The Japan combined heat and power market size was valued at USD XX billion in 2022 and is expected to surpass USD XX billion by 2031, expanding at a CAGR of 3.7% during the forecast period, 2023–2031. The growth of the market is attributed due to the rising demand for natural gas-based combined heat and power.
Combined heat and power (CHP) are an energy-efficient technology that generates electricity while also capturing heat that can otherwise be lost and converted it into useful thermal energy such as steam or hot water. This steam or hot water can be utilized for heating, cooling, and a variety of other residential and industrial applications.
The traditional technique of producing usable heat and electricity separately has an average total efficiency of 45%, but CHP systems can achieve up to 80% efficiency. Gas turbines, steam turbines, reciprocating engines, fuel cells, and microturbines are all examples of prime movers that can be converted to CHP. CHP, also known as cogeneration, can be employed in a single building or as a district energy/utility resource.
Typically, technology is used in buildings that require both electrical and thermal energy. It has several advantages, including less reliance on grid assistance owing to on-site electricity generation, high dependability, low energy and initial setup costs, resiliency against power outages, and lower hazardous pollutants.
During grid power outages, CHP systems can manage critical electrical and thermal demands. Micro turbines are a form of combustion turbine that generates heat as well as power on a tiny scale.
The COVID-19 pandemic had a negative impact on the Japan combined heat and power market. Governments and municipal governments established strict restrictions, and all non-essential activity were suspended.
Market Trends, Drivers, Restraints, and Opportunities
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Rising government policies and environmental concerns, renovations to outdated power plants, and a stable & uninterrupted power supply are some factors that can drive the market.
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Increasing use of CHP in many industries, such as sugar, chemicals, paper & pulp, and government assistance can boost the market.
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Support from the government in form of policies, beneficial subsidies, and tax cuts is estimated to spur the market.
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The Cool Earth-Energy Innovative Technology Plan, the special measures law for boosting the use of new energy, and government assistance for the deployment of new & renewable energy are anticipated to spur the market growth.
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The New Energy Development Organization (NEDO) was founded in October 1980 with the goal of lowering project costs and increasing renewable energy production. NEDO has completed a number of winds, solar, and other renewable energy research and development projects. Thus, such projects can drive the market.
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The New Energy Promotion Council (NEPC) launched a programme in 1997 for business and governmental entities interested in investing in new energy technology & facilities such as PV systems, natural gas cogeneration, solar heat, wind, biomass thermal, snow & ice heat energy, and fuel cell, which is projected to boost the market.
Scope of Gesture Recognition Market Report
The report on the Japan combined heat and power market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes
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Details
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Report Title
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Combined Heat and Power Market - Japan Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Application (Residential, Industrial & Utilities, and Commercial) and Fuel Types (Natural Gas, Coal, Oil, and Others)
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Country Scope
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Japan
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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General Electric Company.; Kawasaki Heavy Industries Ltd.; Siemens AG.; Capstone Turbine Corporation.; and MAN Energy Solutions
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Japan Combined Heat and Energy Market Segment Insights
Industrial & utilization segment is expected to grow at a rapid pace
Based on application, the Japan combined heat and power market is divided into residential, industrial & utilities, and commercial. The industrial & utilization segment is expected to grow at a rapid pace during the forecast period as the utilization of energy for a range of purposes in industrial sectors such as chemicals, oil & gas, pharmaceuticals, and food & beverage, including steam & cogeneration, building heating & cooling, and process heating.
Natural gas segment is projected to expand at a considerable CAGR
On the basis of fuel type, the market is segregated into natural gas, coal, oil, and others. The natural gas segment is projected to expand at a considerable CAGR during the forecast period. Natural gas has been front-runner in the CHP industry, gaining a reputation for efficiency, environmental compatibility, and safety. Natural gas burns cleanly and safely, lowering maintenance, and prolonging the life of the CHP unit.
Segments
The Japan combined heat and power market has been segmented on the basis of
Applications
- Residential
- Industrial & Utilities
- Commercial
Fuel Types
- Natural Gas
- Coal
- Oil
- Others
Country
Key Players
Competitive Landscape
Key players competing in the Japan combined heat and power market include General Electric Company.; Kawasaki Heavy Industries Ltd.; Siemens AG.; Capstone Turbine Corporation.; MAN Energy Solutions. Some of these players are using several market strategies such as acquisitions, mergers, collaborations, partnerships, capacity expansion, and product launches to enhance their market share.