Renewables, grid upgrades drive energy management systems market

Utilities embrace digital platforms to manage complex grids

The global distributed energy resource management system (DERMS) market is expected to grow to $7.04b by 2035, driven by rising renewable energy deployment, grid modernisation investments, and increasing adoption of electric vehicles.

According to Market Research Future, the market is projected to expand from $1.78b in 2026, registering a CAGR of 16.5% through 2035. It was valued at $1.53b in 2025.

The expansion of renewable energy is increasing the need for digital systems that can manage variable power output and balance supply and demand in real time.

The growing adoption of distributed energy resources and connected grid devices is also increasing grid complexity, pushing utilities to adopt advanced management platforms.

Rising electricity demand from industrialisation, urbanisation, and electric vehicle adoption is prompting utilities to invest in smarter and more resilient power networks. Government efforts to promote smart grids, energy efficiency, and renewable integration are further supporting investments in digital utility infrastructure.

Utilities are increasingly using digital tools to improve energy distribution, reduce operating costs, and enhance asset management.

The push for lower carbon emissions and net-zero targets is also accelerating the adoption of technologies that enable more efficient energy management.

The market is shifting from standalone tools to integrated platforms combining hardware, software, and services. Key technologies include smart grids, advanced metering infrastructure (AMI), outage management systems, predictive analytics, and distributed energy resource management systems.

AI-powered analytics and cloud-based platforms are gaining adoption, enabling real-time monitoring, predictive maintenance, and automated decision-making.

Cloud deployment, software-based upgrades, and modular architectures are helping utilities scale digital solutions whilst reducing investment barriers.

Asia-Pacific is projected to register the highest CAGR at 19.2%, supported by India’s 500 GW non-fossil capacity target, China’s smart grid investments, and renewable energy expansion across Southeast Asia.