Navigant Research expects the DER management market to grow to $2 billion annually by 2025

Written By: Stratton Report
January 19, 2017

On January 19, Navigant Research announced that it expects global DER management technology market revenue to grow from $194.3 million in 2016 to nearly $2.1 billion in 2025.  According to the firm, this prediction incorporates all three segments of distributed energy resources management technology: analytics, management systems, and virtual power plant systems.

Navigant emphasizes that as utility customers continue to rapidly adopt DER, this is causing numerous challenges for grid operators associated with the variability and changing demand patterns of renewables. While shifts in regulatory policy can help to counter some of these issues, new technologies designed to manage DER are also presenting options for vendors and utilities.

Richelle Elberg, principal research analyst with Navigant Research observes:

“DER, such as solar, storage, electric vehicles, virtual power plants, and more, are set to triple over the next decade, bringing both challenges and opportunities to grid operators. Utilities will invest in DER management technologies, including analytics solutions and DER management systems out of necessity in many regions, and this nascent market is expected to grow rapidly during the next decade.”

The research firm believes that progressive utilities in the United States will drive the market for DER management technologies in the near term, with additional demand from both Europe and Asia Pacific (China excluded) a few years later, while Latin America and the Middle East & Africa are expected to maintain limited, isolated deployments.