DUBLIN, Oct. 7, 2021 /PRNewswire/ -- The "Virtual Power Plants - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.
Global Virtual Power Plants Market to Reach $1.5 Billion by 2026
With traditional utilities stretched to the breaking point due to rapid population growth, urbanization and demands of the digital age, energy transformation is gaining momentum with new generation concepts like virtual power plants. Virtual power plants are garnering increasing attention in the energy industry owing to their compelling merits over conventional options.
These plants are cloud-based distributed power systems capable of integrating different power sources to enhance power generation while ensuring reliable electricity supply. Virtual power plants facilitate selling and trading of energy on the electricity market.
Virtual power plants are set to leapfrog and emerge as an integral component of the power sector in the coming years as they allow aggregators and utility companies to interconnect electricity generation from different distributed sources and plants. The relevance of these plants is anticipated to increase considerably owing to evolving energy landscape and significance in decentralized grid.
Amid the COVID-19 crisis, the global market for Virtual Power Plants estimated at US$413.5 Million in the year 2020, is projected to reach a revised size of US$1.5 Billion by 2026, growing at a CAGR of 24% over the analysis period. Demand Response, one of the segments analyzed in the report, is projected to grow at a 23.8% CAGR to reach US$1.5 Billion by the end of the analysis period.
After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Distributed Generation segment is readjusted to a revised 22.3% CAGR for the next 7-year period. This segment currently accounts for a 14.9% share of the global Virtual Power Plants market.
Demand Response (DR), also called demand-side response or load response, encompasses a broad range of manual and automated measures taken at the consumer side of the meter to modify electricity usage in reaction to electricity demand-supply imbalances or exceptionally high power-prices.
Future growth in the market will be driven by surging demand for Automated Demand Response (Auto-DR) technologies. Distributed generation systems are capable of generating electricity or combined heat and power, and are suitable for versatile applications such as continuous, peak, intermittent, or backup power supply. Favorable government policy changes, incentives and subsidies are catalyzing the growth of distributed generation systems.
The U.S. Market is Estimated at $269.7 Million in 2021, While China is Forecast to Reach $78.9 Million by 2026
The Virtual Power Plants market in the U.S. is estimated at US$269.7 Million in the year 2021. The country currently accounts for a 58.22% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$78.9 Million in the year 2026 trailing a CAGR of 30.6% through the analysis period.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 19.1% and 23.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 23.9% CAGR while Rest of European market (as defined in the study) will reach US$101.3 Million by the end of the analysis period.
Asia-Pacific continues to witness high growth as several areas especially in rural and remote areas in developing economies still do not have access to power grid or have limited or unreliable power supply. The growing drive for rural electrification, fast paced industrialization, and the rising demand for quality and reliable power from energy intensive industries are driving growth in the region.
The huge void created by power plant retirements in developed economies in North America and Western Europe, and the ever-growing requirement for electric power from populous emerging economies, is unlocking new opportunities for distributed power generation.
Key Topics Covered:
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
Growing Investments in Energy Infrastructure: The Cornerstone for Growth in the Market
The Race Between the Virus & Vaccines Intensifies. Amidst this Chaotic Battle, Where is the World Economy Headed in 2021?
These are Times When Questions Abound & Answers Are Few
So How Fast Or Slow Are We Moving?
India's Second Wave Makes It Clear That Equity is Not a Part of Global Policy on Tackling COVID
Progress on Vaccinations, Why Should Businesses Care?
With IMF's Upward Revision of Global GDP Forecasts for 2021, Most Companies Are Bullish About a Global Economic Comeback
A Retrospective Review of Year 2020 as the Worst Year in Humanity's History that Left the World in Shambles & Industries and Markets Upended
How the Energy Industry is Impacted by the Pandemic & What's the New Normal?
Beyond the Current Challenges, the Pandemic Will Fuel Our Energy Transition
Virtual Power Plants (VPPs): Meaning, Importance, Functioning & Benefits
Recent Market Activity
2. FOCUS ON SELECT PLAYERS (Total 40 Featured)
Blue Pillar, Inc.
Cisco Systems, Inc.
Enbala Power Networks, Inc.
Robert Bosch GmbH
International Business Machines Corporation
3. MARKET TRENDS & DRIVERS
Distributed Energy Generation: A Key Energy Transformation Goal & Foundation for the Rise of the Concept of Virtual Power Plants (VPPs)
Role of Virtual Power Plants (VPP) in a Decentralized Power Grid
Growing Value of Demand Response (DR) Throws the Focus on VPPs as an Effective Tool to Achieve DR Goals
Rise of Smart Cities & Smart Grids Bodes Well for Increased Investments in VPPs
Smart Cities Get a COVID-19 Boost
Smart Grid: A Critical Part of Energy Infrastructure in Smart Cities & a Strong Business Case for VPPs
Growing Digitalization of Energy to Further Spur the Rise of VPPs
COVID-19 Fast-Forwards Digital Revolution Across Industries
Special Focus on Energy Digitalization
Optimal Management of Renewable Energy Sources Throws the Spotlight on VPPs
Concept of Blockchain-Based Decentralized Virtual Power Plants Gains Momentum & Preeminence
Rise in Energy Trading to Benefit Market Growth
4. GLOBAL MARKET PERSPECTIVE
III. REGIONAL MARKET ANALYSIS
For more information about this report visit https://www.researchandmarkets.com/r/ya50d3
Research and Markets
Laura Wood, Senior Manager
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SOURCE Research and Markets