What Has Been The Historical And Current Growth Of The Virtual Power Plant Market?
The virtual power plant market has seen considerable growth due to a variety of factors.
• The size of the virtual power plant market has seen an enormous rise in the past years. It is projected to expand from $2.81 billion in 2024 to $3.39 billion in 2025, escalating at a compound annual growth rate (CAGR) of 20.8%.
The significant expansion during the historical period is due to factors such as the advancement in renewable energy, expansion of energy storage, government support and incentives, pilot projects and demonstrations, as well as the decentralization of energy systems.
What Can Be Expected from the Virtual Power Plant Market in the Coming Years?
The virtual power plant market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the size of the virtual power plant market is predicted to undergo significant expansion, ultimately reaching a value of $7.43 billion by 2029, rising at a compound annual growth rate (CAGR) of 21.7%.
This surge during the projected period is largely due to mounting awareness about climate change, widespread shift towards renewable energy sources, and economic development. Key trends to watch out for within this period are the digitalization and integration of IoT, strategic partnerships and collaborations, and advancements in technology resulting in a more decentralized energy system.
What Are The Leading Drivers Of Growth In The Virtual Power Plant Market?
The surge in demand for renewable energy is anticipated to fuel the expansion of the virtual power plant market. Renewable energy, derived from rapidly replenishing natural resources, can be effectively managed through Virtual Power Plants (VPPs) which harmonize production and consumer consumption. Utilizing predictive forecasts, consumers can adapt their behavior for optimized demand response. As an example, in April 2023, the National Renewable Energy Laboratory (NREL) published a report indicating that global photovoltaic (PV) installations had hit 231 gigawatts of direct current (GWdc), amassing 1.2 terawatts of direct current (TWdc) in 2022. With an impressive 57% surge, China took the lead, accounting for 42% of global demand, spurred by distributed PV. Predictions for annual installations are set to exceed 300 GW by 2023 and cross over 400 GW by 2025, contributing significantly to the increasing demand for renewable energy and driving the growth of the virtual power plant market.
How Is the Virtual Power Plant Market segmented?
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
Subsegments:
1) By Distribution Generation: Renewable Energy Sources (Solar, Wind), Combined Heat And Power (CHP) Systems
2) By Demand Response: Commercial Demand Response, Residential Demand Response, Industrial Demand Response
3) By Mixed Asset: Hybrid Energy Systems, Battery Energy Storage Systems (BESS)
Pre-Book The Virtual Power Plant Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What New Trends Are Influencing the Virtual Power Plant Market?
Embracing cutting-edge technologies is a significant trend gaining traction in the virtual power plant industry. Leading companies in the virtual power plant sphere are prioritizing the adoption of these advanced technologies to maintain their market status. For instance, in October 2022, American firm AutoGrid Systems, a notable provider of virtual power plants, collaborated with Canadian startup Mysa, which specializes in thermostat production. Their joint effort resulted in the creation of commercial-scale virtual power plants leveraging an AI-based VPP platform and Mysa's smart thermostat technology. Utilizing distinctive features like distributed generation, customer-owned flexible storage, demand-side resources, and AutoGrid VPP, various energy markets can become profitable, providing an avenue for income generation. The capability to optimize assets and predict future trends enables utility companies and aggregators to enhance their flexible capacity.
Who Are the Key Players in the Virtual Power Plant Market?
Major companies operating in the virtual power plant market include:
• 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.
• Blue Pillar. Inc
• Olivine Inc.
• Flexitricity Limited
• Toshiba Energy Systems & Solutions Corporation
What Is The Most Dominant Region In The Virtual Power Plant Market?
North America was the largest region in the Virtual Power Plant market share in 2024. Middle East is expected to be the fastest-growing region in the forecast period. The regions covered in the virtual power plant market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
