Micro Combined Heat & Power Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2025

Micro Combined Heat & Power Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2025

  • Transparency Market Research
  • Ongoing
  • Power

Report Description


Combined heat and power (CHP) systems generate electricity along with capturing the usable heat produced during the process. Micro combined heat & power (MCHP) systems run on renewable and non-renewable fuels such as coal, natural gas, biomass, wood, waste heat, and oil. Heat produced during electricity generation is captured and used for heating applications, thus increasing the overall efficiency of the system by avoiding heat loss. Micro-cogeneration, also called micro combined heat and power or residential cogeneration, is an emerging technology with the potential to provide energy-efficient systems and environmental benefits by minimizing energy loss and greenhouse gas emission (GGE). Wide-scale adoption of MCHP can meet a number of energy and social policy aims such as reduction of greenhouse gas emission from energy supply, increase in decentralization of energy supply, improvement in energy security, and energy loss from electricity transmission and distribution networks, and possible decrease in energy cost to consumers. Micro-cogeneration systems have the potential to reduce energy demands of the residential sector for space heating, domestic hot water heating, and electricity. Furthermore, reduction in greenhouse gas emission and curtailment in reliance on central electricity generation, transmission, and distribution systems are the possible benefits. In this article, a comparison has been made between MCHP technology and other technologies such as prime mover, electrical and thermal power, efficiency and emissions.

MCHPs are used as heating and electricity generation systems in residential and small commercial buildings and are ideal for buildings that have heat sinks such as swimming pools. MCHPs are primarily used in household and wastewater treatment, small office buildings, colleges, universities, and military bases. The micro combined heat & power market is in its nascent stage in majority of the regions across the world; however, adoption of MCHP in the emerging markets is expected to grow at a significant rate in the next few years. Factors contributing to its growth are supportive government policies, lower electricity costs, reduced greenhouse gas emissions, and availability of technologically advanced engines.

Government institutions across the globe are introducing new policies and providing feed-in-tariffs to boost the usage of CHP systems. Rise in awareness regarding energy efficiency and benefits of CHPs are expected to boost the market for micro, small-scale, and large-scale CHP systems. Additionally, rise in focus toward renewable energy sources is anticipated to surge the consumption of fuels such as wood, biomass, and waste heat in MCHP systems. Thus, increase in price of energy, coupled with strict regulations regarding energy consumption and greenhouse gas emissions, has resulted in a surge in demand for MCHP systems. The best economics for CHP systems is found in cold climates, wherein there exist high electricity rates, low natural gas prices, and continuous requirement of heat. The only restraint to the micro combined heat & power market is the limitations in its usage in industrial applications.

Based on technology, the micro combined heat & power market can be segregated into rankine cycle engine, stirling engine, proton exchange membrane fuel cell (PEMFC), internal combustion engine (ICE), and solid oxide fuel cell (SOFC). In terms application, the micro combined heat & power market can be segmented into residential and commercial. Requirement of space heating in cold regions and space cooling in hot regions is projected to drive the market for CHP systems for residential and commercial applications.

Europe is expected to dominate the MCHP installation market owing to the strong CHP network and the awareness regarding energy efficiency of MCHP systems. Asia Pacific is estimated to become a rapidly developing market for MCHP in the near future. North America and Asia Pacific offer numerous opportunities for the growth of the CHP installation market as the demand for energy-efficient technologies is high in these regions. Usage of MCHP in residential applications in the U.S. is not very popular at present, and therefore, the market holds an insignificant share. However, the micro combined heat & power market is projected to expand at a faster pace than the large-scale CHP systems in the next few years. Asia Pacific is the next leading global market regarding investments in MCHPs, following Europe. In Asia Pacific, China, Japan, South Korea, and Taiwan are the major markets for micro combined heat & power. China, the leading CHP market, is followed by Japan and South Korea. Rapid economic growth of countries such as China and India is expected to attract further investments in MCHP, thereby boosting the micro combined heat & power market in the region. In Japan, there is high demand for micro-scale CHP systems due to their usage in residential applications.

Prominent manufacturers and suppliers of micro combined heat & power include BDR Thermea, Yanmar Co. Ltd., and Honda Power.

The report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the market, including but not limited to: Regional markets, technology, types, and applications.

The study is a source of reliable data on:

  • Market segments and sub-segments
  • Market trends and dynamics
  • Supply and demand
  • Market size
  • Current trends/opportunities/challenges
  • Competitive landscape
  • Technological breakthroughs
  • Value chain and stakeholder analysis

The regional analysis covers:

  • North America (U.S. and Canada)
  • Latin America (Mexico, Brazil, Peru, Chile, and others)
  • Western Europe (Germany, U.K., France, Spain, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg)
  • Eastern Europe (Poland and Russia)
  • Asia Pacific (China, India, Japan, ASEAN, Australia, and New Zealand)
  • Middle East and Africa (GCC, Southern Africa, and North Africa)

The report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases). The report also features a complete qualitative and quantitative assessment by analyzing data gathered from industry analysts and market participants across key points in the industry’s value chain.

A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the report projects the attractiveness of each major segment over the forecast period.

Highlights of the report:

  • A complete backdrop analysis, which includes an assessment of the parent market
  • Important changes in market dynamics
  • Market segmentation up to the second or third level
  • Historical, current, and projected size of the market from the standpoint of both value and volume
  • Reporting and evaluation of recent industry developments
  • Market shares and strategies of key players
  • Emerging niche segments and regional markets
  • An objective assessment of the trajectory of the market
  • Recommendations to companies for strengthening their foothold in the market   

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis. 

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