DER Management Technology Market Is Expected to Experience a 24% Compound Annual Growth Rate to 2029
A new report from Guidehouse Insights analyzes the market for distributed energy resources (DER) management software technologies, including DER management systems (DERMSs), virtual power plant (VPP) management systems, and DER analytics, providing forecasts for five global segments through 2029.
The gradual rise of DER has differing levels of positive and negative effects on grid stability and health. A growing number of utilities are responding by enabling higher levels of situational awareness through the advancement of digital transformation initiatives. DER management solutions are foundational to enabling this digital transformation while simultaneously supporting energy industry transformations. Click to tweet: According to a new report from @WeAreGHInsights, the DER management technology market is forecast at $826.4 million in 2020, growing to nearly $5.9 billion in 2029, at a compound annual growth rate (CAGR) of 24.3%.
“Utilities are in the middle of multiple paradigm shifts as digital transformation and proliferation of DER converge to create increased complexity and opportunity,” says Michael Kelly, senior research analyst with Guidehouse Insights. “Most utilities would like to create value internally and for customers by balancing grid operations and planning with demand and DER output. A few utilities are even thinking about how to go a step further by enabling new markets to form around this new body of integrated DER. For this step to occur, the grid must be reinforced with more intelligence and greater control resolution.”
According to the report, the uptake of DER management solutions has been fragmented and piecemeal to date. VPP systems have been popular across Europe, while North American utilities have tended to explore DERMS solutions. For utilities that may not require full-fledged operational systems, DER analytics (load, solar forecasting) can help bridge this gap and facilitate low levels of DER integration.
The report, DER Management Technologies, analyzes the market for DER management software technologies, including DER management systems (DERMSs), virtual power plant (VPP) management systems, and DER analytics. It aims to enable current and prospective electric utility solutions and service providers to understand the drivers for projected demand and likely investment by utilities in DER integration solutions and services. The report provides forecasts and analysis for five global segments for 2020 through 2029. An executive summary of the report is available for free download on the Guidehouse Insights website.