Micro Combined Heat & Power (CHP) Market Size By Capacity (< 2kW, 2 ≤ 10kW, > 10 ≤ 50kW), By Fuel (Natural Gas & LPG, Coal, Renewable Resources, Coal), By Prime Mover (Stirling Engine, Internal Combustion Engine, Fuel Cell), By Application (Residential {Space Heating/Cooling, Water Heating, Cooking, Lighting}, Commercial {Educational Institute, Office Building, Healthcare Building}), Industry Analysis Report, Regional Outlook, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Feb 2020  |  Report ID: GMI1476  |  Authors: Ankit Gupta, Riya Gupta

Report Format: PDF   |   Pages: 296   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Micro Combined Heat and Power Market size exceeded USD 1 billion in 2019 and is projected to exceed the annual installation of 895 MW by 2026. Favorable government norms along with ongoing investments toward renewable energy generation across developed and developing nations will drive the global industry growth.

Micro Combined Heat and Power Market

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Moreover, stringent government norms toward usage of conventional fuels in line with introduction of low carbon emission fuel including natural gas and biofuels across CHP plants will complement the industry landscape.

Combined heat & power is an efficient, cost effective and reliable source of integrated power generation producing heat and electricity under one system. The micro CHP system utilizes variety of fuels including oil, coal, biomass LPG & natural gas. The power generated in these systems is used across residential & commercial establishment for space heating or cooling and in various manufacturing processes.


Micro Combined Heat & Power (CHP) Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 1.18 Billion (USD)
Historical Data for: 2016 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 14.7% 2026 Value Projection: 3.33 Billion (USD)
Pages: 296 Tables, Charts & Figures: 534
Geographies covered (10): U.S., Canada, Germany, UK, Italy, Ireland, Netherlands, Japan, South Korea, Rest of World
Segments covered: Capacity, Fuel, Prime Mover, Application
Companies covered (14): Yanmar, BDR Thermea Group, 2G Energy AG, Viesmann, General Electric, Siemens, Veolia, Vaillant, Marathon Engine System, Micro Turbine Technology B.V., Ballard Power System Europe A/S, AISIN SEIKI Co. Ltd., TEDOM, Samad Power
Growth Drivers:
  • North America
    • Reducing dependency on conventional coal fired plant
    • Stringent emission norms
  • Europe
    • Growth in renewable energy sector
    • Increasing demand for space heating
  • Asia Pacific
    • Increasing industrialization and urbanization
    • Increasing clean energy demand
Pitfalls & Challenges:
  • High upfront cost

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Increasing smart infrastructure investments across the globe will complement the product adoption

Micro Combined Heat and Power Market Size By Fuel

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Growing inclination toward adoption of renewable energy technologies coupled with increasing measures to reduce carbon footprint will drive the micro combined heat and power market trends. In addition, introduction of net metering and CHP policies providing incentives, subsidies, tax reduction and rebates will further complement the micro cogeneration industry landscape.

For instance, the U.S. government launched ‘New Jersey Clean Program’ in 2018, offering USD1/W inducement for compact CHP systems with capacity up to 500kW and USD 0.50/W for medium CHP system ranging from 501 kW - 1000kW.

Ongoing technological enhancement to improve efficiency and reduce operational cost will strengthen the product adoption

Stirling engine segment of micro CHP market is projected to grow at a rate of over 16% up to 2026. Growing adoption of micro cogeneration plants across residential and commercial establishments on account of its applicability & operability toward low and medium power range systems will drive the product demand.

Low maintenance & operational cost, high operational flexibility, low carbon emissions and minimal noise pollution are some of the prominent features which will fuel the overall industrial landscape.

Internal combustion engine of micro combined heat and power market is anticipated to witness an upsurge owing to its compatibility with liquid and gas fuels for stationary energy generation. Low fuel consumption, high energy efficiency & reliability, improved product lifecycle and easy operations under harsh environment are the essential features that will drive the product adoption.

Furthermore, ongoing technological innovation toward micro cogeneration engines to reduce cost and enhance efficiency will propel the industry outlook. For instance, in 2018, BDR Thermea Group launched its new fuel cell micro CHP system named InnoGen. The InnoGen system is based on the Proton Exchange Membrane Fuel Cell technology. The extended range of CHP fueled by natural gas supplies up to 2000 kWe to meet the needs of commercial and district heating systems.

Rising energy demand owing to rapid commercialization will drive the micro CHP industry demand

Accelerating demand for decentralized and captive power generation technologies along with growing adoption of smart energy distribution networks will positively influence the product demand. Increasing applicability of micro cogeneration units across commercial & tertiary infrastructure including business units and multi complexes will drive the 2kW to 10kW micro CHP market trends.

Furthermore, replacement of conventional boilers to reduce GHG emissions will boost the product adoption. For instance, in June 2019, BDR Thermea Group introduced first hydrogen powered domestic boiler utilizing solar and wind energy to burn hydrogen fuel, minimizing carbon footprint up to 100% extent.

Growing adoption of renewable energy to curb carbon emission will complement the product adoption

Natural gas based micro combined heat and power market will witness an upsurge on account of its ability to produce low carbon footprint and cost effectiveness. Stringent regulatory policies to minimize the dependency of CHP systems on conventional fuels along with rising deployment of gas fired cogeneration technology will further augment the business growth.

For instance, North America introduced research and development programs including the FutureGen 2.0 projects & Climate Change Technology platform to enhance the efficiency of Integrated Gasification Combined Cycle (IGCC) technology.

Increasing customer awareness toward waste and incinerator management programs coupled with limited area availability for landfills will further strengthen the renewable based micro CHP market statistics. In addition, introduction of several government tariffs, rebates and subsidies to enhance the utilization of biofuels will positively drive the business dynamics.

For instance, The U.S. government in 2019, announced a revised program ‘Self-Generation Incentive Program (SGIP)’ to increase adoption of renewable fuels by 50% in fuel mixture ratio.

Asia Pacific region is set to dominate the regional micro combined heat and power market trends

Asia Pacific Combined Heat and Power Market By Technology

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Europe and Asia Pacific region in 2019, collectively held over 90% of micro combined heat and power market share. Favorable resiliency initiatives, state incentives, CHP-inclined environment regulations & policies are some of the predominant measures which will positively influence the product penetration.

Furthermore, ongoing deployment of compact cogeneration plants across district heating energy distribution networks along with deployment of renewable technologies across the region will drive industry demand.

Japan micro combined heat & power market will witness growth on account of ongoing adoption of cogeneration inclined programs to promote the integration of residential & commercial fuel cell micro CHP systems. For instance, in 2017, government of Japan launched ‘Ene-Farm program’ to boost the penetration of fuel cell micro cogeneration plants across the residential & commercial sector with an aim to install over 1 million units by 2020 & over 5 million units by 2030.

Demand of advanced micro CHP systems will act as the focal point of industry players

Ongoing mergers and acquisition across the industry along with favorable government norms toward the technology adoption will boost the business outlook. In August 2018, GE Power announced the USD 250 million acquisition of the Heat Recovery Steam Generator (HRSG) business of Doosan Engineering & Construction.

Key players operating across the micro combined heat and power market includes Yanmar, Vaillant, Marathon Engine Systems, ENER-G Rudox, BDR Thermea, Viessmann, General Electric, AISIN SEIKI, Siemens, 2G Energy AG, Veolia, Samad Power and Aegis Energy.

Micro Combined Heat and Power market research report includes in-depth coverage of the industry with estimates & forecast in terms of “MW” & “USD” from 2015 to 2026, for the following segments:

By Capacity

  • Below 2kW
  • 2kW-10kW
  • 10kW-50kW

By Fuel

  • Natural Gas & LPG
  • Coal
  • Renewable Resources
  • Oil

By Prime Mover

  • Stirling Engine
  • Internal Combustion Engine
  • Fuel Cell

By Application

  • Residential
    • Space Heating/Cooling
    • Water Heating
    • Cooking
    • Lightning
  • Commercial
    • Educational Institutes
    • Office Buildings
    • Healthcare Buildings

The above information has been provided for the following regions and country:

  • North America
    • U.S
    • Canada
  • Europe
    • Germany
    • U.K
    • Italy
    • Ireland
    • Netherland
  • Asia Pacific
    • Japan
    • South Korea
  • Rest of World

Frequently Asked Questions (FAQ) :

Combined heat & power is an efficient, cost effective and reliable source of integrated power generation producing heat and electricity under one system.
The global industry for micro combined heat & power will achieve over 14% CAGR from 2020 to 2026, as estimated by GMI.
Yanmar, Vaillant, Marathon Engine Systems, ENER-G Rudox, BDR Thermea, Viessmann, General Electric, AISIN SEIKI, Siemens, 2G Energy AG, Veolia, Samad Power and Aegis Energy are the major players operating in the global market for micro combined heat & power.

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Premium Report Details

  • Published Date: Feb 2020
  • Pages: 296
  • Tables: 500
  • Charts / Figures: 34
  • Companies covered: 14
  • Countries covered: 10

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