“The virtual power plant market is projected to grow at a CAGR of 29.68% from 2016 to 2021”
The virtual power plant market is projected to reach USD 709.2 million by 2021, at a CAGR of 29.68% from 2016 to 2021. Virtual power plant are used in the industrial, commercial and residential sector which includes residential buildings, commercial building such as hospitals, educational institutions, office towers, municipalities, universities, among others. Increasing share of renewable energy in the power generation mix, growth in smart grid, and lowering costs for solar and energy storage would drive the Virtual power plant market. But few factors such as health safety concerns regarding Electromagnetic Frequency (EMF) and Radio Frequency (RF) exposure could restrain the market growth of virtual power plants.
“The mixed asset technology segment is expected to grow at the highest CAGR from 2016 to 2021”
With regard to the technology segment, mixed asset are expected to constitute the fastest growing market from 2016 to 2021. Mixed asset includes multiple technologies such as solar power, battery storage, and energy efficiency systems which helps in storing energy through off peak hours and thus reducing the energy consumption by energy efficient systems as well as supply clean power.
“The virtual power plant for residential end-user segment is expected to grow at the fastest CAGR from 2016 to 2021”
The residential end-user segment is estimated to grow at the fastest CAGR. The demand from residential sector is expected to increase due to growing awareness of use of renewables and save energy by reducing carbon emissions. Also, the government mandates initiatives for customer engagement, and incentives programs would drive the residential end-user segment. This segment generally uses virtual power plant in applications such as batteries, smart meters, among others.
“North America and Asia-Pacific: The largest and fastest growing market for virtual power plant”
North America is currently the largest market for virtual power plant, closely followed by Europe. The North American market is primarily driven by countries such as the U.S. and Canada. The U.S. is expected to dominate the virtual power plant market. Decline in the costs of solar PV and battery based energy storage system are the factors which would drive the virtual power plant solution market in North America. Also, Asia-Pacific is projected to be the fastest growing market. The region is the largest market for the infrastructure sector & industrial sector and is taking various steps to reduce carbon footprint and produce renewable energy, resulting in the growth opportunities for the virtual power plant market in this region.
Breakdown of Primaries:
In-depth interviews have been conducted with various key industry participants, subject matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The distribution of primary interviews is as follows:
- By Company Type: Tier 1- 62%, Tier2- 23%, Tier 3- 15%
- By Designation: C-Level- 35%, Manager-Level- 25%, Others- 40%
- By Region: Americas- 52%, Asia-Pacific- 24%, Europe- 16%, RoW- 8%
Note: RoW = Rest of the World
The tier of the companies has been defined on the basis of their total revenue, as of 2015: Tier 1 = > USD 10 billion, Tier 2 = From USD 1 billion to USD 10 billion, and Tier 3 = < USD 1 billion
Source: Industry Experts and MarketsandMarkets Analysis
The leading players in the Virtual power plant market include ABB Ltd (Switzerland), Siemens AG (Germany), Schneider Electric (France), EnerNOC, Inc. (U.S.) and Comverge, Inc. (U.S.).
From an insight perspective, this research report has focused on various levels of analysis?industry analysis (industry trends), market share analysis of top players, supply chain analysis, and company profiles, which together comprise and discuss the basic views on the competitive landscape; emerging and high-growth segments of the virtual power plant market; high-growth regions; and market drivers, restraints, and opportunities.
The report provides insights on the following pointers:
- Market Penetration: Comprehensive information on products, integrated solutions and services offered by the top players in the global virtual power plant market
- Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the Virtual power plant market.
- Market Development: Comprehensive information about lucrative emerging markets – the report analyzes the markets for virtual power plant across regions
- Market Diversification: Exhaustive information about new products, untapped regions, recent developments, and investments in the global virtual power plant market
- Competitive Assessment: In depth In depth vendor dive analysis of all the key players, strategies, products, and manufacturing capabilities of the leading players in the global virtual power plant market