Global Virtual Power Plant Market to Register a CAGR of 27% During 2021-2026 - However, Technological Advancements Have Increased the Threat of Cybercriminals
DUBLIN, Oct. 6, 2021 /PRNewswire/ -- The "Global Virtual Power Plant Market Research Report: Forecast (2021-2026)" report has been added to ResearchAndMarkets.com's offering.
The global VPP market is likely to grow at a CAGR of around 27% during 2021-2026.
The rising integration of renewable energy in the power generation mix, a paradigm shift from distributed generation toward centralized generation decreasing the overall carbon footing, and a slump in the cost of solar generation and energy storage are some of the driving factors influencing the growth of the Global Virtual Power Plant market.
Moreover, the launch of new VPPs by the key companies for the industrial & commercial sectors is also likely to propel the demand for VPP in the forthcoming years. For instance, ABB launched OPTIMAX for Industrials and Commercials and Virtual Power Plants in 2018, enabling industrial, commercial, and power generation companies to reduce energy costs & site emissions by optimizing the aggregation and dispatch of energy sources.
Surging Usage of Renewable Energy in the Power Generation
Renewable energy sources are the naturally occurring source of energy that can be well-replenished. They help minimize greenhouse gas emissions. However, renewable energy technology is more expensive than fossil fuel-based power generation. But, due to rising environmental concerns and surging awareness regarding the benefits of using renewable sources, the usage of renewable energy in power generation is significantly increasing.
Cybersecurity Threat in Virtual Power Plant
The virtual power plants help analyze, optimize, and fill the gap between demand & supply of energy. But, it also faces challenges associated with data protection and information privacy. Additionally, technological advancements have increased the threat of cybercriminals that could attack the energy sector.
COVID-19 Pandemic Negatively Impacted Market Growth
The sudden outbreak of the COVID-19 pandemic has adversely affected the entire global economy and has disrupted numerous businesses in various countries. Due to the imposition of lockdown across the globe, investments in energy grid projects declined. Also, the pandemic led to the decline in the electricity prices for most of the networks. However, power generation through renewable resources remained unchanged. As the lockdown got lifted, the government has started to reconsider its focus on renewable energy sources. Therefore, the market is likely to boost owing to the surge in investments to develop energy infrastructure.
Industrial Accounted for the Largest Market Share
Based on the End-User, the market bifurcates into Residential, Commercial, and Industrial sectors. The industrial sector captured a significant market share in the Global Virtual Power Plant market in the previous few years. The escalating demand for energy from the power industry worldwide, an inclination of industries toward renewable energy, the proliferation of industries & municipalities generating their power, and active trading in electricity markets are the prime factors fueling the overall segment growth.
Distributed Energy Generation System Dominated the Market
Based on the Source, the market segments into Distributed Energy Generation System and Energy Storage System. The Distributed Energy Generation System acquired the largest market share in the Global Virtual Power Plant market in the previous few years. Distributed Energy Generation System refers to the technology, which is beneficial for generating electricity at or near the place where it will be used, like combined heat & power and solar panels. The segment growth owes primarily to using renewable sources, such as solar energy, which is a cost-effective technology. In addition to this, Distributed Energy Generation System provides electricity during power outages. Hence, it is the highly preferred source.
Europe Attained the Highest Market Share
Geographically, Europe held the largest market share in the Global Virtual Power Plant market in the previous few years due to the abundant presence of leading market players and rising government focus on 100% green energy. In addition to this, mounting investments in renewable energy sources and energy storage systems are other critical aspects propelling the market growth in Europe.
Leading Players Profiled
- ABB Ltd.
- AutoGrid Systems
- Advanced Microgrid Solutions Inc.
- CISCO Systems Inc.
- Enbala Power Networks Inc.
- Enel X North America Inc.
- General Electric
- Itron Inc.
- Schneider Electric
- Tesla Inc.
Key Questions Answered
1. What are the overall market statistics or estimates (Market Overview, Market Size - by Value, Forecast Numbers, Market Segmentation, and Market Shares) of the Global Virtual Power Plant Market?
2. What is the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Virtual Power Plant Market?
4. Who are the key competitors, their key strengths & weaknesses, and how they perform in the Global Virtual Power Plant Market based on a competitive benchmarking matrix?
5. What are the key results derived from the market surveys conducted during the Global Virtual Power Plant Market study?
For more information about this report visit https://www.researchandmarkets.com/r/3hgci2
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