Global Combined Heat and Power Installation Market: Snapshot
Cogeneration commonly referred to as combined heat and power (CHP) involves on-site electricity generation along with the capture of useful heat in a power station or a heat engine setup. With increasing energy efficiency of power generation plants and a significant reduction in emissions, energy and power companies are heading towards cogeneration.
Browse Market Research Report @
The rising consumption of fuel obtained from wood, biomass, and waste heat in combustion turbine units and steam boiler units for electricity generation is boosting the growth of combined heat and power installation market.
CHP systems operate on renewable as well as non-renewable fuels such as coal, wood, natural gas, oil, biomass, and waste heat. CHP systems deliver 77% to 90% efficiency as compared to only 46% efficiency delivered by conventional systems. However, CHP systems are best suited for cold climates where energy rates are high along with continuous demand for heat. Nevertheless, diverse functionalities of CHP systems are leading to their increased installation in cold as well as hot countries.
Worldwide, CHP systems sales are riding high on strong existing CHP infrastructure. Furthermore, rising energy prices and stringent regulations in place to curb carbon emissions is expected to favor the proliferation of CHP systems across the world. In particular, emerging economies of Asia Pacific have been displaying high demand for energy-efficient solutions to minimize energy wastage during production and distribution. Developing countries therefore exhibit lucrative opportunities for vendors operating in the market.
However, the growth of the market is expected to be hit by the inclination of large companies for forward integration in place of CHP in response to stringent regulations for energy saving. Moreover, high initial setup cost for CHP systems is also restricting their use for small-scale electricity generation operations. Nevertheless, the market for CHP installation is expected to be benefitted by increasing energy needs for residential and commercial purposes.
The global combined heat and power installation market is expected to be worth US$812.80 bn by 2024 increasing from US$524.89 bn in 2014 at a CAGR of 4.38% from 2014 to 2024.
Asia Pacific to Emerge as Strong Market for CHP Systems
Europe is currently the leading regional market for combined heat and power installation with the region accounting for 67.96% share in the overall market in 2014. The abundance of natural gas sources has contributed to the increased installation of CHP systems in the region. Countries such as Belgium, Russia, Poland, Germany, Italy, and Netherlands are major contributors to the Europe CHP installation market.
Fill the form for an exclusive sample of this report @
The top players in the market are also looking into untapped opportunities in Asia Pacific. In particular, Japan displays a substantial demand for small-scale CHPs keeping up with energy saving norms. This, combined with the rising installation of these systems across a host of industries has been benefitting the Asia Pacific market.
Demand for Large-scale CHPs to Remain Strong
The global market for CHP installation can be broadly divided into large-scale CHPs and micro-and small scale CHPs in terms of type. Large-scale CHPs is the leading segment with the segment accounting for 85.69% of the overall market in 2014. However, the segment is expected to lose a substantial portion of its market share to micro and small-scale CHPs over the coming years. Nevertheless, with increasing energy saving needs in emerging economies such as India and China, the uptake of large-scale CHPs is on the rise.
Some of the leading companies in the global combined heat and power installation market include 2G Energy AG, Edina Ltd., ENER-G Holdings Plc, Siemens AG, Wärtsilä Corporation, and Clarke Energy Ltd. among others.