• The global market for commercial combined heat and power (CHP) systems should reach $26.1 billion by 2022 from $20.2 billion in 2017 at a compound annual growth rate (CAGR) of 5.2% from 2017 to 2022. • The industrial sector of the global CHP systems market is expected to grow from $16.3 billion in 2017 to $20.7 billion in 2022 at a CAGR of 4.9% for the period 2017-2022. • The commercial sector of the global CHP systems market is expected to grow from $2.6 billion in 2017 to $3.6 billion in 2022 at a CAGR of 6.6% for the period 2017-2022.
Chapter 1: Introduction
Study Goals and Objectives The objective of the report is to identify the key trends in the commercial combined heat and power (CHP) market. The market is segmented based on technology, end-use sector, equipment, fuel type and geography. The report describes the worldwide growth potential of the CHP market over a period of six years from 2016 to 2022. The report focuses on identifying key end users and industries that will affect the major market trends.
The objective of the report is to provide an in-depth analysis and forecast of the commercial CHP market. The report quantifies both quantitative and qualitative factors. This report aspires to be a an invaluable decision-making tool for decision makers. This report will be a significant tool to various industries as well as companies that want to penetrate the CHP market. As the report also covers various geographies in detail, companies that are interested in investments overseas will also find the report useful.
Reasons for Doing This Study CHP is a technology that produces electricity and heat from a single fuel source. A large amount of energy can be recovered by a CHP system and can be utilized for another purpose. The overall thermal efficiency of a system can be increased by adopting CHP technology. The cogeneration of heat and electricity can save energy worth of billions of dollars. Additionally, the CHP system can reduce the carbon footprint by increasing the thermal efficiency of the system.
Energy demand is increasing with the increase in the population. The CHP system can help fulfill energy demands. Energy requirements in the developing economies such as China and India are growing rapidly, and a large number of CHP systems have been installed in recent years to optimize energy resources. The report intends to precisely explain the key trends in the industry and identifies the industries that are using the products and studies the motivating and restraining factors, as such the report will be a key decision-making tool for the intended audience.
Scope of Report The CHP system reduces the cost of electricity and heat production by increasing the thermal efficiency of the system. The CHP systems are used in industrial, commercial and residential applications. The report segments the market on the basis of end-use sector, fuel type, technology and equipment. The key technologies used in CHP systems are also covered at length. The report focuses on energy conservation technologies as well. All major markets are further segmented on geography basis. The major geography covered in the report are North America, Europe, Asia-Pacific (APAC) and the Rest of World (RoW). Furthermore, a country specific breakdown of the CHP system market is also included in the report.
Values were estimated on the basis of cumulative CHP installed capacity, annual CHP installed capacity, various application markets, average cost of technology and revenue generated from the sale of various equipment and services. The study covers the global commercial CHP market irrespective of the included countries. Countries were included mainly on the basis of total revenue generated. Major countries included in the report are the U.S., Canada, Germany, the U.K., Spain, Italy, France, China, Japan and India. Estimated values used are based on manufacturers’ total revenues and forecasted revenue values are in constant U.S. dollars, unadjusted for inflation.
Unit volumes of energy production as well as revenue generated from the sale of CHP systems and services were tracked in order to estimate the market. A large number of manufacturers as well as end users are profiled in the report for a better understanding of the market.
This report on the commercial CHP market provides a market overview, assesses application markets, provides an end user analysis, and evaluates the CHP market by technology, fuel type and geographical region. The major companies are profiled, and includes a detailed introduction, product portfolios and recent developments for each.
Information Sources Key information was derived from various government sources such as those in the U.S., China, India, U.K. and Canada and other major governments. Data from various international organizations were used to provide final estimates. Secondary data were also collected from official websites of manufacturers and distributors in the CHP market. Data were also collected from key end users.
Derived data were further validated by various industry participants over phone calls, emails and Skype interviews. All the collected information was utilized to derive the forecast numbers.
Methodology The information and analysis presented in the report are based on extensive first-hand interviews with primary research sources, including executives, product managers and specialists in the market for CHP. Secondary information was obtained from government agencies, business and trade magazines, official websites of key manufacturers and key end users.
Annual revenues of major CHP companies, their annual reports and forward-looking statements as well as industry end users were analyzed to derive the size of the market. Similarly, data were obtained for key applications, end-user markets, recent activities, the technological advancements and innovations from different CHP companies. Recent activities were tracked for the major companies involved in the CHP market in order to understand the market trends. The forecast market size was based on these trends. The estimation of the market was calculated using the base year 2017, with historical data provided for 2016 and forecast data provided for 2022. The market estimations and market shares are provided for each market segment for 2017 as the base year.
Estimated values used in the report are based on manufacturers’ total revenues and forecast revenue values are in constant U.S. dollars, unadjusted for inflation. Unit volumes of CHP as well as revenue generated from the sale of CHP were tracked in order to estimate the market. A large number of manufacturers as well as end users are profiled in the report to provide a better understanding of the market.
In this report, the geographic regions considered for market analysis include, and only include: North America • United States • Mexico • Canada Europe • France • Germany • U.K. Asia • China • India
Commercial Combined Heat and Power (CHP) Market, by Technology Combined Cycle Technology Reciprocating Engine Technology Steam Turbine Technology Gas Turbine Technology
Commercial Combined Heat and Power (CHP) Market, by Fuel Type Oil Natural Gas Coal Biomass Others
Commercial Combined Heat and Power (CHP) Market, by End-Use Sector Industrial Commercial District Energy
Commercial Combined Heat and Power (CHP) Market, by Type of Equipment Gas and Steam Turbines Generator Sets Energy Storage Systems Coal Steam Boilers
Chapter 2: Summary and Highlights The commercial combined heat and power (CHP) market is increasing modestly with an expected compound annual growth rate (CAGR) of 5.2% from 2017 through 2022. The market is segmented on the basis of end-use sector, fuel, technology and region. The major factors driving the CHP market across the globe include the demand for energy conservation, cohesive government policies, high efficiency and technological advancement. High initial cost may affect the market growth, however, rising environmental concern, rising demand for energy and favorable government policies are expected to boost the market in the near future. Cost effectiveness and capability to increase overall operational efficiency are major motivators of the commercial CHP market.
It is estimated that around two-thirds of the energy used to generate electricity is wasted in the form of heat discharged to the atmosphere and there is considerable energy loss in the distribution of electricity to the end users. On the other hand, CHP has the potential to provide efficiencies of around 60% to 80% compared with 40% to 50% for conventional technologies. As a result, there is imminent demand for CHP technologies across the globe. The on-site electricity generation effectively captures the wasted heat to provide useful thermal energy such as steam or hot water that can be used for space heating, cooling, industrial processes and domestic hot water.7
CHP is widely adopted by major hospitals, schools, university campuses, hotels, nursing homes, office buildings and apartment complexes to save on energy costs, increase energy reliability and cut carbon emissions.
In 2012, commercial buildings and institutional applicants represented 13% of CHP systems in the U.S. In 2016, the U.S. government set a target to produce 40 gigawatts (GW) of new, cost-effective CHP by 2020, which is estimated to provide manufacturers and companies savings of $10 billion each year in energy costs. Capital investment in plants and facilities is expected to rise in the near future. Additionally, the CHP market will enable the reduction of carbon pollution by 150 million metric tons (Mt), which is estimated to be the emissions of more than 25 million cars. It has ecofriendly attributes and may reduce carbon emissions by an estimated 25% to 30% as compared with conventional systems.
The end-use application sector will grow at a modest rate of 5.2% during the forecast period with a major contribution from industrial and commercial sectors. The commercial and district energy end-user sector is expected to grow at the highest CAGR of 6.6% during the forecast period. District energy refers to the combination of electricity, steam, heating, or cooling at a central plant and with a distribution of energy to a network of nearby buildings. This encourages managers of individual buildings to get connected to the network in order to avoid the need to install and maintain their own boilers, furnaces, chillers, or air conditioners, thus saving on capital and maintenance costs.
The CHP systems are available for all type of the fuels and applications. CHP application and fueling are greatly depend on the country and the energy producer. North America and China uses coal in industrial applications while France uses gas as its main fuel for CHP. In Russia, a higher share of electricity generation is with CHP. Other major countries are also adopting CHP for electricity generation to reduce carbon emissions. The CHP systems are preferred by consumers in all the geographies as the consumers pay less energy costs with increased energy efficiency from this system. American companies and manufacturers could potentially save around $10 billion by 2020 with the use of CHP systems.
The key companies profiled in the report include Aegis Energy Services Inc., Alstom, BDR Thermea Group, Clearedge Power, Caterpillar Dantherm Power, Elite Energy Systems LLC, E.ON Group, Ener-G Group, General Electric Energy, Qnergy, Mitsubishi Power Systems Americas Inc., Siemens Energy and so on. Commercial CHP companies are constantly focusing on product launches, expansion and partnerships to stay competitive.
The increasing energy demands in the APAC region is expected to offer the most opportunity for the CHP market. APAC is expected to contribute the highest to the global commercial CHP market followed by Europe. APAC is also an emerging market due to rising demand for natural sources of energy, favorable government policies and rising adoption of CHP technology in major hospitals, schools and industries. The government policies on energy conservation and green energy in the European region are encouraging the CHP market in the region. The European Union as well as individual countries have set targets to reduce carbon emissions by minimizing the use of fossil fuel. The increase in energy efficiency and use of alternative fuels are effective solutions to achieve the targets.
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