Virtual power plants are leading the global market in the current scenario. The global virtual power plant Industry is taking up collaborations and aiming for investments to provide the essential simplicity, security, overview, and product efficiency on the demanded and required cloud platforms. The virtual power plant market research report portrays that the market is expected to grow at a high CAGR of approximately 29.68% by the end of 2027. The global market is expecting total revenue of USD 709.2 million.
These solutions have been designed to help the customers to gain and develop visibility in the data centers in real-time. There is a growing demand for managed security services amongst various businesses and organizations that are indeed helping in boosting the growth of the virtual power plant by the end of the forecasted period of 2027.
With the fast spread and unexpected outbreak of the global pandemic - COVID 19, most enterprises around the globe were on hold and were facing other issues. To prevent the spread of the pandemic, many businesses and enterprises out there have shifted to the work-from-home scenario. With virtualization applications, it is easier to manage productivity and work smoother in a virtual environment. Data breaches have emerged as a significant havoc concern during the pandemic phase. There is a prevalent need to implement various ways to manage the security services for the different functioning organizations. During this time of bouncing back, as the restrictions are being removed, there is a need for the virtual power plant market share to take steps for upholding standards along with configurations of the operating systems that are low in cost. Also, the rise in funding and investment is projected to boost the global virtual power plant market.
The virtual power plant market size is set to grow by the end of 2027, the end of the ongoing forecast period. The market dynamics are stated below:
Since the lockdown was imposed to control the spread of the novel coronavirus, the growth in various domestic and international regions is expected to increase by the end of the forecast period in 2027. The technology of cloud computing is acting as a significant driving force that is likely to be helping the virtual power plant grow in double folds. It provides the much-needed virtualization infrastructure a boost through funding and investment that will go on and play a vital role in achieving the estimated growth by the end of the forecast period.
However, the global virtual power plant market faces issues with the components belonging to the methods of virtual power plant size face. Many issues and concerns related to security are likely to hamper the growth of the virtual power plant market share. Also, there are many breaches regarding the security layers by prominent and experienced hackers. Also, the concept of cloud environment is exposed to manipulating the ways of safeguarding the operations. Hence, it is becoming more essential to maintain a knowledgeable and valuable security service to manage the operations of the data centers.
Value Chain Analysis
The development of virtualization security has circulated a massive demand for a virtually networked environment. The activities that are being rendered by prominent market players like HPE (U.S.), prominent ones like Dell EMC (U.S.), Juniper Networks (U.S.), Affirmed Networks (U.S.), followed by NETSCOUT (U.S.), NEC (Japan), amongst others like Ribbon Communications (U.S.), ZTE Corporation (China), are helping the market. The funding and investment for the research and development departments are likely to help the market. The enterprises are considerably demanding these solutions to limit issues.
The global virtual power plant market segregation and segmentation are done on the following basis:
By End-User Application:
By Related Markets:
Based on Regions:
The global virtual power plant market trends are on the rise, globally. Owing to the market share and area of operations, the market is functional in 5 significant regions part of the market segmentation. The Asia Pacific consisting of India, China, and Japan, along with other regions like North America, is home to countries like Mexico, Canada, and the U.S., which are the dominant forces. The European countries are also projected to be emerging in the game of the functions market. This results from the crowded demand amongst domestic and international markets trending as server virtualization. Implementing a remarkable degree of technology is likely to help the market excellently. The main result is an expected rise in the CAGR by the end of the forecast period of 2027.
The global virtual power plant market has some dominant players letting out their impeccable services. Some of the established names of the market are stated underneath:
The global virtual power plant market has a very high degree of market competition. The established biggies likely do mergers, acquisitions, investment and opportunity seeking, and much more. The prominent market players have a better hand at catering to the demand of access management, thus boosting the supply chain system.
Key players in the virtual power plant market that are playing a significant role in the market expansion include ABB Ltd (Switzerland), Siemens AG (Germany), Schneider Electric S.E. (France), followed by others like EnerNOC, Inc. (U.S.), Comverge (U.S.), Limejump (U.K.) and Flexitricity (U.K.). Contracts and agreements were the ideally adopted strategy and most commonly adopted by the top players. It constituted 58% of the incremental developments from 2013 to 2016. It was followed by new product innovations, market research, developments, expansions and investments, and mergers & acquisitions.
Distributed generation, as a prominent market concept, refers to geographically dispersed power generation sources, which are usually less than 10 M.W. It comprises both controllable sources, such as generators, and non-controllable sources, such as solar and wind energy. The existing demand for energy from distributed energy resources is growing globally for several reasons, such as planned rolling blackouts, power quality problems, unexpected utility power outages, and some others, like the increase in power costs. So, instead of relying totally on utilities for power needs, all end-users, from residential and commercial to industrial customers, have understood the requirements and have started generating their power based on these sources.
Virtual power plant solutions can be globally associated with various concepts such as smart grid, microgrid, distributed generation, demand response, and others like advanced energy storage.
The report segments the virtual power plant market based on demand response, distributed generation, and mixed assets. The demand response segment of the global market is projected to dominate the market. This is mainly due to various advantages like peak load management and earning incentives by participating in demand response programs. These factors are likely to play a major role in the expansion of the global market during the ongoing forecast period ending in 2027.
The global virtual power plant market research report is prepared to understand the trends that are gaining a lot of momentum and is expected to help the market rise at a high CAGR by the end of 2027. The global market report covers the following points:
Many of the established experts and market leaders in the global market premises are emerging with advanced solutions in the form of mergers, innovation, investments, crowd-funding activities, and others like acquisitions and portfolios that prove to be cost-effective in the long run.
|Market Size||USD 709.2 million 2027|
|CAGR||29.68% CAGR 2027|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Technology, End-User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||ABB Ltd. (Switzerland), Autogrid Systems, Inc. (U.S.), Blue Pillar, Inc. (U.S.), Cisco Systems, Inc. (U.S.), Comverge (U.S.), Cpower Energy Management (U.S.), Enbala Power Networks, Inc. (Canada), Enernoc, Inc. (U.S.), Flexitricity Limited (U.K.), General Electric Company (U.S.), Hitachi, Ltd. (Japan), International Business Machines Corporation (U.S.), Robert Bosch GmbH (Germany), Schneider Electric SE (France), and Siemens AG (Germany)|
|Key Market Opportunities||Growing government mandates and initiatives for customer engagement, and incentives programs|
|Key Market Drivers||Growing demand for power through a reliable power source|
Frequently Asked Questions (FAQ) :
The market can expect to achieve a CAGR of more than 29.68% during the given timeframe.
By the year 2027, the market is estimated to to be worth USD 709.2 million by 2027.
The notable vendors in the market are Cisco Systems, Inc. (U.S.), Siemens AG (Germany), Comverge (U.S.), Enbala Power Networks, Inc. (Canada), Autogrid Systems, Inc. (U.S.), Blue Pillar, Inc. (U.S.), ABB Ltd. (Switzerland), International Business Machines Corporation (U.S.), Robert Bosch GmbH (Germany), Enernoc, Inc. (U.S.), Flexitricity Limited (U.K.), General Electric Company (U.S.), Hitachi, Ltd. (Japan), Schneider Electric SE (France), Cpower Energy Management (U.S.), and others.
The significant market growth boosters are the mounting demand for non-conventional energy within the power generation industry, power grids changing from centralized to distributed, and the regulating costs as well as easy convenience of energy storage are the significant market growth boosters.
Demand response is the technology-based segment that holds the largest share in the market.