Global Combined Heat and Power Market Report (2020-2025)
Global CHP installation market is expected to reach 551.7 GW by 2021, estimated to grow at a CAGR of 3.8% from 2020 to 2025. Europe dominated the global combined heat and power market and is expected to represent moderate growth with an estimated CAGR of 3.2% from 2020 to 2025. Asia Pacific market demand is expected to reach 167.9 GW by 2021, growing at a significant growth rate with an estimated CAGR of 4.9% from 2020 to 2025.
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Market Overview
Shift in preference towards replacing conventional energy systems owing to operational cost and uninterrupted utility supply is expected to drive market growth. Increasing energy demand from industrial applications such as chemical, refining, pharmaceuticals, paper, pulp, cement, and sugar are expected to drive the demand. Increasing construction spending for developing residential building coupled with population expansion and growing energy needs is expected to demand. Increasing demand for space heating and lighting applications in offices, retail malls, hospitals, and universities is expected to drive CHP systems demand for commercial applications.
Stringent government regulation to curb CO2 gases into environment is expected to drive demand over the forecast period. The 2008/EC directive by European Commission (EC) in the year 2004 was developed to promote cogeneration systems and reduce the green house gases (GHG). Governments in various regions are also providing financial incentive schemes to promote CHG usage. Abundant natural gas supply coupled with low pricing is expected to positively influence the market. Natural gas is widely used fuel for CHP systems as it available abundantly in Russia, Qatar, Iran and the U.S. Natural gas based systems are also cost-effective and are easy to install compared to other fuel systems.
CHP system prices are expected to decline mainly by 2-4% owing to abundant availability of natural gas as a raw material and its low cost. Increasing usage of industrial and commercial applications in CHP systems is expected to bring down the cost. The overall efficiency of CHP system which is close to 80% is expected to bring down the operation cost.
Segmentation by Product
Combined Heat and Power are classified based on technologies such as reciprocating engines, gas turbines, micro-turbines, fuel cells, and boiler/steam turbines. These technologies account for around 97% of the total CHP installations. Efficiency of these systems varies by technology and size, and also efficiency of the system increases with capacity. A properly designed Combined Heat and Power systems will provide overall efficiency of over 60% for electricity and useful heat. Combined cycle gas turbines (CCGT) use high temperature exhaust from gas turbine to produce run steam turbines, which generates power. Combined cycle technology is the major shareholding segment of the market. While, steam turbines are anticipated to grow at a fastest rate during the forecast period. Steam turbines use continuous stream of high-pressure steam is used to run the turbine for generation of electricity. Gas Turbines (GT’s) generate power by means of the Brayton cycle and the waste heat is mostly available in the form of hot exhaust gases.
Large scale system was the largest CHP installation and this application segment is expected to reach 395.21 GW by 2021, growing at an estimated CAGR of 2.5% from 2020 to 2025. Micro & small-scale system type is expected to reach 115.32 GW by 2021, growing at an estimated CAGR of 8.2% from 2020 to 2025.
In terms of revenue, natural gas-based combined heat and power system was worth USD 6.4 billion in 2020 and is estimated to register a CAGR of 3.5% from 2020 to 2025. Coal-based system was worth USD 1.77 billion in 2020 and is estimated to grow at a CAGR of 2.1% from 2020 to 2025.
Competitive Landscape
Key players operating in the market manufacture one or two components and rest is bought, assembled, and sold to the end-users. GE Energy dominated the overall market and accounted for 25.3% in 2020. Caterpillar and Siemens Energy occupied a market share of 13.7% and 12.0% respectively. Siemens Energy, Mitsubishi Power Systems Americas Inc., Alstom, and E.ON Group are other major CHP companies that covered a total market share of 42.40% in 2020. The remaining market share was occupied by a large number of domestic suppliers and distributors.
Porter Five Forces Analysis
Major Players
Table of Contents
1. Research Methodology and Scope
2. Executive Summary
3. Impact of COVID-19 on Combined Heat and Power Market
4. Market Dynamics
4.1 Drivers
4.2 Restraints
4.3 Supply Chain Analysis
5. Competitive Landscape
5.1 Key Strategies Adopted by Major Companies
5.1 Company Share Analysis
6. Combined Heat and Power Market Segmentation by Capacity
6.1 Upto 10 MW
6.2 10–150 MW
6.3 151–300 MW
6.4 Above 300 MW
7. Combined Heat and Power Market Segmentation by Prime Mover
7.1 Gas Turbine
7.2 Steam Turbine
7.3 Reciprocating Engine
7.4 Fuel Cell
7.5 Microturbine
8. Combined Heat and Power Market Segmentation by End-User
8.1 Utilities, District Heating and Cooling
8.2 On-Site Industrial
8.3 On-Site Commercial
8.4 Residential
9. Combined Heat and Power Market Segmentation by Fuel
9.1 Coal
9.2 Natural Gas
9.3 Biogas
9.4 Nuclear
9.5 Diesel
9.6 Others
10. Combined Heat and Power Market by Geography
10.1 North America
10.1.1 United States
10.1.2 Canada
10.1.3 Mexico
10.2 Europe
10.2.1 United Kingdom
10.2.2 France
10.2.3 Italy
10.2.4 Germany
10.2.5 Rest of Europe
10.3 Asia-Pacific
10.3.1 China
10.3.2 India
10.3.3 Japan
10.3.4 South Korea
10.3.5 Rest of Asia-Pacific
10.4 South America
10.4.1 Brazil
10.4.2 Rest of South America
10.5 Middle East and Africa
11. Company Profiles
11.1 GE
11.2 Man Diesel & Turbo
11.3 Clarke Energy
11.4 Siemens
11.5 AB Holding
11.6 Mitsubishi Hitachi Power Systems
11.7 Caterpillar Energy Solutions
11.8 Veolia
11.9 2G Energy
11.10 Fuelcell Energy
11. Appendix
Research Methodology
