Global Micro CHP Market Research and Forecast 2022-2028

Global Micro CHP Market Size, Share & Trends Analysis Report by Technology (Internal Combustion Engine, Stirling Engine Technology, Organic Rankine Cycle, and Others), by Type (Engine-Based and Fuel Cell-Based), and by End-User (Residential and Commercial) Forecast Period (2022-2028)

The global micro CHP market is growing at a CAGR of 15.1% during the forecast period. The major factors that are augmenting the growth of the market are high heat electricity generation capacity. Furthermore, increasing concern related to the environment, rising demand for fuel cell-based systems, government support, and initiative that includes feed-in tariffs (fits) and tax incentives for the generation of renewable energy, is also acting as the major factors that are contributing significantly toward the growth of the market.

However, higher prices maintenance costs and complex infrastructural problems are the major factors and constraints that are hindering the growth of the global micro CHP market. Moreover, the emerging focus on the growing contribution of micro CHP towards smart energy is also one of the key factors that are creating opportunities in the market.

Impact of COVID-19 Pandemic on the Global Micro CHP Market

The global micro CHP market is hardly hit by the COVID-19 pandemic since December 2019. The COVID-19 pandemic had brought a lot of disruption across the globe. Due to the COVID-19 pandemic, manufacturing activities were also halted which had adversely impacted the growth of the market.

Segmental Outlook

The market is segmented based on technology, type, and end-user. By technology, the market is segmented into the internal combustion engine, stirling engine technology, organic Rankine cycle, and others. Based on the type segment, the market is segmented into the engine-based and fuel cell-based. Further, based on end-user, the market is segmented into residential and commercial.

Global Micro CHP Market Share by Technology, 2021 (%)

Global Micro CHP Market Share by Technology

Internal Combustion Engine Segment to Hold a Prominent Market Share in the Global Micro CHP Market

By technology, the internal combustion engine holds a significant share in the micro CHP market. The segment is driven by its high compatibility with liquid and gas fuels to generate stationary electricity. Internal combustion engine technology is the usual way for offering standby power. Additionally, the internal combustion engine has also enhanced the combustion control systems resulting in increasing the efficiencies along with a reduction in emissions.

Regional Outlooks

The global micro CHP market is analyzed based on the geographical regions that are contributing significantly to the growth of the market. Based on the geography, the market is divided into North America, Europe, Asia Pacific, and the Rest of the World. North America held a considerable share in 2020 in the global micro CHP market. Some factors that are boosting the market growth in North America include increasing demand for captive generation of energy. Further, growing inclination toward smart renewable infrastructure across the region, supporting government rules and norms along with providing subsidies towards the usage of micro-CHP are some other factors boosting the growth of the market in the region. Whereas in Europe the initiative for promoting the usage of sustainable energy sources is enhancing the growth of the market in the region. For instance, the European Union evolved a cogeneration directive to promote and develop high-efficiency CHP.

Global Micro CHP Market Growth, by Region 2022-2028

Global Micro CHP Market Growth, by Region

Asia-Pacific is Anticipated to Cater a Considerable Growth in the Global Micro CHP Market

The Asia-Pacific region is expected to witness significant growth opportunities for the market. The rules and regulations of the government to enhance efficiency in the generation of power along with reduction of carbon emissions in countries that include India, China, and Japan are expected to drive the market in the region. Additionally, key market companies expanding their reach with their new bringing are some other factors that are supporting the growth of the market in the region.

Market Players Outlook

The prominent players functioning in the global micro CHP market are AISIN CORP., Centrica plc, General Electric, Honda Motor Co., Ltd, Viessmann Manufacturing Co. Inc., and Vaillant Group among others. These key manufacturers are adopting various strategies such as new product launches and approvals, mergers and acquisitions, partnerships, collaborations, and many others to thrive in a competitive environment. For instance, in January 2020, Veolia which is regarded as a resource management company received a new 15 years contract with total fitness to reduce energy consumption, and costs of utility along with reducing carbon emissions, across the north of England and Wales. As per this term of the deal, the company Veolia will support the total fitness to achieve a 32% reduction in the consumption of gas with the utilization of combined heat and power (CHP). Through this advanced and latest technology, it is installed to achieve a 22% increase in electrical efficiency when it is compared to the existing CHP units along with lowering the cost of energy and reducing the C02 emissions from the building space.

In February 2019, Lochinvar had a partnership with EC POWER to introduce a cogeneration system in the North American region. For light commercial applications, the presence of Micro CHP (XRGI25) is designed to be effective and efficient along with easy to install cogeneration system. Additionally, the usage of internal combustion and the natural gas engine provides both hot water for domestic applications along with the generation of 24KW of electricity. With the support of this concept, the reduction in grid dependency could be observed along with lowering the overall environmental impact.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global micro CHP market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.