PUBLISHER: The Business Research Company | PRODUCT CODE: 1666502
PUBLISHER: The Business Research Company | PRODUCT CODE: 1666502
Cogeneration equipment is recognized as an energy system capable of concurrently generating two valuable outputs, representing an innovative approach to enhance the sustainable and efficient utilization of energy sources.
The primary technologies associated with cogeneration equipment include steam turbines, gas turbines, and combined steam and reciprocating engines. Steam turbines operate by extracting thermal energy from steam and converting it into mechanical work on a spinning output shaft. These systems are powered by various fuel sources such as natural gas, biogas, coal, diesel, catering to high and medium capacity needs across commercial, industrial, and residential applications.
The cogeneration equipment market research report is one of a series of new reports from The Business Research Company that provides cogeneration equipment market statistics, including the cogeneration equipment industry's global market size, regional shares, competitors with a cogeneration equipment market share, detailed cogeneration equipment market segments, market trends, and opportunities, and any further data you may need to thrive in the cogeneration equipment industry. This cogeneration equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The cogeneration equipment market size has grown strongly in recent years. It will grow from$29.59 billion in 2024 to $32.53 billion in 2025 at a compound annual growth rate (CAGR) of 9.9%. The growth in the historic period can be attributed to energy efficiency focus, cost savings and ROI, government incentives, environmental regulations, global energy landscape, industrial applications
The cogeneration equipment market size is expected to see rapid growth in the next few years. It will grow to $49.05 billion in 2029 at a compound annual growth rate (CAGR) of 10.8%. The growth in the forecast period can be attributed to renewable integration, decentralized energy systems, rising energy demand, policy support and regulations, global industrial expansion. Major trends in the forecast period include technological innovations, digitalization and smart technologies, technological advancements, government support and regulations, integration with renewable energy sources.
The rising energy consumption is expected to drive the growth of the cogeneration equipment market in the future. Energy consumption refers to the amount of fuel, such as natural gas, oil, propane, and electrical energy, used by a facility during a billing cycle. Cogeneration is a highly efficient technology for producing energy, playing a crucial role in improving energy efficiency and reducing energy costs. For example, in July 2022, the US Energy Information Administration, a government body that provides energy statistics and information, reported a 2% increase in renewable energy consumption in the United States, reaching a record 8.2 quads in 2023. Thus, the growing energy consumption is fueling the cogeneration equipment market's expansion.
The expanding construction industry is anticipated to boost the growth of the cogeneration equipment market in the coming years. The construction industry involves the planning, design, development, and building of infrastructure, buildings, and other physical structures. By integrating cogeneration systems into construction projects, companies can improve energy efficiency, lower environmental impact, and achieve cost savings, which contributes to overall project success. For instance, in November 2023, the UK's Office for National Statistics reported that new construction activities increased by £18,161 million ($19.96 million) in 2022, with private sector projects growing by 16.8% and public sector projects by 13.1%. Therefore, the expanding construction industry is driving the growth of the cogeneration equipment market.
Leading companies in the cogeneration equipment market are focusing on advanced technologies, such as natural gas engine cogeneration systems, to improve energy efficiency, reduce greenhouse gas emissions, and deliver reliable power solutions across different applications. A natural gas engine cogeneration system generates both electricity and useful thermal energy simultaneously, using natural gas as a fuel source. For example, in March 2023, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), a Japan-based engineering and manufacturing company, introduced the SGP M2000, a new natural gas engine cogeneration system. The SGP M2000 is designed to maximize energy efficiency by producing both electricity and heat with high effectiveness while minimizing emissions. This innovative system features advanced technology for easy integration into industrial and commercial environments, offering a reliable power and thermal energy source. Additionally, it includes smart monitoring capabilities that improve operational performance and maintenance efficiency, helping users meet sustainability goals and reduce energy costs.
Major players in the cogeneration equipment market are strategically focusing on inventive products such as turbine cogeneration systems to drive revenue growth. Kawasaki Heavy Industries Ltd., a Japan-based industrial equipment manufacturer, exemplifies this trend with the launch of GPB17MMX in September 2023. This turbine cogeneration system enables mixed-fuel combustion using natural gas and hydrogen, with flexible adjustments to the hydrogen volume ratio between 50% and 100%. The system marks a significant stride towards creating a carbon-neutral society, emphasizing high efficiency, reliable operation, and environmental sustainability. Kawasaki's commitment to advancing hydrogen use as a clean energy source is evident in its efforts to develop gas turbine combustion technologies supporting increased environmental responsibility.
In July 2022, Capital Power Corporation, a Canada-based power generation company, made a notable acquisition by purchasing Midland Cogeneration for $894 million. This strategic move enhances Capital Power Corporation's annual dividend growth from 5% to 6% through 2025. The acquisition encompasses various aspects, including financing arrangements, transaction completion timing, financial implications, dividend growth guidance updates through 2025, and positioning for potential re-contracting of Midland Cogen after contract expirations in 2030 and 2035. This impactful acquisition underscores Capital Power Corporation's commitment to strengthening its market position and capitalizing on growth opportunities.
Major companies operating in the cogeneration equipment market include Tecogen Inc., Siemens AG, General Electric Company, Kawasaki Heavy Industries Ltd., Robert Bosch Gmbh, Clarke Energy, Mitsubishi heavy industries Ltd., A.B. Holding S.P.A., 2G Energy AG, Rolls Royce Plc, Caterpillar Inc., Allied Equipments Inc., American DG Energy Inc., Aegis Energy Services, Asea Brown Boveri Ltd., Capstone Turbine Corporation, Wartsila Corporation, Centrica plc, Cummins Inc., E.ON SE, Dresser-Rand Company Ltd., MAN Energy Solutions SE, Toshiba Energy Systems & Solutions Corporation, Veolia Environnement S.A., Vital Energi Utilities Ltd., BDR Thermea Group, Waste Management Inc., Solar Turbines Incorporated, Shanghai Electric Group Co. Ltd., Exelon Corporation, Sener Group
Europe was the largest region in the cogeneration equipment market in 2024. North America is expected to be the fastest-growing region in the global cogeneration equipment market report during the forecast period. The regions covered in the cogeneration equipment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the cogeneration equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The cogeneration equipment market consists of sales of chambers, turbines, air compressors, turbines, condensers, generators, and pumps. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Cogeneration Equipment Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on cogeneration equipment market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for cogeneration equipment ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The cogeneration equipment market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.