Distributed Energy Resources Management System (DERMS) Market Report 2026

The distributed energy resources management system (derms) market size has grown rapidly in recent years. It will grow from $1.1 billion in 2025 to $1.28 billion in 2026 at a compound annual growth rate (CAGR) of 16.3%. The growth in the historic period can be attributed to growth of renewable energy installations, increasing adoption of solar and wind systems, initial deployment of energy storage solutions, demand for grid reliability and resilience, early development of energy management software.

The distributed energy resources management system (derms) market size is expected to see rapid growth in the next few years. It will grow to $2.2 billion in 2030 at a compound annual growth rate (CAGR) of 14.5%. The growth in the forecast period can be attributed to expansion of electric vehicle (ev) charging infrastructure, integration of smart grids with ders, adoption of ai-based predictive analytics, rising investment in energy trading platforms, focus on carbon reduction and sustainability initiatives. Major trends in the forecast period include integration of virtual power plants with ders, advanced load forecasting and demand response management, real-time energy monitoring and reporting, optimization of distributed energy resources scheduling, predictive analytics for energy consumption and efficiency.

The growing use of renewable energy sources is anticipated to support the expansion of the distributed energy resources management system (DERMS) market in the coming years. Renewable energy sources are natural processes that are continuously restored and can be utilized to produce electricity or heat. Examples include solar and wind power. The uptake of renewable energy is rising substantially due to environmental priorities, improved cost competitiveness, supportive policies, technological progress, and increasing public demand for sustainable power solutions. Distributed energy resources management systems (DERMS) help coordinate and control multiple energy resources, such as solar panels and wind turbines, to enhance grid reliability and efficiency while supporting renewable energy production. For example, in January 2024, the U.S. Energy Information Administration, a U.S.-based statistical and analytical agency, reported that solar power generation is projected to grow by 75%, from 163 billion kilowatt-hours (kWh) in 2023 to 286 billion kWh by 2025. Likewise, wind power generation is expected to rise by 11%, increasing from 430 billion kWh in 2023 to 476 billion kWh in 2025. Therefore, the growing adoption of renewable energy sources is fueling the distributed energy resources management system (DERMS) market.

Companies in the distributed energy resources management system (DERMS) market are concentrating on creating advanced solutions, such as new software and IoT platforms, to oversee, regulate, and optimize distributed energy resources in real time, thereby strengthening grid reliability and resilience. These software and IoT platforms are integrated digital systems that utilize connected sensors, devices, and sophisticated analytics to gather real-time data, automate control processes, and optimize asset and network performance. For instance, in November 2024, Parsons Corporation, a U.S.-based engineering and technology solutions firm, introduced an updated version of its DERMS platform designed to optimize DER scheduling, integrate advanced metering infrastructure (AMI), and enable utility business models such as virtual power plants (VPPs), facilitating more resilient and digitally managed energy grids.

In August 2024, Budderfly Inc., a U.S.-based energy-as-a-service provider, acquired Sunverge Energy Inc.’s DERMS platform for an undisclosed amount. With this acquisition, Budderfly aims to strengthen its distributed energy resource management and virtual power plant capabilities by incorporating Sunverge’s DERMS technology, allowing the aggregation and optimization of DER assets across commercial and industrial sites to offer grid flexibility, resilience, and enhanced energy management. Sunverge Energy Inc. is a U.S.-based smart grid technology provider that offers DERMS solutions.

Major companies operating in the distributed energy resources management system (derms) market are Enel S.p.A., Siemens AG, General Electric Company, Oracle Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, ABB Ltd., Generac, Engie SA, Itron Inc., Open Access Technology International Inc., Uplight Inc., AutoGrid Systems, Opus One Solutions, EnergyHub, Spirae LLC, Kitu Systems, PXiSE Energy Solutions, Connected Energy, Blue Pillar.

North America was the largest region in the distributed energy resources management system (DERMS) market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the distributed energy resources management system (derms) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the distributed energy resources management system (derms) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The distributed energy resources management system (DERMS) market consists of revenues earned by entities by providing services such as grid management, demand response, asset management, energy trading, microgrid management, and data analytics for optimizing distributed energy resources. The market value includes the value of related goods sold by the service provider or included within the service offering. The distributed energy resources management system (DERMS) market also includes sales of smart inverters, sensors, communication devices, and control systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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