Virtual Power Plant Market

Virtual Power Plant Market Segmentation by Technology (Demand Response, Mixed Asset, and Distributed Generation); by End-User (Residential, Industrial, and Commercial) – Global Demand Analysis & Opportunity Outlook 2029

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Report ID: 3033 | Published On: Feb 01, 2022

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Inflation and Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.


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Virtual Power Plant Market Highlights 2020 – 2029

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.

Virtual Power Plant Market Graph

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


Global Virtual Plant Market Regional Synopsis

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:

  • North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
  • Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis


Market Segmentation

Our in-depth analysis of the virtual power plant market includes the following segments:

By Technology

  • Demand Response
  • Distributed Generation
  • Mixed Asset

By End-User Application

  • Industrial
  • Commercial
  • Residential


Virtual Power Plant Market Graph
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Growth Drivers

  • Rising Demand for Renewable Energy
  • Easy Implementation and Flexibility in Trading in Virtual Power Plants


Restraints
  • High-Frequency Electromagnetic Radiation from Virtual Power Plants
  • Rising Cyber Security Attacks


Key Questions Answered in the Report

1) What are the major factors driving the growth of the virtual power plant market?

Ans: Increasing demand for renewable energy and easy implementation of virtual power plant is estimated to drive market growth.

2) What would be the CAGR of virtual power plant market over the forecast period?

Ans: The market is anticipated to attain a noteworthy CAGR over the forecast period, i.e., 2021 – 2029.

3) What are the challenges affecting the virtual power plant market growth?

Ans: Growing number of cyber security threats is estimated to hamper the market growth.

4) Which region will provide more business opportunities for growth of virtual power plant market in future?

Ans: Middle East & Africa region is expected to offer more business growth opportunities on the back of emergence of renewable energy projects in the region.

5) Who are the major players dominating the virtual power plant market?

Ans: The major players in the market are AutoGrid Systems, Inc., Cisco Systems, Inc., Cpower, Flexitricity Limited, Schneider Electric, and others.

6) How are the company profiles selected?

Ans: 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.

7) What are the segments in the virtual power plant market?

Ans: The market is segmented by technology, end-user, and by region.

8) Which segment captures the largest market size in end-user segment in the virtual power plant market?

Ans: 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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