Distributed Energy Resource Market Analysis and Global Forecast 2023-2033

Distributed Energy Resource Market Overview

The Distributed Energy Resource Market Size is expected to reach USD 1.47 Billion by 2033. The Distributed Energy Resource industry size accounted for USD 0.28  Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 15.63% from 2023 to 2033. The Distributed Energy Resource (DER) market refers to a decentralized approach to energy generation, storage, and consumption. It encompasses a diverse range of technologies such as solar PV, wind turbines, battery storage systems, and demand response mechanisms. DERs are typically located close to where energy is used, reducing transmission losses and enhancing grid resilience. They empower consumers to generate their own electricity, participate in energy markets, and optimize energy usage. Key drivers include advancements in technology, policy support for renewable energy integration, and the need for more reliable and sustainable energy solutions in both developed and developing economies.

Global Distributed Energy Resource Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic has led to supply chain disruptions leading to supply shortages or lower demand in the Distributed Energy Resource market. The travel restrictions and social-distancing measures have resulted in a sharp drop in consumer and business spending and this pattern is to continue for some time. The end-user trend and preferences have changed due to the pandemic and have resulted in manufacturers, developers, and service providers adopting various strategies to stabilize the company.

Global Distributed Energy Resource Market Dynamics

The major factors that have impacted the growth of Distributed Energy Resource are as follows:

Drivers:

⮚      Technological Advancements

Innovations in renewable energy technologies, such as solar photovoltaics (PV), wind turbines, and energy storage systems (ESS), have significantly lowered costs and improved efficiency. These advancements make DERs more economically viable and attractive to consumers and businesses alike.

Restraint:

• Limited Scalability

DERs often operate at smaller scales compared to traditional centralized power plants. This decentralized nature can pose challenges for scaling up to meet large-scale energy demands or for providing grid services such as frequency regulation and voltage support.

Opportunity:

⮚      Technological Innovation

Ongoing advancements in DER technologies, such as improvements in solar PV efficiency, energy storage systems (ESS) capabilities, and smart grid technologies, enhance DER performance and cost-effectiveness. Innovations in digitalization, blockchain, and artificial intelligence further optimize DER operations and grid integration.

 Distributed Energy Resource Market Segment Overview

By Technology

Based on the Technology, the market is segmented based on Solar PV, Energy Storage, Wind, Combined Heat & Power, Others. Energy Storage” solutions typically dominate. Energy storage systems, including batteries and other storage technologies, play a crucial role in enhancing grid stability, integrating intermittent renewable energy sources like solar and wind, and providing flexibility for demand-side management and grid services.

By Software

Based on the Software, the market has been divided into Analytics, Management & Control, Virtual Power Plants, Others. Management & Control” software solutions typically dominate. These platforms enable centralized monitoring, optimization, and coordination of diverse DER assets, ensuring efficient operation, grid integration, and participation in energy markets like virtual power plants (VPPs).

By End-User

Based on End-User, the market has been divided into Industrial, Government & Municipalities, Commercial, Residential, Military, Others. the commercial sector typically dominates. Commercial entities, including businesses, office buildings, retail centers, and hotels, often lead in adopting DER technologies due to cost-saving opportunities, sustainability goals, and the ability to hedge against electricity price volatility.

Global Distributed Energy Resource Market Regional Analysis

Based on region, the market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. The area of Asia-Pacific is anticipated to dominate the market for the usage of Distributed Energy Resource, followed by those in North America and Europe.

Distributed Energy Resource Asia-Pacific Market

Asia-Pacific dominates the Distributed Energy Resource market due to several factors. With a market share of USD 0.12 billion in 2020, the Asia Pacific region is the largest market for distributed energy resource management systems. The market is driven by the rise in solar and wind power generation as well as the rising need for energy as a result of industrialization throughout Asia Pacific.

Distributed Energy Resource North America Market

The North America region has been witnessing remarkable growth in recent years. The distributed energy resource management market in the United States is one of the largest in North America. By 2050, the US has committed to have net zero emissions. To accomplish this sustainable goal, the federal government invests in renewable energy projects at a quick pace.

Competitive Landscape

The competitive landscape includes key players (tier 1, tier 2, and local) having a presence across the globe. Companies such as ABB Ltd, Siemens, GENERAL ELECTRIC, Open Access Technology International, Inc, and Spirae, Inc are some of the leading players in the global  Distributed Energy Resource Industry. These players have adopted partnership, acquisition, expansion, and new product development, among others as their key strategies.

Key Market Players:

• ABB Ltd
• Siemens
• GENERAL ELECTRIC
• Open Access Technology International, Inc
• Spirae, Inc
• Schneider Electric
• Enbala Power Networks, Inc
• Doosan Gridtech, Inc
• Blue Pillar, Inc
• Autogrid Systems, Inc

Key development:

In September 2022, Siemens announced advancements in its distributed energy solutions, focusing on integrating digital technologies for enhanced grid management and efficiency, aiming to bolster their position in the evolving DER market.

Scope of the Report

Global Distributed Energy Resource Market, by Technology

• Solar PV
• Energy Storage
• Wind
• Combined Heat & Power
• Others

Global Distributed Energy Resource Market, by Software

• Analytics
• Management & Control
• Virtual Power Plants
• Others

Global Distributed Energy Resource Market, by End-User

• Industrial
• Government & Municipalities
• Commercial
• Residential
• Military
• Others

Global Distributed Energy Resource Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $1.47 Billion
CAGR	15.63% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Technology, Software, End-User
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	ABB Ltd, Siemens, GENERAL ELECTRIC, Open Access Technology International, Inc, Spirae, Inc, Schneider Electric, Enbala Power Networks, Inc, Doosan Gridtech, Inc, Blue Pillar, Inc, Autogrid Systems, Inc.
Key Market Opportunities	• Increase share of renewable power generation
Key Market Drivers	• Shift from centralized to distributed power generation

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Distributed Energy Resource Industry trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities analysis in the future
• Historical market size for the year 2021, and forecast from 2023 to 2033
• Distributed Energy Resource market share analysis for each segment
• Competitor analysis with a comprehensive insight into its product segment, financial strength, and strategies adopted.
• Identifies key strategies adopted by the key players including new product development, mergers and acquisitions, joint ventures, collaborations, and partnerships.
• To identify and understand the various factors involved in the global Distributed Energy Resource market affected by the pandemic
• To provide year-on-year growth from 2022 to 2033
• To provide short-term, long-term, and overall CAGR comparison from 2022 to 2033.
• Provide Total Addressable Market (TAM) for the Global Distributed Energy Resource Market.