Virtual Power Plant Market size was valued at USD 1.44 billion in 2023 and is set to reach USD 31.87 billion by the end of 2036, expanding at around 26.9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of virtual power plant is assessed at USD 1.75 billion.
on account of the increasing demand for cheap and renewable energy sources among people around the world. In 2019, more than 7000 TWh of energy worldwide was generated by renewable sources. Along with these, ease of implementation and flexibility in trading associated with virtual power plants are other factors which are estimated to drive market growth in the coming years. Furthermore, as virtual power plants are considered to be more cost-effective and require minimum maintenance effort compared to the conventional power plants, the market is expected to witness ample expansion opportunities over the forecast period.
Growth Drivers
Restraints
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Base Year |
2023 |
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Forecast Year |
2024–2036 |
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CAGR |
26.9% |
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Base Year Market Size (2023) |
USD 1.44 billion |
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Forecast Year Market Size (2036) |
USD 31.87 billion |
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Regional Scope |
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The market is segmented by end-user segment into residential, industrial and commercial, out of which the industrial segment is projected to hold the largest market share, which can be credited to the growing user base of the VPP services in industrial settings. However, the segment for residential end-users is anticipated to grow at a faster rate during the forecast period owing to the rise in urbanization and increasing demand for green energy worldwide. Additionally, on the basis of technology, the demand response segment is expected to grab the largest market share over the forecast period on the back of the advantages such as smart load management during peak hours and improved energy efficiency of the grid.
Our in-depth analysis of the global market includes the following segments:
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By Technology |
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By End-User Application |
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On the basis of regional analysis, the virtual power plant market is segmented into five major regions, including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. Asia Pacific industry is expected to dominate majority revenue share by 2036, ascribed to rapid industrialization and rising energy demand by major economies in the region. Moreover, North America is expected to be the second-largest market shareholder owing to the extensive use of VPP and increasing demand for hydro energy, wind energy and solar energy generation in the commercial & industrial sectors of the region. However, the Middle East & Africa region is assessed to demonstrate major growth prospects for the market, on account of the emergence of new renewable energy projects in countries such as Saudi Arabia, the U.A.E, and South Africa and increasing demand to effectively manage the distributed energy supplies in the region.
Author Credits: Dhruv Bhatia
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