The virtual power plant market is anticipated to garner a sizeable revenue by recording a noteworthy CAGR over the forecast period, i.e., 2021 – 2029, on account of the increasing demand for cheap and renewable energy sources among people around the world. In 2019, more than 7000 TWh of energy worldwide was generated by renewable sources. Along with these, ease of implementation and flexibility in trading associated with virtual power plants are other factors which are estimated to drive market growth in the coming years. Furthermore, as virtual power plants are considered to be more cost-effective and require minimum maintenance effort compared to the conventional power plants, the market is expected to witness ample expansion opportunities over the forecast period.
The market is segmented by end-user segment into residential, industrial and commercial, out of which the industrial segment is projected to hold the largest market share, which can be credited to the growing user base of the VPP services in industrial settings. However, the segment for residential end-users is anticipated to grow at a faster rate during the forecast period owing to the rise in urbanization and increasing demand for green energy worldwide. Additionally, on the basis of technology, the demand response segment is expected to grab the largest market share over the forecast period on the back of the advantages such as smart load management during peak hours and improved energy efficiency of the grid. CLICK TO DOWNLOAD SAMPLE REPORT
On the basis of regional analysis, the virtual power plant market is segmented into five major regions, including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. Asia Pacific is projected to acquire largest market share during the forecast period, which can be ascribed to rapid industrialization in the region and rising energy demand in major economies, such as China and India. It was estimated that China’s gas consumption increased by almost 20% in 2019. Moreover, North America is expected to be the second-largest market shareholder owing to the extensive use of VPP and increasing demand for hydro energy, wind energy and solar energy generation in the commercial & industrial sectors of the region. However, the Middle East & Africa region is assessed to demonstrate major growth prospects for the market, on account of the emergence of new renewable energy projects in countries such as Saudi Arabia, the U.A.E, and South Africa and increasing demand to effectively manage the distributed energy supplies in the region.
The virtual power plant market is further classified based on the region as follows:
Our in-depth analysis of the virtual power plant market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Increasing demand for renewable energy and easy implementation of virtual power plant is estimated to drive market growth.
The market is anticipated to attain a noteworthy CAGR over the forecast period, i.e., 2021 – 2029.
Growing number of cyber security threats is estimated to hamper the market growth.
Middle East & Africa region is expected to offer more business growth opportunities on the back of emergence of renewable energy projects in the region.
The major players in the market are AutoGrid Systems, Inc., Cisco Systems, Inc., Cpower, Flexitricity Limited, Schneider Electric, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by technology, end-user, and by region.
The industrial segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.
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