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Combined Heat and Power [CHP] Installation Market Report 2022: Increased Demand for Electricity Around the World Boosts Sector
Dublin, Dec. 28, 2022 (GLOBE NEWSWIRE) -- The "Combined Heat and Power [CHP] Installation Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2022 to 2030" report has been added to ResearchAndMarkets.com's offering.
In 2021, the combined heat and power (CHP) installation market was estimated to be worth USD $940 billion. The market is projected to expand at a CAGR of 5% during the forecast period of 2022 and 2030. Cogeneration, also known as Combined Heat and Power (CHP), is the process of producing both heat and electricity at the same power plant or heat engine through the utilization of a heat engine.
Increased Demand for Electricity Around the World
Both industrialization and urbanization have been on the rise for some time now across the entirety of the planet. Because of this, there has been a rise in the demand for power all across the world. It is anticipated that the global demand for electricity would expand at a pace of 2.1% per year until 2040, which is equivalent to twice the rate of the increase in the demand for primary energy. As a result, there will most certainly be an increase in demand for the infrastructure required for the installation of combined heat and power (CHP).
In an effort to satisfy the ever-increasing need for electricity, the governments of the number of different countries are placing increased emphasis on renewable energy. It is anticipated that this increase in demand for electricity would lead to an increase in demand for combined heat and power systems all over the world. Consequently, the global market for the installation of Combined Heat and Power (CHP) systems is predicted to be driven throughout the forecast period by a growth in the demand for energy.
Increasing Demand for CHP Systems in Developing Countries
Globalization, industrialization, and urbanization have all seen significant development in recent decades, and this progress has led to a change in the flow of investment from rich countries to developing countries. This can be attributed to the lower costs of labor and infrastructure that are seen in underdeveloped countries. Rules and regulations pertaining to the environment are also not enforced strictly in developing countries. Companies gain an additional competitive advantage as a result of this.
The rise in household income, as well as the amount of money that people in the middle class and lower middle class have available to spend, has been attributed to the concurrent development in industrialization and urbanization. As a direct consequence of this, the residential and transportation sectors have begun to implement fundamentals of combined heat and power generation.
Environment-Friendly Solution to Drive the Market Growth
There is a concerted effort being made by the governments of a number of nations to increase the utilization of Combined Heat and Power (CHP) installations. For instance, increasing awareness regarding the concerns relating to the environment, as well as the enforcement of severe rules and regulations by regulatory agencies, have forced corporations to seek out environmentally friendly solutions. In recent years, the construction of Combined Heat and Power (CHP) systems has become an increasingly popular alternative to the usage of gasoline and diesel. The Combined Heat and Power (CHP) Installation is considered to be an environmentally friendly fuel. Companies can save money by utilizing Combined Heat and Power (CHP) installations, which are increasingly becoming more popular. As a result, the increase in demand for Combined Heat and Power (CHP) installation in developing countries such as China, India, Indonesia, Brazil, Mexico, and Nigeria for commercial and residential and various other industrial uses is anticipated to drive the market value of the CHP (Combined Heat and Power) installation market during the forecast period.
Demand For Natural Gas in CHP Systems Is Growing as A Result of Its Abundant Availability and Affordable Pricing
The global market for the installation of Combined Heat and Power (CHP) systems has been divided into three categories in terms of the fuel used: biomass, coal, and natural gas. In 2021, the natural gas sector owned the largest share of the market, accounting for sixty percent of the total. Natural gas is an excellent choice for use as a fuel in combined heat and power (CHP) systems since it is inexpensive and abundantly available. In addition, natural gas is considered to be an environmentally friendly form of energy that can contribute to the reduction of carbon emissions. It is anticipated that this sector will have the lion's share of the market throughout the time under consideration. During the forecast period, it is anticipated that the biomass and coal segments will both expand at a consistent rate.
A High Degree of Adaptability Along with A Variety of Possible Uses for the Driving Portion of The Combined Cycle
The global market for the installation of Combined Heat and Power (CHP) has been segmented according to the prime mover, which includes the steam turbine, combined cycle, gas turbine, reciprocating engine, and other options. In 2021, a considerable portion of the overall market was owned by the sector known as the combined cycle. Due to its high degree of flexibility, high power production, and wide uses in a variety of industries, it has the potential to be the market for CHP (combined heat and power) installation that expands at the quickest rate throughout the course of the projection period.
Programs And Incentives Offered by The Government to Encourage the Use of CHP Are the Drivers
It is anticipated that government programs and incentives, notably in OECD nations such as the United States of America, the United Kingdom of Great Britain, Germany, Japan, and others, will drive the growth of the combined heat and power industry. In 2012, the United States of America adopted a new policy for the promotion of CHP for the purpose of increasing energy efficiency. At the same time, the President of the United States at the time signed an executive order for energy efficiency in industries. The order established a goal for combined heat and power to account for 20% of total electricity generation in the United States by the year 2020, which would be an increase from the 8% proportion it held in 2012.
A number of state governments in the United States, in addition to the federal government, have provided financial incentives and tax rebates for combined heat and power installations. The order instructs the United States Departments of Energy, Commerce, and Agriculture, as well as the Environmental Protection Agency (EPA), to coordinate their efforts to provide commercial and technical assistance to state governments in order to encourage investments in industrial energy efficiency. The measure to extend a tax incentive of 10% for enterprises that adopt CHP in their facilities to encourage energy efficiency was approved by Congress in February 2018, and the bill went into effect on April 1, 2018.
The Growing Trend of Distributed Power Generation Presents a Significant Opportunity
Systems that are either permanent or mobile and have a capacity of fewer than 100 megawatts (MW) are considered distributed generation systems. When it comes to producing electricity, distributed generation is not the same as a centralized generation, which involves generating power at a considerably higher capacity than a distributed generation, but at plants that are always in the same location.
Reciprocating engines, solar panels, wind turbines, and fuel cells are some of the other technologies that make up the present suite of distributed power-generating technologies. Gas turbines are an essential component of this suite. When it comes to supplying backup power capacity and meeting onsite generating requirements, gas turbines have a competitive advantage over other dispersed generation technologies due to their higher efficiency and more stable generation capacity. As a result, the growth of decentralized power generation creates a significant opportunity for the combined heat and power sector.
Market Segmentation
Fuel
Coal
Natural Gas
Biogas/biomass
Nuclear
Diesel
Others (Biodiesel and geothermal)
Prime Mover
Steam Turbine
Combined Cycle
Gas Turbine
Reciprocating Engine
Others (Stirling Engine and Organic Rankine Cycle)
Application
Commercial & Residential
Industrial
Capacity
Up to 10 MW
10-150 MW
151-300 MW
Above 300 MW
Key questions answered in this report
What are the key micro and macro environmental factors that are impacting the growth of Combined Heat and Power [CHP] Installation market?
What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
Estimated forecast and market projections up to 2030.
Which segment accounts for the fastest CAGR during the forecast period?
Which market segment holds a larger market share and why?
Are low and middle-income economies investing in the Combined Heat and Power [CHP] Installation market?
Which is the largest regional market for Combined Heat and Power [CHP] Installation market?
What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
Which are the key trends driving Combined Heat and Power [CHP] Installation market growth?
Who are the key competitors and what are their key strategies to enhance their market presence in the Combined Heat and Power [CHP] Installation market worldwide?
Companies Mentioned
Siemens Energy AG
2G Energy Inc.
Capstone Turbine Corporation
Aegis Energy Services Inc.
Cummins Inc.
Wartsila
General Electric Company
Aegis Energy Services Inc.
Generac Holdings Inc.
Primary Energy Recycling Corporation
Integral Power
For more information about this report visit https://www.researchandmarkets.com/r/4vipm5
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