Micro Combined Heat and Power Market Forecasts to 2028 - Global Analysis By Capacity, Prime Mover (Stirling Engine, Internal Combustion Engine, Fuel Cell and Other Prime Movers), Fuel, Technology, Application and Geography

According to Stratistics MRC, the Micro Combined Heat and Power (CHP) Market is accounted for $3.83 billion in 2022 and is expected to reach $5.41 billion by 2028 growing at a CAGR of 5.92% during the forecast period. Cogeneration plants are also known as micro CHPs. In a single integrated system, this generates both thermal energy and electricity. These technologies reduce greenhouse gas emissions, ensure efficient power generation, and require less fuel to generate energy.

According to World Green Building Council (WGBC), approximately 28% of global CO2 comes from building operations due to the energy used for cooling, heating, and power. Therefore, to reduce the emissions of CO from buildings micro type of CHP systems are used owing to their energy-efficient technology. There is no transmission loss and the device provides additional power to the buildings received from the grid, helping to reduce power costs.

Market Dynamics:

Driver:

Growing Demand for Clean Energy

During the forecast period the Global Micro Combined Heat and Power (CHP) Market is expected to drive growth due to the rise in demand for clean energy, and the demand for micro CHP will be impacted by the increased focus on carbon emissions. Reduced air pollution is a variety of economic and environmental advantages of clean energy. A varied clean energy supply also minimizes the dependence on imported fuels, related monetary and environmental costs.

Restraint:

High Installation and Maintenance Costs

The Global Micro Combined Heat and Power (CHP) Market is expected to hinder growth during the forecast period as a result of increasing urbanisation and industrialisation to preserve their spaces and create cities to use clean, renewable energy sources. A motor is a component used in a combined heat and power plant which generates mechanical power. The maintenance and high expense is required for Stirling engines, reciprocating internal combustion engines and many other micro CHP systems. The micro combined heat and power market may experience slow expansion due to high installation and maintenance costs. Customers in developing nations do not want to spend a lot of money on equipment maintenance. These factors raise the product's operating expenses.

Opportunity:

Government Initiative and Policies and Technology Development

The Global Micro Combined Heat and Power (CHP) Market is expected to drive growth during the forecast period as this method was designed to increase the energy that is used to burn fuel in order to generate electricity, thereby improving the efficiency of the combustion process. The market for micro CHP will grow as a result of these features and technology. Apartment blocks, restaurants, hotels, shops, medical facilities, clinics, and factories can be found everywhere. This market is a priority of government as well.

Threat:

Availability of natural gas

During the forecast period it is predicted that the low price of natural gas in different regions will limit market expansion, so the Global Micro Combined Heat and Power (CHP) Market is expected to hamper growth. Consumers are attracted to natural gas because of its low cost, which has a negative effect on the demand for combined heat and power (CHP). Therefore, this will be a major obstacle for the expansion of micro combined heat and power (CHP) market.

COVID-19 Impact:

Ongoing investments made by the private and public sectors in clean energy sources around the world will accelerate the market's expansion. After the outbreak, the market demand is anticipated to improve since there will be a higher preference for achieving net-zero carbon emission and renewable energy targets. For instance, several governments throughout the world have set an objective of achieving net-zero carbon emissions, and they are attempting to do so by focusing on and increasing their investment in sustainable energy production. As a result, many countries like Japan, US and European nations are expected to find CHPs to be an attractive cogeneration technology, which has contributed in nominal market growth over the past several years.

The Up to 2 kW segment is expected to be the largest during the forecast period

The Up to 2 kW segment is expected to have a lucrative growth due to rising installation objectives and micro CHP's higher operational efficiency in homes when compared to other capacities. The global market for 2kW-capable cogeneration units will grow faster as their use in residential and commercial infrastructure becomes more widespread.

The fuel cell segment is expected to have the highest CAGR during the forecast period

The fuel cell segment is anticipated to witness the highest CAGR during the forecast period due to advantages such as emissions-free operation, effective power generation, and silent operation. Furthermore, as fuel cells can achieve overall efficiencies in the range of 65-95%, these are the technology with the highest CAGR across all market segments.

Region with largest share:

Asia Pacific is expected to account for the largest share of the global Micro Combined Heat and Power (CHP) market during the forecast period as the most powerful nation in this region is Japan. Several developing nations, like China and South Korea, contribute to the growth of the regional market because they are energy-efficient, capable of producing CHP (combined heat and power) at the same time and will provide reliable energy supply in the future.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period due to favorable governmental policies and an increase in market demand for the production of sustainable energy. Additionally, the business scenario will tend to move more rapidly owing to ongoing technical innovations which will increase energy efficiency and boost peak capacity demand across the grid.

Key players in the market

Some of the key players in Micro Combined Heat and Power (CHP) Market include Dantherm Power, BDR Thermea Group, Axiom Energy Group, LLC, Enginuity Power Systems, Siemens Energy, Aisin Corporation, 2G Energy AG, Solid Power, Vaillant Group, EC Power A/S, Honda Power, Biomass Engineering Limited, Helbio S.A, Navien Inc, Total Energy Systems and Yanmar Energy System Co., Ltd.

Key Developments:

In January 2022, Total Energy Systems, a provider of critical power solutions to the upper Midwest, announced it had been named an authorized distributor for Gridiron onsite power generation systems. Products from Houston, Texas-based Gridiron include the Power Plant H24 micro combined heat and power unit that runs on renewable natural gas or propane.

In March 2021, Yanmar Energy System Co., Ltd., a subsidiary of Yanmar Holdings, has signed an agreement with 2G Energietechnik GmbH (2G), a subsidiary of 2G Energy AG, for the sale of 2G's gas cogeneration systems as part of efforts decarbonization of Yanmar.

Capacities Covered:

• Up to 2 kW
• 2 - 10 kW
• 10 - 50 kW

Prime Movers Covered:

• Stirling Engine
• Internal Combustion (IC) Engine
• Fuel Cell
• Other Prime Movers

Fuels Covered:

• Hydrogen
• Natural Gas
• Renewable Resources
• LPG
• Oil
• Coal
• Biogas

Technologies Covered:

• Current Technologies
• Related Technologies
• Complementary Devices
• Micro Chip Fuel Input
• Advanced Technologies

Applications Covered:

• Commercial
• Residential

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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