Global Combined Heat & Power Installation Market by Type (Small Scale, Large Scale), by Fuel (Biomass, Coal, Natural Gas) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global combined heat and power installations market was valued at USD 9.4 Billion in 2019. It is projected to grow at 3.1% CAGR between 2020 and 2027. CHP installations are expected to be driven by a shift in preference to replace conventional energy systems due to their operational cost and uninterruptible utility supply. Market growth will be driven by the continuing demand for captive power generation and consumer interest in sustainable energy. The product will be more popular due to growing concerns about Greenhouse Gas (GHG), safety, reliability, efficiency, and safety across co-generation systems. CHP installations will be driven by rapid investments in renewable energy technologies that limit carbon emissions.

The thermal power plants generally use half the heat to produce power. The rest is heat that is expelled through the flue gas, cooling systems, or other means. The surplus heat can be captured through cogeneration or CHP and used to produce electricity. This could increase power plant productivity to as high as 80%. CHP installations will be driven by strict government regulations to limit CO2 atmospheric emissions.

The market will be encouraged by a large natural gas supply and low prices. Because natural gas is abundant in the United States, Russia, Iran and Qatar, it is widely used for heat and power generation. Natural gas-based systems can be installed quickly and are more cost-effective than other fuel systems. Power generating utilities have had to find efficient ways to produce electricity using less energy resources due to rising energy prices.

In both emerging and developed economies, there is increasing awareness about energy conservation measures. These factors will likely boost the growth of combined heat and power installations market over the forecast period. Market growth is likely to be slowed by the high initial costs of CHP systems. CHP systems are more expensive than conventional systems like boilers and diesel engines. CHP systems have a longer payback period, which is due to the system's frequent use.

Type Insights

In 2019, the revenue share for large-scale types was 79.5%. This product is mainly used in the industrial and commercial sectors. The global large-scale-based combined heat-and-power installation system was the most popular in 2019. The demand for large-scale-based systems is expected to grow due to the growing demand from large-scale industrial sectors like chemical, cement, pulp and paper, textiles, glass and pharmaceuticals. These materials are widely used because of their high-temperature and pressure requirements. In 2019, the small-scale segment represented a greater revenue share than 20.0%. It is expected to experience significant growth rates of 5.5% between 2020 and 2027.

CHP installations will be in demand due to rising residential energy consumption. CHP installations are seeing a rise in awareness about the advantages of cogeneration systems. They are more popular than traditional methods. The United States, Germany, Japan, and Japan are the major markets. These systems are used primarily for wastewater treatment in residential applications. These systems can also be used in commercial settings such as offices, hospitals, casinos and airports. These systems are most useful in areas where buildings have heat sinks, such as swimming pools.

Fuel Insights

CHP systems based on natural gas are expected to make up 66.0% in revenue by 2027. CHP systems that are natural gas-fueled were dominant in the overall Combined Heat and Power market and accounted to over 65.0% for the total volume in 2019. Natural gas is a great fuel for CHP systems because of its availability and low price. Natural gas is also a clean energy source that reduces carbon emissions. The coal-based combined heat/power systems, which accounted for over 18.0% of total volume in 2019, are expected to see a lower growth rate than the average over the forecast period. CHP systems will be in demand due to rising coal demand because of its low cost and high calorific value.

Because of its high handling costs and the release of harmful gases into our atmosphere, it is not recommended for use in designs. Biomass can be made from vegetable oils or animal fats. These are renewable and sustainable. Because they reduce harmful environmental gases and help meet government targets for using renewable energy, biomass will see high growth. Wood, oil, and processed waste are all other fuel options. CHP systems are run on small-scale scales using wood waste. Wood waste can be used for both residential and commercial purposes. CHP systems use the heat from industrial plants to generate electricity and thermal power. CHP systems powered by oil are simple to install and highly efficient.

Technology Insights

CHP systems that use combined cycle technology were responsible for over 55.0%. With a market valuation of more than 6 billion, the combined cycle system was the dominant technology for 2019. These systems can be used where energy requirements are high, primarily in industrial sectors like refining, chemicals and paper pulp.

These key benefits include non-fuel operation, low maintenance and installation cost, thermal output and start-up times, fuel availability, low emissions, and low emission. This technology transfers energy from one turbine to another, making it more efficient and delivering steam at low- and high pressure according to site requirements. These systems can be built to meet client needs. This will allow for the rise of combined cycle power technology over the next few years.

The steam turbine-based technology was responsible for more than 26.0% in total volume in 2019. It is expected to show moderate growth rates during the forecast period. The combined cycle-based technology was worth more than USD 4.7 billion in 2019. It is predicted to experience higher growth rates, with an estimated CAGR 2.9% between 2020 and 2027. CHP installations are also made from combustion/gas turbines, waste heat recovery and fuel cells. Other technologies that are part of CHP include microturbines and fuel cells. Microturbines can produce small amounts of electricity, ranging from 30 KW to 250. You can use a variety of fuels, including natural gas, sour gas and other liquid fuels. These systems can be used in both residential and commercial settings.

Regional Insights

Europe was the region with the highest revenue share, more than 50% in 2019. Over the forecast period, Europe is expected to maintain its dominant position in terms of revenue share. Europe will continue to be driven by CHP system installation due to strict government regulations in places like France, Germany, and the U.K. North America's CHP installation demand reached 110.5 GW in 2019, and will reach 142.9GW by 2027. This is a 3.3% increase from 2020-2027. CHP installation is expected to be driven by strict environmental regulations set forth by governing bodies such as the U.S. EPA.

Asia Pacific was responsible for more than 27.0% of global GDP in 2019. It is predicted to experience significant growth rates, with an estimated CAGR over 4.3% between 2020 and 2027. This region is expected to be driven by large-scale manufactures in Asia Pacific countries like Japan, China, South Korea and South Korea. To reduce emissions, the governing bodies in countries like India and China have pledged to increase their share of clean energy. The governments of some countries in the Asia Pacific region are supporting combined heat-power installations through various policies, research and development initiatives, and other measures. These factors will result in the APAC region seeing a rise in demand for combined heat/power installations in the future.

Market Share Insights & Key Companies

CHP installation market is relatively well-established. To launch more products on the combined heat-power market, companies are looking to form strategic partnerships for joint research and development. The market statistics for combined heat and power will be boosted by technical advancements and increased investments in the R&D sector. In April 2018, GE and GreenTech signed a supply deal to source 21 Jenbacher gas engine for CHP generation in Russian agricultural, food, beverage and chemical industries. The market for combined heat and power installations is dominated by the following:

• E.ON SE

• Mitsubishi Hitachi Power Systems, Ltd.

• Siemens

• Centrica

• General Electric

• Bdr Thermea Group

• Aegis Energy Services Inc.

• Clarke Energy

• Cummins Inc.

• Capstone Turbine Corporation

• Caterpillar

• Elite Energy Systems, LLC

• Doosan Fuel Cell America, Inc.

• Tecogen Inc.

• Wartsila

Up Market Research published a new report titled “Combined Heat & Power Installation Market research report which is segmented by Type (Small Scale, Large Scale), by Fuel (Biomass, Coal, Natural Gas), By Players/Companies Mitsubishi Hitachi Power Systems Ltd, Aegis Energy Services Inc, Bdr Thermea Group, Cummins Inc, Clarke Energy, Elite Energy Systems LLC, Tecogen Inc, General Electric, EON SE, Caterpillar, Capstone Turbine Corporation, Siemens, Wartsila, Centrica, Doosan Fuel Cell America Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Combined Heat & Power Installation Market Report Segments:

The market is segmented by Type (Small Scale, Large Scale), by Fuel (Biomass, Coal, Natural Gas).

Combined Heat & Power Installation Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Combined Heat & Power Installation Market

Overview of the regional outlook of the Combined Heat & Power Installation Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Combined Heat & Power Installation Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Combined Heat & Power Installation Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Small Scale

                2. Large Scale

                1. Biomass

                2. Coal

                3. Natural Gas

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Combined Heat & Power Installation Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Combined Heat & Power Installation Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.