United States Power Ancillary Service Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook 2025-2034

The United States power ancillary service market was valued at USD 6.86 Billion in 2024. The industry is expected to grow at a CAGR of 6.00% during the forecast period of 2025-2034 to attain a valuation of USD 12.29 Billion by 2034.

United States Power Ancillary Service Market Outlook

The rising integration of renewable energy sources, such as wind and solar, into power grids, has facilitated variability and intermittency into the systems. As per industry reports, US generated more than 30% of its electricity from wind and solar energy. This robust growth in renewables is driving demand for ancillary services to ensure grid stability, leading to growth of the United States power ancillary service market.

Moreover, the increased frequency and severity of weather storms in US has created a necessity for reliable and more efficient grids. To prevent blackouts and power failures, power ancillary services are used as they mitigate disturbances. As per industry reports, in 2022, winter storm ‘Elliott’ caused extreme power outages across the US, which resulted in surging adoption of ancillary services. Also, to prevent such events and harden the grid against climate change, the U.S. Department of Energy launched a USD 6 billion grant program in 2023, influencing United States power ancillary service market dynamics and trends. Additionally, improvements in energy storage technologies and the introduction of smart grids are also expected to the increase the demand for ancillary services in the power sector.

Significant Investments in Advanced Grid Infrastructure is Boosting United States Power Ancillary Service Market Growth

• In the market from 2025 to 2034, the Far West region is expected to lead with the highest CAGR of 7.0%, driven by significant investments in advanced grid infrastructure and the region's growing demand for reliable energy services.
• The Rocky Mountain region follows with a CAGR of 6.5%, supported by increasing renewable energy integration and the need for robust grid support services.
• The Southwest, with a CAGR of 6.2%, benefits from expanding energy projects and a strong focus on energy efficiency.
• The Southeast, growing at a CAGR of 5.9%, shows steady power ancillary service demand forecast in United States due to rising demand for energy reliability and infrastructure upgrades.
• New England and the Mideast regions exhibit moderate growth with CAGRs of 5.6% and 5.2%, respectively, reflecting stable but slower expansion in these well-established markets.
• The Plains and Great Lakes regions, with CAGRs of 4.8% and 4.5%, respectively, experience the slowest growth due to smaller market sizes and less aggressive infrastructure investments.

Rising Power Outages and Increasing Reliance on Renewable Energy are Some of the Major United States Power Ancillary Service Market Trends

• In the market from 2025 to 2034, frequency regulation is anticipated to experience the highest growth, with a CAGR of 6.8%, driven by the increasing need to maintain grid stability as renewable energy sources become more prevalent.
• Spinning reserve follows with a CAGR of 6.4%, reflecting its critical role in providing immediate backup power to stabilise the grid.
• As per United States power ancillary service industry analysis, non-spinning reserve, with a CAGR of 6.1%, continues to see steady demand due to its importance in ensuring power availability during peak loads and unexpected outages.
• Voltage support, with a CAGR of 5.8%, remains essential for maintaining voltage levels across the grid, especially in regions with fluctuating energy demands.
• Black start services, with a CAGR of 5.4%, show moderate growth, driven by the need to restart the grid quickly after a blackout.

IT and Telecom Sector Holds a Substantial United States Power Ancillary Service Market Share, Followed by BFSI and Healthcare Sector

• In the market from 2025 to 2034, the IT and telecom sector is expected to lead with a CAGR of 6.7%, driven by the increasing demand for uninterrupted power supply and the critical nature of data centers and communication networks.
• The BFSI sector follows closely with a CAGR of 6.3%, supported by the need for high-reliability power solutions to ensure continuous financial operations and data security.
• The healthcare sector, with a CAGR of 5.7%, contributes to United States power ancillary service market revenue due to the rising demand for reliable energy services to support critical healthcare infrastructure and operations.

Key Questions Answered in the Report:

• How has the United States power ancillary service market performed historically, and what are the growth expectations for the future?
• What are the primary factors influencing demand and growth in the United States power ancillary service market?
• What are the key segments within the United States power ancillary service market, and how are they expected to evolve over the forecast period?
• What are the major challenges and opportunities facing stakeholders in the United States power ancillary service market?
• Who are the key players in the United States power ancillary service market, and what strategies are they employing to maintain a competitive edge?
• What are the regulatory and policy factors influencing the United States power ancillary service market globally or regionally?
• How competitive is the United States power ancillary service market according to Porter's five forces analysis, including factors like bargaining power of buyers and suppliers?
• What are the current trends shaping the United States power ancillary service market landscape, and how are they expected to evolve in the future?
• How are technological advancements impacting the United States power ancillary service market, and what role do innovation and R&D play in driving growth?
• What are the consumer preferences and buying behavior trends influencing the United States power ancillary service market?
• How sustainable are current growth rates in the United States power ancillary service market, and what factors could potentially disrupt these trends?
• What are the regional dynamics within the United States power ancillary service market, and how do they contribute to overall market growth?
• What are the economic factors influencing the United States power ancillary service market, such as GDP growth, inflation rates, and currency fluctuations?
• How are demographic shifts, such as aging populations or urbanization trends, affecting demand in the United States power ancillary service market?
• What are the key strategic partnerships, mergers, and acquisitions shaping the competitive landscape of the United States power ancillary service market?
• What are the regulatory and legal frameworks impacting the United States power ancillary service market globally or in key regions?
• How are changing consumer lifestyles and preferences influencing product or service demand within the United States power ancillary service market?
• What are the emerging market trends and niche opportunities within the United States power ancillary service market that stakeholders should be aware of?
• How resilient is the United States power ancillary service market to external shocks or disruptions, such as geopolitical tensions or natural disasters?
• What are the potential barriers to market entry and growth for new players in the United States power ancillary service market?

Key Benefits for Stakeholders:

Expert Market Research's industry report provides a comprehensive quantitative analysis of various market segments, historical and current market trends, and forecasts the dynamics of the United States power ancillary service market spanning from 2018 and 2034.

The research report delivers up-to-date insights into the market drivers, challenges, and opportunities shaping the United States power ancillary service market.

Stakeholders can leverage Porter's five forces analysis to assess the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. This analysis aids in evaluating the competitiveness and attractiveness of the United States power ancillary service market.

The competitive landscape section enables stakeholders to gain a deep understanding of their competitive environment. It offers insights into the current market positions of key players, their strategies, and their market shares.

Additionally, the report highlights emerging trends, regulatory influences, and technological advancements that are pivotal for stakeholders navigating the United States power ancillary service market landscape.