Virtual Power Plant Market

2021-2030 Analysis and Review Virtual Power Plant Market

Virtual Power Plant Market

Virtual Power Plant Market By End User (Residential, Commercial & Industrial), By Technology (Demand response, Distribution generation, Mixed assets) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021 – 2030

18-03-2022 REP-HC-139352 109 pages Format

Global virtual power plant market is estimated to growat a CAGR of 28.6 % during forecast period (2022-2030). The global virtual power plant market is primarily driven by rising renewable energy generation. Increase in electricity generation from renewable sources would create a new distribution chain for electricity generation and thus would increase demand for virtual power plants. As per the U.S. Environmental Protection Agency, the use of fossil fuels such as coal for power generation is one of the major contributors for greenhouse gas emission. Thus, there has been an increase in the generation of electricity from renewable sources of energy such as solar energy, wind energy, etc. as the non-renewable sources are getting exhausted. Moreover, the share of renewable sources accounted to 22% in 2013 and increased over 25% by 2020, as per the IEA (International Energy Agency). in addition, growing government concerns towards greenhouse gas emissions and supportive government initiatives, such as the “Paris agreement” signed by 175 countries that aims at reducing the global CO2 emission by 28% till 2025 for the adoption of renewable sources of energy, has provided major stimulus to renewable energy generation.

Virtual Power Plant Market

Rising Renewable Energy Generation to Drive the Market

The increasing dependence on non-renewable sources of energy has drained fossil fuel reserves of coal, oil, natural gas resulting in depletion of these reserves. Further the use of fossil fuels such as coal for power generation is one of the major contributors for greenhouse gas emission as per the US environmental protection agency.  So, there has been an increase in the generation of electricity from renewable sources of energy like sun energy, wind energy etc. as the non-renewable sources are getting exhausted. Growing renewable generation of energy creates an opportunity for global virtual power plant market, as increase in electricity from renewable sources would create a new distribution chain for electricity and thus would increase demand for virtual power plants.

Demand Response Leads the Technology Segment

The global virtual power plant market has been segmented on the basis of technology and end-user. The technology segment is further sub segmented into demand response, distribution generation and mixed assets. Demand response lead the technology segment in terms of revenue in global virtual power plant market with over 44.58% market share in 2021. The demand response market comprises of the energy management solution used for the virtual power plant energy management. The growing demand for efficient energy management coupled with the demand for continuous power supply acts as a major driver for the growth of demand response market. in addition, the Energy Efficiency Directive has established a set of binding rules for countries of European Union to use energy more efficiently at all the stages of energy chain (production to consumption), which also aims to achieve 20% energy efficiency by 2020, consequently aiding the growth of demand response market.

Mixed Asset Segment in The Technology to Grow at The Highest Rate

Automotive in the vertical segment of Virtual power plant market is expected to rise at a highest CAGR of 29.6% during the forecast period. Mixed asset market comprises of the mixed bag of assets such as solar power energy efficiency systems, and battery storage that reduces consumption and use for the clean power supply in targeted ways. These techniques are the combination of demand and supply-side options with energy storage. Mixed asset is more advantageous at the local level distribution. At the duration of peak demand, utility rapidly send signals for demand reduction to customers’ equipment. The mixed asset market is primarily driven by rapid transformation of energy paradigm from fossil fuels to sustainable energy sources such as solar, geothermal and wind energy. High dependence on non-renewable sources of energy has prompted the governments of countries to invest in renewable sources of energy such as Solar. However, harnessing power from Solar, wind energy does not always coincide with the energy demand, which calls for the development of large energy storage and management systems to resolve the discrepancy in the transmission and storage system. Hence with the growth in renewable energy generation the demand for mixed asset technology is expected to grow substantially.

North America Captures the Largest Share

Geographically, the global virtual power plant market has been segmented into North America, Europe, Asia Pacific and Rest of World (ROW). North America leads the global virtual power plant market by capturing largest market share in terms of revenue of 36.97% in 2021. North America virtual power plant market is primarily driven by high adoption of renewable sources of energy coupled with increasing installation of virtual power plants in North America. Substantial adoption of virtual power plants for optimizing the energy distribution while minimizing the wastage of energy also act as driver for the virtual power plant market in North America. Moreover, Asia Pacific is anticipated to be the fastest growing region with a CAGR of 30.4% during forecast period. The Asia pacific virtual power plant market is primarily driven by high investment in the renewable energy coupled with increasing adoption of virtual power plants in Asia pacific.  As per the United Nations Environment Program (UNEP) countries Australia and Japan are investing over sustainable energy technologies until 2022. Further, increasing deployment of VPP also act as the driver for the growth of VPP market in Asia pacific.

Level of Competitiveness to Remain High During the Forecast Period

Partnership and collaboration is the primary strategy adopted by companies in global virtual power plant market. Strategic partnership allows the companies to leverage on technology and marketing capabilities. Product launch is the secondary strategy adopted bykey companies in global virtual power plant market. New and advanced products help to improve company’s market visibility while competing effectively with key competitors in the market.The intensity of competitive rivalry in global virtual power plant market is expected to remain high over the forecast period 2022-2030. The global virtual power plant market is highly competitive with the presence of major players, such as such ABB Ltd. (Switzerland), Siemens AG (Germany), AutoGrid Systems Inc. (U.S.), Enbala Power Networks (Canada) and Viridity Energy Solutions Inc. (Ormat Technologies) (Philadelphia) hold more than XX% market share. The major companies are performing intensive research in improving the quality of virtual power plant solutions and developing new products and solutions. Companies are trying to compete with each other by providing the same characteristics and similar price at competitive prices for products in virtual power plant market.

Historical & Forecast Period

This research report presents the analysis of each segment from 2020 to 2030 considering 2021 as the base year for the research. Compounded annual growth rate (CAGR) for each respective segment are calculated for the forecast period from 2022 to 2030.

Report Methodology

Market revenues and CAGR were derived from primary and secondary research. Both quantitative and qualitative trends were considered for extrapolation of market revenues. The derived market estimates were further validated from top down, bottom strategies and primary research. The scope of the market is limited to the following segments of product categories and region.

By End User (2020-2030; US$ Mn)

  • Residential
  • Commercial & Industrial

By Technology(2020-2030; US$ Mn)

  • Demand response
  • Distribution generation
  • Mixed assets

By Region (2020-2030; US$ Mn)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Africa

Global Impact of Covid-19 Segment (2020-2021; US$ Mn)

  • Pre Covid-19 situation
  • Post Covid-19 situation

Key questions answered in this report

  • What are the key market segments in current scenario and in the future by product categories?
  • What are the key market segments in current scenario and in the future by regions?
  • What is the key impact of Covid-19 over market revenues and market determinants in the global virtual power plantmarket?
  • What are the primary and secondary macro and micro factors influencing the market growth currently and during the forecast period?
  • What are the primary and secondary macro and micro factors deterring the market growth currently and during the forecast period?
  • How to overcome the current market challenges and leverage the opportunities in each of the market segment?
  • Who are the key players in the operational predictive maintenance market and what are their key product categories and strategies?
  • What are the key strategies – mergers/acquisitions/R&D/strategic partnerships etc. that companies are deploying to enhance market revenues and growth.

Select License Type

$4,600
$6,600
$13,200

Safe and Secure SSL Encrypted

Have a Question?

We will help you find what you are looking for.

Call 1-518-730-1569

Contact sales

How can we help you?

Get in touch with us or find an office closest to you.