Share on

Virtual Power Plant Market Research Report - Segmentation By Technology (Distribution Generation, Response to Demand and Mixed Assets), By Source (Renewable Energy, Cogeneration, and Energy Storage), By End-User (Commercial, Residential and Industrial) and by Region - Industry Forecast | 2023 to 2028

Published: January, 2022
ID: 10326
Pages: 175
Formats: report pdf report excel report power bi report ppt

Virtual Power Plant Market Size (2023-2028):

The Global Virtual Power Plant Market was worth US$ 1.2 billion in 2022 and is projected to reach a valuation of US$ 4.63 billion by 2028 and is predicted to register a CAGR of 25.63% during the forecast period 2023-2028.

A virtual power plant is an aggregate decentralized power plant, composed of decentralized power systems with the aim of integrating different distributed power sources such as photovoltaic solar cells, wind turbines, and hydroelectric plants. The growth of the global market for virtual power plants can be attributed to increased opportunities in renewable energy and battery storage systems, augmented demand for power generation from renewable energy sources, rise in penetration of technologies from smart grids to the shift from centralized generation to distributed generation, to supportive government initiatives to alleviate power outages and increased demand for electricity in key industries such as oil refining, chemicals, metals, and mining, etc.

Market Drivers:

The growth of the global virtual power plant market is driven by several factors such as the rising demand for unconventional energy in the power generation sector, electricity grids that are moving from centralized to distributed, and regulation of costs, as well as the ease of use of electricity storage energy. The other crucial factor driving the growth of the market is the increasing demand for electricity through a reliable power source that is expected to drive the global industry during the forecast period. The virtual power plant helps to provide peak periods of energy use and end-users can save excess energy in energy storage devices such as batteries. Additionally, increasing government mandates and initiatives for customer engagement and incentive programs could provide an additional boost for the end-user segment. The global increase in the demand for unconventional energy in the power generation sector, changes in the dynamics of electricity grids from centralized to distributed, cost regulation, and the ease of use of energy storage, stimulate the development of the virtual power plant market. The phenomenal growth of the construction industry exclusively in the Asia-Pacific region is expected to drive the global virtual power plant market during the forecast period.

Market Restraints:

High-frequency radio and electromagnetic waves cause health problems in babies and the elderly, which can stunt growth. Factors such as the high initial investment and the lack of qualified professionals hinder the development of the VPP market.

VIRTUAL POWER PLANT MARKET REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2022 – 2028

Base Year

2022

Forecast Period

2023 - 2028

CAGR

25.63%

Segments Covered

By Technology, End User, Source, and Region.

 

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

 

 

 

Market Leaders Profiled

ABB Ltd. (Switzerland), Autogrid Systems, Inc. (U.S.), Blue Pillar, Inc. (U.S.), Cisco Systems, Inc. (U.S.), Comverge (U.S.), Cpower Energy Management (U.S.), Enbala Power Networks, Inc. (Canada), Enernoc, Inc. (U.S.), Flexitricity Limited (U.K.), General Electric Company (U.S.), Hitachi, Ltd. (Japan), IBM Corporation (U.S.), Robert Bosch GmbH (Germany), Schneider Electric SE (France), and Siemens AG (Germany), and Others.

 

Market Segmentation:

Virtual Power Plant Market - By Technology:

  • Distribution Generation
  • Response to Demand
  • Mixed Assets

Demand response accounted for the largest revenue share in the virtual power plant market. This can be attributed to the modernization of the grid with the emerging virtual power plant industry that will lead to growing demand response to demand. Mixed assets are expected to experience the strongest growth in the market due to the increased application of smart devices to control customer-installed loads.

Virtual Power Plant Market - By End-User:

  • Commercial
  • Industrial
  • Residential

The industrial segment accounted for the largest share of the revenue. The increasing application of small and medium-sized VPPs in industrial areas will drive market growth. Very good reliability and energy efficiency during peak load periods have made virtual power plants suitable for industrial applications. The residential segment is expected to experience the highest growth in the outlook period.

Virtual Power Plant Market - By Source:

  • Renewable energy
  • Cogeneration
  • Energy Storage

Renewable sources include solar, wind, hydro, and biological, and these are widely used sources for virtual power plants, as they are natural energy sources that can be easily replenished and play an important role in reducing gas emissions of the Greenhouse effect.

Market Regional Analysis:

The North American virtual power plant market accounted for a leading share in the world. Power grids face many challenges in the United States, and they don't match technological advancements in the power industry. When connected to grids, virtual power plants provide energy and address the problems of power fluctuations. In addition, the country's virtual power plants operate under demand response technology that aims at grid stability by changing the pattern of regular power consumption during peak hours. However, as the population is smaller and distributed over a larger geographic area in Canada, the country relies heavily on decentralized power generation technology. Since decentralized generation involves the production of electricity from renewable sources, Canada's need for virtual power plants has increased. All these factors justify the growing trend of adoption of virtual power plants in the region.

Impact of Covid-19 on the Virtual Power Plant Market:

The COVID-19 pandemic has caused a dramatic drop in freight and electricity prices for many networks around the world. However, renewable energy production has remained unchanged, amid the coronavirus lockdown. Moreover, power generation from thermal sources has seen a drop in electricity demand amid a global lockdown.

Market Recent Developments:

  • Tesla is beginning Phase 3 of its massive virtual power plant in South Australia and has confirmed that soon, nearly 4,000 homes with electric walls and solar power will be connected to the system.

  • Power Ledger, Australian power trading and energy retailer Power Club, has joined forces with solar battery maker Sonnen and solar panel provider Natural Solar to launch its Virtual Power Plant (VPP) pilot project in the country.

  • Generac Holdings is recognized for its reserve generators and acquired Enbala Power Networks, a virtual power plant company that makes optimization and control software.

Market Key Players:

The key players in the Global Virtual Power Plant Market are

  1. ABB Ltd. (Switzerland)
  2. Autogrid Systems, Inc. (U.S.)
  3. Blue Pillar, Inc. (U.S.)
  4. Cisco Systems, Inc. (U.S.)
  5. Comverge (U.S.)
  6. Cpower Energy Management (U.S.)
  7. Enbala Power Networks, Inc. (Canada)
  8. Enernoc, Inc. (U.S.)
  9. Flexitricity Limited (U.K.)
  10. General Electric Company (U.S.)
  11. Hitachi, Ltd. (Japan)
  12. IBM Corporation (U.S.)
  13. Robert Bosch GmbH (Germany)
  14. Schneider Electric SE (France)
  15. Siemens AG (Germany)

Please wait. . . . Your request is being processed

FAQ's

1. What is the Virtual Power Plant Market growth rate during the projection period?

The Global Virtual Power Plant Market is expected to grow with a CAGR of 25.63% between 2023-2028.

2. What can be the total Virtual Power Plant Market value?

The Global Virtual Power Plant Market size is expected to reach a revised size of US$ 4.63 billion by 2028.

3. Name any three Virtual Power Plant Market key players?

Cisco Systems, Inc. (U.S.), Comverge (U.S.), and Cpower Energy Management (U.S.) are the three virtual power plant market key players.

Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2500

Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM

Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!

REACH OUT TO US

Call us on: +1 888 702 9696 (U.S Toll Free)

Write to us: sales@marketdataforecast.com

Click for Request Sample