Driven by a growing demand for a cloud-based energy management system and a rapid shift to distributed generation, the global virtual power plant market is slated to showcase a CAGR of 26.65% for the forecast years of 2018-2026. Increasing renewable energy development in emerging countries and the on-going development of smart grids are factors that could significantly propel the market ahead.
The Global Virtual Power Plant market’s segment includes end-users and technology. The End-users for this market can be classified as both commercial and industrial or residential end-users. The Virtual Power Plant technology segment comprises of mixed assets, demand response and distributed generation. Demand Response is a popular technology in this market. Increasing renewable energy development in emerging countries could present this market with abundant growth opportunities.
Asia-Pacific, Europe, North America and rest of world are the regions according to which the geographical segmentation of the global virtual power plant market has been done. While the Asia-Pacific is expected to be the fastest growing region, North America is expected to generate the highest revenue share. Virtual power plants are increasingly being installed in North America owing to its wide-scale adoption. Several organizations are focused on optimizing the energy distribution in a cost-effective manner while simultaneously minimizing any wastage of energy.
Acquisitions or mergers are the primary strategy adopted by market players like Autogrid Systems Inc, Abb Ltd, Blue Pillar, Enernoc (Acquired By Enel Green Power North America, Inc.), Cisco Systems Inc, General Electric, Flexitricity Limited (Acquired By Alpiq), Hitachi Ltd, IBM Corporation, Power Analytics Corporation (Causam Energy), Open Access Technology International Inc, Robert Bosch, Siemens, Schneider Electric, Viridity Energy (Acquired By Ormat Technologies), and Enbala.