Ancillary Services Power Market size was valued at US$ 1.76 Bn in 2023 and is expected to reach US$ 8.68 Bn in 2030. The Global Ancillary Services Power Market is expected to grow at a CAGR of 25.6% through the forecast period.Ancillary Services Power Market Overview
Ancillary services play a crucial role in electric power systems by ensuring the operational reliability of the bulk power system. Despite constituting a relatively small portion of overall electric power costs, these services are essential. Moreover, in certain regions, the nature and requirements of these services are evolving. In the ancillary services power industry, the services are recognized as a set of secondary services provided to enhance the reliability and availability of energy for consumers. These services encompass regulation, spinning reserve, supplemental reserve, voltage regulation, black-start, and various other functionalities. As per the study, the ancillary services power market is expected to grow rapidly during the forecast period.To know about the Research Methodology :- Request Free Sample Report
Ancillary Services Power Market Dynamics
Electrification of Transportation Driving the Ancillary Services Power Market Ancillary services are addressing the increase in electricity demand from charging infrastructure and ensuring the grid's ability to handle the unique load profiles associated with the huge adoption of EVs. In the global shift toward electrified transportation, the incorporation of microgrids takes on heightened importance. The increasing popularity of electric vehicles (EVs) is attributed to their environmental advantages and the potential to mitigate greenhouse gas emissions. Implementing energy storage solutions, such as lithium-ion batteries, offers a valuable means to alleviate the inherent intermittency associated with renewable energy sources, fostering a seamless integration of variable generation. These systems are adept at storing surplus energy generated during peak production periods and releasing it during high-demand intervals, effectively lessening the strain on the power grid. These benefits and the adoption of electrification in transportation are majorly driving the growth of the Ancillary Services Power Market. Cities across the world are increasingly prioritizing sustainable mobility solutions to address congestion, air quality issues, and the overall liveability of urban areas. The electrification of transportation majorly aligns with these goals, and urban planning initiatives are highly integrating electric public transport, shared mobility services, and charging infrastructure.Grid Modernization Initiatives Creating Opportunities for the Ancillary Services Power Market Growth The ongoing grid modernization efforts include the deployment of smart grid technologies. Ancillary services play a crucial role in supporting the implementation of modern grid infrastructure, which enables better communication, control, and optimization of power system operations. For example – the Grid Modernization Initiative (GMI) collaborates throughout the U.S. Department of Energy (DOE) to establish a future-ready grid system. DOE invested USD 39 million to support the 21st-century electric grid. These efforts and initiatives are majorly creating opportunities for the ancillary services power market growth in the future. Energy Storage Costs Challenging the Ancillary Services Power Market The upfront capital investment is required for the deployment of energy storage systems, especially advanced technologies such as lithium-ion batteries. The challenge also lies in convincing stakeholders that the long-term benefits and enhanced grid performance associated with energy storage justify the initial investment. This challenge limits the growth of the ancillary services power market especially in regions where traditional alternatives are deeply entrenched. The energy storage technologies costs are subject to variability, which are majorly influenced by factors such as raw material prices, manufacturing processes, and economies of scale. This variability introduces uncertainty for investors and industry participants, which creates challenges for the prediction and planning of the long-term cost-effectiveness of energy storage solutions.
Ancillary Services Power Market Segment Analysis
Based on Type: The market is segmented into Frequency Controlled Ancillary Services and Network Controlled Ancillary Services. The Frequency Controlled Ancillary Services segment held the largest Ancillary Services Power Market share in 2023. The frequency-controlled ancillary services are used to maintain the desired frequency by balancing load and power generation in real time. There are three levels of frequency control such as primary frequency control, secondary response, and tertiary frequency control. Increasing demand for electric devices and electric appliances creates a variable load on the power supply, which results in fluctuation in frequencies. The innovations in frequency-controlled ancillary services are driving the market growth at a high CAGR in the forecast period. Based on Service: The market is segmented into Voltage Control and Reactive Power Support, Black Start, Operating Reserve, Load Following, Regulation Service, and Other Services. The Black Start segment is expected to grow rapidly during the forecast period. The black start is used in hydroelectric power plants, compressed air storage power plants, or gas power plants. These plants can generate a large amount of energy but to start the generation of power they need an external power source. The black start is used in this power plant to start up autonomously without an external power supply. The growth of energy generation and rising power demand are driving the growth of black start in the ancillary services power market.Ancillary Services Power Market Regional Insights
European Ancillary Services Power Market dominated the global market with the largest share in 2023. Wind power generators are providing balancing services in European countries. Wind variability and uncertainty increase the balancing costs by approximately 1.22 – 5.47 US$/MWh. Wind energy penetrations serve up to 20% of energy demand in Europe. The growth of renewable power generation is driving the growth of the ancillary services power market. Solar and wind power generation are expected to grow rapidly during the forecast period. The growth of energy demand and increasing production of energy generation systems are driving the market growth in the region. North American Ancillary Services Power Market is expected to grow at a high rate during the forecast period. The regional market operates within a regulatory framework that varies across jurisdictions. In the US, the Federal Energy Regulatory Commission (FERC) plays a crucial role in overseeing wholesale electricity markets, including ancillary services. In the region, Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) coordinates and manage grid operations, which also contributes to the market structure. In the US, the distribution and grid modernization is also contributing to the market growth. The planning for state for distribution and grid modernization includes: 1. Support DER integration and utilization for grid services 2. Increase customer choice and engagement in energy services 3. Reduce greenhouse gas emissions and support a clean energy transition 4. Improve grid resilience 5. Accelerate deployment of new technologies and services to optimize grid performance and minimize electricity system costsAncillary Services Power Market Scope : Inquire before buying
Ancillary Services Power Market Report Coverage Details Base Year: 2023 Forecast Period: 2024-2030 Historical Data: 2018 to 2023 Market Size in 2023: US $ 1.76 Bn. Forecast Period 2024 to 2030 CAGR: 25.6% Market Size in 2030: US $ 8.68 Bn. Segments Covered: by Type Frequency Controlled Ancillary Services Network Controlled Ancillary Services by Service Voltage Control & Reactive Power Support Black Start Operating Reserve Load Following Regulation Service Other Service Ancillary Services Power Market, by Region
North America (United States, Canada and Mexico) Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe) Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC) Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A) South America (Brazil, Argentina Rest of South America) Ancillary Services Power Key Players Global: 1.General Electric [Fairfield, Connecticut, USA] North America: 1. New York Independent System Operator [New York, USA] 2. Independent Electricity System Operator [Ontario, Canada] 3. Midcontinent Independent System Operator, Inc. [Carmel, Indiana, USA] 4. Electric Reliability Council of Texas [Taylor, Texas, USA] 5. Southwest Power Pool, Inc. [Little Rock, Arkansas, USA] 6. Snowy Hydro Limited [Australia - note: originally Australian, but included here for convenience as it operates globally] Europe: 1.Elia [Brussels, Belgium] Asia Pacific: 1.Transelectrica SA [Bucharest, Romania] 2.Alberta Electric System Operator [Calgary, Alberta, Canada] Frequently Asked Questions: 1. Which region held the largest Market share in 2023? Ans: Europe region held the largest Market share in 2023. 2. What is the expected growth rate of Global Market during the forecast period? Ans: The Global Market is expected to grow at a CAGR of 25.6% during forecasting period. 3. What is scope of the Global Market report? Ans: Global Market report helps with the PESTLE, PORTER, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period. 4. Who are the Ancillary Services Power key competitors in the Industry? Ans: The important Ancillary Services Power key competitors in the industry are – Snowy Hydro Limited, New York Independent System Operator, Elia, PJM,, Transelectrica SA, General Electric, Independent Electricity System Operator, Midcontinent Independent System Operator, Inc., Alberta Electric System Operator, Southwest Power Pool, Inc.,, and Electric Reliability Council of Texas 5. What is the study period of the Market? Ans: The Global Market is studied from 2023 to 2030.
1. Ancillary Services Power Market Introduction 1.1. Study Assumption and Market Definition 1.2. Scope of the Study 1.3. Executive Summary 2. Ancillary Services Power Market: Dynamics 2.1. Ancillary Services Power Market Trends by Region 2.1.1. Global Ancillary Services Power Market Trends 2.1.2. North America Ancillary Services Power Market Trends 2.1.3. Europe Ancillary Services Power Market Trends 2.1.4. Asia Pacific Ancillary Services Power Market Trends 2.1.5. Middle East and Africa Ancillary Services Power Market Trends 2.1.6. South America Ancillary Services Power Market Trends 2.2. Ancillary Services Power Market Dynamics by Region 2.2.1. North America 2.2.1.1. North America Ancillary Services Power Market Drivers 2.2.1.2. North America Ancillary Services Power Market Restraints 2.2.1.3. North America Ancillary Services Power Market Opportunities 2.2.1.4. North America Ancillary Services Power Market Challenges 2.2.2. Europe 2.2.2.1. Europe Ancillary Services Power Market Drivers 2.2.2.2. Europe Ancillary Services Power Market Restraints 2.2.2.3. Europe Ancillary Services Power Market Opportunities 2.2.2.4. Europe Ancillary Services Power Market Challenges 2.2.3. Asia Pacific 2.2.3.1. Asia Pacific Ancillary Services Power Market Drivers 2.2.3.2. Asia Pacific Ancillary Services Power Market Restraints 2.2.3.3. Asia Pacific Ancillary Services Power Market Opportunities 2.2.3.4. Asia Pacific Ancillary Services Power Market Challenges 2.2.4. Middle East and Africa 2.2.4.1. Middle East and Africa Ancillary Services Power Market Drivers 2.2.4.2. Middle East and Africa Ancillary Services Power Market Restraints 2.2.4.3. Middle East and Africa Ancillary Services Power Market Opportunities 2.2.4.4. Middle East and Africa Ancillary Services Power Market Challenges 2.2.5. South America 2.2.5.1. South America Ancillary Services Power Market Drivers 2.2.5.2. South America Ancillary Services Power Market Restraints 2.2.5.3. South America Ancillary Services Power Market Opportunities 2.2.5.4. South America Ancillary Services Power Market Challenges 2.3. PORTER’s Five Types Analysis 2.4. PESTLE Analysis 2.5. Government Initiatives for the Ancillary Services Power Industry 2.6. Regulatory Landscape by Region 2.6.1. North America 2.6.2. Europe 2.6.3. Asia Pacific 2.6.4. Middle East and Africa 2.6.5. South America 2.7. The Global Pandemic Impact on the Ancillary Services Power Market 3. Ancillary Services Power Market: Global Market Size and Forecast (by Value) (2023-2030) 3.1. Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 3.1.1. Load Following 3.1.2. Network Controlled Ancillary Services 3.2. Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 3.2.1. Voltage Control & Reactive Power Support 3.2.2. Black Start 3.2.3. Operating Reserve 3.2.4. Load Following 3.2.5. Regulation Service 3.2.6. Other Service 3.3. Ancillary Services Power Market Size and Forecast, by Region (2023-2030) 3.3.1. North America 3.3.2. Europe 3.3.3. Asia Pacific 3.3.4. Middle East and Africa 3.3.5. South America 4. North America Ancillary Services Power Market Size and Forecast (by Value) (2023-2030) 4.1. North America Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 4.1.1. Load Following 4.1.2. Network Controlled Ancillary Services 4.2. North America Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 4.2.1. Voltage Control & Reactive Power Support 4.2.2. Black Start 4.2.3. Operating Reserve 4.2.4. Load Following 4.2.5. Regulation Service 4.2.6. Other Service 4.3. North America Ancillary Services Power Market Size and Forecast, by Country (2023-2030) 4.3.1. United States 4.3.1.1. United States Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 4.3.1.1.1. Load Following 4.3.1.1.2. Network Controlled Ancillary Services 4.3.1.2. United States Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 4.3.1.2.1. Voltage Control & Reactive Power Support 4.3.1.2.2. Black Start 4.3.1.2.3. Operating Reserve 4.3.1.2.4. Load Following 4.3.1.2.5. Regulation Service 4.3.1.2.6. Other Service 4.3.2. Canada 4.3.2.1. Canada Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 4.3.2.1.1. Load Following 4.3.2.1.2. Network Controlled Ancillary Services 4.3.2.2. Canada Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 4.3.2.2.1. Voltage Control & Reactive Power Support 4.3.2.2.2. Black Start 4.3.2.2.3. Operating Reserve 4.3.2.2.4. Load Following 4.3.2.2.5. Regulation Service 4.3.2.2.6. Other Service 4.3.2.3. Mexico 4.3.2.4. Mexico Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 4.3.2.4.1. Load Following 4.3.2.4.2. Network Controlled Ancillary Services 4.3.2.5. Mexico Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 4.3.2.5.1. Voltage Control & Reactive Power Support 4.3.2.5.2. Black Start 4.3.2.5.3. Operating Reserve 4.3.2.5.4. Load Following 4.3.2.5.5. Regulation Service 4.3.2.5.6. Other Service 5. Europe Ancillary Services Power Market Size and Forecast by Segmentation (by Value) (2023-2030) 5.1. Europe Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 5.2. Europe Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 5.3. Europe Ancillary Services Power Market Size and Forecast, by Country (2023-2030) 5.3.1. United Kingdom 5.3.1.1. United Kingdom Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 5.3.1.2. United Kingdom Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 5.3.2. France 5.3.2.1. France Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 5.3.2.2. France Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 5.3.3. Germany 5.3.3.1. Germany Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 5.3.3.2. Germany Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 5.3.4. Italy 5.3.4.1. Italy Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 5.3.4.2. Italy Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 5.3.5. Spain 5.3.5.1. Spain Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 5.3.5.2. Spain Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 5.3.6. Sweden 5.3.6.1. Sweden Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 5.3.6.2. Sweden Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 5.3.7. Austria 5.3.7.1. Austria Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 5.3.7.2. Austria Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 5.3.8. Rest of Europe 5.3.8.1. Rest of Europe Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 5.3.8.2. Rest of Europe Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6. Asia Pacific Ancillary Services Power Market Size and Forecast by Segmentation (by Value) (2023-2030) 6.1. Asia Pacific Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.2. Asia Pacific Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6.3. Asia Pacific Ancillary Services Power Market Size and Forecast, by Country (2023-2030) 6.3.1. China 6.3.1.1. China Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.3.1.2. China Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6.3.2. S Korea 6.3.2.1. S Korea Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.3.2.2. S Korea Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6.3.3. Japan 6.3.3.1. Japan Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.3.3.2. Japan Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6.3.4. India 6.3.4.1. India Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.3.4.2. India Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6.3.5. Australia 6.3.5.1. Australia Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.3.5.2. Australia Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6.3.6. Indonesia 6.3.6.1. Indonesia Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.3.6.2. Indonesia Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6.3.7. Malaysia 6.3.7.1. Malaysia Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.3.7.2. Malaysia Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6.3.8. Vietnam 6.3.8.1. Vietnam Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.3.8.2. Vietnam Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6.3.9. Taiwan 6.3.9.1. Taiwan Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.3.9.2. Taiwan Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 6.3.10. Rest of Asia Pacific 6.3.10.1. Rest of Asia Pacific Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 6.3.10.2. Rest of Asia Pacific Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 7. Middle East and Africa Ancillary Services Power Market Size and Forecast (by Value) (2023-2030) 7.1. Middle East and Africa Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 7.2. Middle East and Africa Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 7.3. Middle East and Africa Ancillary Services Power Market Size and Forecast, by Country (2023-2030) 7.3.1. South Africa 7.3.1.1. South Africa Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 7.3.1.2. South Africa Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 7.3.2. GCC 7.3.2.1. GCC Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 7.3.2.2. GCC Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 7.3.3. Nigeria 7.3.3.1. Nigeria Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 7.3.3.2. Nigeria Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 7.3.4. Rest of ME&A 7.3.4.1. Rest of ME&A Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 7.3.4.2. Rest of ME&A Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 8. South America Ancillary Services Power Market Size and Forecast (by Value) (2023-2030) 8.1. South America Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 8.2. South America Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 8.3. South America Ancillary Services Power Market Size and Forecast, by Country (2023-2030) 8.3.1. Brazil 8.3.1.1. Brazil Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 8.3.1.2. Brazil Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 8.3.2. Argentina 8.3.2.1. Argentina Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 8.3.2.2. Argentina Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 8.3.3. Rest Of South America 8.3.3.1. Rest Of South America Ancillary Services Power Market Size and Forecast, by Type (2023-2030) 8.3.3.2. Rest Of South America Ancillary Services Power Market Size and Forecast, by Service (2023-2030) 9. Global Ancillary Services Power Market: Competitive Landscape 9.1. MMR Competition Matrix 9.2. Competitive Landscape 9.3. Key Players Benchmarking 9.3.1. Company Name 9.3.2. Product Segment 9.3.3. End-user Segment 9.3.4. Revenue (2022) 9.3.5. Company Locations 9.4. Leading Ancillary Services Power Market Companies, by market capitalization 9.5. Market Structure 9.5.1. Market Leaders 9.5.2. Market Followers 9.5.3. Emerging Players 9.6. Mergers and Acquisitions Details 10. Company Profile: Key Players 10.1. Snowy Hydro Limited 10.1.1. Company Overview 10.1.2. Business Portfolio 10.1.3. Financial Overview 10.1.4. SWOT Analysis 10.1.5. Strategic Analysis 10.1.6. Scale of Operation (small, medium, and large) 10.1.7. Details on Partnership 10.1.8. Recent Developments 10.2. New York Independent System Operator 10.3. Elia 10.4. PJM, 10.5. Transelectrica SA 10.6. General Electric 10.7. Independent Electricity System Operator 10.8. Midcontinent Independent System Operator, Inc. 10.9. Alberta Electric System Operator 10.10. Southwest Power Pool, Inc., 10.11. Electric Reliability Council of Texas 11. Key Findings 12. Industry Recommendations 13. Ancillary Services Power Market: Research Methodology 14. Terms and Glossary