GLOBAL VIRTUAL POWER PLANT MARKET FORECAST 2018-2026

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GLOBAL VIRTUAL POWER PLANT MARKET FORECAST 2018-2026

 Global Virtual Power Plant market is estimated to grow with approx.26.65% CAGR between the year 2018 – 2026. The base year considered for the study is 2017 and the forecast period is 2018-2026. Global Virtual Power Plant market is primarily driven by the following factors: Rapid shift to distributed generation from centralized generation. Rising renewable energy generation as compared to conventional energy

GLOBAL VIRTUAL POWER PLANT MARKET FORECAST 2018-2026

Global Virtual Power Plant Market by End-users (Commercial & Industrial, Residential), by Technology (Demand Response, Distribution Generation, Mixed Assets), by Geography.

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Global Virtual Power Plant market is estimated to grow with approx.26.65% CAGR between the year 2018 – 2026. The base year considered for the study is 2017 and the forecast period is 2018-2026. Global Virtual Power Plant market is primarily driven by the following factors:

  • Rapid shift to distributed generation from centralized generation
  • Rising renewable energy generation as compared to conventional energy
  • Reducing solar energy generation cost
  • Rising demand for a cloud-based energy management system

The important driver increasing growth in the global virtual power plant market is the rapid shift to distributed generation from centralized generation.  The Distributed generation is on the up-surging trend in the current scenario owing to its operational benefits (which includes peak power requirements, ancillary services, system reliability and grid security) as these benefits cannot be incurred from the centralized generation in the present energy sector. The Distributed generation is an electricity generating technology which is installed by an independent electricity system that is connected at the distribution system electric grid level. This consists of all generations installed at the sites operated and owned by a centralized system, which includes photovoltaic system operating in a house or a cogeneration facility operating in a commercial space.

Commercial & industrial market comprises of virtual power plant solutions that utilize different technologies such as demand response, distribution generation, and mixed assets which have their application in commercial & industrial location. For commercial & industrial locations, VPP provides renewable energy supplies to targeted areas and permits the reduction of energy demand during peak hours, thus avoiding disruption on the grid. A virtual power plant in commercial & industrial location provides flexibility, reduces environmental impact of emissions, delivers direct and quantifiable cost savings, and automates the load management system.

High capital cost required for software and control systems and adverse health effect due to radio frequency exposure are the major factors hindering the Virtual Power Plant market. The virtual power plant is a modularly intended software set that efficiently monitors, coordinates and connects decentralized power-generating sites, storage facilities and controllable loads via a common intelligent control centre. Virtual power plant solutions cost includes the cost of the operating system, software, cloud service, and others.

The Global Virtual Power Plant market segments include technology and end user.

Technology is further segmented into:

  • Demand Response
  • Distributed Generation
  • Mixed Assets

End –users are further segmented into:

  • Residential
  • Commercial & industrial

The report scope is restricted to the revenues generated from the software component of the virtual power plant solutions only and does not include power-plant systems such as wind turbines, fuel cells, batteries PV panels, and other components.

Geographically, the Global Virtual Power Plant market has been segmented on the basis of four major regions:

North America is anticipated to account for the largest market share during the forecast period of 2018 to 2026. North America Virtual power plant market is primarily driven by the high adoption of renewable sources of energy and the increasing installation of Virtual power plants in the region. Further, substantial adoption of virtual power plants for optimizing the energy distribution while minimizing the wastage of energy also acts as an important driver for the virtual power plant market in North America. On the other hand, the Asia-Pacific market is anticipated to be the fastest-growing region for the Global Virtual Power Plant market. In this region, the virtual power plant finds a primary application in assisting the integration of distributed energy resources, as it is used to efficiently manage different resources related to generation, storage and demand. The rising demand for cloud-based energy management solutions, coupled with increasing focus on clean energy generation through the deployment of renewable energy from solar, wind, biomass and hydro sources, is also expected to boost the deployment of VPPs for strategically collecting, managing and distributing the energy in the region with minimal power wastage.

The Virtual Power Plant Market is segmented based on technology (which is sub-divided into demand response, distributed generation and mixed assets) and on the basis of end-users who are sub-divided into commercial & industrial and residential.

The major market players in the Global Virtual Power Plant market are:

  • ABB LTD
  • SIEMENS AG
  • AUTOGRID SYSTEMS INC
  • ENBALA POWER NETWORKS
  • VIRIDITY ENERGY SOLUTIONS INC
  • OTHERS

Company Profiles covers analysis of important players

These companies are using organic and inorganic strategies for growth. For instance, in July 2017, ABB acquired Keymile‘s communication network business to strengthen its digital grid portfolio and software focus. This acquisition is likely to strengthen its software and services, key products as well as research and development expertise. Also, this acquisition strategy could provide more opportunity in virtual power plant market to cover up more market share. In June 2017 – Enbala Power Networks agreed to a strategic alliance with Aclara Technologies to add Aclara’s utility solution suite to Enbala’s virtual power plant technology. This alliance could help the company to address their growing needs to optimize and manage power generation costs and supports the integration of other DERs (Distributed Energy Resources) and renewables.

Key Findings of the Global Virtual Power Plant market.

  • Rapid shift to distributed generation from centralized generation and rising demand for cloud-based energy management system is fueling growth in the global Virtual Power Plant market.
  • North America accounted for the largest revenue share in 2017.
  • Demand response segment is dominating the market
  • Increasing government support
  • Product launch is the key strategy adopted by the various market players of the Global Virtual Power Plant market.
  • Commercial & industrial sector is a major end-users
  1. RESEARCH SCOPE
    • STUDY GOALS
    • SCOPE OF THE MARKET STUDY
    • WHO WILL FIND THIS REPORT USEFUL?
    • STUDY AND FORECASTING YEARS
  2. RESEARCH METHODOLOGY
    • SOURCES OF DATA
      • SECONDARY DATA
      • PRIMARY DATA
    • TOP DOWN APPROACH
    • BOTTOM-UP APPROACH
    • DATA TRIANGULATION
  3. EXECUTIVE SUMMARY
    • MARKET SUMMARY
    • KEY FINDINGS
      • NORTH AMERICA HOLDS MAJOR SHARE OF THE VIRTUAL POWER PLANT MARKET
      • DEMAND RESPONSE TO LEAD THE TECHNOLOGY SEGMENT
      • COMMERCIAL AND INDUSTRIAL SECTOR TO DOMINATE THE END-USER SEGMENT
      • RISING RENEWABLE ENERGY GENERATION TO DRIVE THE MARKET
      • AUSTRALIA VIRTUAL POWER PLANT MARKET POSSESS IMMENSE GROWTH OPPORTUNITIES
  1. MARKET DYNAMICS
    • MARKET DEFINITION
    • DRIVERS
      • RAPID SHIFT TO DISTRIBUTED GENERATION FROM CENTRALIZED GENERATION
      • RISING RENEWABLE ENERGY GENERATION AS COMPARED TO CONVENTIONAL ENERGY
      • REDUCING SOLAR ENERGY GENERATION COST
      • RISING DEMAND FOR CLOUD-BASED ENERGY MANAGEMENT SYSTEM
    • RESTRAINTS
      • HIGH CAPITAL COST REQUIRED FOR SOFTWARE AND CONTROL SYSTEMS
      • ADVERSE HEALTH EFFECT DUE TO RADIO FREQUENCY EXPOSURE
    • OPPORTUNITIES
      • INCREASING RENEWABLE ENERGY DEVELOPMENT IN EMERGING COUNTRIES
      • INCREASING DEVELOPMENT OF SMART GRIDS
      • RISING DEMAND FOR ELECTRIC VEHICLES
    • CHALLENGES
      • SECURITY AND PRIVACY CONCERNS
      • LACK OF SKILLED PROFESSIONALS
  1. MARKET BY END-USERS
    • COMMERCIAL & INDUSTRIAL
    • RESIDENTIAL
  2. MARKET BY TECHNOLOGY
    • DEMAND RESPONSE
    • DISTRIBUTION GENERATION
    • MIXED ASSETS
  3. KEY ANALYTICS
    • PORTER’S 5 FORCE MODEL
      • THREAT OF NEW ENTRANTS
      • THREAT OF SUBSTITUTE PRODUCTS
      • BARGAINING POWER OF BUYERS
      • BARGAINING POWER OF SUPPLIERS
      • INTENSITY OF COMPETITIVE RIVALRY
    • KEY BUYING CRITERIA
      • TECHNOLOGY
      • SCALABILITY
      • PRICE
      • FEASIBILITY
    • VALUE CHAIN ANALYSIS
      • POWER PRODUCERS
      • VIRTUAL POWER PLANT
      • DIRECTED ENERGY OPERATORS (DSOS)
      • END-USERS
    • REGULATORY FRAMEWORK
    • KEY TRENDS
      • RISE IN ELECTRICITY DEMAND
      • INVESTMENTS IN VIRTUAL POWER PLANTS
    • INVESTMENT OUTLOOK
      • REGIONAL OUTLOOK
      • OPPORTUNITIES IN EMERGING TECHNOLOGIES
  1. GEOGRAPHICAL ANALYSIS
    • NORTH AMERICA
      • US
      • CANADA
    • EUROPE
      • UNITED KINGDOM
      • FRANCE
      • GERMANY
      • SPAIN
      • REST OF EUROPE
    • ASIA-PACIFIC
      • CHINA
      • INDIA
      • JAPAN
      • AUSTRALIA
      • REST OF ASIA-PACIFIC
    • REST OF WORLD
      • LATIN AMERICA
      • MIDDLE EAST & AFRICA
  1. COMPETITIVE LANDSCAPE
    • MARKET SHARE ANALYSIS
      • ABB
      • AUTOGRID SYSTEMS INC.
      • ENBALA TECHNOLOGY
      • SIEMENS AG
      • VIRIDITY ENERGY (ACQUIRED BY ORMAT TECHNOLOGIES)
    • TOP WINNING STRATEGIES
    • COMPANY PROFILES
      • ABB
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVES
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • AUTOGRID SYSTEMS, INC.
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVE
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • BLUE PILLAR
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVES
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • CISCO SYSTEMS, INC.
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • ENERNOC (ACQUIRED BY ENEL GREEN POWER NORTH AMERICA, INC.)
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVE
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • GENERAL ELECTRIC
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVES
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • HITACHI LTD
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVES
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • FLEXITRICITY LIMITED (ACQUIRED BY ALPIQ)
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • IBM CORPORATION
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • OPEN ACCESS TECHNOLOGY INTERNATIONAL INC.
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC ANALYSIS
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • POWER ANALYTICS CORPORATION (CAUSAM ENERGY)
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVES
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • ROBERT BOSCH
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • SCHNEIDER ELECTRIC
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVES
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • SIEMENS
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVES
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • VIRIDITY ENERGY (ACQUIRED BY ORMAT TECHNOLOGIES)
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVES
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS
      • ENBALA
        • OVERVIEW
        • PRODUCT PORTFOLIO
        • STRATEGIC INITIATIVES
        • SCOT ANALYSIS
        • STRATEGIC ANALYSIS

 

LIST OF TABLES

TABLE 1 GLOBAL VIRTUAL POWER PLANT MARKET BY GEOGRAPHY 2018-2026 ($ MILLION)

TABLE 2 COST REDUCTION POTENTIAL FOR SOLAR AND WIND POWER (2015-2025)

TABLE 3 SMART GRID INVESTMENTS IN EUROPE AND OTHER REGIONS

TABLE 4 GLOBAL VIRTUAL POWER PLANT MARKET BY END-USER 2018-2026 ($ MILLION)

TABLE 5 GLOBAL COMMERCIAL & INDUSTRIAL MARKET BY GEOGRAPHY 2018-2026 ($ MILLION)

TABLE 6 GLOBAL RESIDENTIAL MARKET BY GEOGRAPHY 2018-2026 ($ MILLION)

TABLE 7 GLOBAL VIRTUAL POWER PLANT MARKET BY TECHNOLOGY 2018-2026 ($ MILLION)

TABLE 8 GLOBAL DEMAND RESPONSE MARKET BY GEOGRAPHY 2018-2026 ($ MILLION)

TABLE 9 GLOBAL DISTRIBUTION GENERATION MARKET BY GEOGRAPHY 2018-2026 ($ MILLION)

TABLE 10 GLOBAL MIXED ASSETS MARKET BY GEOGRAPHY 2018-2026 ($ MILLION)

TABLE 11 INVESTMENTS IN VIRTUAL POWER PLANTS

TABLE 12 GLOBAL VIRTUAL POWER PLANT MARKET BY GEOGRAPHY 2018-2026 ($ MILLION)

TABLE 13 NORTH AMERICA VIRTUAL POWER PLANT MARKET BY COUNTRY 2018-2026 ($ MILLION)

TABLE 14 EUROPE VIRTUAL POWER PLANT MARKET BY COUNTRY 2018-2026 ($ MILLION)

TABLE 15 APAC VIRTUAL POWER PLANT MARKET BY COUNTRY 2018-2026 ($ MILLION)

TABLE 16 ROW VIRTUAL POWER PLANT MARKET BY REGION 2018-2026 ($ MILLION)

 

LIST OF FIGURES

FIGURE 1 GLOBAL VIRTUAL POWER PLANT MARKET BY TECHNOLOGY 2018-2026 ($ MILLION)

FIGURE 2 NORTH AMERICA VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 3 GLOBAL DEMAND RESPONSE VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 4 GLOBAL COMMERCIAL AND INDUSTRIAL MARKET 2018-2026 ($ MILLION)

FIGURE 5 AUSTRALIA VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 6 NEW INVESTMENT IN RENEWABLE ENERGY IN DEVELOPING COUNTRIES (2004-2015) ($ MILLIONS)

FIGURE 7 TARGETS FOR THE SHARE OF RENEWABLE POWER SUPPLY IN ASEAN COUNTRIES

FIGURE 8 GLOBAL COMMERCIAL & INDUSTRIAL MARKET 2018-2026 ($ MILLION)

FIGURE 9 GLOBAL RESIDENTIAL MARKET 2018-2026 ($ MILLION)

FIGURE 10 GLOBAL DEMAND RESPONSE MARKET 2018-2026 ($ MILLION)

FIGURE 11 GLOBAL DISTRIBUTION GENERATION MARKET 2018-2026 ($ MILLION)

FIGURE 12 GLOBAL MIXED ASSETS MARKET 2018-2026 ($ MILLION)

FIGURE 13 ELECTRICITY DEMAND PROJECTION TILL 2040

FIGURE 14 INVESTMENT PROPOSITION FOR GLOBAL VIRTUAL POWER PLANT MARKET BY REGION – 2017

FIGURE 15 INVESTMENT PROPOSITION FOR GLOBAL VIRTUAL POWER PLANT MARKET BY TECHNOLOGIES – 2017

FIGURE 16 UNITED STATES VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 17 CANADA VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 18 UNITED KINGDOM VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 19 FRANCE VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 20 GERMANY VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 21 SPAIN VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 22 REST OF EUROPE VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 23 CHINA VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 24 INDIA VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 25 JAPAN VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 26 AUSTRALIA VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 27 REST OF ASIA-PACIFIC VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 28 LATIN AMERICA VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 29 MIDDLE EAST & AFRICA VIRTUAL POWER PLANT MARKET 2018-2026 ($ MILLION)

FIGURE 30 MARKET SHARE ANALYSIS OF GLOBAL VIRTUAL POWER PLANT MARKET – 2017 (%)

  1. MARKET BY END-USERS
    • COMMERCIAL & INDUSTRIAL
    • RESIDENTIAL
  2. MARKET BY TECHNOLOGY
    • DEMAND RESPONSE
    • DISTRIBUTION GENERATION
    • MIXED ASSETS
  3. GEOGRAPHICAL ANALYSIS
    • NORTH AMERICA
      • US
      • CANADA
    • EUROPE
      • UNITED KINGDOM
      • FRANCE
      • GERMANY
      • SPAIN
      • REST OF EUROPE
    • ASIA-PACIFIC
      • CHINA
      • INDIA
      • JAPAN
      • AUSTRALIA
      • REST OF ASIA-PACIFIC
    • REST OF WORLD
      • LATIN AMERICA
      • MIDDLE EAST & AFRICA

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