PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1324359
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1324359
According to Stratistics MRC, the Global Cogeneration Equipment Market is accounted for $29.30 billion in 2023 and is expected to reach $62.40 billion by 2030 growing at a CAGR of 11.4% during the forecast period. Cogeneration equipment is used to generate both electricity and heat at the same time. Combustion turbines, steam turbines with boilers, reciprocating engines, generators, fuel cells, micro-turbines, heat recovery steam generators, waste heat boilers, and control systems are examples of cogeneration equipment. As more industrial and commercial establishments, developers, and utilities seek low-cost electrical energy and process heat, cogeneration not only uses exhaust heat to heat water or provide space heating but also provides environmental benefits.
According to the IEA (International Energy Agency), the demand for electricity is likely to increase upto 40.44 TWh by 2040.
Rising energy consumption is expected to drive the growth of the cogeneration equipment market in the coming years. The volume of fuel consumed by a facility during any billing cycle, including natural gas, oil, propane, and electrical energy, is referred to as energy consumption. Cogeneration is a highly efficient energy generation technology. Cogeneration is critical for increasing energy efficiency and lowering energy costs. As a result, rising energy consumption is propelling the cogeneration equipment market.
Some of the major restraints for this cogeneration equipment market are the high initial investment requirements as well as the difficulty in obtaining proper utility connections. These systems are beneficial in the long run, but due to their complex technological requirements, their initial cost is very high when compared to conventional systems, and many small and medium-sized organisations and institutions are unable to afford them. Such factors are limiting the growth of the market.
The widespread adoption of micro-CHP systems in the industrial, residential, and small and medium enterprise (SME) sectors, combined with falling natural gas prices due to its abundant availability, has boosted demand for this equipment. The market is also benefiting from the increased emphasis placed by governments in both developed and developing countries on the production of clean, renewable, and efficient energy. Various technological advancements are also accelerating market growth.
Cogeneration systems are frequently designed for specific applications and may be difficult to scale to meet significant changes in energy demand. Long-term adaptation to changing energy needs may be difficult due to this limitation. Furthermore, integrating cogeneration equipment with existing energy systems and infrastructure can be difficult, particularly if the technology is incompatible with the current setup. This may necessitate additional changes and investments.
COVID had a gradual effect on cogeneration equipment. Fuel production did not halt as a result of the lockdown, resulting in an increase in fuel supply, which increased co-generation directly without affecting the market. This decrease in such businesses led to a decrease in demand for cogeneration equipment, demonstrating the market's gradual decline. The construction industry accounts for a significant portion of cogeneration utilisation globally. However, several major projects have been halted as a result of the COVID-19 pandemic. As a result, demand for cogeneration equipment has decreased, resulting in a downturn in the global market.
Because of its widespread use and demand around the world, natural gas segment has dominated the market and is expected to continue to dominate in the future. This fuel's environmentally friendly properties prove to be a driving force in the market. This fuel's effective mileage is also becoming more important. Furthermore, natural gas is widely available in countries such as Germany and Russia, which is fueling segment expansion.
The gas turbine segment is expected to have the highest CAGR during the forecast period. It is commonly used in industries or refineries such as pulp and paper, ceramics, food and beverage, chemicals, and pharmaceuticals. A cogeneration system continuously generates a variety of secondary energy sources while using primary energy (fuel) to power a gas turbine. In a gas turbine cogeneration system, fuel is the primary energy source, and many types of energy are produced to increase energy efficiency.
Due to its rapid development and industrialization, the North American market is expected to register the largest market share. As the population has grown, so has the demand for goods and the supply chain. The extreme weather increased the demand for space heating and the development of micro-CHP, which leveraged the demand for cogeneration equipment. Massive demand for power and electricity as a result of technological advancements and the expansion of commercial spaces drives demand for HVAC, which fuels the growth of the cogeneration equipment market in North America.
Due to the widespread availability of natural gas in economies such as Russia and Germany, Europe is expected to experience the highest growth rate during the forecast period. Over the forecast period, demand for this equipment is expected to be driven by city space and cost constraints, as well as strict environmental regulations. Despite the region's significant power and energy-producing capacities, some of its economies account for the majority of global electricity imports. Moreover, this region is home to a number of large-scale businesses and industries with the financial resources to place large-scale orders for this equipment.
Some of the key players in Cogeneration Equipment market include: 2G Energy AG, A.B. HOLDING S.P.A, Allied Equipments Inc., Almeg Controls, Alstorm Power, American DG Energy Inc., Baxi Group, Siemens AG, Caterpillar Inc., Cidea Uno Inc., Clarke Energy, General Electric, Kawasaki heavy industries Ltd., Mitsubishi Heavy Industries Ltd., Perry Process Equipment Ltd., Robert BOSCH Gmbh, Rolls Royce PLC., Siemens, Solar Turbines Inc., Sundrop Fuels Inc., Tecogen, Inc., Turner Crane and US Green Energy Ltd..
In July 2023, KEPPEL, along with a consortium with Mitsubishi Power Asia-Pacific and Jurong Engineering, broke ground for Singapore's first hydrogen-ready co-generation plant, located in the Sakra sector of Jurong Island.
In August 2021, Mitsubishi Heavy Industries Ltd and Toho Gas together declared that they have successfully conducted a test operation of hydrogen (H2) mixed fuel combustion and city gas in a commercial gas engine for a cogeneration system.