Global virtual power plant market is forecast to witness a CAGR of 30% in the coming years and surpass $ 5.6 billion by 2025. Growth in the global virtual power plant market can be attributed to growing opportunities in renewable energy and battery storage systems, rising demand for power generation from renewable sources of energy, increase in penetration of smart grid technologies, shift from centralized to distributed generation, favorable government initiatives to mitigate power outages and increasing demand for power in key industries such as petroleum refining, chemicals, metals and mining, etc.
Global virtual power plant market can be segmented based on component, technology, source, end user and region. In terms of component, the market can be bifurcated into software and service. In 2020, software segment dominated the market, however, service segment is expected to grow at a higher rate in the coming years. Based on technology, the market can be segmented into Demand Response, Distributed Generation, and Mixed Asset. Demand response segment currently holds the largest share and is expected to hold its dominance in the virtual power plant market during the forecast period. Demand response is highly lucrative for investment due to everlasting benefits for end-users and improving the energy efficiency of the grid.
Based on source, the market can be segmented into Renewables, CHP, Energy Storage, and Other Local Generation segments. Renewable sources, including solar, wind, hydro, and bio, are widely used sources for virtual power plant as they are naturally occurring sources of energy that can be easily replenished, and plays an important role in reducing greenhouse gas emissions. The increasing share of renewables in the power generation mix will positively impact the global virtual power plant market.
In terms of end user, global virtual power plant market is segmented into residential, commercial & industrial. Industrial segment held the largest market share in 2019 and is expected to have the largest share over the forecast period as well. Industrial end-users are among the highest adopters of the virtual power plant setups and services. Regionally, North America is the largest virtual power plant market. Shift towards renewable energy sources, need for higher grid stability, and presence of major companies is driving the virtual power plant market in the region. Asia-Pacific is also expected to present lucrative opportunities in the coming years owing to the phenomenal growth in the construction industry, and government regulatory policies and initiatives towards clean energy, especially in China and India. Japan and South Korea are also among the industrialized countries in APAC region that is also expected to boost the region’s virtual power plant in the coming years.
Years considered for this report:
- Historical Years: 2015-2018
- Base Year: 2019
- Estimated Year: 2020
- Forecast Period: 2021-2025
Objective of the Study:
- To analyze and forecast the market size of global virtual power plant market.
- To classify and forecast global virtual power plant market based on component, technology, source, end user, and regional distribution.
- To identify major drivers & challenges for global virtual power plant market
- To identify major emerging trends of global virtual power plant market.
- To examine competitive developments such as expansions, new product launches, mergers & acquisitions, etc., in global virtual power plant market.
- To identify and profile major companies operating in global virtual power plant market.
Key Target Audience:
- Virtual Power Plant market players and other stakeholders
- Organizations, forums and alliances related to power industry
- Government bodies such as regulating authorities and policy makers
- Market research and consulting firms
Market, by Component:
The study is essential in delivering useful information to industry stakeholders such as providers, vendors and end users. The report also provides useful insights about which market segments should be targeted over the coming years in order to strategize investments and capitalize on growth opportunities.
In this report, Global Virtual Power Plant Market has been segmented into the following categories in addition to the industry trends which have also been detailed below:
- Demand Response
- Distributed Generation
- Mixed Asset
- Energy Storage
- Other local generation
- Petroleum Refining
- Chemicals Industry
- Metals & Mining
- North America
- South Korea
- South America
- Middle East & Africa