategic approaches, which leads to the effective implementation of technologies. This results in a further reduced threat of new entrants. Some of the key players of the market are ABB, Siemens, and General Electric. The wide geographic reach of the players makes it difficult for new players to achieve economies of scale and large profit margins. However, due to the growing number of regional market players, the profit margins of companies operating in the market are moderate. Therefore, the threat of new entrants in the global distributed energy resource management system market is expected to be moderate.
BARGAINING POWER OF SUPPLIERS
The key suppliers of DERMSs include the providers of hardware and software that are required for the integration and enabling of DERMSs. A high concentration of suppliers restricts their bargaining power. The need for reliable and efficient DERMSs makes it necessary for the system integrators and enablers to form contracts with the suppliers, who invest in research & development to offer innovative software and hardware solutions specific to the industry verticals. This leads to a dependence of the integrators on the suppliers and raises the bargaining power of suppliers to an extent. Thus, the bargaining power of suppliers in the global distributed energy resource management system market is expected to be moderate.
BARGAINING POWER OF BUYERS
The buyers in this market, who can broadly be categorized into energy, automotive, government & municipalities, renewable energy systems, and other users who have adopted DERMSs extensively. The concentration of buyers in the market is high, which reduces their bargaining power. They form long-term contracts with the system integrators, which leads to an increased cost of switching and reduces their bargaining power. However, a large number of international and domestic sellers provide DERMSs at relatively competitive prices, which increases the bargaining power of buyers to an extent. Thus, the bargaining power of buyers is expected to be moderate.
THREAT OF SUBSTITUTES
A DERMS is a software platform comprised of hardware and software to monitor, regulate, and control the distribution grids that are mainly based on distributed energy resources. It enables the critical tasks of monitoring and controlling of equipment, organizing the operation of the aggregated distributed energy resources within a power grid, and delivering real-time information to control centers. DERMSs may be installed on the substations or are connected to computers set up at a certain distance from the substations. There are no substitutes for DERMSs. Therefore, the threat of substitutes in the global distributed energy resource management system market is expected to be low.
RIVALRY
There is intense competition among the players such as ABB, Siemens, General Electric, Open Access Technology International, Inc., and Autogrid Systems, Inc. and the vendors invest heavily in research & development to meet the growing demand for DERMSs in various industries. Moreover, these players hold a majority of the share of the global distributed energy resource management system market. Key players in the global market are enhancing their product portfolios and are regularly participating in seminars and conferences to penetrate the market. Thus, the intensity of rivalry in the global distributed energy resource management system market is expected to be high.
Market estimates by geography (2025)
InsightNorth America leads with $375.70M by 2025.
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View Subscription Plans| REGION | 2017 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| North America | $114.20M | $204.30M | $375.70M | 16.1% | 40% |
| Asia Pacific | $62.20M | $106.20M | $186.20M | 14.7% | 20% |
| Europe | $98.60M | $170.20M | $302.20M | 15.0% | 32% |
| Rest of the World | $26.20M | $43.40M | $73.90M | 13.8% | 8% |
| Total | $301.20M | $524.10M | $938.00M | 15.3% | 100% |
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View Subscription PlansTotal Market Size
$937.90M
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Wind | $302.40M | 15.3% | 77% |
| Solar PV | $259.10M | 15.3% | 89% |
| Combined Heat & Power | $177.40M | 15.3% | 81% |
| Energy Storage | $119.20M | 15.3% | 89% |
| Others | $79.80M | 15.3% | 53% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Distributed Energy Resource Management System Market covering market dynamics, competitive landscape, and strategic outlook.
The Distributed Energy Resource Management System Market market is projected to reach $938.00M by 2025, growing at 15.3% CAGR. The Wind segment holds the largest share.
The global market for distributed energy resource management system is expected to grow at a steady rate during the forecast period. The growth can be primarily attributed to the increasing share of renewable energy in the power generation mix and the shift from centralized to distributed generation. The increasing demand for smart grids and microgrids is expected to create opportunities for market players during the forecast period. However, cyber threats are expected to form a restraint in the growth of the market during the forecast period.
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. The conventional energy generation sources such as coal, petrol and natural gas contribute primarily to carbon emission. As stakeholders in the power generation industry seek opportunities to reduce carbon footprint, they have been focusing on raising the share of renewable energy sources in the total power generation mix, globally. Renewable energy sources, especially solar, wind, hydro, and biomass are used for electricity generation.
Furthermore, the rising concerns regarding the growing carbon emissions and the efforts to curb them result in the need to increase the share of renewable energy in the power generation mix. Wind, solar, biomass, and other renewable energy sources witness growth in demand as they help reduce carbon emissions. Renewable energy sources generate electricity without any polluting emissions while non-renewable energy sources, such as coal and natural gas, emit harmful gases and wastes. Therefore, the awareness regarding environmental safety and security has fueled the market growth for renewable energy, globally. Furthermore, countries across the world such as India, Germany, Saudi Arabia, and the UAE, have set the target to increase the generation capacity of renewable energy generation sources to increase the share of renewable energy in the power generation mix. For instance, in 2019, the Saudi Arabian government set a target to generate 60GW of energy form renewables by 2030. In 2017, the UAE government launched Energy Strategy 2050 so as to increase the share of renewable energy to 50% in the country’s total energy mix by 2050. Similarly, according to the Federal Ministry for Economic Affairs and Energy, the German government set a target to have 40-45% share of renewable energy in the country’s total electricity consumption by 2025. In the US, according to the International Renewable Energy Agency (IRENA), the share of the renewable energy in the country’s total energy generation capacity is expected to reach 10% by 2030. The integration of the electricity generated from renewable energy sources into the conventional grid network is facilitated with the help of DERMSs to create a combined network of various renewable energy sources. DERs such as solar, hydropower, wind and biomass being an important aspect of DERMS, provide flexibility in renewable electricity generation. DERMS monitors and optimizes the flow of the energy generated from renewable energy sources into the distribution grid network. It also provides enhanced control and integration of renewable energy sources in the grid network and maintains grid stability. An increased demand of renewable energy sources is expected to increase the use of DERMSs. Hence, the increasing share of renewable energy in the power generation mix is expected to drive the growth of the global distributed energy resource management system market during forecast period.
A smart grid is an electricity network that allows two-way communication between electricity suppliers and end users. Smart grids monitors, controls, and analyzes electricity load to manage the demand and supply of electricity, reduce costs, and save energy. They involve the use of renewable energy resources along with a variety of operations and energy measurement systems including smart meters and smart appliances. Smart grids also help improve the efficiency and flexibility of electricity grid network and help in the grid integration of renewable energy sources.
Moreover, the countries around the world are focusing on the implementation of smart grids due to its various advantages such as reduced peak load, reliable power, real-time monitoring, demand-side management, and reduced carbon emission. Such grids generally operate autonomously and thus help in mitigating grid disturbances in the conventional grid network. In the US, according to the US Department of Energy, the annual investment in smart grid infrastructure is expected reach USD 13.8 billion by 2024. In the UAE, in October 2018, Dubai Electricity and Water Authority (UAE) launched a plan to install 270,000 smart meters as per its Smart Applications via Smart Grid and Meters project. Such developments ensure the growth of smart grids and smart meters. Many authorities in various countries across the world such as the UK, India, China, and Germany are focusing on the development of the smart grid projects. Moreover, smart grids help in meeting the demand for energy, reduction of T&D losses, and bridging the gap between electricity demand and supply. The development and installation of smart grids are expected to lead to the increased use of DERMS in order to control, maintain, and optimize the grid network during the forecast period. Therefore, the development of smart grids is expected to create opportunity for the key players in the global distributed energy resource management system market.
The threat of cyber-based attack 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. Data breach, unauthorized command, and Denial of Service (DoS) are some of the types of cyberattacks. Cyberattacks cause system failure, which leads to improper functioning of the DERMS. The functioning of the DERMSs is based on software including analytics, management & control, and virtual power plant software, which are prone to cyber threats. Thus, DERMSs must be designed to prevent cyber-attacks and mitigate their risks. Cybersecurity plays an important role in ensuring a secure and reliable network for the functioning of the DERMS. However, various DERMS operators lack advanced and upgraded systems and technologies to ensure safe networks. Additionally, the cost of developing secure systems is also very high owing to the high costs involved in research & development, and installation of DERMS. Hence, the cyber threats are expected to restrain the growth of the global distributed energy resource management system market during the forecast period.
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Profiles of 106 companies operating in the Distributed Energy Resource Management System Market market, including revenue, employee count, and market positioning where available.
Showing 106 of 106 companies
BLUE PILLAR
Blue Pillar is engaged in the business of providing software products and services to commercial and industrial facilities. It provides critical power and energy management solutions for single-site and centralized multisite facilities. The company offers Aurora, a protocol and vendor-agnostic platform for creating a digital energy IoT network for connecting, controlling, and data acquisition of facility mechanical and electrical equipment. The company manufactures software that manages electrical grids. Blue Pillar primarily serves customers who generate their electricity, such as college campuses, hospitals, manufacturers, telecommunications providers, and military bases. It provides solutions such as Energy Network-as-a-Service (ENaaS) and Deploy-it-Yourself (DIY) using which one can access the software technology easily and get the real-time data from these solutions. Some of the competitors of the company are Enbala, Qos Energy, BRIDGE Energy Group, EcoPlant, Rodan Energy, and Noveda.
ENBALA
Enbala is engaged in providing solutions and services for managing power grid and energy resources. It offers various products and solutions such as commercial and industrial (C&I) process loads, energy storage and renewable energy sources, demand-side management, renewable integration, generation optimization, energy storage, grid optimization, distributed energy resources, mixed-asset systems, ancillary services, energy management, hybrid heating, and asset co-optimization. It offers its solutions to energy service providers, grid providers, distribution utilities, and energy retailers. The company has a presence in Denver and North Vancouver and has formed partnerships across the globe with companies such as ABB, Aclara Technologies LLC, Aquanta Inc., Encycle Corporation, Energy Datametrics, KMC Controls, and Sonnen.
SCHNEIDER ELECTRIC
Company Headquarters: Rueil-Malmaison, France Founded: 1836 Workforce: ~1,42,000 Company Working: Schneider Electric is a leading multinational corporation, which offers solutions for the digital transformation of energy management and automation industries. It offers its products and services for applications in homes, buildings, data centers, infrastructure, and industrial operations. Furthermore, the company also offers solutions for integrated efficiency, combining energy, automation, and software applications. Schneider Electric operates through four business segments, which are low voltage (building), medium voltage (infrastructure), industrial automation (industry), and secure power (IT). The low voltage business segment offers electrical distribution products and solutions including circuit breakers, power monitoring and control, power meters, electrical enclosures, busways, cable management systems, renewable energy conversion and connection equipment and electric vehicle charging infrastructures. The major subsidiaries of the company are American Power Conversion Corporation, Clipsal, Pelco, ASCO Power Technologies, Feller AG, Luminous Power Technologies, Digital Electronics Corporation, Summit Energy Services, Inc., APC Holdings Inc., and Schneider Electric Buildings Americas, Inc. It primarily competes with companies, such as ABB, Siemens, Eaton, and Aerovironment. Schneider Electric offers its products and services in more than 100 countries including Brazil, Canada, China, Denmark, France, Germany, India, Russia, the UK, and the US. It has 208 plants and 98 distribution centers, across the globe.
ABB
ABB is engaged in the business of electrification of products, industrial automation, power grids, utility services, and transport & infrastructure services. It operates through four business segments, namely, electrification products, robotics & motion, industrial automation, and corporate & other. It offers drives, high voltage products, low voltage products & systems, measurement & analytics, control room solutions, communication networks, mechanical power transmission, and medium voltage products. Metallurgy products, motors & generators, programmable logic controlled (plc) automation, power converters and inverters, robotics, semiconductors, substation automation, protection and control, and transformers are among other products it offers. ABB offers its products & services in more than 100 countries across the world. It has operations across Latin America, Europe, Asia, and the Middle East & Africa. GE Industrial Solutions, B&R, Busch Jaeger, Baldor Electric Company, Thomas & Betts, and Power-One Inc. are some of the subsidiaries of the company.
General Electric Company
Company Headquarter: US Founded: 1892 Workforce: 283,000 Company Working: General Electric Company is a technology and financial services company that develops and manufactures products for the generation, transmission, distribution, control, and utilization of electricity. The company offers aircraft engines, power generation, water processing, security technology, medical imaging, business and consumer financing, media content, and industrial products. GE operates through two major segments—industrial and capital. The industrial segment consists of 8 different sub-segments, namely, power, oil & gas, energy, aviation, healthcare, transportation, appliances and lighting, and GE capital. The Power segment offers power generation and energy production. The Oil & Gas segment provides mission-critical equipment for Oil & Gas companies. The Energy segment provides wind turbine platforms, hydropower products and services, and blades for wind turbines. The Aviation segment manufactures jet engines, turboprops, maintenance, engineering, and overhaul services. The Healthcare segment provides diagnostic imaging and clinical systems, drug discovery solutions, gene therapy technologies, and medical technologies. The Transportation segment offers freight and passenger locomotives, rail parts, data analytics, and rail integrated software solutions. The Appliances & Lighting segment manufactures LED products, refrigerators, cooktops, microwave ovens, hybrid water heaters, energy efficiency, and productivity solutions. The GE Capital segment offers financial services such as commercial loans and leases, consulting services, and fleet management. GE Power’s Grid Solutions is one of the subsidiaries which provide the energy leader that provides technology, solutions, and services across the entire energy value chain. The company operates across the world in the Americas, EMEA (Europe, Middle East, and Africa), and Asia-Pacific and has several subsidiaries including GE Capital, GE Digital, GE Energy Connections, and GE Global Research.
Doosan Corporation
Established in 1962, Doosan Heavy Industries & Construction Co., Ltd is one of the Korea based companies engaged in supplying industrial facilities to both domestic and international plant markets. The company manufactures and installs various plant components, such as steam turbines, hydraulic turbines, condensers, and heat exchangers. Power business is operated through a separate segment. Doosan Heavy Industries & Construction entered a range of areas such as construction, food and beverages, engineering, media and culture, and has established the foundation of the corporation by modernizing and diversifying its management. The company has more than 40,000 employees spread throughout 38 countries, including the United States, Europe, Southeast Asia and India. The company provides the best solutions for the power generation and water industries. Doosan Babcock, Doosan Engineering & Construction and Doosan HF Controls Corporation, are some of subsidiaries of the company. Siemens and General Electric are major competitors of the company.
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Distributed Energy Resource Management System Market