US utilities have installed advanced VVC solutions across 15 percent of the country so far, and the market’s steady growth will continue until 2027.

A new report finds that the VVC market’s growth rate will begin to fall in the late 2020s as utilities approach their feeder coverage targets. This will result in fewer project starts and a corresponding shift from capital expenditure to operations expenditure. DERs and grid modernization are driving today’s VVC market growth. Distribution-level investment will increase as utilities use power electronics to meet emerging DER integration needs.

Which VVC market segments will remain robust?

As utilities come to focus on operational expenditures, VVC market segments that rely on licensing fees and software-as-a-service contracts will continue to bring in ongoing revenue.

For more information, read the editorial or purchase the full report.