According to a report recently released by Markets and Markets, an international market research organization, the globally distributed energy resource management system market is estimated to reach US$286 million in 2021, and this figure is expected to increase to US$750 million by 2026, with a compound annual growth rate during the period. Is 21.2%.
The root government's innovative support for residential buildings and increasing power consumption are driving the development and growth of the distributed energy resource management system market.
In the future, the demand for using renewable energy to produce energy will continue to increase. At the same time, various renewable energy policies supported by the government will promote the development of this market. In 2020, the annual new installed capacity of renewable energy will be close to 280GW, the highest year-on-year growth since 1999. Although the pandemic has had a strong impact on the global supply chain, the newly installed capacity of renewable energy in 2020 has increased by more than 45% compared to 2019, which is expected to drive the demand for the distributed energy resource management system market.
The initial stage of the deployment of the distributed energy resource management system is capital intensive. The role of local and national governments in the transformation of infrastructure is crucial. The technology initially requires a huge investment to establish a transmission network between the customer and the smart grid. In addition, effective deployment requires strong coordination across customary organizational boundaries, major process changes, and strict governance. The high operating and maintenance costs after deployment are also a major concern for utility providers. Therefore, high installation and maintenance costs are the main factors restricting the development of this market.
On the other hand, distributed energy resource management systems make extensive use of information and communication technologies, automated control capabilities, advanced metering and energy storage technologies to meet electricity demand. The data from these devices are vulnerable to cyber-attacks and data leakage. Preventive measures require significant investment, which may have a negative impact on the implementation of new technologies such as smart grids. Therefore, cybersecurity issues related to the energy sector and distributed energy are major challenges facing the industry.
During the forecast period, by component, the distributed energy management system market software market is expected to grow at the fastest rate. The growth of the software component market is attributed to the continuous monitoring of predictive solutions, management of communication equipment, and real-time configuration data.
According to the application industry, the market has been subdivided into solar photovoltaic devices, wind turbines, energy storage systems, cogeneration systems, electric vehicle charging stations, and other markets. It is estimated that from 2021 to 2026, the growth rate of solar photovoltaic will be higher than that of other market segments.
In terms of regional markets, North America is expected to become the largest market during the forecast period. North America, Europe, South America, Asia Pacific, Middle East, and Africa are the main areas for market research on distributed energy resource management systems. North America is expected to become the largest market during the forecast period. This is mainly driven by the substantial increase in electricity demand in North America. Its power sector is facing challenges in achieving energy efficiency targets, complying with federal carbon policies, and integrating. Therefore, investment in distributed energy resource management systems has increased to overcome these challenges.
