Global Micro Combined Heat and Power (CHP) Market – Industry Trends and Forecast to 2029

Global Micro Combined Heat and Power (CHP) Market, By Type (Engine-based, Fuel Cell-based), Capacity ( 10 kW to ≤ 50 kW), Fuel (Natural Gas and LPG, Coal, Renewable Resources, Oil), Prime Mover (Stirling Engine, Internal Combustion Engine, Fuel Cell), Application (Residential, Commercial) – Industry Trends and Forecast to 2029

Market Analysis and Size

Over the forecast period, the business trend is projected to be driven by a paradigm shift toward the use of sustainable and efficient heat generation units in residential and commercial establishments. Furthermore, rising concerns about rising carbon emissions and a growing emphasis on waste management have resulted in the development of enhanced and efficient capacity cogeneration units, which will stimulate industry dynamics. These determinants will significantly aid the market traction over the forecast timeframe.

Global Micro Combined Heat and Power (CHP) Market was valued at USD 4,560.00 million in 2021 and is expected to reach USD 13471.28 million by 2029, registering a CAGR of 14.5% during the forecast period of 2022-2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team also includes technological advancements, regulatory framework, PESTEL, porter's five forces analysis, industry standards-at a glance, raw material costs/ operational expenditure-overview, supply chain analysis, vendor selection criteria, pricing analysis, production analysis, and climate chain scenario.

Market Definition

Micro combined heat and power (CHP) systems are also known as cogeneration equipment. This system generates both electricity and useful thermal energy in a single integrated system. A micro CHP system uses less fuel to produce energy and is a cost-effective method of ensuring efficient power generation, allowing greenhouse gas emissions to be kept to a bare minimum.

Report Scope and Market Segmentation

Micro Combined Heat and Power (CHP) Market Dynamics

This section deals with understanding the market drivers, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Increased Demand for Clean Energy

Natural gas and LPG-fueled micro CHP market share is expected to grow due to the increased emphasis on reducing carbon emissions and the widespread availability of natural gas as a green fuel source. Some of the features that will positively impact product penetration are improved efficiency, feasible operation, low costs, environmental friendliness, and corrosion resistance. Furthermore, favorable policies and mandates for the integration of renewable energy sources, in line with the sector's continuous growth, will boost product demand.

Furthermore, the rising infrastructural developments owing to escalating economic development also accelerates the market growth. Moreover, the increasing industrialization and urbanization is projected to boost the market demand over the forecast period. Moreover, the growing demand for highly efficient hot water generation among end-users and ongoing refurbishment of existing systems will drive product adoption in these establishments.

Opportunities

• Technological Advancements and Research and Development

Furthermore, the technological advancements of micro CHP systems further extend profitable opportunities to the market players in the forecast period of 2022 to 2029. In addition to this, the ongoing research and development toward the improvement of power density offers lucrative growth opportunities for the market.

Restraints/Challenges

• High Price

The high price of micro CHP units is further preventing the implementation of micro combined heat and power (CHP). This factor has further hindered the overall market growth over the forecast period.

• Presence of Alternatives

The low price of natural gas across various regions is also estimated to restraint the market growth. The low price attracts the consumers towards the adoption of natural gas, which further negatively impacts the demand for combined heat and power (CHP). As a result this factor will further pose as a serious challenge to the growth of the micro combined heat and power (CHP) market.

Additionally, the various infrastructural hurdles further hampers the market growth.

This micro combined heat and power (CHP) market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the micro combined heat and power (CHP) market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Micro Combined Heat and Power (CHP) Market

The recent outbreak of coronavirus had a negative impact on the micro combined heat and power (CHP) market, as the pandemic has had a significant impact on wind power industry's supply chain. The COVID-19 outbreak has presented numerous challenges for manufacturers in the Micro CHP systems market and significant global economic uncertainty. The ramifications of this will be far-reaching, affecting a wide range of industries. The demand for micro CHP is determined by the growth of end-use industries such as commercial, residential, and industrial. As a result, a decrease in investment in these sectors is expected to have a negative impact on micro CHP system sales.

However, following the COVID-19 crisis, manufacturers will increase production due to the adoption of clean energy portfolio standards, and several countries' governments and states offering incentives are expected to contribute to market growth. As a result, the global micro CHP market is poised to generate significant opportunities in the long run.

Recent Development

• In September 2021, AFCP, a leading developer and manufacturer of micro-CHP systems, has announced plans to begin testing of next-generation power units with Gaskatel GmbH. The collaboration is currently working to introduce micro-CHP systems based on hydrogen-powered alkaline fuel cell technology.

Global Micro Combined Heat and Power (CHP) Market Scope

The micro combined heat and power (CHP) market is segmented on the basis of type, capacity, fuel, prime mover and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Engine-based
• Fuel Cell-based

 Capacity

• < 2 kW
• 2 kW to ≤ 10 kW
• 10 kW to ≤ 50 kW

 Fuel

• Natural Gas and LPG
• Coal
• Renewable Resources
• Oil

 Prime Mover

• Stirling Engine
• Internal Combustion Engine
• Fuel Cell

Application

• Residential
• Commercial

Micro Combined Heat and Power (CHP) Market Regional Analysis/Insights

The micro combined heat and power (CHP) market is analyzed and market size insights and trends are provided by country, type, capacity, fuel, prime mover and application as referenced above.

The countries covered in the micro combined heat and power (CHP) market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Poland, Norway, Finland, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Nigeria, Algeria, Angola, Ghana, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Europe dominates the micro combined heat and power (CHP) market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period of 2022-2029. The market growth over this region is attributed to the increasing awareness of the impact of human activities on the environment and fluctuating prices of traditional fuels used for power and heat generation within the region.

Asia-Pacific on the other hand, is estimated to show lucrative growth over the forecast period of 2022-2029, due to the favorable government policies, as well as the growing initiative to promote adoption of sustainable energy sources such as micro CHP.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Micro Combined Heat and Power (CHP) Market Share Analysis

The micro combined heat and power (CHP) market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to micro combined heat and power (CHP) market.

Some of the major players operating in the micro combined heat and power (CHP) market are

• YANMAR HOLDINGS Co., Ltd. (Japan)
• General Electric (U.S.)
• Siemens (Germany)
• EDF (U.S.)
• 2G Energy AG (Germany)
• SAMAD POWER LTD (U.K.)
• Vaillant Group (Germany)
• Viessmann Manufacturing Company Inc. (Germany)
• Axiom Energy Group, LLC. (U.S.)
• MTT B.V. (Netherlands)
• Centrica (U.K.)
• BDR Thermea Group (Netherlands)
• EC POWER A/S (Denmark)
• TEDOM a.s. (Czech Republic)
• Honda Motor Co., Ltd. (Japan)
• GreenWattCanada (Canada)