Micro CHP Market Analysis

Micro CHP Market Analysis

> 10 to ≤ 50 kW capacity micro CHP market is estimated to upsurge due to the robust government laws and mandates to curb greenhouse emissions along with rising inclination for the replacement of traditional cogeneration units. Increased efficiency and reduced energy bills, minimal fuel utilization in line with increasing application of these units across residential and commercial sectors will complement the market statistics. Additionally, continuous expansion of power generation units to satisfy the heat consumption across military bases, schools, and hospitals in line with ongoing technological advancements will foster the industry growth.
 

Natural gas & LPG fueled micro CHP market share is expected to rise on account of the rising focus to reduce carbon emission along with the vast availability of natural gas as a green fuel source. Improved efficiency, feasible operation, low costs, environmental-friendly, and corrosion-resistant are some of the features that will positively impact the product penetration. In addition, favorable policies, and mandates for the integration of renewable power sources in line with continuous growth in the renewable energy sector will boost the product demand.
 

Internal combustion engine based micro CHP market is predicted to observe a 8% growth rate till 2030. Rising focus for the development of advanced solutions to reduce the maintenance and operational costs coupled with increasing deployment of efficient cogeneration units across the commercial & residential establishments will augment the market dynamics. Ongoing research and development toward the improvement of power density along with higher suitability of these engines with gas & liquid fuel for stationary power generation will drive the industry potential.
 

Residential segment is poised to register significant growth during the forecast period. This growth is attributed to the continuous replacement of existing cogeneration units with advanced technological solutions coupled with increasing applicability of economic, efficient, and resilient power sources for residential utilization. Stringent regulatory mandates for building emissions in line with the consumer shift to reduce power bills will accelerate the industry expansion. Additionally, growing requirement for highly efficient hot water generation across end-users will lead to product adoption across these establishments.
 

The Asia Pacific micro CHP market is anticipated to reach USD 2 billion in 2030. Ongoing investments across private and public sectors toward the enhancement of on-site energy generation systems will propel the industry scenario. 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. In addition, increasing government funds toward the development of smart city infrastructure in line with the continuous refurbishment of existing systems will stimulate the business potential.
 

Japan market is slated to witness substantial gains during the forecast timeframe. This growth is credited to the strict government norms and policies toward the development of sustainable environment along with continuous growth in the renewable energy sector. A positive outlook toward waste management along with increasing utilization of solar & wind energy to reduce the carbon footprints will increase the business outlook. Furthermore, various government programs including Ene-Farm pertaining to the advancement of fuel cell micro CHP across the residential sector coupled with the introduction of several initiatives to encourage the acceptance of clean power generation technologies will boost the market progression.