Distributed Energy Resource Management System Market

Market Definition

A distributed energy resource management system (DERMS) is a software platform that monitors, controls, and optimizes distributed energy resources such as solar, wind, storage, and electric vehicles. It encompasses real-time coordination, forecasting, and grid integration.

The platform is used for balancing supply and demand, improving grid reliability, facilitating renewable integration, and enabling efficient, flexible, and sustainable energy management.

Distributed Energy Resource Management System Market Overview

The global distributed energy resource management system market size was valued at USD 1,045.2 million in 2024 and is projected to grow from USD 1,218.6 million in 2025 to USD 3,707.8 million by 2032, exhibiting a CAGR of 17.06% during the forecast period.

The market is driven by rising renewable energy integration, as increasing solar and wind capacity creates a substantial demand for systems that monitor, forecast, and optimize energy flow to maintain grid stability and efficiency.

The market is further growing due to rising electric vehicle adoption and expanding charging infrastructure, which requires DERMS to coordinate charging, balance loads, and optimize energy dispatch across residential, commercial, and industrial sectors.

Key Highlights:

1. The distributed energy resource management system industry size was recorded at USD 1,045.2 million in 2024.
2. The market is projected to grow at a CAGR of 17.06% from 2024 to 2032.
3. North America held a market share of 34.09% in 2024, with a valuation of USD 356.3 million.
4. The hardware segment garnered USD 337.8 million in revenue in 2024.
5. The on-premises segment is expected to reach USD 2,186.5 million by 2032.
6. The energy storage segment is anticipated to witness the fastest CAGR of 17.64% over the forecast period.
7. The commercial segment held a market share of 35.53% in 2024
8. Asia Pacific is anticipated to grow at a CAGR of 18.15% over the forecast period.

Major companies operating in the distributed energy resource management system market are Itron Inc, Oracle, EnergyHub, KITU Systems, Inc, Hitachi, Ltd, Schneider Electric, Siemens, General Electric Company, ENGIE, Mitsubishi Electric Corporation, CGI Inc, Emerson Electric Co, Honeywell International Inc, Eaton, and Schweitzer Engineering Laboratories, Inc.

Rising renewable energy adoption is increasing the complexity of maintaining grid stability, reliability, and efficient energy utilization. DERMS provides advanced monitoring, forecasting, and control to integrate these resources seamlessly. Moreover, renewable energy initiatives are driving DERMS deployment through the growing contribution of variable solar and wind power to the grid, which creates a stronger need for advanced monitoring.

• In October 2023, the European Union revised its 2030 renewable energy target from 32% to 42.5% of total energy consumption, with a goal of reaching 45%, creating a strong demand for DERMS to support large-scale renewable integration and ensure grid reliability.

Market Driver

Rising Renewable Energy Integration into the Power Grid

A major factor driving the distributed energy resource management system market is rising renewable energy integration into the power grid. The growing deployment of solar, wind, small-scale hydropower, and tidal energy is increasing the complexity of maintaining grid stability and balancing demand and supply. 

These intermittent resources require advanced platforms that can provide real-time monitoring, forecasting, and optimization to ensure reliable operation. This is accelerating the adoption of DERMS to enhance grid flexibility and support the transition toward sustainable energy systems.

• In June 2025, The Government of India’s total installed power capacity reached 476 GW, including 226.9 GW from renewable energy and 8.8 GW from nuclear power, driving the demand for distributed energy resource management systems to manage increasing renewable integration.

Market Challenge

High Implementation and Integration Costs

A key challenge in the distributed energy resource management system market is the high cost of implementing and integrating software, hardware, and communication systems for managing distributed energy resources. Ongoing maintenance and skilled personnel are essential to ensure system reliability and seamless operations. These factors slow adoption among smaller utilities and limit the widespread deployment of DERMS solutions.

To address this challenge, market players are developing scalable and modular DERMS solutions that reduce upfront investment and simplify the deployment of DERMS. They are offering cloud-based platforms to minimize hardware requirements and standardized communication protocols for easier integration with existing infrastructure. These strategies are enabling utilities of all sizes to adopt DERMS efficiently to enhance grid management capabilities.

Market Trend

Integrated DER Management for Grid Flexibility

A key trend in the distributed energy resource management system market is the adoption of integrated DER management solutions to enhance grid flexibility. Utilities are deploying platforms that consolidate the control of distributed energy resources, including solar, battery storage, and EV charging, enabling coordinated energy dispatch and load balancing. These systems provide real-time monitoring, forecasting, and analytics to optimize supply-demand management across multiple sites.

• In February 2024, Itron collaborated with Schneider Electric to modernize energy distribution. The partnership focused on digitalizing supply and demand management, enhancing grid flexibility, and optimizing distributed energy resources through integrated solutions. This aims to maximize grid capacity while supporting the ongoing energy transition.

Distributed Energy Resource Management System Market Report Snapshot

Segmentation	Details
By Component	Hardware,  Software, Services
By Deployment	Cloud-based, On-premises
By Application	Solar PV Systems, Energy Storage, EV Charging, Grid Services, Others
By End-User	Residential, Commercial, Industrial, Utility
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Component (Hardware, Software, and Services): The hardware segment earned USD 337.8 million in 2024, due to the growing adoption of advanced sensors, communication devices, and control equipment for managing distributed energy resources.
• By Deployment (Cloud-based and On-premises): The on-premises segment held 59.94% of the market in 2024, due to utilities preferring secure and locally managed DERMS solutions for critical grid operations.
• By Application (Solar PV Systems, Energy Storage, EV Charging, Grid Services, and Others): The solar PV systems segment is projected to reach USD 1,042.3 million by 2032, owing to increasing rooftop and utility-scale solar installations, requiring advanced monitoring and management.
• By End-User (Residential, Commercial, Industrial, and Utility): The residential segment is anticipated to witness the fastest CAGR of 17.32% during the forecast period, driven by rising prosumer adoption of rooftop solar, home batteries, and smart energy management solutions.

Distributed Energy Resource Management System Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America distributed energy resource management system market share stood at 34.09% in 2024, with a valuation of USD 356.3 million. This dominance is attributed to the widespread adoption of DERMS to manage growing distributed energy resources across residential, commercial, and industrial sectors. The strong base of software vendors and utilities in region accelerates the integration of AI, analytics, and IoT into DERMS platforms. 

Energy providers are leveraging DERMS systems to optimize grid operations, balance loads, and maintain reliability as the share of decentralized energy resources expands. Moreover, growing integration of industrial facilities into DERMS enables operators to manage distributed assets more effectively, optimize energy dispatch, and enhance grid flexibility, which is accelerating adoption of DERMS across the region.

• In August 2024, Budderfly acquired Sunverge Energy’s distributed energy resource management system (DERMS) to create virtual power plants (VPPs) across small- and mid-sized commercial facilities. This system enables the aggregation of battery storage, behind-the-meter solar, and EV charging to enhance site resiliency, support demand response programs, and add load flexibility to the grid, planning to enroll thousands of customer sites over the next five years.

Asia Pacific distributed energy resource management system industry is set to grow at a robust CAGR of 18.15% over the forecast period. This growth is attributed to the rising deployment of renewable energy sources such as solar and wind across the region. The increasing demand for real-time monitoring, forecasting, and energy optimization is driving DERMS adoption to manage distributed solar and wind assets and maintain grid stability. 

Increasing adoption of electric vehicles and associated charging infrastructure in the region is further increasing the demand for DERMS. Moreover, the expansion of low-voltage DERMS across residential and commercial sites allows efficient monitoring of rooftop solar and battery storage, and supports rapid integration of distributed energy resources across the region. These factors are significantly contributing to market growth in the region.

• In March 2024, Itron launched its Low Voltage Distributed Energy Resource Management System (LV DERMS) in Australia, enabling utilities to manage Consumer Energy Resources (CERs) like rooftop solar and batteries efficiently. The solution enhances grid stability, forecasting, and real-time compliance across low-voltage networks.

Regulatory Frameworks

• In the U.S., the Federal Energy Regulatory Commission (FERC) regulates the interstate transmission of electricity, overseeing DERMS integration into wholesale electricity markets. It establishes grid interconnection standards, ensures fair competition, and supports demand response programs. FERC’s role is crucial in enabling DERMS to enhance grid reliability, renewable adoption, and flexible energy management across states.
• In China, the National Energy Administration (NEA) oversees the planning, development, and regulation of China’s power sector, ensuring the secure and efficient integration of distributed energy resources. It sets policies for renewable energy adoption, grid interconnection, and smart grid deployment.
• In India, the Central Electricity Regulatory Commission (CERC) regulates electricity tariffs, interstate transmission, and grid standards. It defines the guidelines for renewable integration, ancillary services, and demand response mechanisms that underpin DERMS deployment.

Competitive Landscape

Major players in the DERMS market are deploying aggregator DERMS to manage residential and commercial distributed energy resources efficiently. They are enabling integration of battery storage, solar generation, and electric vehicle charging into grid operations to optimize performance and maintain reliability. 

Additionally, players are offering tailored solutions for residential, commercial, and industrial sites to enhance grid reliability and accelerate the shift toward clean energy.

• In December 2024, Itron collaborated with Xcel Energy in Colorado to deploy an Aggregator DERMS that manages residential battery storage and other distributed energy resources. The system optimizes grid operations, supports load balancing and demand response, and enhances reliability, enabling the integration of customer-owned devices to advance clean energy adoption.

Key Companies in Distributed Energy Resource Management System Market:

• Itron Inc
• Oracle
• EnergyHub
• KITU Systems, Inc
• Hitachi, Ltd
• Schneider Electric
• Siemens
• General Electric Company
• ENGIE
• Mitsubishi Electric Corporation
• CGI Inc
• Emerson Electric Co
• Honeywell International Inc
• Eaton
• Schweitzer Engineering Laboratories, Inc.

Recent Developments (Product Launch)

• In April 2025, Kitu Systems launched Expedition CMS, an EV charging management platform that integrates distributed energy resources to optimize grid operations. The platform provides real-time load management, demand response, and utility connectivity for residential, workplace, and high-power EV charging. It also supports interoperability and DER coordination in pilot programs and commercial deployments.
• In March 2025, Oracle enhanced its Advanced Distribution Management System (ADMS) to help utilities manage distributed energy resources throughout their lifecycle. These updates improve demand response, optimize grid performance, integrate renewable energy, and support rapid response to extreme weather. This enables more efficient and reliable operations across front-of-the-meter and behind-the-meter assets.