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

The U.S. distributed energy resource management system market size was worth USD 112.67 million in 2022 and is projected to grow at a CAGR of 18.69% during the forecast period.

A distributed energy resource management system (DERMS) is the amalgamation of hardware and software that enables real-time communication and control across the solar panels, batteries, and other edge devices that usually lie behind-the-meter and outside grid operators' direct control. The U.S. has witnessed a significant rise in the demand for (DERMS) distributed energy resource management systems. These systems enable energy management and optimization at the consumer level, enabling businesses and individuals to capitalize on their self-consumption and reduce energy costs. The global shift toward more sustainable energy solutions has further bolstered the market’s growth to its full potential.

Due to the COVID-19 pandemic, numerous device manufacturing companies across various regions had to shut down their manufacturing facilities and services as countries implemented full or partial lockdown strategies to manage the situation. Consequently, the demand for electricity significantly decreased, while residential electricity usage saw an increase. However, the decline in business activities severely impacted the distributed energy resource management system.

LATEST TRENDS

Increased Demand for Response Management Software to Provide Growth Opportunities

The increasing need for utilities to keep their grid reliable and safe is driving the demand for distributed energy resource management systems. The increasing demand for response management software and systems is growing due to its ability to provide intelligence, economics, operations, and markets in one modular resolution that allows grid operators to connect, control, see, and optimize DERs from a technical and economic standpoint, whereas helping utilities provide reliable, clean, and affordable energy to their customers.

DRIVING FACTORS

Increase in Adoption of Distributed Energy Resources (DER) to Propel Market Growth

The surge in the adoption of distributed energy resources (DERs) such as rooftop solar panels, photovoltaic units, reciprocating engines, biomass generators, batteries in electric vehicles, and wind-generating units is driving the demand for U.S. distributed energy resource management system market growth. These systems allow effective management and integration of decentralized energy resources, resulting in improved grid stability and efficiency.

RESTRAINING FACTORS

Cyber Security Risks Associated with Internet to Hamper Market Growth

The distributed energy resource management system utilizes the internet, information and communication technology (ICT), energy storage systems, and demand management. These systems heavily rely on digital communication and control, rendering them vulnerable to an increasing risk of cyber-attacks. The threat of cyber-based attacks targeting the energy sector, particularly the electric power grid, is escalating in terms of frequency and complexity. A significant cyber incident within the power generation system could have severe consequences on grid operations, leading to market disruptions, large-scale blackouts, equipment damage, and socioeconomic impacts, consequently affecting the market.

SEGMENTATION

By Software Analysis

Based on software, the market is segmented into virtual power plant (VPP), management & control, and analytics.

The virtual power plant market segment held the largest share in 2022 owing to the ability to move power production between other DERs, providing guaranteed power delivery.

• Virtual Power Plants (VPPs), which consist of networks of decentralized power generating units, storage systems, and flexible demand, can significantly enhance the integration of distributed power resources by leveraging advanced data analytics methods such as machine learning. Consequently, Virtual Power Plants are progressively challenging the dominance of traditional large-scale centralized electricity generation.

By Application Analysis

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

The solar segment held the largest share in 2022. This was due to the various benefits offered by DERs to both providers and consumers.

• DERs primarily rely on innovative technologies to harness solar energy, encompassing accumulated DERs in the form of microgrids, VPPs, and DRs. DERs play a pivotal role in the transition to renewable energy. Consumers utilizing DER units might reduce their electricity costs, while power system owners and the public could benefit from avoiding the necessity of new transmission infrastructure. Additionally, distribution utilities and system operators can enjoy increased flexibility in grid management.

By End-user Analysis

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

The industrial & utilities segment held the largest share in 2022 owing to its advantages, such as lower permitting requirements, requiring less land, and minimal infrastructure involvement.

• Utilities are driving a period of transformational change. The universal adoption of Distributed Energy Resources (DERs) is driving the power network infrastructure. DERs is a quickly growing sector in the energy industry that refers to a distributed generation of electricity using clean and renewable sources. It can be either grid-connected or off-grid and is frequently used in remote areas where it is difficult to extend the electrical system grid.

KEY INDUSTRY PLAYERS

Key players operating in the market are focusing on developing virtual power plants to meet the increasing needs of the renewable energy industry, enhancing the sustainability of energy management.

Additionally, other industry players cater to diverse project requirements, emphasizing the introduction of new technological advancements in distributed energy generation. For instance, in May 2022, Oracle affiliated with POWER Engineers to assist utilities in implementing and integrating more dependable and ground-breaking grid modernization resolutions. As part of this conglomerate, Oracle presented a wide range of appropriate utilities: Network Management System (NMS), Advanced Distribution Management System (ADMS) solutions, DERMS, and Outage Management System (OMS) solutions.

LIST OF KEY COMPANIES PROFILED:

• Itron (U.S.)


• Oracle (U.S.)


• Energy Hub (U.S.)


• AutoGrid Systems (U.S.)


• Opus One Solutions (Canada)


• Blue Pillar (U.S.)


• Kitu Systems (U.S.)


• Sunverge Energy Inc. (U.S.)


• Generac (U.S.)


• Open Access Technology International Ltd (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2023: AutoGrid, a leading provider of (VPP) Virtual Power Plant and (DERMS) Distributed Energy Resource Management Solutions in real-time, announced the launch of its latest product, AutoGrid Flex EV. This AI solution is intended to enable cleaner, more reliable, and cost-effective grid operations and is built on the AutoGrid Flex platform.


• March 2023: OATI (Open Access Technology International, Inc.) was delighted to announce its collaboration with (NISC) National Information Solutions Cooperative. OATI incorporated its innovative webSmartEnergy solution with NISC’s Marketing solution, Meter Data Management, Multi-Channel Messenger, and SmartHub in the newly launched Integration Partner Program of DERMS. NISC chose OATI as its first companion in the program.


• February 2023: EnergyHub announced its partnership with Siemens, marking a significant step in expanding its network of collaborators in the grid software business. These companies would integrate their corresponding solutions to offer utilities a comprehensive and scalable DER management solution. This collaboration promises utilities, improved DER visibility, better management tools, and more accurate forecasting for DER assets. It empowers utilities to restore, plan, function, and maintain a grid that is increasingly centered on DER, breaking down traditional operational barriers.

REPORT COVERAGE

The U.S. distributed energy resource management system market research report provides a detailed analysis of the market. It focuses on key aspects such as an overview of the technological advancements, the prevalence of DERM in the U.S., and pricing analysis. Additionally, it includes an overview of the demand response management for the utilities sector, new product launches, key industry developments such as mergers, partnerships, and acquisitions, and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the market over recent years.

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