Cogeneration Equipment Market: Information by Capacity (31–60 MW), Fuel (Coal, Natural Gas), Technology (Gas Turbine), Application (Commercial, Residential), and Region — Forecast till 2029

Dec 01, 2020   Market Overview The global demand for energy and power has been increasing consistently. Over the last several years, the emergence of new economies as manufacturing hubs and the growth in population has resulted in higher demand for energy. In addition to this, energy prices are also consistently rising, which is going to be the main factor in propelling the demand for cogeneration equipment market. Cogeneration equipment is also known as combined heat and power (CHP) systems. They are used fo...
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Market Overview

The global demand for energy and power has been increasing consistently. Over the last several years, the emergence of new economies as manufacturing hubs and the growth in population has resulted in higher demand for energy. In addition to this, energy prices are also consistently rising, which is going to be the main factor in propelling the demand for cogeneration equipment market. Cogeneration equipment is also known as combined heat and power (CHP) systems. They are used for the simultaneous generation of both heat energy and electricity from a single source of fuel, such as oil, waste heat, coal, wood, biomass, and natural gas.

Cogeneration equipment has a high efficiency, which is evident from their operational levels that are as high as 77–81%. This rate is relatively higher than conventional systems that have an efficiency of around 46%. Cogeneration equipment can also reduce carbon emissions by up to 29%. Increasing energy generation projects across the globe are likely to lead to the growth of the cogeneration equipment market during the forecast period.

Despite the drivers, some minor restraints can restrict the growth of this market. This industry requires a high initial investment and proper utility connection. This equipment is likely to face tough competition from conventional systems due to their high initial cost, along with complex technological requirements. Over the last several years, several small and medium-sized manufacturing facilities are established across the globe, especially in emerging economies. These firms cannot afford this equipment, further hampering the market growth.

Global Energy Demand to Drive the Cogeneration Equipment Market:

Energy demand is increasing at an exponential rate on account of the rising global population and rapid urbanization, especially in the developing and non-developed regions. The governments in these regions are trying to give better access to healthcare and other facilities due to the absence of family planning.

Emerging economies are rapidly emerging as the most favored destinations to establish warehouses and manufacturing operations, further raising the demand for power and heat. The total energy use is anticipated to reach around 50% by 2050, as compared to 20%, which is the current share. As per the International Renewable Energy Association (IRENA), the global energy sector will witness investments to the tune of around USD 95 trillion due to various current and planned policies up to the year 2050.

Economies are becoming self-sufficient in generating their own electricity, which is evident by the reduction in the number of imports of electricity. Most of the developed economies are focused on buying and manufacturing electric cars and hydrogen vehicles, which require energy generation for transport and storage of various energy forms. These factors are surging the energy demand, further driving the market growth.

Globa-Electricity-Imports-Usd-Billions

Source: Observatory of Economic Complexity

Drivers

  • Increase in demand for energy efficiency in various industries
  • The rise in the use of natural gas for energy and power generation
  • Government incentives and mandates to promote the use of cogenerate equipment or CHP systems

Restraints

  • Higher installation and maintenance costs

Opportunities

  • Emerging technologies such as fuel cell which has the potential to use cogeneration equipment
  • Growth of the distributed power sector in Asia-Pacific and North America

Regional Overview

Availability of Natural Gas in Europe to Drive the Demand for Cogeneration Equipment

Europe is anticipated to witness the highest growth rate during the forecast period, owing to the large scale availability of natural gas in economies such as Russia and Germany. Space and cost restraints in cities, combined with strict environmental regulations, are expected to drive the demand for this equipment over the forecast period. Despite the region having considerable power and energy-producing capacities, some of its economies hold the highest share in the global electricity imports. For instance, in 2018, Italy held the highest share of around 12% in global electricity imports, while the U.S. held around 8.18% share.

The automotive, food and beverages, and chemical sectors are the largest users of electricity in the EU. Despite electricity being generated by alternative energy sources, natural gas still remains one of the dominant energy suppliers for this region. Various government authorities, such as the Organization of Economic Co-operation and Development (OECD), are offering incentives to surge the use of natural energy sources in the countries. Economies such as the U.K. and Germany have taken umpteen measures for providing tax incentives and rebates for promoting cogeneration equipment installation. There are several large-sized companies and industries in this region, which have the economic capacity to procure large scale orders of this equipment. However, since this is a mature economy, the region is anticipated to witness a moderate growth rate during the forecast period.

Key Players

  • American DG Energy Inc.
  • Turner Crane
  • Allied Equipments Inc.
  • Caterpillar Inc.
  • GE Energy
  • Mitsubishi Heavy Industries Ltd.
  • Baxi Group, Siemens AG
  • Rolls Royce PLC.
  • Alstorm Power
  • Cidea Uno Inc.
  • Almeg Controls
  • Perry Process Equipment Ltd.
  • US Green Energy Ltd.
  • Solar Turbines Inc.

Cogeneration Equipment Market: Segmentation

By Capacity

  • Less than or Equal to 30 MW
  • 31 MW–60 MW
  • 61 MW–100 MW

By Fuel

  • Coal
  • Natural Gas
  • Biomass

By Technology

  • Gas Turbine
  • Reciprocating Engine
  • Steam Turbine
  • Combined Cycle Gas Turbine

By Application

  • Commercial
  • Residential
  • Industrial

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Central and South America and the Caribbean
  • The Middle East and Africa

Frequently Asked Questions (FAQs)

Rising global population and rapid urbanization, especially in the developing and non-developed regions, increasing global energy demand are the key factors expected to drive Cogeneration Equipment Market during the forecast period.
American DG Energy Inc., Turner Crane, Allied Equipments Inc., Caterpillar Inc., GE Energy, Mitsubishi Heavy Industries Ltd., Baxi Group, Siemens AG, Rolls Royce PLC., Alstorm Power, Cidea Uno Inc., Almeg Controls are the top players in Cogeneration Equipment Market.
Europe is expected to hold the highest market share in Cogeneration Equipment Market.
Commercial Segment is expected to be leading segment in Cogeneration Equipment Market during the forecast period.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically, choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.

Market Overview

The global demand for energy and power has been increasing consistently. Over the last several years, the emergence of new economies as manufacturing hubs and the growth in population has resulted in higher demand for energy. In addition to this, energy prices are also consistently rising, which is going to be the main factor in propelling the demand for cogeneration equipment market. Cogeneration equipment is also known as combined heat and power (CHP) systems. They are used for the simultaneous generation of both heat energy and electricity from a single source of fuel, such as oil, waste heat, coal, wood, biomass, and natural gas.

Cogeneration equipment has a high efficiency, which is evident from their operational levels that are as high as 77–81%. This rate is relatively higher than conventional systems that have an efficiency of around 46%. Cogeneration equipment can also reduce carbon emissions by up to 29%. Increasing energy generation projects across the globe are likely to lead to the growth of the cogeneration equipment market during the forecast period.

Despite the drivers, some minor restraints can restrict the growth of this market. This industry requires a high initial investment and proper utility connection. This equipment is likely to face tough competition from conventional systems due to their high initial cost, along with complex technological requirements. Over the last several years, several small and medium-sized manufacturing facilities are established across the globe, especially in emerging economies. These firms cannot afford this equipment, further hampering the market growth.

Global Energy Demand to Drive the Cogeneration Equipment Market:

Energy demand is increasing at an exponential rate on account of the rising global population and rapid urbanization, especially in the developing and non-developed regions. The governments in these regions are trying to give better access to healthcare and other facilities due to the absence of family planning.

Emerging economies are rapidly emerging as the most favored destinations to establish warehouses and manufacturing operations, further raising the demand for power and heat. The total energy use is anticipated to reach around 50% by 2050, as compared to 20%, which is the current share. As per the International Renewable Energy Association (IRENA), the global energy sector will witness investments to the tune of around USD 95 trillion due to various current and planned policies up to the year 2050.

Economies are becoming self-sufficient in generating their own electricity, which is evident by the reduction in the number of imports of electricity. Most of the developed economies are focused on buying and manufacturing electric cars and hydrogen vehicles, which require energy generation for transport and storage of various energy forms. These factors are surging the energy demand, further driving the market growth.

Globa-Electricity-Imports-Usd-Billions

Source: Observatory of Economic Complexity

Drivers

  • Increase in demand for energy efficiency in various industries
  • The rise in the use of natural gas for energy and power generation
  • Government incentives and mandates to promote the use of cogenerate equipment or CHP systems

Restraints

  • Higher installation and maintenance costs

Opportunities

  • Emerging technologies such as fuel cell which has the potential to use cogeneration equipment
  • Growth of the distributed power sector in Asia-Pacific and North America

Regional Overview

Availability of Natural Gas in Europe to Drive the Demand for Cogeneration Equipment

Europe is anticipated to witness the highest growth rate during the forecast period, owing to the large scale availability of natural gas in economies such as Russia and Germany. Space and cost restraints in cities, combined with strict environmental regulations, are expected to drive the demand for this equipment over the forecast period. Despite the region having considerable power and energy-producing capacities, some of its economies hold the highest share in the global electricity imports. For instance, in 2018, Italy held the highest share of around 12% in global electricity imports, while the U.S. held around 8.18% share.

The automotive, food and beverages, and chemical sectors are the largest users of electricity in the EU. Despite electricity being generated by alternative energy sources, natural gas still remains one of the dominant energy suppliers for this region. Various government authorities, such as the Organization of Economic Co-operation and Development (OECD), are offering incentives to surge the use of natural energy sources in the countries. Economies such as the U.K. and Germany have taken umpteen measures for providing tax incentives and rebates for promoting cogeneration equipment installation. There are several large-sized companies and industries in this region, which have the economic capacity to procure large scale orders of this equipment. However, since this is a mature economy, the region is anticipated to witness a moderate growth rate during the forecast period.

Key Players

  • American DG Energy Inc.
  • Turner Crane
  • Allied Equipments Inc.
  • Caterpillar Inc.
  • GE Energy
  • Mitsubishi Heavy Industries Ltd.
  • Baxi Group, Siemens AG
  • Rolls Royce PLC.
  • Alstorm Power
  • Cidea Uno Inc.
  • Almeg Controls
  • Perry Process Equipment Ltd.
  • US Green Energy Ltd.
  • Solar Turbines Inc.

Cogeneration Equipment Market: Segmentation

By Capacity

  • Less than or Equal to 30 MW
  • 31 MW–60 MW
  • 61 MW–100 MW

By Fuel

  • Coal
  • Natural Gas
  • Biomass

By Technology

  • Gas Turbine
  • Reciprocating Engine
  • Steam Turbine
  • Combined Cycle Gas Turbine

By Application

  • Commercial
  • Residential
  • Industrial

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Central and South America and the Caribbean
  • The Middle East and Africa

Frequently Asked Questions (FAQs)

Rising global population and rapid urbanization, especially in the developing and non-developed regions, increasing global energy demand are the key factors expected to drive Cogeneration Equipment Market during the forecast period.
American DG Energy Inc., Turner Crane, Allied Equipments Inc., Caterpillar Inc., GE Energy, Mitsubishi Heavy Industries Ltd., Baxi Group, Siemens AG, Rolls Royce PLC., Alstorm Power, Cidea Uno Inc., Almeg Controls are the top players in Cogeneration Equipment Market.
Europe is expected to hold the highest market share in Cogeneration Equipment Market.
Commercial Segment is expected to be leading segment in Cogeneration Equipment Market during the forecast period.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically, choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.