Virtual Power Plant Market: Current Analysis and Forecast (2021-2027)

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Emphasis on Technology (Distribution Generation, Demand Response, Mixed Asset); End-Use (Commercial, Industrial, Residential); Region and Country

Published:

Jul-2021

Pages:

134

Table:

43

Figure:

82

Report ID:

UMEP21334

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Report Description
Table of content
Research Methodology

Report Description

Virtual Power Plant Market is expected to exceed the market valuation of more than US$ XX billion in 2027 and is expected to grow at a significant CAGR of XX% during the forecast period (2021-2027). Renewable Energy is penetrating the market and thus more and more consumers are adopting the distributed energy resources (DER). Electricity providers are adopting virtual power plants (VPPs) which help balance renewable generation variability and supply grid resources. VPPs or VPSs are also known as “the internet of energy”.  With the help of VPP, elements from all the different renewable sources can be accumulated at one single central control center i.e., VPP. Currently, the biggest VPP is running in Europe by the Norwegian company Statkraft, and the plant is based in Germany. The output generated by this VPP is over 10,000 MW coming from around 1,400 independent power producers. This includes 1,300 wind farms, 100 solar units as well as bioenergy and hydropower generators.

Key factors influencing the market growth are increasing energy demand in emerging countries like China, India, Japan, and Australia. Due to this they are facing demand-supply issues owing to economic growth and urbanization in the regions. Additionally, with the government policies world over promoting the use of renewable sources, there is an increasing demand for renewable energy as well. For example, in South Korea in 2018 the renewable energy share accounted for only 8% of the total power generated. The South Korean government recently issued a policy to increase the renewable energy mix to 20% by the end of next decade. All countries experimenting with their needs in renewable energy are promoting the use of Virtual power plants as well for the easy transmission of this energy.

Functions of a Virtual Power Plant

Next Kraftwerke, EnerNOC, Schneider Electric, AGL Energy, Flexitricity, Siemens, Cummins, GE, ABB, and Comverge are some of the prominent players operating in the Virtual Power Plant market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Technology, Demand Response segment holds the major share”

Based on technology, the virtual power plants market is segmented into Distribution Generation, Demand Response, and Mixed Asset. Amongst technology, the demand response segment of the virtual power plants market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 and is growing at a CAGR of XX% from 2021-2027. This is due to modernization of grids with the VPP industry which is expected to lead to its increased demand. By a demand response program, we mean that a VPP can be made of multiple units of a single type or multiple types of assets.

“Amongst End-User, Industrial Segment holds the major share”

Based on end-user, the virtual power plant market is segmented into Commercial, Industrial, and Residential. Amongst end-user, industrial segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027, at a CAGR of XX% over the analyzed period. There is a growth in small and medium sized VPPs in the industrial sector. VPPs are suitable for industrial application due to their ability to provide high reliability and energy efficiency during peak load time periods.

“Asia Pacific represents one of the largest markets of Virtual Power Plant market”

For a better understanding of the market dynamics of the Virtual Power Plant market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Italy, United Kingdom, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC) and Rest of the World. Asia Pacific dominated the market and grabbed around XX% market share owing to rapid industrialization & increasing adoption of renewable energy across the region.

Reasons to buy this report:

  • The study includes market sizing and forecasting analysis validated by authenticated key industry experts
  • The report presents a quick review of overall industry performance at one glance
  • The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
  • Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
  • The study comprehensively covers the market across different segments
  • Deep dive regional level analysis of the industry

Customization Options:

Virtual Power Plant market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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 1.1.Market Definitions 
 1.2.Objective of the Study 
 1.3.Limitation  
 1.4.Stake Holders 
 1.5.Currency Used in Report 
 1.6.Scope of the Virtual Power Plant Market Study
 2.1.Research Methodology for the Virtual Power Plant Market
  2.1.1.Main Objective of the Virtual Power Plant Market
 6.1.Distribution Generation 
 6.2.Demand Response 
 6.3.Mixed Asset 
 7.1.Commercial  
 7.2.Industrial  
 7.3.Residential
 8.1.NORTH AMERICA VIRTUAL POWER PLANT MARKET
  8.1.1.United States
  8.1.2.Canada 
  8.1.3.Rest of North America
 8.2.EUROPE VIRTUAL POWER PLANT MARKET
  8.2.1.United Kingdom
  8.2.2.Germany 
  8.2.3.France 
  8.2.4.Spain  
  8.2.5.Italy 
  8.2.6.Rest of Europe
 8.3.ASIA-PACIFIC VIRTUAL POWER PLANT MARKET
  8.3.1.China 
  8.3.2.Japan 
  8.3.3.India 
  8.3.4.Australia 
  8.3.5.Rest of Asia-Pacific
 8.4.REST OF THE WORLD VIRTUAL POWER PLANT MARKET
9.1.Drivers  
 9.2.Challenges  
 9.3.Impact Analysis 
 9.4.Opportunity
 12.1.Demand Side Analysis 
 12.2.Supply Side Analysis 
  12.2.1.Top Product Launches
  12.2.2.Top Business Partnerships
  12.2.3.Top Business Expansions, Investments and Divestitures
  12.2.4. Top Merger and Acquisitions
 15.1.Next Kraftwerke 
 15.2.EnerNOC  
 15.3.Schneider Electric 
 15.4.AGL Energy  
 15.5.Flexitricity  
 15.6.Siemens  
 15.7.Cummins  
 15.8.GE  
 15.9.ABB  
 15.10.Comverge

Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Virtual Power Plant market were the three major steps undertaken to create and analyze the adoption of Virtual Power Plant in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Virtual Power Plant market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Virtual Power Plant through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Virtual Power Plant market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as technology, end-user. Further country-level analyses were conducted to evaluate the overall adoption of renewable energy in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Virtual Power Plant. Further, we conducted factor analysis using dependent and independent variables such as increasing adoption of renewable sources and power instability in DERs. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the Virtual Power Plant sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Virtual Power Plant market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

  • The industry’s market size, in terms of value (US$) and the adoption rate of Virtual Power Plant across the major markets domestically
  • All percentage shares, splits, and breakdowns of market segments and sub-segments
  • Key players in the Virtual Power Plant market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Virtual Power Plant market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type and their type of the Virtual Power Plant market.

The main objective of the Virtual Power Plant Market Study

The current & future market trends of Virtual Power Plant were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

  • Analyze the current and forecast market size of Virtual Power Plant in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
  • Segments in the study include areas of type and their subtypes
  • Define and analysis of the regulatory framework for the Virtual Power Plant industry
  • Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
  • Analyze the current and forecast market size of the Virtual Power Plant market for the major region
  • Major regions studied in the report include North America (the U.S, Canada, and Rest of North America), Europe (Germany, United Kingdom, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Others), and the Rest of the World
  • Company profiles of the Virtual Power Plant market and the growth strategies adopted by the market players to sustain in the fast-growing market
  • Deep dive regional level analysis of the industry