HOME Top Market Reports Virtual Power Plant Market by Enabling Technology (Demand Response, Distributed Generation, and Mixed Asset), End-Use Customer (Commercial & Industrial, and Residential), and by Region - Global Trends & Forecasts to 2021

Virtual Power Plant Market by Enabling Technology (Demand Response, Distributed Generation, and Mixed Asset), End-Use Customer (Commercial & Industrial, and Residential), and by Region - Global Trends & Forecasts to 2021

By: marketsandmarkets.com
Publishing Date: March 2017
Report Code: EP 5131

 

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The global virtual power plant market was valued at USD 142.3 Million in 2015, and is expected to grow at a CAGR of 29.68% from 2016 to 2021.

The years considered for the study are as follows:

  • Base Year – 2015
  • Estimated Year – 2016
  • Projected Year – 2021
  • Forecast Period – 2016 to 2021

2015 has been considered as the base year for company profiles. Whenever information was unavailable for the base year, the prior year has been considered.

Objectives of the Study

  • To define and segment the virtual power plant market with respect to technology, end-user, and region
  • To provide detailed information on major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
  • To strategically analyze the virtual power plant market with respect to individual growth trends, future expansions, and contribution to the market
  • To analyze market opportunities for stakeholders, and details of a competitive landscape for market leaders
  • To forecast the growth of the virtual power plant market with respect to the major regions (Asia-Pacific, Europe, North America, and Rest of the World)
  • To strategically profile key players, and comprehensively analyze their market ranking and core competencies
  • To analyze competitive developments such as new product launches, mergers & acquisitions, expansions, and supply contracts in the virtual power plant market

Research Methodology

This research study involved the use of extensive secondary sources, directories, journals on demand response, distributed generation, energy storage, and other related equipment market; newsletters and databases such as Hoovers, Bloomberg, Businessweek, Factiva, among others to identify and collect information useful for a technical, market-oriented, and commercial study of the global virtual power plant market. Primary sources are mainly several industry experts from core and related industries, vendors, demand response aggregators, preferred suppliers, technology developers, alliances, and organizations related to all the segments of this industry’s value chain.  The points given below explain the research methodology.

  • Study of annual revenue and market developments of major players providing virtual power plant solutions
  • Analysis of major applications of and demand for virtual power plant solutions from end-users
  • Assessment of future trends and growth of end-users
  • Assessment of the virtual power plant solutions market with respect to the technology of  virtual power plant solutions used for different applications

After arriving at the overall market size, the total market has been split into several segments and sub segments. The figure given below illustrates the breakdown of primaries conducted during the research study on the basis of company type, designation, and region.

Virtual Power Plant Market

To know about the assumptions considered for the study, download the pdf brochure

Market Ecosystem:

The virtual power plant ecosystem comprises of power and automation technology companies such as ABB Ltd. (Switzerland), Siemens AG (Germany), Schneider Electric SE (France), and General Electric (U.S.), among others. Also, there are major players who are demand response aggregators such as EnerNOC, Inc. (U.S.), Comverge, Inc. (U.S.), Limejump (U.K.), Flexitricity (U.K.), among others who integrate the virtual power plant solutions for end users to cater to their unique business requirements.

Target Audience:

  • Electric Utilities
  • Smart Grid Hardware, Software & Technology Vendors and Service Providers
  • Distributed Energy Generation Solution Providers
  • Demand Response Aggregators
  • Microgrid Developers
  • Smart Electric Meter Vendors
  • Transmission System Operators
  • Distribution Grid Operators
  • Energy Storage Device/Equipment Manufacturers and Integrators
  • Energy Regulatory Agencies
  • Investors and Financial Community Professionals
  • Government Agencies

Scope of the Report:

  • By Technology
    • Demand Response
    • Distributed Generation
    • Mixed Asset
  • By End-User Application
    • Industrial & Commercial
    • Residential
  • By Region
    • North America
    • Europe
    • Asia-Pacific
    • Rest of the world
  • Related Markets
    • Demand Response Management System Market
    • Battery Energy Storage System Market
    • Smart Electric Meter market
    • Smart Grid Market
    • Microgrid Market

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:

Company Information

Detailed analysis and profiling of additional market players (Up to 5)

Table of Contents

1 Introduction (Page No. - 12)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Markets Covered
           1.3.2 Countries Covered
           1.3.3 Years Considered for the Study
    1.4 Currency & Pricing
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 17)
    2.1 Introduction
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries
    2.2 Market Size Estimation
    2.3 Market Breakdown & Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 24)
    3.1 Historical Backdrop
    3.2 Current Scenario
    3.3 Future Outlook
    3.4 Conclusion

4 Premium Insights (Page No. - 29)
    4.1 Virtual Power Plant Market, By Technology
    4.2 Virtual Power Plant Market, By End-User
    4.3 North America: the Largest Market During the Forecast Period

5 Market Overview (Page No. - 32)
    5.1 Introduction
    5.2 Market Segmentation
           5.2.1 By Technology
           5.2.2 By End-User
           5.2.3 By Region
    5.3 Market Dynamics
           5.3.1 Drivers
                    5.3.1.1 Increasing Share of Renewable Energy in the Power Generation Mix
                    5.3.1.2 Shift From Centralized to Distributed Generation
                    5.3.1.3 Decreasing Costs of Solar Generation and Energy Storage
           5.3.2 Restraints
                    5.3.2.1 Health Safety Concerns Regarding Electromagnetic Frequency & Radio Frequency Exposure
           5.3.3 Opportunities
                    5.3.3.1 Rising Demand for Electric Vehicles
                    5.3.3.2 Development of Smart Grids
           5.3.4 Challenges
                    5.3.4.1 Cybersecurity Issues Associated With the Energy Sector

6 Industry Trends (Page No. - 42)
    6.1 Introduction
    6.2 Smart Grid Market
    6.3 Microgrid Market
    6.4 Demand Response Management System Market
    6.5 Battery Energy Storage System Market
    6.6 Smart Electric Meter Market

7 Virtual Power Plant Market, By Technology (Page No. - 64)
    7.1 Introduction
    7.2 Demand Response
    7.3 Distribution Generation
    7.4 Mixed Asset

8 Virtual Power Plant Market, By End-User (Page No. - 68)
    8.1 Introduction
    8.2 Commercial & Industrial
           8.2.1 Commercial
           8.2.2 Industrial
    8.3 Residential

9 Virtual Power Plant Market, By Region (Page No. - 71)
    9.1 Introduction
    9.2 Asia-Pacific
           9.2.1 By Technology
           9.2.2 By Country
                    9.2.2.1 Australia
                    9.2.2.2 South Korea
                    9.2.2.3 Japan
                    9.2.2.4 The Rest of Asia-Pacific
    9.3 North America
           9.3.1 By Technology
           9.3.2 By Country
                    9.3.2.1 The U.S.
                    9.3.2.2 Canada
    9.4 Europe
           9.4.1 By Technology
           9.4.2 By Country
                    9.4.2.1 Germany
                    9.4.2.2 Denmark
                    9.4.2.3 The U.K.
                    9.4.2.4 France
                    9.4.2.5 The Rest of Europe

10 Competitive Landscape (Page No. - 90)
     10.1 Overview
     10.2 Virtual Power Plant: Market Ranking, 2015
     10.3 Competitive Situations & Trends
     10.4 Virtual Power Plant Market: MnM Dive – Vendor Comparission

11 Company Profiles (Page No. - 96)
(Overview, Products and Services, Financials, Strategy & Development)*
     11.1 Introduction
     11.2 ABB, Ltd.
     11.3 Autogrid Systems, Inc.
     11.4 Blue Pillar
     11.5 Cisco Systems, Inc.
     11.6 Comverge
     11.7 Cpower Energy Management
     11.8 Enbala Power Networks, Inc.
     11.9 Enernoc, Inc
     11.10 Flexitricity Limited
     11.11 General Electric
     11.12 Hitachi, Ltd.
     11.13 IBM
     11.14 Limejump Limited
     11.15 Next Kraftwerke
     11.16 Olivene, Inc.
     11.17 Open Access Technology International, Inc.
     11.18 Osisoft
     11.19 Power Analytics Corporation
     11.20 Robert Bosch GmbH
     11.21 Schneider Electric
     11.22 Siemens AG
     11.23 Spirae, Inc.
     11.24 Sunverge
     11.25 Toshiba Corporation
     11.26 Upside Energy, Ltd.

*Details on Overview, Products and Services, Financials, Strategy & Development Might Not Be Captured in Case of Unlisted Companies

12 Appendix (Page No. - 136)
     12.1 Insights of Industry Experts
     12.2 Discussion Guide
     12.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     12.4 Introducing RT: Real-Time Market Intelligence
     12.5 Available Customizations
     12.6 Related Reports
     12.7 Author Details


List of Tables (66 Tables)

Table 1 Global Weighted Average Solar & Wind Power Investment Costs, 2015 & 2025
Table 2 Smart Grid Market Size, By Solution, 2014–2021 (USD Million)
Table 3 Smart Grid Market Size, By Service, 2014–2021 (USD Million)
Table 4 Smart Grid Market Size, By Region, 2014–2021 (USD Million)
Table 5 North America: Smart Grid Market Size, By Type, 2014–2021 (USD Million)
Table 6 Europe: Smart Grid Market Size, By Type, 2014–2021 (USD Million)
Table 7 Asia-Pacific: Smart Grid Market Size, By Type, 2014–2021 (USD Million)
Table 8 Latin America: Smart Grid Market Size, By Type, 2014–2021 (USD Million)
Table 9 Middle East & Africa: Smart Grid Market Size, By Type, 2014–2021 (USD Million)
Table 10 Microgrid Market Size, By Offering, 2014–2021 (USD Billion)
Table 11 Microgrid Market Size, By Connectivity, 2014–2021 (USD Billion)
Table 12 Microgrid Market Size, By Vertical, 2014–2021 (USD Billion)
Table 13 Microgrid Market Size, By Region, 2014–2021 (USD Billion)
Table 14 Americas: Microgrid Market Size, By Region, 2014–2021 (USD Billion)
Table 15 North America: Microgrid Market Size, By Country, 2014–2021 (USD Billion)
Table 16 Latin America: Microgrid Market Size, By Country, 2014–2021 (USD Billion)
Table 17 Europe: Microgrid Market Size, By Country, 2014–2021 (USD Billion)
Table 18 Asia-Pacific: Microgrid Market Size, By Country, 2014–2021 (USD Billion)
Table 19 Rest of the World: Microgrid Market Size, By Region, 2014–2021 (USD Billion)
Table 20 Demand Response Management System Market Size, By Solution, 2014–2021 (USD Million)
Table 21 Demand Response Management System Market Size, By Service, 2014–2021 (USD Million)
Table 22 Demand Response Management System Market Size, By Vertical, 2014–2021 (USD Million)
Table 23 Demand Response Management System Market Size, By Region, 2014–2021 (USD Million)
Table 24 North America: Demand Response Management System Market Size, By Country, 2014–2021 (USD Million)
Table 25 Europe: Demand Response Management System Market Size, By Country, 2014–2021 (USD Million)
Table 26 Asia-Pacific: Demand Response Management System Market Size, By Country, 2014–2021 (USD Million)
Table 27 Latin America: Demand Response Management System Market Size, By Country, 2014–2021 (USD Million)
Table 28 Battery Energy Storage System Market Size, By Battery Type, 2014–2021 (USD Million)
Table 29 Battery Energy Storage System Market Size, By Connection Type, 2014–2021 (USD Million)
Table 30 Battery Energy Storage System Market Size, By Ownership, 2014–2021 (USD Million)
Table 31 Battery Energy Storage System Market Size, By Application, 2014–2021 (USD Million)
Table 32 Battery Energy Storage System Market Size, By Region, 2014–2021 (USD Million)
Table 33 Smart Electric Meter Market Size, By Phase, 2014–2021 (USD Million)
Table 34 Smart Electric Meter Market Size, By End-User, 2014–2021 (USD Million)
Table 35 Smart Electric Meter Market Size, By Communication Technology, 2014–2021 (USD Million)
Table 36 Smart Electric Meter Market Size, By Region, 2014–2021 (USD Million)
Table 37 North America: Smart Electric Meter Market Size, By Country, 2014–2021 (USD Million)
Table 38 Europe: Smart Electric Meter Market Size, By Country, 2014–2021 (USD Million)
Table 39 Asia-Pacific: Smart Electric Meter Market Size, By Country, 2014–2021 (USD Million)
Table 40 Middle East: Smart Electric Meter Market Size, By Country, 2014–2021 (USD Million)
Table 41 South America: Smart Electric Meter Market Size, By Country, 2014–2021 (USD Million)
Table 42 Africa: Smart Electric Meter Market Size, By Country, 2014–2021 (USD Million)
Table 43 Virtual Power Plant Market, By Technology, 2014–2021 (USD Million)
Table 44 Demand Response: Virtual Power Plant Market Size, By Region, 2014–2021 (USD Million)
Table 45 Distribution Generation: Virtual Power Plant Market Size, By Region, 2014–2021 (USD Million)
Table 46 Mixed Asset: Virtual Power Plant Market Size, By Region, 2014–2021 (USD Million)
Table 47 Global Virtual Power Plant Market Size, By End-User, 2014–2021 (USD Million)
Table 48 Virtual Power Plant Market Size, By Region, 2014–2021 (USD Million)
Table 49 Asia-Pacific: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 50 Asia-Pacific: Virtual Power Plant Market Size, By Country, 2014–2021 (USD Million)
Table 51 Australia: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 52 South Korea: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 53 Japan: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 54 Rest of Asia-Pacific: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 55 North America: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 56 North America: Virtual Power Plant Market Size, By Country, 2014–2021 (USD Million)
Table 57 U.S.: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 58 Canada: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 59 Europe: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 60 Europe: Virtual Power Plant Market Size, By Country, 2014–2021 (USD Million)
Table 61 Germany: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 62 Denmark: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 63 U.K.: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 64 France: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 65 Rest of Europe: Virtual Power Plant Market Size, By Technology, 2014–2021 (USD Million)
Table 66 Key Contributors – Virtual Power Plant Market


List of Figures (32 Figures)

Figure 1 Virtual Power Plant Market: Research Design
Figure 2 Breakdown of Primary Interviews: By Company Type, Designation, & Region
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Data Triangulation Methodology
Figure 6 Asia-Pacific Occupied the Largest Market Share in 2015
Figure 7 Virtual Power Plant Market Share, By Technology, 2016 & 2021 (USD Million)
Figure 8 Commercial & Industrial By End-User Segment are Expected to Account for the Maximum Share During the Forecast Period
Figure 9 Virtual Power Plant Market Snapshot: North America is Expected to Be the Largest Market During the Forecast Period
Figure 10 Top Market Development (2014–2015)
Figure 11 Attractive Market Opportunities in the Virtual Power Plant Market
Figure 12 Virtual Power Plant Market Share (Value), By Technology, 2016–2021
Figure 13 Commercial & Industrial Segment is Estimated to Dominate the Virtual Power Plant Market By 2021
Figure 14 Asia-Pacific is Expected to Grow at the Fastest Pace During the Forecast Period
Figure 15 Virtual Power Plant Market: Market Segmentation
Figure 16 Virtual Power Plant Market, By Technology
Figure 17 Virtual Power Plant Market, By End-User
Figure 18 Virtual Power Plant Market, By Region
Figure 19 Increasing Share of Renewable Energy in the Power Generation Mix is A Major Factor Driving the Virtual Power Plant Market
Figure 20 Electricity Production From Renewable Sources, Excluding Hydroelectric (TWH)
Figure 21 Plug-In Hybrid Electric Cars, Stock By Country, 2011–2015
Figure 22 Plug-In Hybrid Electric Cars, New Registrations By Country, 2011–2015
Figure 23 International Bank for Reconstruction and Development (IBRD)/International Development Association (IDA) Smart Grid Commitments, By Type & Year, 2010–2016 (USD Million)
Figure 24 Technologies Related to Virtual Power Plants
Figure 25 Regional Snapshot: Growth Rate of the Virtual Power Plant Market in Important Countries, From 2016 to 2021
Figure 26 Regional Snapshot: Asia-Pacific Offered Attractive Market Opportunities in 2015
Figure 27 Regional Snapshot: the North American Market Was the Largest in 2015
Figure 28 Companies Adopted Contracts & Agreements and New Product Launches as Key Strategies to Capture the Market, 2013–2017
Figure 29 Market Evaluation Framework: Contracts & Agreements Fueled the Growth of the Companies, 2013–2017
Figure 30 Vendor Dive Matrix
Figure 31 Product Strategy Comparison
Figure 32 Business Strategy Comparison

The global virtual power plant market is projected to grow at a CAGR of 29.68% from 2016 to 2021, to reach a market size of USD 709.2 Million by 2021. This growth is attributed to the increasing penetration of smart grid technologies as well as increase in residential energy storage system has given rise to the virtual power plant market. An aggregated fleet of distributed energy resources would provide high value to the grid distribution system. Thus, leading to energy efficiency and power savings.

The report segments the virtual power plant market on the basis of technology such as demand response, distributed generation, and mixed asset. The demand response segment is projected to dominate the virtual power plant market.  This is mainly due to various advantages that it provides such as peak load management and earning incentives by participating in demand response program. The U.S. is the largest market for demand response where in companies like EnerNOC, Inc. pays the owners of commercial and industrial buildings to reduce power consumption when the grid is overburdened, or to avoid the peak power prices.

The report segments virtual power plant market based on end-user segment such as commercial & industrial and residential. The residential segment is expected to grow at the fastest pace during the forecast period. Virtual power plant market is growing in residential homes through participating in demand response programs, energy storage system, and distributed generation. It helps in delivering energy at peak usage times and the end users can save up the surplus power in energy storage devices such as solar panels, batteries, among others. Also government mandates and initiatives for customer engagement, and incentives programs might prove to be an added boost for the residential end-user segment. The growing infrastructure sector, especially in the Asia-Pacific region is likely to drive the overall virtual power plant market during the forecast period.

In this report, the virtual power plant market has been analyzed with respect to four regions, namely, North America, Europe, Asia-Pacific, and Rest of the world which includes Latin America and the Middle East & Africa. North America is expected to dominate the global virtual power plant market during the forecast period, owing to the extensive use of these solutions in commercial & industrial as well as residential sector.

The Asia-Pacific market is projected to grow at the highest CAGR from 2016 to 2021. The region is the largest market for the infrastructure sector and industrial sector and is taking various steps to reduce carbon footprint and produce clean energy which includes renewable energy such as hydro energy, wind energy, and solar energy generation. According to India smart grid roadmap, micro grids will be implemented in 10,000 villages and 100 smart cities till 2027 where in batteries would play a major role. Wind mills would be integrated with hydro pump storage systems and would store energy during off peak hours. This would be a key factor for growth of mixed asset technology segment and would drive the virtual power plant market in developing economies.

Virtual Power Plant Market

Health safety concern related to radio frequency exposure could be a restraint of the virtual power plant market which might lead to decline in profit. Additionally, RF emissions from smart meters are within the U.S. Federal Communications Commission (FCC) limits. However, some campaign groups (such as Stop Smart Meters U.K.) in both the U.K. and the U.S. believe smart meters to be unnecessary health and security risks. Hence, these uncertainties with respect to smart meters would hinder the virtual power plant market growth.

Leading players in the virtual power plant market include ABB Ltd (Switzerland), Siemens AG (Germany), Schneider Electric SE (France), EnerNOC, Inc. (U.S.), Comverge (U.S.), Limejump (U.K.) and Flexitricity (U.K.). Contracts and agreements was the strategy most commonly adopted strategy by the top players, constituting 58% of the total developments from 2013 to 2016. It was followed by new product developments, expansions and investments, and mergers & acquisitions.

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