Micro CHP systems have gained momentum from multiple applications as it ensures higher energy efficiency which translates to lower operating costs in the industry. Thus, the increasing number of industries are considering micro CHP system for producing both heat and electricity, in turn, supporting the growth of the market.
Further, micro CHP has the potential to achieve total efficiency of 60-80% for generating electricity and useful thermal energy as compared to the conventional method which has an efficiency of merely 30-35%. This is most likely to increase the demand for micro CHP from several application, thereby spurring the sales of CHP systems.
However, the higher initial cost for the installation of micro CHP coupled with the high-cost associated with its maintenance may hinder the growth of the market. Moreover, government across the world are offering several incentives to promote the adoption of micro CHP systems to support the transition towards the use of micro CHP systems. This, in turn, is expected to support the growth of micro CHP market during the forecast period.
Micro CHP Market: Impact of COVID-19
The outbreak of COVID-19 has presented multiple challenges for the manufacturers in Micro CHP systems market and has caused major economic uncertainty globally. The effects of this will be profound thereby having significant implication on various sectors. The demand for micro CHP is contingent on the growth in end use industries like commercial, residential, and industrial sector. Thus, decline in investment in these sectors is expected to have a negative impact on the sales of micro CHP systems.
However, post COVID-19 crisis, the manufacturers will ramp up their production owing to the adoption of clean energy portfolio standards and several countries government and states offering incentives is foreseen to contribute to the growth of market. Therefore, in long run, the global micro CHP market is poised to generate significant opportunities.
Micro CHP Market: Market Segmentation
For a better understanding, global micro CHP market is being studied under product, prime mover type, capacity, application & Region.
Based on the capacity, the micro CHP market can be segmented as:
- Up to 10 kW
- 11 – 20 kW
- 21 – 30 kW
- 31 – 40 kW
- 40 – 50 kW
Based on the product, the micro CHP market can be segmented as:
- Fuel Cell Micro CHP
- Engine Micro CHP
Based on the prime mower type, the micro CHP market can be segmented as:
- Fuel Cell
- Internal Combustion Engine
- Stirling Engine
Based on the end use, the micro CHP market can be segmented as:
- Commercial Buildings
Based on the region, the micro CHP market can be segmented as:
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa (MEA)
Regional Analysis: Asian Countries to Bolster the Growth of the Market
Asian countries are expected to account for significant portion of the market share in the global micro CHP market. The government regulations for improved efficiency in power generation and to reduce carbon emissions in countries such as China, Japan, and India is expected to fuel the growth of the market. In addition, several countries in the region are offering incentives in various forms to support the transition towards the use of CHP systems which is anticipated to propel the growth of the market.
On the other hand, Europe is also anticipated to hold substantial portion of the market share owing to the initiative to promote adoption of sustainable energy sources such as micro CHP in the region. For instance, the European Union has developed a cogeneration directive intended to promote and develop high-efficiency CHP. Due to such initiatives in the region, the micro CHP market in these regions is growing rapidly compared to other regions.
Global Micro CHP Market Competitive Landscape
The Micro CHP systems market is competitive in nature. Prominent players are focusing on building strategic agreement with their clients in order to maintain their market position and better serve the needs of customers. For instance, in 2020, Veolia signed an agreement with Total Fitness for the installation of CHP systems.
Some of the other players are YANMAR CO., LTD., Viessmann Group, BDR Thermea Group, Veolia, Vaillant Group, 2G Energy Inc., Capstone Turbine Corporation, Aegis Energy, EDF Group, and AISIN SEIKI Co., Ltd., among others.
The Micro CHP Market report covers exhaustive analysis on:
- Micro CHP Market Segments
- Micro CHP Market Dynamics
- Micro CHP Market Size
- Supply & Demand
- Current Trends/Issues/Challenges
- Competition & Companies involved
- Value Chain