The global on grid combined heat and power market size is anticipated to expand at a significant CAGR during the forecast period, 2021-2028. The growth of the market is attributed to demand for solutions to improve energy efficiency and rising environmental regulatory pressure on power plants and industrial boilers.
Combined heat and power (CHP) is also known as cogeneration. The method of generating heat and electricity at the same time is referred to combined heat and power generation. Combined heat and power is generally used for producing electricity and the heat recovered for local water or space heating. These systems can be invested at various places such as buildings, utilities, and individual facilities,. Combined heat and power systems are mostly used when they required electricity and heat both at the same time.
The COVID-19 pandemic negatively impacted the combined heat and power market due to strict guidelines issued by governments and local authorities, and all non-essential operations were halted. However, the relaxation in restriction is estimated to positively influence the market growth.
Market Trends, Drivers, Restraints and Opportunities
- Increasing government programs and incentives to promote CHP is projected to drive the market growth during the forecast period.
- Rising natural gas supply and price is projected to drive the market growth during the forecast period.
- Growing energy prices and stringent regulations is expected to boost the market growth in the coming years.
- Increasing utilization of waste resources is projected to drive the market growth during the forecast period.
- Growing end-user requirements for the replacement of conventional energy systems is expected to boost the market growth in the coming years.
- Rising usage of natural gas industrialization is anticipated to boost the market growth in the coming years.
- Increasing requirement for power is projected to drive the market growth during the forecast period.
- High upfront costs are estimated to restrict the market growth in the coming years.
- Increased installation and maintenance costs of CHP systems can restrain the market growth in the coming years.
- Damage to prime movers due to impurities in biogas fueled CHP plans can create challenges for the market growth.
- Increased trend of distributed power generation can create lucrative opportunities during the forecast period.
Scope of the Report
The report on the global on grid 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.
On Grid Combined Heat and Power Market – Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Applications (Utilities, Commercial and Industrial, and Residential) and Fuel Types (Natural Gases, Coals, Oils, Biomass, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
General Electric Company; Kawasaki Heavy Industries Ltd.; Bosch Thermo technology GmbH; Viessmann Werke; and Siemens AG
On Grid Combined Heat and Power Market Segment Insights
Residential segment to hold a significant market share
Based on applications, the market is divided into utilities, commercial and industrial, and residential. The commercial and industrial segment is anticipated to hold a key share of the market in the coming years due to reduced operating costs. However, the residential segment is anticipated to expand at a rapid pace during the forecast period owing to increased energy efficiency, operating cost savings, and reduced air pollution.
Biomass segment is expected to grow at a rapid pace
On the basis of fuel types, the market is divided into natural gases, coals, oils, biomasses, and others. The natural gases segment is expected to represent a major share of the market in the coming years due to reduced pollutant emission in the air. On the other hand, the biomass segment is anticipated to expand at a rapid pace during the forecast period.
North America is estimated to account a major market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period due to the fact that the region is one of the most prominent regions in the early adoption of technology. However, the market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period due to the growing focus of governments of many countries to increase the share of clean energy to the energy mix.
The global on grid combined heat and power market has been segmented on the basis of
- Commercial and Industrial
- Natural Gases
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- General Electric Company
- Kawasaki Heavy Industries Ltd.
- Bosch Thermo technology GmbH
- Viessmann Werke
- Siemens AG
Key players competing in the on grid combined heat and power market includes General Electric Company; Kawasaki Heavy Industries Ltd.; Bosch Thermo technology GmbH; Viessmann Werke; and Siemens AG.
Some of these players are engaging in business strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market share.