Virtual Power Plant Market Share, Size, Trends, Industry Analysis Report, By Technology (Demand Response, Distributed Generation, Mixed Asset); By Source (Solar, Wind, Small Hydro, Batteries, Others); By End-Use (Industrial, Commercial, Residential); By Region; Segment Forecast, 2022 - 2030
- Published Date:Feb-2022
- Pages: 101
- Format: PDF
- Report ID: PM2298
- Base Year: 2021
- Historical Data: 2018 - 2020
Report Summary
The global virtual power plant market was valued at USD 874.81 million in 2021 and is expected to grow at a CAGR of 21.9% during the forecast period. The key factors include the benefits of a virtual power plant in the energy industry, an increase in government measures, and investment in energy infrastructure are boosting the virtual power plant market growth during the forecast period.
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By its significant advantages over conventional choices, virtual energy units are gaining growing attention in the energy industry. These plants are cloud-based distributed energy systems that can integrate many energy sources to increase energy generation while maintaining a consistent electricity supply. Virtual energy plants make selling and trading energy in the electricity industry easier.
Virtual energy plants, which allow aggregators and utility companies to integrate energy generation from many distributed sources and plants, are poised to leapfrog and emerge as a fundamental component of the energy sector in the following years. These are expected to become increasingly important because of the changing energy landscape and their importance in the decentralized grid.
Furthermore, government measures have strained national finances, rethinking the renewable energy transition, and delayed energy sector changes. Vietnam, for example, aimed to launch a wholesale electricity industry by 2023. In the aftermath of the outbreak, Thailand's government has backed the creation of a state-owned single-buyer utility. As a result of the huge investments with expanding energy infrastructure, the virtual power plant market is anticipated to grow further.
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Industry Dynamics
Growth Drivers
Efficient energy distribution systems are decentralized, and the local and state government's policies and laws for energy generation and distribution. At the time of energy outages and periods of high energy demand, distributed generating systems, especially when paired with heat and energy and emergency generators, can be used to provide electricity. An increased focus on decarbonization accelerates the shift to distributed generation, electrification, digitization, and breakthroughs in energy generating and storage technology. Distributed generation is becoming increasingly prevalent as renewable technology becomes more cost-effective.
Moreover, PV module procurement has become more competitive due to the low cost and cheap availability of raw materials. Regulatory norms are supporting renewable energy expansion, which is boosting industry growth. The state of Massachusetts in the United States, for example, drafted House Bill 4857 (An Act to Advance Clean Energy) in August 2018, requiring the Massachusetts Department of Energy Resources to set a 1,000 MWh energy storage objective by 2025. As a result, rising cost-competitiveness in solar energy and regulatory attempts to construct energy storage systems are predicted to fuel demand for VPPs over the forecast period.
Report Segmentation
The market is primarily segmented based on technology, source, end-user, and region.
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By Technology |
By Source |
By End-User |
By Region |
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Insight by end-user
Based on the end-user segment, the residential segment is the most significant revenue contributor in the global industry in 2021 and is expected to retain its dominance in the foreseen period. Participating in demand response programs, energy storage systems, and distributed generation boosts the global industry in residential dwellings. It aids in delivering energy during high-demand periods, and end-users can store excess energy in energy storage products such as solar panels and batteries, among other things. Government mandates and initiatives for consumer involvement and incentive schemes could help the residential end-user virtual power plant market grow.
Geographic Overview
In terms of geography, North America had the highest share in 2021. The virtual power plant market's growth is expected to be influenced by technological improvements, policies aimed at reducing greenhouse gas emissions, and the widespread adoption of grid balancing solutions for commercial, residential, and industrial consumers. The growth of the virtual power plant market is examined in the U.S. and Canada. The widespread use of virtual energy units for optimal energy distribution propels industry expansion in the United States. Electricity is generated in the country using various energy sources, including renewables, fossil fuels, and nuclear energy.
Moreover, Asia Pacific witnessed a high CAGR in the global virtual power plant market in 2021. Renewable energy's enormous potential, combined with the fast-growing residential and commercial sectors, is expected to boost the regional market growth. Increased energy demands are a problem in developing economies like China and India. Smart metering, demand response, energy storage investments, and retail competition are predicted to grow in the Asia Pacific region's energy market. The region's market is expected to increase in response to the growing need for decentralized energy generation.
Competitive Insight
Few players operating in the global virtual power plant market include ABB, Ltd., AGL Energy, AutoGrid, Autogrid Systems, Inc., Blue Pillar, Inc., Cisco Systems, Inc., Comverge, Cpower Energy Management, Enbala Power Networks, Inc., Enel X, Enernoc, Inc, Flexitricity Limited, General Electric, Hitachi, Ltd., International Business Machines Corporation, Limejump Limited, Next Kraftwerke., Olivene, Inc., Open Access Technology International, Inc., Osisoft, Robert Bosch., Schneider Electric, and Siemens.
Virtual Power Plant Market Report Scope
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Report Attributes |
Details |
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Market size value in 2021 |
USD 874.81 million |
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Revenue forecast in 2030 |
USD 4,471.30 million |
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CAGR |
21.9% from 2022 - 2030 |
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Base year |
2021 |
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Historical data |
2018 - 2020 |
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Forecast period |
2022 - 2030 |
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Quantitative units |
Revenue in USD million and CAGR from 2022 to 2030 |
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Segments covered |
By Technology, By Source, By End-Use, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key Companies |
ABB, Ltd., AGL Energy, AutoGrid, Autogrid Systems, Inc., Blue Pillar, Inc., Cisco Systems, Inc., Comverge, Cpower Energy Management, Enbala Power Networks, Inc., Enel X, Enernoc, Inc, Flexitricity Limited, General Electric, Hitachi, Ltd., International Business Machines Corporation, Limejump Limited, Next Kraftwerke., Olivene, Inc., Open Access Technology International, Inc., Osisoft, Robert Bosch., Schneider Electric, and Siemens. |
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