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Micro CHP Market Size By Capacity (< 2kW, 2 ≤ 10kW, > 10 ≤ 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, Lighting}, Commercial {Educational Institute, Office Building, Healthcare Building}), Industry Analysis Report, Regional Outlook, Competitive Market Share & Forecast, 2020 – 2026

  • Report ID: GMI1476
  • Base Year: 2019
  • Report Format: PDF

Industry Trends

Micro CHP Market size exceeded USD 1 billion in 2019 and is estimated to register over 11% through 2026. Reducing dependency on conventional fuels in line with ongoing investments toward renewable generation sources across developed & developing nations will boost the overall business scenario. Favorable government norms toward adoption of low GHG emission technologies including hydrogen fueled CHP systems will complement the Micro CHP industry outlook.

Micro Combined Heat and Power Market

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A micro combined heat and power is a cogeneration technology that generates electricity and heat simultaneously from single source of energy in individual buildings or homes. It uses several types of fuel including natural gas, LPG, oil, renewable resources, and coal. The system finds wide application across commercial and residential establishments.

Ongoing technological advancement to enhance efficiency and reduce operational & maintenance cost will fuel the product adoption

Micro CHP Market By Technology

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Stirling engine micro CHP market exceeded an annual installation of 50 MW in 2019. Rising deployment of cogeneration plants across residential & commercial establishments owing to its high operability & applicability toward low power range systems will thrust the overall industry landscape. High functioning flexibility, fast starting, low operational & maintenance cost, high ramping capability, minimal noise pollution and low carbon emissions are prominent features which will strengthen the product portfolio.

Internal combustion engine based micro combined heat & power industry is set to witness significant growth owing to its high compatibility with liquid & gas fuels for stationary electricity generation. High compression ratio, low fuel consumption, high efficiency & reliability, upgraded product lifecycle and improved operability under extreme environment conditions are the essential features driving the technological adoption. In addition, rising investments toward R&D sector by leading manufacturers to deploy efficient and feasible combustion engines will thrust the product demand.

Integration of renewable powered sources across the cogeneration units will accelerate the product adoption

Natural gas based micro CHP market is anticipated to witness significant growth on account of its low carbon emission ability along with high energy production and cost effectiveness. Rapid government measures and policies to reduce the reliance of CHP systems on traditional fuels followed by rising installation of gas fired engine technologies will further propel the business growth.

Increasing awareness toward incinerator & waste management programs along with growing applicability of solar and wind energy across the cogeneration units will complement the renewable based demand. Moreover, introduction of government norms, tariffs and subsidies to increase the consumption of biofuels will positively stimulate the business dynamics. For instance, Self-Generation Incentive Program was announced by the U.S. government in 2019 to improve the renewable fuel fixture ratio by 50%.

Replacement of traditional cogeneration units with advanced technologies will positively sway the industry dynamics

Increasing demand for decentralized energy generation coupled with growing installation of smart energy supply networks will positively stimulate the product demand. Rising applicability of compact cogeneration units across commercial infrastructure including complexes and business units will fuel the 2 kW to 10 kW capacity micro CHP market trends.

In addition, replacement of traditional boilers with improved technologies to cater to increasing carbon emissions will drive the product demand. For instance, in 2019 BDR Thermea Group introduced hydrogen powered compact domestic boiler utilizing renewable energy to burn hydrogen fuel and minimizing GHG emission up to 90% extent.

Rising investments toward smart infrastructure along with increasing installation programs will complement the business scenario

Increasing unit deployment by various government organizations to cater to ongoing electricity and heat demand across the Nordic countries will fuel the product penetration. In the recent years, the European countries has launched Ene.fields and PACE programs under horizon 2020 to install large number of micro fuel cell CHP systems across the region. In addition, introduction of favorable net metering and CHP policies including incentives, tax reduction, subsidies and rebates will positively stimulate the cogeneration industry.

Ongoing research and development to introduce compact, reliable, efficient and cost-effective energy generation units will strengthen the industry portfolio. Moreover, increasing investment toward smart city infrastructure followed by refurbishment and replacement of conventional energy production sources will drive the business growth. Furthermore, rising peak load demand along with rapid commercialization and urbanization across the developing regions will complement the industry scenario.

Europe micro combined heat & power market will witness growth on account of favorable government initiatives along with replacement of traditional cogeneration systems

Europe Micro CHP Market By Application

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European micro CHP market is anticipated to register over 6% CAGR through 2026. Favorable CHP-inclined flagship programs, resiliency initiatives and state incentives are predominant measures positively influencing the product demand. In addition, rising installation of compact cogeneration units across commercial establishments including office buildings, educational institutes and healthcare buildings will drive the industry statistics.

Germany micro combined heat & power market demand is anticipated to witness an upsurge on account of increasing cogeneration inclined programs followed by rising investment by leading domestic players toward integration of commercial & residential fuel cell systems. For instance, in 2016, government of Germany launched ‘KFW 433 flagship program’ to propel the installation of FC micro cogeneration plants with an aim to deploy over 6,600 units by 2021.

Ongoing COVID-19 impact on the overall industry may affect the deployment of these units on account of delay in project commissioning plans and reduction in manufacturing operations. However, the developed regions are focusing on over-compensating the impacts of corona virus by advancing the operations as the opportunity arises, in turn, resulting in gradual market growth by second half of 2020.

Rising demand for reliable and efficient systems will drive the industry dynamics

Increasing mergers & acquisitions by leading industry players to strengthen the market presence will escalate the industry outlook. In 2018, GE Power acquired Heat Recovery Steam Generator vertical for over USD 250 million from Doosan Engineering & Construction. Eminent players operational across the micro CHP market includes General Electric, Yanmar, Marathon Engine Systems, Vaillant, Micro Turbine Technology, BDR Thermea, Viessmann, 2G Energy AG, AISIN SEIKI, Siemens, Veolia, Ballard Power System, Samad Power and TEDOM.

Micro CHP 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

  • < 2 kW
  • 2 ≤ 10 kW
  • > 10 ≤ 50 kW

By Fuel

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

By Prime Mover

  • Stirling Engine
  • Internal Combustion Engine
  • Fuel Cell
  • Others

By Application

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

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
Authors: Ankit Gupta, Riya Gupta

Frequently Asked Questions (FAQ) :

Overall micro combined heat and power market would exhibit a crcr of 11.7% through 2026.

Overall micro combined heat and power market would be pegged at a valuation of $1,842.9 million in 2026.

Current R&D programs aiming to launch compact, cost-efficient energy generation systems in tandem with rising investments in smart cities will foster the product demand.

Stirling engine micro CHP market size, in 2019, surpassed 50 MW in terms of annual installations and will depict similar growth trends through 2026, driven by increasing deployment of cogeneration plants in commercial and residential spaces.

Micro CHP systems will be heavily adopted in Europe, owing to rising government initiatives and favorable CHP-centric flagship programs. Europe market is slated to record 6% CAGR through 2026.

The COVID-19 pandemic has led to delays in commissioning projects and reduced manufacturing operations. However, the industry is likely to recover in the second half of 2026.

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Premium Report Details

  • Published Date: Jul 2020
  • Companies covered: 14
  • Tables & Figures: 539
  • Countries covered: 10
  • Pages: 308

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