The Global Market for Cogeneration Equipment in Terms of Revenues from Annual Equipment Installations is Projected to Exceed US$40 Billion by 2020

Surging Demand for Electricity & the Resulting Need for Efficient Power Generation Technologies Drives the Cogeneration Equipment Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Cogeneration Equipment market. The global market for Cogeneration Equipment in terms of revenues from annual equipment installations is projected to exceed US$40 billion by 2020, driven by increasing adoption of microCHP systems and the growing prominence of eco-friendly, economic, and energy-efficient power generation technologies.

Cogeneration or combined heat and power (CHP) technology refers to the simultaneous generation of electricity or mechanical power as well as heat energy from a single fuel source. Cogeneration systems have combustion turbines, steam turbines integrated with boilers, micro turbines, reciprocating engines and fuel cells as prime movers. In addition to these prime movers and components, the system consists of waste heat exchangers which recover waste heat from the exhaust gas. Superior attributes and myriad benefits of cogeneration that are driving steady market adoption include effective utilization of fuel source to generate electricity as well as heat while ensuring minimal wastage; achieving efficiencies of up to 80-90%; operating with any type of fuel including oil, gas, landfill gas, and biomass, among others; and facilitating the shift towards decentralized forms of electricity generation that offer increased efficiency, minimizes transmission losses, enhance flexibility in system usage and result in efficient handling of grid-related power outages and system failures. The global phenomenon of climate change due to the greenhouse effect is expected to discourage fossil fuel combustion, which is a major contributor providing a bigger platform for growth for CHP as a clean approach with reduced emissions of greenhouse gases, specifically CO2.

Future growth in the market will be driven by growing need for eco-friendly, economic, and energy-efficient power generation technologies to meet the ever-increasing demand for electricity worldwide, significant reduction in the prices of natural gas due to its abundant supply; expanding applications; steady evolution of the next generation technologies such as Trigeneration and Quattrogeneration; and favorable regulatory environment. Technology advancements and increased cooperation from utilities, financiers, businesses and industries are also expected to provide the required impetus to continuous growth of cogeneration projects in the coming years. Robust demand for microCHP systems, particularly from the residential and SME sectors represent another important growth driver. Key factors driving increasing adoption of microCHP systems include reduction in consumers’ electricity bills, and efficient harvesting of heat produced during the power generation process for space and water heating purposes. 

As stated by the new market research report on Cogeneration Equipment, Asia-Pacific represents the largest and the fastest growing market worldwide with a CAGR of 11.3% over the analysis period. Important growth drivers in the region include rising need for higher efficiency in power generation and reductions in emissions; robust infrastructure development projects that involve expansion of existing units, replacement of older obsolete steam generation systems, and the development of new industrial zones; and the presence of a large number of component manufactures, equipment designers, assemblers, installers and providers of maintenance solutions in China and India.

Key players covered in the report include 2G Energy Inc., ABB Group, iAegis Energy Services, Inc., ANDRITZ Energy & Environment GmbH, Baxi Group, Bosch Thermotechnology Ltd., Brush Electrical Machines, Ltd., Burmeister & Wain Scandinavian Contractor AS, Capstone Turbine Corporation, Clarke Energy, Veolia, Cogenra Solar, Inc., ENER-G Combined Power Limited, Foster Wheeler AG, GE Energy, Honda Motor Co., Ltd., Innovative Steam Technologies, Kawasaki Heavy Industries, Ltd., Mitsubishi Heavy Industries, Ltd., Rolls Royce Plc., Siemens Energy, Solar Turbines, Inc., Turbomach S.A., Tecogen Inc., The Viessmann Group, and YANMAR Co., Ltd., among others.

The research report titled “Cogeneration Equipment: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for all major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, and Rest of Asia-Pacific), Latin America (Brazil, and Rest of Latin America), and Rest of World. Fuel types analyzed in the report include Natural Gas; Other Fossil Fuels; and Non-Fossil Fuels.

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