"Actionable Insights to Fuel Your Growth"

Distributed Energy Resource Management System Market Size, Share & COVID-19 Impact Analysis, By Software (Virtual Power Plant, Management & Control, Analytics), By Application (Solar, Energy Storage, Wind, EV Charging Stations, Others), By End-user (Residential, Commercial, Industrial & Utilities), and Regional Forecasts, 2023-2030

Last Updated :April 01, 2024 | Format: PDF | Report ID: FBI100825



Play Audio Listen to Audio Version

The global distributed energy resource management system market size was valued at USD 0.49 billion in 2022. The market is projected to grow from USD 0.57 billion in 2023 to USD 1.86 billion by 2030, exhibiting a CAGR of 18.3% during the forecast period.

Distributed Energy Resource Management Systems or DERMS are software solutions that control and coordinate various Distributed Energy Resources (DERs). These DERs are of different energy types such as solar, wind, and battery storage. Distributed energy resource management includes the maintenance, control, analysis, demand control, and remote management of energy resources using software and networks.

The remarkable development of industrialization and urbanization worldwide has resulted in energy demand. The growing demand for energy to support the world's livelihood has led to increasing investments in renewable energy resources. Developing the renewable energy sector and managing distributed generation have surged the demand for the distributed energy resource management system.


Decline in Demand for Distributed Energy Resource Management Systems Amid the Pandemic Slowed Down the Market Growth

COVID-19 continues to spread rapidly around the world. The global impact of COVID-19 on the distributed energy resource management system market growth is moderate, as it hampered the growth rate of the DERMS market. Factors such as reduced capital investments in solar and others, radical change in the energy demand patterns due to shutdowns of industries, businesses, and schools, and necessitating the home office mode during the COVID-19 crisis have impacted the market of distributed energy resource management system.

Furthermore, lockdown measures deteriorated power demand due lack of industrial activities, reducing efforts to set up new DERs. However, the rising reliance on renewable energy drives the market growth.  


Request a Free sample to learn more about this report.

Increasing Demand Response Management Software to Provide Growth Opportunities

With a rapidly expanding population and an expansion in production activity across many industries, there is a huge demand for products. This is due to the rapidly evolving industrial landscape and rapid urbanization. Massive consumption and growing digitization have also accelerated industry and increased demand for materials, manufacturing capacity, and production. To fulfill power demands, the industrial landscape around the world occasionally experiences significant peak load circumstances. There is a sizable need for demand response management software and systems, which is anticipated to drive the market due to increasing development of intelligent infrastructures and higher power consumption.

According to the International Energy Agency (IEA), quick progress is required in demand-response management, which will require 500 GW of response capacity by 2030 as a result of the continuous expansion of renewable energy projects to meet net-zero emissions goals. The agency went on to add that both the supply and demand sides of the system must be flexible. The need for decentralized energy resource management is anticipated to rise significantly over the next 10 years as a result of numerous nations, including Canada, Singapore, the European Union, and China, announcing renewable energy targets and infrastructure development programs for EV charging stations.      


Smart Grid Deployments by Governments to Reduce Carbon Emission to Promote Market Growth

Several governments have directed the installation of smart grids, making them a critical factor in national energy policies. These countries' energy policies focus on improving efficiency and reducing CO2 emissions. Government entities are increasingly investing in the smart grid sector to fast-track the replacement of old grid structures.

One recent development in this context occurred in July 2022, when the U.S. Trade and Development Agency awarded the Régie Autonome de Distribution d'Eau et d'Electricité de Marrakech (RADEEMA), the electricity and water utility of Marrakech to study the transformation of power infrastructure of Marrakech into smart grid and will serve as a model for other Moroccan cities.

Additionally, in November 2021, the U.S. government passed a new Infrastructure Investment and Jobs Act, wherein the country invests heavily in developing smart and distribution grids. The law provides a USD 3 million investment in the Smart Grid Investment Matching Grant Program.

Increased Deployment of EVs to Augment Product Demand 

The growing responsibility for protecting the environment through sustainable development has increased the demand for electric vehicles worldwide. Sales of Electric Vehicles (EVs) in 2021 doubled from 2020 to a record nearly 6.6 million, according to the International Energy Agency (IEA). Almost 10% of global automotive sales were EVs in 2021, which stood at 4% of the market share in 2019. The sales of electric cars are likely to grow strongly in 2022, with 2 million units sold in Q1, up 75% from the same period in 2021.

With technology development, the cost of EVs is reducing, further surging their demand. Governments of different nations have endorsed electric vehicles and set appropriate policies to accelerate the transition to zero-emission vehicles. Environmental regulations and fuel consumption standards determine the EV market.

  • In October 2022, the Uttar Pradesh Cabinet approved the new UP EV Policy – Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022. The electric two-wheelers receive 15% discount on the ex-factory costs. The new policy will support 50,000 electric tricycles and provide a 15% subsidy on the ex-factory cost of up to a certain limit.

With the rise of electric vehicles and a further rise of electric vehicle charging stations, the demand for energy management systems is expected to grow and propel the market.


Cyber Security Risks Associated with IoT to Hinder Market Growth

A distributed energy resource management system uses Information & Communication Technology (ICT), the Internet of Things (IoT), automated control, energy storage, and demand management. The data from the systems is collected for analysis. The data poses a threat of getting hacked by cyber-attacks and data breaches. For example, in February 2021, Npower, a gas and electricity company, permanently withdrew its mobile app after threat actors used it to access their customers’ personal information. The attackers accessed the customer accounts using login data from another website, leaving customers open to fraud.

The heavy investment in data breach prevention and cybersecurity increases the cost of management systems. This financial disadvantage affects the adoption of distributed energy resource management and is expected to hamper market growth.


By Software Analysis

Virtual Power Plant Software to Dominate Owing to its Aggregation Capacity with Different Energy Sources 

Based on software, the market is trifurcated into Virtual Power Plant (VPP), analytics, and management & control.

The Virtual Power Plants (VPP) segment is anticipated to hold the biggest market share. The wide range of features of a VPP, together with elements such as using cloud-based real-time operational control to cluster capacities of diverse Distributed Energy Resources (DERs) to boost efficiency and trading power, make it an appealing option for end-users.

The management & control software assists in remotely managing the distributed energy resource to regulate operations, quickly identify faults, and take the appropriate corrective action. To boost productivity and take advantage of visual datasets, analysis tools and software also assist planners in determining various parameters by integrating massive datasets.

By Application Analysis

Solar Application to Dominate Due to Functional Optimization and Growing Solar Installation

Based on application, the market is segmented into solar, energy storage, wind, EV charging stations, and others.

Use of DERMS in solar is utilized to control and optimize the functionalities of solar energy generation. The wide perforation rate of DERMS in the solar industry and the massive utilization of rooftop solar lead to the dominance of solar applications in the distributed energy resource management system market share.

Moreover, DERMS is also utilized for controlling wind power generation and for controlling & maintaining the EV charging station. The growing installation of wind farms and development of EV charging infrastructure across major regions resulted in market growth during the forecast period. The others segment accounts for Combined Heat & Power (CHP) applications and demand response management.

By End-user Analysis

To know how our report can help streamline your business, Speak to Analyst

Industries & Utilities to Dominate Due to the Use of Distributed Energy Resource Management Systems in their Operations

Based on end-user, the market is subdivided into commercial, residential, and industrial & utilities.

Due to the significant penetration of DERMS, the industrial & utilities segment dominates the DERMS market. In addition, the industrial & utilities segment creates a significant amount of distributed energy, which contributes to the market's supremacy.

Additionally, the use of distributed energy resource management on a smaller scale than in the industrial & utilities segment is referred to as residential and commercial segments. The significant increase in rooftop PV system installations among commercial and residential end-users, including home and business owners who typically use management, control, and analytic software for efficient operation and optimization, is the segment's primary driver.


Asia Pacific Distributed Energy Resource Management System Market Size, 2022 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

Asia Pacific to Dominate the Market Owing to Growing Solar & Wind Power Installation 

The global market is analyzed across major regions, Europe, Asia Pacific, Latin America, North America, and the Middle East & Africa.

Asia Pacific dominates the distributed energy resource management system market share. The massive growth in solar & wind renewable energy installation coupled with excessive energy demand propels the demand for DERMS across the region. One recent development in this context occurred in August 2022, when Horizon Power launched a new DERMS in Western Australia's regional microgrids, which enables rooftop solar, battery and electric vehicle customers to securely join with utility energy resources.

Followed by Asia Pacific, the North America market is largely driven by the growing sanctioning of various virtual power plants and distributed resource management projects across the region. For example, in November 2022, Swell Energy raised USD 120 million to expand the categorization of virtual power plants.

Subsequently, Europe has significant projects in DERMS-based software across renewable energy and energy storage-based systems, resulting in demand for distributed energy resource management systems. For example, Statkraft's virtual power plant in Germany produces 10,000 MW+ of electricity to cater to the energy demand. In parallel, the significant investment in renewable energy projects in Latin America and the Middle East & Africa will drive the market's growth.


Key Participants are Concentrating on Enhancing their Business Capacities to Deliver Efficient Products

Most players operating in the market are focusing on the development of virtual power plants with the rise in deployment of the renewable energy industry, which increases the need for managing the energy demand more sustainably.

Consequently, other players are present across the industry, catering to different project requirements. These establishments focus more on delivering newer technological developments for distributed energy generation, forming a significant portion of the global competitive landscape. For example, in May 2022, Oracle partnered with POWER Engineers to help the utilities implement & integrate more reliable and innovative grid modernization solutions. As a part of the partnership, Oracle offered a wide range of suitable Advanced Distribution Management System (ADMS) solutions, including Network Management System (NMS), DERMS, and Outage Management System (OMS) solutions.

List of Key Companies Profiled:


  • November 2022 - Oracle offered Advanced Distribution Management System for FirstEnergy, an Ohio-based company, to manage the response to power outages across its six-state electric system. Oracle has helped the company implement its Utilities Network Management System (NMS), which helped FirstEnergy to manage & control centers across its 10 electric utilities actively.

  • November 2022 - Awesense Wireless Inc. announced its partnership with Kitu Systems Inc. to accelerate the deployment of Distributed Energy Resource Management Systems (DERMS). The partnership focuses on helping electric utility companies deploy the DERMS and help overcome inaccuracy in data models, lack of real-time visibility, and others.

  • October 2022 – Generac’s DERMS was selected by Dominion Energy Virginia to control and manage the grid reliability. The platform can manage the planned distribution of energy resources, including smaller, behind-the-meter consumer devices such as home solar panels, smart thermostats, battery storage, electric vehicles, and other capacity resources.

  • September 2022 – Itron linked its IoT with Samsung’s smart platform link to enable utility with an improved DERMS. The solution provides participating consumers with real-time consumption data from their meters, behind-the-meter systems and devices within the SmartThings Energy service to provide a comprehensive picture of energy consumption.

  • May 2022 - GE Digital and Opus One Solutions came together to help utilities on their DERs journey with a modular DERMS platform. The software is designed to provide information, operations, profitability, and markets in a modular solution. In this way, network operators can connect, view, control, and optimize the DERs from a technical and economic point of view.


An Infographic Representation of Distributed Energy Resource Management System Market

To get information on various segments, share your queries with us

The research report presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the report.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 18.3% from 2023 to 2030


Value (USD Billion)


By Software, Application, End-user, and Region



By Software

  • Virtual Power Plant (VPP)

  • Management & Control

  • Analytics

By Application  

  • Solar

  • Energy Storage

  • Wind

  • EV Charging Stations

  • Others

By End-user  

  • Residential

  • Commercial

  • Industrial & Utilities

By Region

  • North America (By Software, By Application, By End-user, and By Country)

    • U.S. (By End-user)

    • Canada (By End-user)

  • Europe (By Software, By Application, By End-user, and By Country)

    • U.K. (By End-user)

    • Germany (By End-user)

    • France (By End-user)

    • Italy (By End-user)

    • Spain (By End-user)

    • Netherlands (By End-user)

    • Rest of Europe (By End-user)

  • Asia Pacific (By Software, By Application, By End-user, and By Country)

    • China (By End-user)

    • India (By End-user)

    • Japan (By End-user)

    • Australia (By End-user)

    • Southeast Asia (By End-user)

    • South Korea (By End-user)

    • Rest of Asia Pacific (By End-user)

  • Latin America (By Software, By Application, By End-user, and By Country)

    • Brazil (By End-user)

    • Mexico (By End-user)

    • Argentina (By End-user)

    • Rest of Latin America (By End-user)

  • Middle East & Africa (By Software, By Application, By End-user, and By Country)

    • South Africa (By End-user)

    • GCC (By End-user)

    • Egypt (By End-user)

    • Turkey (By End-user)

    • Rest of Middle East & Africa (By End-user)

Frequently Asked Questions

Fortune Business Insights study shows that the global market was USD 0.49 billion in 2022.

The market size of Asia Pacific stood at USD 0.16 billion in 2022.

Based on software type, the virtual power plant segment holds the dominating share in the global market.

The global market size is expected to reach USD 1.86 billion by 2030.

The key market drivers are the adoption of clean energy and the growing smart grid infrastructure.

The top players in the market are General Electric, Oracle, Siemens, Enel, and Blue Pillar.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2019-2030
  • 2022
  • 2019-2021
  • 210

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.