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Virtual Power Plant (VPP) Market Status (2017-2021) and Forecast Market Analysis, Regional Outlook, Segment Growth Potential, and Competitive Market Share Analysis, 2022-2028

Format: PDF | Pages: 250 | Report ID: MRS1168


Report Description

The global Virtual Power Plant (VPP) market size is estimated at USD 890.5 million in 2021, expanding at a CAGR of 32.9% from 2022 to 2028 to reach USD 6,470.0 million USD in 2028.

Market Dynamics

A virtual power plant (VPP) is nothing but a cloud-based distributed generation of the power plant which pools the production capability of dispersed energy resources to boost electricity production and trade or sell electricity in the market. It ensures a consistent power supply and lets utilities generate electricity from renewable sources, save it in rechargeable batteries, and distribute it to users. It delivers real-time capacity usage data for the networked units. The rising percentage of renewable power in the power generating mix, as well as falling solar generation and energy storage prices, are driving market expansion. The increasing usage of new technologies in the power industry, such as cloud platforms and internet of things (IoT) applications, is also contributing to the growth of the virtual power plant market.

The ease of access to electricity via VPP platforms, as well as the cost-effectiveness of power generation, have raised the demand for renewable and its supply. According to the International Renewable Energy Agency (IRENA), the sum of the project cost of renewable sources is expected to fall somewhere around 50% and 60% by 2030, with battery cell expenses falling even further as a result of manufacturing facility enhancement, better technology configurations, and reduced product use. The low cost and availability of access to raw materials used in PV modules have spurred competition for their procurement.

The regulatory standards support the increase in renewable power, which boosts the market growth. For example, in the United States, the state of Massachusetts drafted House Bill 4857, which directs the Massachusetts Department of Energy Resources to establish an energy storage objective of 1,000 MWh by 2025. As a result, rising cost-competitiveness for solar power and regulatory attempts to build energy storage is predicted to drive demand for VPPs throughout the forecast period.

Regional Insights

Europe held the largest VPP market share due to the presence of numerous manufacturers and new initiatives by the government on 100 percent green energy in various European countries. The Asia-Pacific region is experiencing the fastest growth in the global VPP market. This can be attributed to increased energy consumption in rapidly industrializing nations such as India and China. For example, China accounts for 36% of the metal industry's yearly contribution to global GDP. Because of the increased need for renewable energy, the United States is likely to lead the industry in North America and see considerable demand for VPP.

Europe, Australia, and the US are among the most renowned virtual power plant builders. These areas have demonstrated incredible skill in creating virtual power plants capable of storing electricity. Furthermore, the existence of competent power industry in these locations has aided in sales growth. The providers in the VPP business are focusing their efforts on expanding into new markets. This tendency will aid in growing sales throughout the worldwide virtual power plant market and may enhance the overall market's performance index.

Segment Dynamics

The worldwide virtual power plant market is divided into three segments based on technology: distributed generation, demand response, and mixed assets. Due to increased expenditures in demand-response systems, the demand response category is expected to have the biggest market share. Its popularity is growing quickly because to the long-term benefits it provides to end-users and its capacity to increase the grid's fuel efficiency. It also offers advantages such as peak load control and the opportunity to earn rewards by engaging in demand response programs. The distributed generating category is also expanding its worldwide market share. With the world's energy and pollution crises worsening, the emergence of new renewable energy solutions is critical. Improved integration of dispersed power generating resources with VPPs may help to optimize the grid operations.

Competitive Insights

The market for Virtual Power Plants (VPPs) is very competitive, with both domestic and foreign rivals present. To stay competitive, large corporations engage in strategic mergers and acquisitions, collaborations, and new product launches. Government attempts to support the developing renewable industry, as well as a rising number of mergers and acquisitions, have resulted in fierce market rivalry. For example, AutoGrid struck a deal in Japan in June 2019 to develop the nation's biggest VPP in storage capacity and assets volume.

The report begins with an overview of the Industry Chain structure, and describes the industry environment, then analyses the market size and forecast of Virtual Power Plant (VPP)s by type, region, and application. In addition, this report introduces the market competition situation among the vendors, and the company profile, besides, market price analysis, and value chain features are covered in this report.

Company Coverage (Company Profile, Sales Revenue, Price, Gross Margin, Main Products, etc.):

  • ABB
  • Siemens
  • General Electric
  • AGL Energy
  • Schneider Electric
  • Enel X
  • Cisco Systems, Inc.
  • Bosch
  • IBM
  • Hitachi, Ltd.
  • Mitsubishi Heavy Industries
  • Next Kraftwerke
  • AutoGrid Systems, Inc.
  • Blue Pillar, Inc.
  • Enbala Power Networks, Inc.

Technology Coverage (Market Size & Forecast, Main Consumer Analysis, etc.):

  • Distribution Generation
  • Demand Response
  • Mixed Asset

Application Coverage (Market Size & Forecast, Main Consumer Analysis etc.):

  • Industrial
  • Commercial
  • Residential

Region Coverage (Regional Consumption, Demand & Forecast by Countries etc.):

  • North America (U.S., and Canada)
  • Europe (Germany, U.K., France, Italy, Spain etc.)
  • Asia-Pacific (China, India, Japan, Indonesia, Malaysia, Australia, South Korea, etc.)
  • South America (Brazil, Mexico, Argentina etc.)
  • Middle East & Africa (Saudi Arabia, Kuwait, UAE, South Africa etc.)

 

Frequently Asked Questions

The global Virtual Power Plant (VPP) market size is estimated at USD 890.5 million in 2021, expanding at a CAGR 32.9% from 2022-2028 to reach USD 6,470.0 million USD in 2028.
North America captured the highest revenue in 2021 and is projected to continue its dominance during the study period.
The global Virtual Power Plant (VPP) market size is expanding at a CAGR 32.9% from 2022-2028 to reach USD 6,470.0 million USD in 2028.
Asia Pacific (especially China, and India) region is projected to grow at the fastest growth rate during the study period.
The market for Virtual Power Plants (VPPs) is very competitive, with both domestic and foreign rivals present. To stay competitive, large corporations engage in strategic mergers and acquisitions, collaborations, and new product launches. Government attempts to support the developing renewable industry, as well as a rising number of mergers and acquisitions, have resulted in fierce market rivalry. For example, AutoGrid struck a deal in Japan in June 2019 to develop the nation's biggest VPP in storage capacity and assets volume.

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