Distributed Energy Resource Management System Market

Market Definition

The market refers to the industrial and economic activities around the development, sale, and implementation of software platforms and technologies, which are designed to manage Distributed Energy Resources (DERs).

DERs are small-scale energy generation or storage systems located near end-users. They include technologies like solar panels and wind turbines, which enable decentralized power production and enhance grid flexibility, reliability, and sustainability. The report identifies principal factors contributing to market expansion, along with an analysis of the competitive landscape influencing its growth.

Distributed Energy Resource Management System Market Overview

The global distributed energy resource management system market size was valued at USD 1,652.2 million in 2023, which is estimated to be valued at USD 1,883.7 million in 2024 and reach USD 5,346.4 million by 2031, growing at a CAGR of 16.07% from 2024 to 2031. The global push for sustainability and decarbonization is a key driver for market growth. These systems enable the efficient integration of renewables like solar and wind into the grid, helping businesses achieve carbon reduction and their climate goals.

Major companies operating in the global distributed energy resource management system industry are Siemens, Schneider Electric, General Electric Company, Mitsubishi Electric Corporation, Hitachi Energy Ltd, Emerson Electric Co., Itron Inc., Enel X S.r.l., Open Access Technology International, Inc., EnergyHub, Honeywell International Inc, Oracle, Uplight, Inc, Eaton, and CGI Inc.

The market is experiencing rapid growth as utilities seek advanced solutions to enhance grid reliability. Real-time constraint management, allows DERMS platforms to automatically dispatch distributed energy resources (DERs) such as solar, wind, batteries, and EVs.

This enables utilities to maintain grid stability without costly infrastructure upgrades, which makes DERMS crucial for modern grid operations. Integration with flexible marketplaces further expands value and market participation.

• In March 2025, Smarter Grid Solutions and Piclo integrated Piclo’s Marketplace with SGS’s Strata Grid DERMS, enabling real-time DER management. This collaboration enhances grid reliability, balances supply demand, and empowers utilities to dispatch solar, wind, batteries, and distributed resources efficiently through flexible marketplaces.

Key Highlights:

1. The global distributed energy resource management system industry size was valued at USD 1,652.2 million in 2023.
2. The market is projected to grow at a CAGR of 16.07% from 2024 to 2031.
3. North America held a market share of 40.12% in 2023, with a valuation of USD 662.9 million.
4. The software segment garnered USD 993.3 million in revenue in 2023.
5. The control & optimization segment is expected to reach USD 2,337.4 million by 2031.
6. The energy storage segment will have a market share of 35.09% in 2023.
7. The utility segment is anticipated to have a CAGR of 16.81% during the forecast period.
8. The on-premise segment is anticipated to have a market share of 68.45% in 2031.
9. Asia Pacific is anticipated to grow at a CAGR of 17.84% during the forecast period.

Market Driver

Push for Sustainability & Decarbonization

As governments, utilities, and businesses prioritize climate action, the demand for technologies that support sustainability and decarbonization continues to rise. According to the Ministry of New and Renewable Energy, India has achieved a major milestone in clean energy transition, with the total installed renewable energy capacity surpassing 200 GW as of October 10, 2024.

DERMS enables the integration and coordination of renewable energy resources such as solar, wind, and battery storage into the power grid. By optimizing distributed assets, DERMS platforms reduce reliance on fossil fuels, reduce greenhouse gas emissions, and support net-zero commitments.

This growing focus on clean energy transitions is accelerating the adoption of DERMS across utilities, commercial facilities, and energy service providers, thereby driving the growth of the distributed energy resource management system market.

• In August 2024, Budderfly acquired Sunverge’s DERMS platform to discover the first end-to-end virtual power plant for mid-market businesses. This integration has enabled real-time DER aggregation, enhanced grid flexibility, renewable adoption, and created new revenue opportunities through intelligent demand response and energy optimization.

Market Challenge

Lack of Skills and Expertise

One of the key challenges in the market is the lack of skills and expertise. Traditional utility workforces often lack the specialized knowledge required to implement and operate advanced DERMS platforms. These platforms involve complex software, real-time data analytics, and integration with distributed energy assets.

This gap can affect efficient deployment and system optimization. The solution lies in focused workforce development. Utilities must invest in training programs, industry certifications, and partnerships with technology providers to upskill employees and build internal DERMS competencies for long-term success.

Market Trend

Enhanced Forecasting Capabilities

A prominent trend in the market (DERMS) is the integration of enhanced forecasting capabilities. Advanced forecasting engines are now embedded into DERMS platforms to accurately predict energy demand and generation from distributed sources like solar, wind, and potential system constraints.

These predictive tools use real-time data and machine learning algorithms to improve grid planning and operational efficiency. By anticipating fluctuations and constraints, utilities can make smarter and faster decisions, ensuring grid stability and optimal resource utilization.

• 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. This solution enhances grid stability, forecasting, and real-time compliance across low-voltage networks.

Distributed Energy Resource Management System Market Report Snapshot

Segmentation	Details
By Component	Hardware, Software, Services
By Software Type	Analytics, Control & Optimization, Monitoring & Management
By Application	Energy Storage, Electric Vehicle Charging, Renewable Energy Integration, Grid Services
By End-User	Residential, Commercial, Utility
By Deployment Mode	Cloud-Based, On-Premise
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, Services): The software segment earned USD 993.3 million in 2023 driven by the rising demand for real-time grid analytics and seamless DER integration solutions.
• By Software Type (Analytics, Control & Optimization, Monitoring & Management): The monitoring & management segment held 41.26% of the market in 2023, owing to the growing adoption of intelligent grid monitoring tools and remote asset control for enhanced reliability and optimization.
• By Application (Energy Storage, Electric Vehicle Charging, Renewable Energy Integration, Grid Services): The energy storage segment is projected to reach USD 1,675.5 million by 2031, fueled by increased investments in battery infrastructure and the need for grid-balancing capabilities amid renewable integration.
• By End-User (Residential, Commercial, Utility): The utility segment is anticipated to witness a CAGR of 16.81% over the forecast period, due to rising grid modernization efforts and policy support for the adoption of DER by power providers.
• By Deployment Mode (Cloud-Based, On-Premise): The on-premise segment is anticipated to have a market share of 68.45% in 2031, attributed to data security concerns and a preference for localized system control in industrial operations.

Distributed Energy Resource Management System Market Regional Analysis

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

The North America distributed energy resource management system market share stood at around 40.12% in 2023 in the global market, with a valuation of USD 662.9 million. North America is dominating the market, driven by advanced energy infrastructure, high penetration of renewable energy sources, and strong regulatory support for grid modernization.

In India, PM Surya Ghar: The Muft Bijli Yojana aims to provide free electricity to one crore households by 2027, offering subsidies for rooftop solar installations and promoting energy independence across the nation.The United States has witnessed a surge in distributed energy resources like rooftop solar, battery storage, and electric vehicles.

Utilities across North America are increasingly adopting DERMS solutions to enhance grid flexibility, reliability, and resilience, which makes the region a frontrunner in the deployment and innovation of DERMS.

The Asia-Pacific market is poised for significant growth over the forecast period at a CAGR of 17.84%. Asia Pacific’s growth is fueled by rapid urbanization, increasing renewable energy adoption, and strong government initiatives aimed at achieving energy efficiency and sustainability.

In India, PM Surya Ghar: The Muft Bijli Yojana aims to provide free electricity to one crore households by 2027, offering subsidies for rooftop solar installations and promoting energy independence across the nation.

The region’s focus on integrating advanced technologies for grid management and the rising investments in renewable energy infrastructure make APAC a key player in the global DERMS market. This drives innovation and market expansion at an unprecedented rate.

• In December 2024, Itron deployed its Low Voltage Distributed Energy Resource Management System (LV DERMS) in Australia, enabling Jemena, a provider of gas and electricity services to millions of customers in Australia to manage rooftop solar generation remotely. This solution ensures grid stability, aligns with government mandates, and provides real-time insights into energy system performance.

Regulatory Frameworks

• In the U.S., solar manufacturers can benefit from two federal tax credits: The 45X MPTC for domestic clean energy component production and the 48C ITC for investing in clean energy manufacturing facilities
• In the European Union, the Renewable Energy Directive establishes renewable energy targets, promoting cooperation among member states and emphasizing on energy storage systems, including solar, wind, and battery storage, to aid energy transitions.

Competitive Landscape:

Companies in the distributed energy resource management system market are focusing on enhancing grid stability and integrating distributed energy resources into the grid. They are developing advanced solutions for better forecasting, real-time monitoring and optimizing energy generation and consumption.

These technologies aim to improve demand responses, support renewable energy integration, and enhance grid resilience by providing utilities the tools to manage grid operations and customer-owned energy systems.

• In March 2025, Oracle announced enhancements to its Distributed Energy Resource Management System (DERMS) within the Oracle Utilities Network Management System (NMS). These updates improve forecasting, DER orchestration, and grid optimization.They enable utilities to better manage renewable energy sources, improve resilience, and optimize energy distribution.

List of Key Companies in Distributed Energy Resource Management System Market:

• Siemens
• Schneider Electric
• General Electric Company
• Mitsubishi Electric Corporation
• Hitachi Energy Ltd
• Emerson Electric Co.
• Itron Inc.
• Enel X S.r.l.
• Open Access Technology International, Inc.
• EnergyHub
• Honeywell International Inc
• Oracle
• Uplight, Inc
• Eaton
• CGI Inc.

Recent Developments (Partnerships)

• In February 2024, Itron collaborated with Schneider Electric to modernize energy distribution. Their 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 ongoing energy transition.
• In September 2023, GE Vernova and EnergyHub partnered to enhance DER management and grid optimization. This collaboration merged EnergyHub’s DER orchestration capabilities with GE Vernova’s GridOS DERMS, enabling utilities to improve DER visibility, manage flexibility, and unlock additional energy storage capacity, optimizing grid performance and supporting energy transitions.
• In July 2023, Schneider Electric and PG&E collaborated to deploy a cloud-based DERMS on Microsoft Azure. This platform integrates data from DERs like solar, EVs, and battery storage to optimize grid reliability and resilience. It aims to support increased renewable energy adoption and improve grid flexibility during extreme conditions and peak demand.