Combined Heat Power Market Size is Projected to Generate a Revenue of $ 48,399.1 Mn by 2031Download Sample Reports Overview
The Global Combined Heat Power Market Share is expected to be valued at $48,399.1 million by 2031, surging from $24,600.0 million in 2021, at a noteworthy CAGR of 7.2%.
Impact Analysis of COVID-19 on the Combined Heat Power Market
The COVID-19 pandemic caused significant disruptions in demand, supply, import-export, and availability of combined heat power throughout end-use industries. The COVID-19 had a global impact on society and economies. The pandemic has affected worldwide business. The crisis caused stock market uncertainty, which led to drop in corporate confidence, a major slowdown of the supply chain, and an increase in customer concern. Owing to the suspension of industrial plants, Asian and European region under lockdown have lost a significant amount of business and money. The emergence of COVID-19 illness had a significant influence on the operations of the industrial and manufacturing industries, which hampered the growth of the Automation in Combined Heat Power market. In addition, the COVID-19 pandemic harmed the electronics sector by causing manufacturing facilities to halt, increasing demand for electronics and semiconductor goods in these businesses. Its key impact is a significant disruption in manufacturing across Europe and a disruption in Chinese components exports, both of which impede automation in the combined heat power market growth.
However, in February 2021, Siemens agreed to supply F-class gas turbine island equipment for the China Zhaoqing Dinghu Combined Heat and Power (CHP) production project with the Guangdong Energy Group.
Global Combined Heat Power Market Analysis
Combined heat and power generate electricity by combining energy from numerous sources. Combined heat power that generates hot water using renewable energy sources is a type of renewable energy. Biomass, solar, wind, hydroelectricity, geothermal, nuclear, and landfill gas could all be used to power a renewable combined heat and power system. The use of a renewable energy source provides the greatest efficiency benefits. These are the major factors anticipated to boost the combined heat power market share during the forecast period.
However, CHP system maintenance costs are also high due to the system's complicated assembly, which comprises several components such as a prime mover, a heat recovery system, and heat & steam pipelines. Regular maintenance of all components is necessary to maintain the CHP's high efficiency. In addition, availability of substitutes such as natural gas, propane, gasoline, and others is expected to restrain CHP market growth. The capital expenditure such as the cost of natural gas, coal, and freight cost for the production of combined heat power is high, which is anticipated to hinder the combined heat power market demand in the upcoming years.
Growing commercial sectors as a result of economic inflation is anticipated to raise demand for energy and power, accelerating the combined heat power market during the forecast period. H3CHP, a Canadian firm, created cogeneration solutions for the energy sector. Wood waste, biosolids, solids, and other organic feedstocks are converted into syngas using the startup's biomass gasification technology. The approach offers greenhouse owners an optimal disposal technique for biomass while also producing carbon dioxide to boost crop development. The remaining heat is collected and redirected to the site to be used for heating or processing.
Combined Heat Power Market, Segmentation
The combined heat power market is segmented on the basis of fuel type, capacity, technology, application, and region.
The fuel type segment is further classified into natural gas, coal, biomass, and others. Among these, the natural gas segment accounted for a dominating market share in 2021. Natural gas as a feedstock for production of combined heat power is quite popular and a quick process. For instance, use of natural gas for combined heat power production is a three-step process that involves synthesis gas production, converting syngas to crude CHP, and distillation of crude combined heat power to reach the desired purity. In addition, natural gas has low cost, offers energy security, has low risk of flammability, and can replace the use of gasoline-based fuels such as petrol and diesel.
The capacity segment is further divided into up to 10 MW, 10-150 MW, 151-300 MW, and above 300 MW. Among these, the up to 10 MW segment accounted for a dominant market share in 2021. The ORC technology has a possibility to establish itself in the market for larger power plants (up to 10 MW of electric power) situated in distant locations, where it is difficult to recruit a group of qualified operators. In nations with cold conditions, as was stated earlier, the freezing issue may also be a justification for discarding a traditional plant.
The technology segment is further classified into combined cycle, steam turbine, gas turbine, reciprocating engine, and others. Among these, the combined cycle segment accounted for a dominating market share in 2021. It is used in power plants to reduce energy loss by using waste heat generated by exhaust gases to create more electricity. These systems are typically used in industrial sectors with high energy demands, such as petrochemicals, cement, chemical, pulp, medicine, and sugar, The capacity to function without fuel, low installation & maintenance costs, heat output, start-up time, fuel availability, pollution level, and how energy-efficient the technology is in contrast to others are the primary variables considered.
The application segment is further segregated into commercial, residential, industrial, and utility. Among these, the industrial segment accounted for a dominating market share in 2021. The increasing use of combined heat and power systems in many sectors such as the petrochemical and pharmaceutical industries is boosting the growth of the segment. Furthermore, encouragement of directions to increase combined heat and power installation across solar power units and extended residential and commercial sector supported by industrialization benefit the industrial segment. Furthermore, owing to the rising need for power, combined heat and power units are primarily used in industries.
The combined heat power market in the Asia-Pacific region is anticipated to show the fastest growth during the forecast period. This is primarily due to rapid industrialization and urbanization, as well as increased market demand for clean fuel energy, which encouraged market growth in the region, resulting in the production of new combined heat and power systems in emerging economies. For instance, in November 2020, Bert Energy GmbH presented a Bert Mobil Gas demo planned for commissioning in Sri City, Andhra Pradesh, India. In addition, the natural gas supply and price forecast, increasing energy efficiency, and environmental restrictions for power plants and industrial boilers are projected to promote cogeneration projects across the area. However, problems such as poor grid connectivity and large capital expenditures continue to be significant barriers for the Asia-Pacific combined heat power market.
Key Players in the Global Combined Heat Power Market
Some of the leading combined heat power market players are
- MAN Diesel & Turbo SE
- Caterpillar Inc
- Mitsubishi heavy Industries ltd
- General Electric
- Bosch Thermotechnology Ltd
- ABB Limited
- ENER-G Rudox
In February 2021, the Junliangcheng combined heat and power (CHP) plant, built by General Electric, provided district heating and electricity to more than 100,000 people in Tianjin, the third-largest city in China.