The global virtual power plant market is projected to generate $12,273.3 million revenue by 2030, advancing at a CAGR of 16.9% during 2022–2030. This can be ascribed to rapid urbanization and industrialization, a rise in the need for reliable and stable power supply especially in industrial and commercial sectors, high investment in energy infrastructure, and an increase in concerns about the reduction of the carbon footprint on the environment. Moreover, surging technological advancements and increasing government-supporting policies in emerging countries are responsible for the market advancement.
Based on technology, the market is classified into demand response, supply side, and mixed assets. Among these, the mixed assets category will register the fastest growth during the forecast period, advancing at a CAGR of over 15%. This can be attributed to the surging demand for energy-efficient systems that work together to reduce electricity consumption and also ensure the supply of clean power in a targeted manner.
On the other hand, the demand response category held the largest revenue share in 2022, and it is expected to maintain its position in the coming years as well. This is ascribed to the lower cost of development and higher operational performance of virtual power plants (VPPs) based on this technology. Owing to this, the demand for these VPPs is extremely high in North America, which is also the largest market for VPPs in the world.
Based on consumer, the market is categorized into industrial, commercial, residential, and electric vehicles. Of these, the industrial category accounted for the highest revenue in the market in 2022 and is further expected to maintain its dominance in the coming years. This is due to the upsurge in the applications of small and medium-sized VPPs in industrial areas, an increase in the need for high reliability and energy efficiency during peak load durations, and a rise in industrialization especially in emerging economies.
Geographically, the APAC market will witness healthy growth during the forecast period. This can be attributed to the surging need for energy due to the fast-growing residential and commercial sectors, the increasing focus on electricity generation from renewable energy sources, and the rising concerns of numerous governments about non-renewable power in the region. Moreover, China is expected to lead the APAC market, generating significant revenue in the coming years. This can be mainly due to the development of renewable power projects, along with the large industrial sector, in the country.
On the other hand, North America contributed the majority of revenue share in 2022, and it is further expected to maintain its dominance during the predicted period. This is due to the integration of new renewable power projects, the deployment of electric vehicle charging infrastructure, and the need for a reliable power supply from distributed energy resources in the region.
Some of the major players operating in the VPP market are Generac Holdings Inc., AutoGrid Systems Inc., Sunverge Energy Inc., AGL Energy Ltd., Siemens AG, Enel X North America Inc., and ENGIE North America Inc.