Derms Maarket Report

Market Insights

“The global DERMS market is expected to grow from USD 0.98 billion in 2024 to USD 2.63 billion by 2030, at a healthy CAGR of 17.9% during 2024-2030.”

Market Dynamics

Introduction

DERMS stands for Distributed Energy Resource Management Systems, an advanced software for managing distributed energy resources (DERs). These resources include solar panels, wind turbines, battery storage systems, and electric vehicles. The Development of new applications like integration with solar PV, wind power, and other renewable energy resources is necessitating the demand for efficient DERMS solutions. The global DERMS market is growing with the rising focus on grid modernization and energy decentralization, along with the increasing adoption of renewable energy supported by government policies and increasing awareness of renewable energy storage systems.

Market Drivers

Increasing Adoption of Renewable Energy Supported by Government Policies

The increasing use of renewable energy resources for generating power is a significant factor driving the DERMS market, boosted by government regulations to curtail greenhouse gas emissions. In September 2024, the World Nuclear Association stated that over 40% of carbon dioxide emissions related to power generation are from fossil fuel consumption. To check the CO2 emissions, nations are moving towards renewables for power generation, heating, desalination, and clean cooking, and to support this, the integration of DERMS is also propelling. Furthermore, the International Energy Agency (IEA) stated that renewables provided 29.5% of global electricity in 2022, with a projected increase to 42% in 2028. This shift highlights the importance of efficient DERMS to manage and optimize distributed energy resources.

Increasing Awareness of Renewable Energy Storage Systems

The expansion of the global DERMS market is being fuelled by the growing awareness of efficient and reliable energy storage systems. The renewables, such as solar and wind energy, are gaining prominence, which in turn necessitates the need for efficient and trustworthy energy storage systems for storing excess power that is generated.  DERMS play a crucial role in testing and evaluating energy storage systems to make sure that they can deal with changes in charge and discharge cycles. This has led to increased focus on the design of high-capacity battery systems that can enable renewable energy integration into the grid. With energy independence and rising sustainability becoming priority areas for stakeholders, the application of DERMS is also gaining momentum, consequently driving the distributed energy resource management systems market worldwide

Market Challenges

Cybersecurity Challenges

The major challenge for the DERMS market is that they are prone to cyber vulnerabilities. According to Sophos, out 275 Cybersecurity and IT leaders from 14 different countries, working in several sectors such as energy, oil & gas, and other utilities, around 67 % of these organisations had suffered a cyberattack or ransomware within the last year. DERMS have an intricate communication network connected by distributed energy resources such as solar panels, wind turbines, battery storage units, and electric vehicle (EV) chargers, allowing real-time sharing of the information and its control. This poses a leverage for hackers to carry out cyberattacks, potentially threatening DERMS operations. Therefore, this causes a major obstruction in the growth of the DERMS market.

Market Opportunities

Growing Capital Allocation for The Renewal of Ageing Energy Infrastructure

Growing investments towards upgrading power infrastructure are expected to create substantial opportunities for the players in the market. With growing energy needs and ageing electrical grids, governments and utilities across the globe are devoting large capital funding for upgrading power grid infrastructure to provide grid reliability, resilience, and sustainability. Classic grid systems cannot accommodate renewable generation and decentralisation of energy. Therefore, abundant money is being spent on sophisticated technologies such as DERMS. Moreover, the US DOE's Grid 2030 roadmap seeks to enhance electricity infrastructure, most recently funding around USD 3.5 billion on 58 projects in 44 states to increase grid reliability and resilience. Thus, increasing investments by private as well as public sectors in developing energy infrastructure can push the DERMS market significantly shortly.

Recent Developments:

In February 2024, Itron, Inc., a provider of energy and water resource management products and services, collaborated with Schneider Electric to improve energy and grid management for utilities as residential and commercial customers increasingly deploy DERs, including rooftop solar panels, battery energy storage systems, electric vehicles, and microgrids at the grid edge. The firms will integrate their smart grid and DER management solutions step by step to digitalize the demand and supply of electricity.

Market Segments' Analysis

By Offering Type 

“Software offerings are expected to be the fastest-growing segment in the DERMS market during the forecast period due to their real-time monitoring and data analysis features.” 

The software segment is the fastest-growing segment in the DERMS market since software solutions are critical to the efficient management techniques, upgrades, and integration of DERs. Software solutions for DERMS allow real-time monitoring, data analysis, and control of distributed resources such as solar panels, wind turbines, battery storage systems, and electric vehicles. With the increasing adoption of renewable energy sources, the integration of software offerings is becoming significant to provide robust energy systems and machine learning algorithms. 

By Application Type 

“Solar PV segment is expected to grow with the highest CAGR during the forecast period due to rapid solar system installation worldwide.” 

The solar photovoltaic (PV) use is the rapidly expanding segment within the DERMS market, predominantly due to the fast growth in global solar system installation. Solar PVs have now become part of this worldwide transition due to lowering costs, encouraging government policies, and increased focus on renewable resources to curtail carbon emissions. DERMS solutions are pivotal in addressing the peculiar challenges of solar PV, such as intermittency, distributed generation, and two-way energy flows. They facilitate the unimpeded integration of solar PV systems into the grid through real-time monitoring, forecasting of energy, and grid balancing. By optimising energy generation and distribution, DERMS enhances the efficiency and dependability of solar PV installations and ensures grid stability. 

Regional Analysis 

“North America is estimated to account for the largest share of the DERMS market during the forecast period due to advanced energy infrastructure and significant grid modernization investments.” 

The largest market share of DERMS is currently held by North America, and the same trend is likely to be noted in the future as a result of its highly developed energy infrastructure, extensive use of renewable energy sources, and high investments in grid modernization. Strong government backing in the form of policies and incentives for clean energy and distributed energy resources is yet another driver of the region. The regional market leadership is also driven by the domination of key players in DERMS as well as the establishment of new technologies like AI-based energy management and IoT-based smart grids early on. North America is leading with its emphasis on achieving energy efficiency, reducing carbon footprint, and maintaining grid stability. Industrial and commercial sectors' high energy requirements bring additional power to their market position.

Key Players

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the global DERMS Market -   

• Siemens
• Oracle
• Schneider Electric
• General Electric Company
• Mitsubishi Electric Power Products Inc.
• Hitachi Ltd.
• Emerson Electric Co.
• Itron Inc.
• Enel Spa
• Energy Hub

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The global DERMS market is segmented into the following categories. 

Global DERMS Market, by Offering Type

• Software (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Services (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global DERMS Market, by Application Type

• Solar PV Systems (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Wind Energy Systems (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Energy Storage Systems (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Chip Systems (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• EV Charging Solutions (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global DERMS Market, by End-User Type

• Residential & Research (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Industrial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Commercial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global DERMS Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)

Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s DERMS market realities and future market possibilities for the forecast period.

• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]