Essential Role of Micro-CHPs in Smart Energy Strategies Drives Global Demand for Cogeneration Equipment


Increasing adoption of microCHP systems, spiraling electricity prices, manufacturer focus on technically advanced equipment, favorable policy scenario, and growing need for flexibility are poised to drive the global market for Cogeneration Equipment in terms of revenues from annual equipment installations to exceed US$37 billion by 2024. Combined heat and power (CHP) systems, which are termed cogeneration equipment, are used to generate heat energy and electricity simultaneously from a single energy source such as oil, coal, natural gas, wood, biomass, or waste heat. CHP systems are capable of operating at higher efficiency levels of 77% to 81% compared to the 46% efficiency levels of conventional systems, while also enabling up to 29% reduction in carbon emissions as compared to traditional systems. 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; 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.

Healthy growth is projected for the market in the coming years driven by the critical role of microCHP in realizing smart energy strategies amidst the growing need for eco-friendly, economic, and energy-efficient power generation technologies to meet the ever-increasing demand for electricity worldwide. Offering critical advantages of grid independence to end-users, microCHP is expected to impart great services in the area of grid stability and efficiency improvement which forms the basis for smart energy. 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. Other important growth drivers include 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.

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 9.7% 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 in the market include 2G Energy Inc., AB Holding SpA, ABB Limited, Aegis Energy Services, Inc., Ameresco, Inc., ANDRITZ Energy & Environment GmbH, BDR Thermea Group BV, Baxi Group Limited, Bosch Industriekessel GmbH, Burmeister & Wain Scandinavian Contractor A/S, Capstone Turbine Corporation, Clarke Energy, Centrica Business Solutions, GE Power, Kawasaki Heavy Industries, Ltd., LOINTEK, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), Rolls Royce Plc., Siemens AG, Sumitomo SHI FW, Tecogen Inc., The Viessmann Group, Veolia Environnement S.A., 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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