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Micro Combined Heat And Power Market

Micro Combined Heat & Power Market Forecasts to 2028 – Global Analysis By Fuel Type (Coal, Oil, Hydrogen, Biogas), Capacity (> 10 kW to ? 50 kW, 2 kW to ? 10 kW, < 2kW), End User (Commercial, Residential, Industrial), and By Geography

4.8 (27 reviews)
Published: June 2022 ID: SMRC21489
4.8 (27 reviews)
Published: June 2022 ID: SMRC21489

This report covers the impact of COVID-19 on this global market
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According to Stratistics MRC, the Global Micro Combined Heat & Power Market is accounted for $3.87 billion in 2021 and is expected to reach $10.68 billion by 2028 growing at a CAGR of 15.6% during the forecast period. The micro CHP refers to a cluster of technologies that generate both exploitable heat and electricity. It is the scaled down version of CHP methods. It requires less fuel to produce energy and is a cost-effective method of ensuring efficient power generation, which enables in keeping the greenhouse gas emissions at a bare minimum. The technology was developed to increase the amount of energy harnessed when burning fuel to generate electricity, thereby increasing the efficiency of the combustion process. The benefits of micro combined heat & power systems include the easy and efficient product of heat and electricity. The opportunity lies in the manufacturing of the systems which contribute to the saving of fuel in a better way.

Market Dynamics:

Driver:

High focus on carbon reduction from power generating systems


Micro combined heat & power systems are an integral part of energy systems and microgrids. This system facilitates the incorporation of renewable energy sources, improves energy effectiveness, lowers operating costs, decreases carbon emissions, and improves the dependability of critical infrastructure and the electric power system. In addition, by generating heat and power concurrently, micro combined heat & power can reduce carbon emissions by up to 30% compared to the separate means of conventional generation, which deploys boilers and power stations. For instance, as per Cogen Europe, MCHP, as an integral part of the entire CHP system, is likely to achieve carbon neutrality in Europe by 2050. Moreover, focusing on cogeneration for thermally generated heat and power in all sectors will maximize energy efficiency and integrate the European energy system at the lowest cost. All these factors are likely to drive the global micro combined heat and power market.

Restraint:

Requirement of high capital costs


The fuel cells that are integrated into the combined heat & power systems incur a high capital cost. The price of fuel cells declined in recent years due to factors such as high natural gas production and ongoing R&D activities, fuel cell system and their fuel are still expensive. For instance, the cost of power generation using fuel cells is more than double the cost of power generated using conventional sources. Moreover, the cost of dissimilar micro combined heat & power units varies considerably based on operating fuel and prime movers obstruct the market growth of micro combined heat and power. Varying costs between the diverse technologies generate reluctance among customers to shift from existing alternatives. Though, various governments have introduced funding or financial assistance programs that are set to positively offset the product demand.

Opportunity:

Support from governments through incentives and subsidies


Governing authorities across the globe are focusing on introducing out numerous programs, policies, and incentives for the expansion of micro combined heat & power systems. These systems offer several advantages over other power generation sources, such as thermal, nuclear, solar, and wind. Micro combined heat & power systems play an important role in meeting the demands of the electric and thermal loads of consumers. According to the US DOE, the office of energy efficiency & renewable energy (US) announced an investment of USD 10 million in research and development for micro combined heat & power systems to provide support to the electric grid in the US.

Threat:

Challenges in the implementation of Micro CHP projects due to lack of infrastructure

The elevated power to heat ratio, high energy effectiveness, and low operation and upholding costs also triggered the growth of the market. The governing companies and authorities across the world are focusing on the development of the installation of micro combined heat & power systems. Though, barriers such as old infrastructure, interconnection, standby rates, and stringent regulations hamper the installation of micro combined heat & power systems in the global market. The unavailability of the proper interconnection standard makes the interconnection process very expensive and cumbersome. Additionally, other permits and regulations, such as buildings permit, air emissions regulations, noise regulations, and carbon regulations, also obstruct the growth of the micro combined heat & power market as it increases the overall project cost of these systems.

The 2 kW to ≤ 10 kW segment is expected to be the largest during the forecast period

The 2 kW to ≤ 10 kW segment is estimated to have a lucrative growth, due to the paradigm shift toward the development of highly efficient energy generation systems along with the growing focus on renewable power supply and ongoing requirement for reliable power supply across commercial & residential establishments. The 2 kW to ≤ 10 kW segment refers to the MCHP plants with capacities between 2 kW and 10 kW. These plants use various types of technologies, such as turbines, reciprocating fuel cells. For instance, in the US, the base electrical load for the average home is approximately 2 kW, while the peak electrical demand is slightly over 4 kW.

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

The residential segment is anticipated to witness the fastest CAGR growth during the forecast period due to the incessant substitute of existing cogeneration units with advanced technological solutions coupled with increasing applicability of economic, efficient, and resilient power sources for residential utilization, and strict regulatory mandates for building emissions in line with the consumer shift to reduce power bills,. Residential micro-CHP provides a local energy source, which provides an additional layer of resiliency for remote households and communities susceptible to power loss due to grid outages or severe natural disasters. One of the main advantages of micro CHP systems for residential applications is the low space requirement, as these systems are of a similar size and shape to a standard residential boiler system, they can be wall-mounted or placed on the floor.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to rising demand for reduced carbon emissions and the growing need for energy efficiency, ongoing investments across private and public sectors toward the enhancement of on-site energy generation systems. Countries in Asia-Pacific are developing at a very fast rate in terms of manufacturing output and services offered. Japan market is slated to witness substantial gains during the forecast timeframe, due to the strict government norms and policies toward the development of sustainable environment along with continuous growth in the renewable energy sector. Residential CHPs were being installed in the country as early as 2012 when around 350 micro-CHPs were installed and have continued to grow since then, supported by favorable government policies. For instance, in March 2021, Siemens Limited acquired C&S Electric in India to satisfy the rising electricity requirement and low-voltage power distribution across India.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period due to increase in the development of renewable energy sources, rising focus of the government on improving energy efficiency by integrating commercial spaces through micro combined heat & power, and government initiatives to promote generating electricity via cogeneration or CHP. In the US, California and Alaska have substantial installations of micro combined heat & power, which are expected to grow during the forecast period, primarily due to the rising demand for heat and power in the region. For instance, the U.S. Federal Energy Regulatory Commission (FERC) presented a new proposal to include hydrogen-based power generation under its Public Utilities Regulatory Policies Act of 1978 (PURPA). The amendment will aid in boosting H2 utilization for cogeneration systems producing thermal energy using a solid oxide fuel cell.

Key players in the market

Some of the key players profiled in the Micro Combined Heat & Power Market include Viessmann Group, 2G Energy AG, Honda Motor Co., Ltd., Micro Turbine Technology B.V., Vaillant Group, M-TriGen, Inc., Siemens, AISIN SEIKI, GE Power, EC POWER, Axiom Energy Group, Dantherm Power, BDR Thermea Group, Yanmar Holdings Co., Centrica Plc, and Helbio S.A.

Key Developments:

In April 2021, Viessmann Group announced to initiate a strategic partnership with Priva Group to deliver combined technology-driven solutions to serve customers’ energy and climate requirements.

In December 2020, AISIN SEIKI announced to complete the acquisition of EQUOS RESEARCH Co., Ltd to boot the company’s resources shift to priority applications along with propelling development capabilities and R&D synergies.

In August 2020, the Axiom Energy Group planned to launch distributed micro combined heat and power (mCHP) systems. This distribution of mCHP systems was made through ATCO Group, thus bringing affordable, clean energy to customers throughout the North American region. The mCHP systems produce electricity as a by-product of heat generated for hot water or open space heating. This process is highly efficient (more than 93%) and with near-zero emissions..

Fuel Types Covered:
• Coal
• Oil
• Natural Gas & Liquefied Petroleum Gas (LPG)
• Renewable Resources
• Hydrogen
• Biogas
 
Types Covered:
• Engine-Based
• Fuel Cell-Based
 
Capacity Covered:
• > 10 kW to ≤ 50 kW
• 2 kW to ≤ 10 kW
• < 2kW
 
Prime Movers Covered:
• Gas Turbine
• Reciprocating Engine
• Micro Turbine
• Steam Turbine
 
Technologies Covered:
• Related Technologies
• Current Technologies
• Complementary Devices
• Advanced Technologies
• Micro Chip Fuel Input

Applications Covered:
• Public
• Private

End Users Covered:
• Commercial
• Residential
• Industrial

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

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

1 Executive Summary      
        
2 Preface      

 2.1 Abstract     
 2.2 Stake Holders     
 2.3 Research Scope     
 2.4 Research Methodology     
  2.4.1 Data Mining    
  2.4.2 Data Analysis    
  2.4.3 Data Validation    
  2.4.4 Research Approach    
 2.5 Research Sources      
  2.5.1 Primary Research Sources    
  2.5.2 Secondary Research Sources    
  2.5.3 Assumptions    
       
3 Market Trend Analysis      
 3.1 Introduction     
 3.2 Drivers     
 3.3 Restraints     
 3.4 Opportunities     
 3.5 Threats      
 3.6 Technology Analysis     
 3.7 Application Analysis     
 3.8 End User Analysis     
 3.9 Emerging Markets     
 3.10 Impact of Covid-19     
       
4 Porters Five Force Analysis      
 4.1 Bargaining power of suppliers     
 4.2 Bargaining power of buyers     
 4.3 Threat of substitutes     
 4.4 Threat of new entrants     
 4.5 Competitive rivalry     
       
5 Global Micro Combined Heat & Power Market, By Fuel Type      
 5.1 Introduction     
 5.2 Coal     
 5.3 Oil     
 5.4 Natural Gas & Liquefied Petroleum Gas (LPG)     
 5.5 Renewable Resources     
 5.6 Hydrogen     
 5.7 Biogas     
       
6 Global Micro Combined Heat & Power Market, By Type      
 6.1 Introduction     
 6.2 Engine-Based     
 6.3 Fuel Cell-Based      
       
7 Global Micro Combined Heat & Power Market, By Capacity      
 7.1 Introduction     
 7.2 > 10 kW to ≤ 50 kW     
 7.3 2 kW to ≤ 10 kW     
 7.4 < 2kW     
       
8 Global Micro Combined Heat & Power Market, By Prime Mover      
 8.1 Introduction     
 8.2 Gas Turbine     
 8.3 Reciprocating Engine     
 8.4 Micro Turbine     
 8.5 Steam Turbine     
       
9 Global Micro Combined Heat & Power Market, By Technology      
 9.1 Introduction     
 9.2 Related Technologies     
  9.2.1 Energy Storage (Electrical and Thermal)    
  9.2.2 Smart Grid    
  9.2.3 Load Management    
 9.3 Current Technologies     
  9.3.1 Internal Combustion Engine    
  9.3.2 Stirling Engine    
  9.3.3 External Combustion Engine    
  9.3.4 Organic Rankine Cycle    
  9.3.5 Combined Cycle Gas Turbines    
  9.3.6 Rankine Cycle Engine    
  9.3.7 Proton Exchange Membrane Fuel Cell (PEMFC)    
  9.3.8 Solid Oxide Fuel Cell (SOFC)    
 9.4 Complementary Devices     
  9.4.1 Heat Exchangers     
  9.4.2 Buffer Tanks    
  9.4.3 Desiccant Devices    
  9.4.4 Absorption Chillers    
 9.5 Advanced Technologies     
  9.5.1 Thermo-Ionic    
  9.5.2 Thermo-Voltaic    
 9.6 Micro Chip Fuel Input     
       
10 Global Micro Combined Heat & Power Market, By Application      
 10.1 Introduction     
 10.2 Public     
 10.3 Private     
       
11 Global Micro Combined Heat & Power Market, By End User      
 11.1 Introduction     
 11.2 Commercial     
  11.2.1 Office Buildings    
  11.2.2 Educational Institutes    
  11.2.3 Healthcare Buildings    
 11.3 Residential     
  11.3.1 Water Heating    
  11.3.2 Lighting    
  11.3.3 Space Heating/Cooling    
  11.3.4 Cooking    
  11.3.5 Electric Vehicle (EV) Charging    
 11.4 Industrial     
       
12 Global Micro Combined Heat & Power Market, By Geography      
 12.1 Introduction     
 12.2 North America     
  12.2.1 US    
  12.2.2 Canada    
  12.2.3 Mexico    
 12.3 Europe     
  12.3.1 Germany    
  12.3.2 UK    
  12.3.3 Italy    
  12.3.4 France    
  12.3.5 Spain    
  12.3.6 Rest of Europe    
 12.4 Asia Pacific     
  12.4.1 Japan    
  12.4.2 China    
  12.4.3 India    
  12.4.4 Australia    
  12.4.5 New Zealand    
  12.4.6 South Korea    
  12.4.7 Rest of Asia Pacific    
 12.5 South America     
  12.5.1 Argentina    
  12.5.2 Brazil    
  12.5.3 Chile    
  12.5.4 Rest of South America    
 12.6 Middle East & Africa     
  12.6.1 Saudi Arabia    
  12.6.2 UAE    
  12.6.3 Qatar    
  12.6.4 South Africa    
  12.6.5 Rest of Middle East & Africa    
       
13 Key Developments      
 13.1 Agreements, Partnerships, Collaborations and Joint Ventures     
 13.2 Acquisitions & Mergers     
 13.3 New Product Launch     
 13.4 Expansions     
 13.5 Other Key Strategies     
       
14 Company Profiling      
 14.1 Viessmann Group     
 14.2 2G Energy AG     
 14.3 Honda Motor Co., Ltd.     
 14.4 Micro Turbine Technology B.V.     
 14.5 Vaillant Group     
 14.6 M-TriGen, Inc.     
 14.7 Siemens     
 14.8 AISIN SEIKI     
 14.9 GE Power     
 14.10 EC POWER     
 14.11 Axiom Energy Group     
 14.12 Dantherm Power     
 14.13 BDR Thermea Group     
 14.14 Yanmar Holdings Co.      
 14.15 Centrica Plc     
 14.16 Helbio S.A.     


List of Tables       
1 Global Micro Combined Heat & Power Market Outlook, By Region (2020-2028) ($MN)      
2 Global Micro Combined Heat & Power Market Outlook, By Fuel Type (2020-2028) ($MN)      
3 Global Micro Combined Heat & Power Market Outlook, By Coal (2020-2028) ($MN)      
4 Global Micro Combined Heat & Power Market Outlook, By Oil (2020-2028) ($MN)      
5 Global Micro Combined Heat & Power Market Outlook, By Natural Gas & Liquefied Petroleum Gas (LPG) (2020-2028) ($MN)      
6 Global Micro Combined Heat & Power Market Outlook, By Renewable Resources (2020-2028) ($MN)      
7 Global Micro Combined Heat & Power Market Outlook, By Hydrogen (2020-2028) ($MN)      
8 Global Micro Combined Heat & Power Market Outlook, By Biogas (2020-2028) ($MN)      
9 Global Micro Combined Heat & Power Market Outlook, By Type (2020-2028) ($MN)      
10 Global Micro Combined Heat & Power Market Outlook, By Engine-Based (2020-2028) ($MN)      
11 Global Micro Combined Heat & Power Market Outlook, By Fuel Cell-Based (2020-2028) ($MN)      
12 Global Micro Combined Heat & Power Market Outlook, By Capacity (2020-2028) ($MN)      
13 Global Micro Combined Heat & Power Market Outlook, By > 10 kW to ≤ 50 kW (2020-2028) ($MN)      
14 Global Micro Combined Heat & Power Market Outlook, By 2 kW to ≤ 10 kW (2020-2028) ($MN)      
15 Global Micro Combined Heat & Power Market Outlook, By < 2kW (2020-2028) ($MN)      
16 Global Micro Combined Heat & Power Market Outlook, By Prime Mover (2020-2028) ($MN)      
17 Global Micro Combined Heat & Power Market Outlook, By Gas Turbine (2020-2028) ($MN)      
18 Global Micro Combined Heat & Power Market Outlook, By Reciprocating Engine (2020-2028) ($MN)      
19 Global Micro Combined Heat & Power Market Outlook, By Micro Turbine (2020-2028) ($MN)      
20 Global Micro Combined Heat & Power Market Outlook, By Steam Turbine (2020-2028) ($MN)      
21 Global Micro Combined Heat & Power Market Outlook, By Technology (2020-2028) ($MN)      
22 Global Micro Combined Heat & Power Market Outlook, By Related Technologies (2020-2028) ($MN)      
23 Global Micro Combined Heat & Power Market Outlook, By Energy Storage (Electrical and Thermal) (2020-2028) ($MN)      
24 Global Micro Combined Heat & Power Market Outlook, By Smart Grid (2020-2028) ($MN)      
25 Global Micro Combined Heat & Power Market Outlook, By Load Management (2020-2028) ($MN)      
26 Global Micro Combined Heat & Power Market Outlook, By Current Technologies (2020-2028) ($MN)      
27 Global Micro Combined Heat & Power Market Outlook, By Internal Combustion Engine (2020-2028) ($MN)      
28 Global Micro Combined Heat & Power Market Outlook, By Stirling Engine (2020-2028) ($MN)      
29 Global Micro Combined Heat & Power Market Outlook, By External Combustion Engine (2020-2028) ($MN)      
30 Global Micro Combined Heat & Power Market Outlook, By Organic Rankine Cycle (2020-2028) ($MN)      
31 Global Micro Combined Heat & Power Market Outlook, By Combined Cycle Gas Turbines (2020-2028) ($MN)      
32 Global Micro Combined Heat & Power Market Outlook, By Rankine Cycle Engine (2020-2028) ($MN)      
33 Global Micro Combined Heat & Power Market Outlook, By Proton Exchange Membrane Fuel Cell (PEMFC) (2020-2028) ($MN)      
34 Global Micro Combined Heat & Power Market Outlook, By Solid Oxide Fuel Cell (SOFC) (2020-2028) ($MN)      
35 Global Micro Combined Heat & Power Market Outlook, By Complementary Devices (2020-2028) ($MN)      
36 Global Micro Combined Heat & Power Market Outlook, By Heat Exchangers (2020-2028) ($MN)      
37 Global Micro Combined Heat & Power Market Outlook, By Buffer Tanks (2020-2028) ($MN)      
38 Global Micro Combined Heat & Power Market Outlook, By Desiccant Devices (2020-2028) ($MN)      
39 Global Micro Combined Heat & Power Market Outlook, By Absorption Chillers (2020-2028) ($MN)      
40 Global Micro Combined Heat & Power Market Outlook, By Advanced Technologies (2020-2028) ($MN)      
41 Global Micro Combined Heat & Power Market Outlook, By Thermo-Ionic (2020-2028) ($MN)      
42 Global Micro Combined Heat & Power Market Outlook, By Thermo-Voltaic (2020-2028) ($MN)      
43 Global Micro Combined Heat & Power Market Outlook, By Micro Chip Fuel Input (2020-2028) ($MN)      
44 Global Micro Combined Heat & Power Market Outlook, By Application (2020-2028) ($MN)      
45 Global Micro Combined Heat & Power Market Outlook, By Public (2020-2028) ($MN)      
46 Global Micro Combined Heat & Power Market Outlook, By Private (2020-2028) ($MN)      
47 Global Micro Combined Heat & Power Market Outlook, By End User (2020-2028) ($MN)      
48 Global Micro Combined Heat & Power Market Outlook, By Commercial (2020-2028) ($MN)      
49 Global Micro Combined Heat & Power Market Outlook, By Office Buildings (2020-2028) ($MN)      
50 Global Micro Combined Heat & Power Market Outlook, By Educational Institutes (2020-2028) ($MN)      
51 Global Micro Combined Heat & Power Market Outlook, By Healthcare Buildings (2020-2028) ($MN)      
52 Global Micro Combined Heat & Power Market Outlook, By Residential (2020-2028) ($MN)      
53 Global Micro Combined Heat & Power Market Outlook, By Water Heating (2020-2028) ($MN)      
54 Global Micro Combined Heat & Power Market Outlook, By Lighting (2020-2028) ($MN)      
55 Global Micro Combined Heat & Power Market Outlook, By Space Heating/Cooling (2020-2028) ($MN)      
56 Global Micro Combined Heat & Power Market Outlook, By Cooking (2020-2028) ($MN)      
57 Global Micro Combined Heat & Power Market Outlook, By Electric Vehicle (EV) Charging (2020-2028) ($MN)      
58 Global Micro Combined Heat & Power Market Outlook, By Industrial (2020-2028) ($MN)      
       
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.       

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