Virtual Power Plant Market Size, Share, Growth Analysis, By Technology(Distribution Generation, Demand Response, Mixed Asset), By End User(Commercial, Industrial, Residential), By Region - Industry Forecast 2024-2031

Global Virtual Power Plant Market size was valued at USD 1.08 billion in 2021 and is poised to grow from USD 6.47 billion in 2022 to USD 16.9 billion by 2030, growing at a CAGR of 12.75% in the forecast period (2023-2030).

The global virtual power plant (VPP) market has witnessed significant growth in recent years due to the rising demand for clean and sustainable energy sources. The virtual power plant market has experienced robust growth in recent years and is expected to continue its upward trajectory in the forecast period. Factors such as increasing renewable energy integration, government initiatives promoting clean energy, and advancements in digital technologies have contributed to the market's expansion. Moreover, the growing focus on energy storage systems and grid flexibility has further boosted the adoption of virtual power plants.

The global virtual power plant market is expanding due to several factors such as rising demand for unconventional energy in the power generation sector, electricity grids shifting from centralized to distributed, cost regulation, and the ease of use of electricity storage energy. Another important element driving market expansion is the increasing demand for electricity from a reliable power source, which is predicted to drive the global industry over the forecast period. The virtual power plant contributes to peak energy usage periods, and end users can save excess energy in energy storage devices such as batteries. Furthermore, increased government requirements and initiatives for customer involvement and reward programmes could provide an additional source of revenue.