The virtual power plant market has experienced significant growth, increasing from $2.35 billion in 2023 to $2.86 billion in 2024, at a CAGR of 21.9%. This historic growth is largely attributed to the expansion of renewable energy sources and government incentives. The market is projected to reach $6.1 billion by 2028, with a CAGR of 20.8%. Key growth drivers include heightened climate change awareness and broader renewable energy adoption. Notable trends in the forecast period include digitalization, IoT integration, industry partnerships, and further decentralization of energy systems.
Major Driver In The Virtual Power Plant Market
The virtual power plant market is poised for growth owing to the increasing demand for renewable energy. Virtual power plants (VPPs) play a crucial role in balancing the production and consumption of renewable energy, offering forecasts to guide consumer behavior through demand response. In April 2023, global photovoltaic (PV) installations reached 231 gigawatts of direct current (GWdc), totaling 1.2 terawatts of direct current (TWdc) cumulatively in 2022. China's annual PV installations saw a 57% surge, accounting for 42% of global demand. The annual installations are projected to exceed 300 GW by 2023 and surpass 400 GW by 2025, indicating a significant growth trajectory in renewable energy demand. This surge is propelling the virtual power plant market, with market sizes of $A billion in 2023, $B billion in 2024, and a projected $C billion in 2028.
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Virtual Power Plant Market Competitive Landscape
Robert Bosch GmbH, Hitachi Ltd., Siemens AG, Engie SA, General Electric Ltd., International Business Machines Corporation, Cisco Systems, Inc., Schneider Electric SE, Honeywell International Inc, Asea Brown Boveri Ltd., AGL Energy Ltd., Generac Holdings Inc., EnerNOC, Inc, Enel X Ltd., Osisoft LLC, Limejump Limited, Open Access Technology International Inc., Shell Plc., Stem, Inc., Blueprint Power Technologies Inc., Next Kraftwerke GmbH, Cpower Energy Management, Autogrid Systems Inc., Enbala Power Networks Inc., Comverge, Blue Pillar, Inc, Olivine Inc., Sunverge Energy, Inc., Flexitricity Limited, Toshiba Energy Systems & Solutions Corporation
Key Virtual Power Plant Market Trend
The adoption of advanced technologies is a key trend gaining popularity in the virtual power plant market. Major players in the virtual power plant sector are focused on the adoption of advanced technologies to sustain their position in the market. For instance, in October 2022, AutoGrid Systems, a US-based virtual power plant (VPP) provider, partnered with Mysa, a Canada-based thermostat manufacturing startup, and developed utility-scale virtual power plants with an AI-powered VPP platform and Mysa’s smart thermostat technology. With the use of its unique features, such as demand-side resources, distributed generation, customer-owned flexible storage, and AutoGrid VPP, different energy markets can be made profitable and used to generate income. Utility companies and aggregators can increase flexible capacity thanks to their asset optimization and forecasting skills.
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Virtual Power Plant Market Segmentation
The virtual power plant market covered in this report is segmented –
1) By Technology: Distribution Generation, Demand Response, Mixed Asset
2) By Source: Renewable Energy, Cogeneration, Energy Storage
3) By End User: Industrial, Commercial, Residential
By Geography:The regions covered in the virtual power plant market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the Virtual Power Plant market share in 2023.
The Virtual Power Plant Global Market Report 2024 furnishes information about the global virtual power plant market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
