Cogeneration Equipment Market Size, Share and Global Trend By Fuel (Coal, Biomass, Natural Gas, Others) By Technology (Steam Turbine, Gas Turbine, Reciprocating Engine, Combined Cycle Gas Turbine, Others), By Capacity (Up to 30MW, 31MW to 50MW, Above 50MW), By Application (Residential, Commercial, Industrial), and Regional Forecast, 2024-2032

Cogeneration plays an important role in controlling industrial and commercial energy cost through effective integration of power generation option into a planned energy supply system. As a more and more industrial and commercial establishment, developers, and utilities search for low-cost electrical energy and process heat, cogeneration not only use exhaust heat for heating water or space heating but also offers environmental benefits.

The high consumption of conventional energy sources such as coal, hydrocarbon cause rise in GHG emission that intensify the need for the energy-efficient system to mitigate environmental degradation. Thus, cogeneration is important to optimize the performance of a power plant. Enormous industrial development and expansion of existing facilities lead to high process heat demand for continuous operation provide ideal opportunities for cogeneration. The significant changes in fuel cost, replacement of aging steam generation plant, and power sales opportunities are anticipating the growth of the cogeneration equipment market. 

The cogeneration equipment market is classified into fuel, technology, capacity, and application. Cogeneration equipment can use a number of fuel source such as coal, biomass, renewables, etc. The CHP plant which operated on biomass and renewables are widely adopted by European countries. The steam turbine produces a high grade of steam that utilized in industrial plants whereas the reciprocating engine is well suited to fulfill many decentralized energy supply needs. Gas turbine and combined cycle gas turbine are most utilized in both large scale or centralized application, as well as decentralized CHP, need.

Every major power companies are adopting energy-efficient technology to reduce the production cost of the power and by the implementation of cogeneration both electricity and heat can be produced which expected to anticipate the growth of the cogeneration equipment market growth. Development of industrial facilities and expansion of commercial and educational institutions such as universities, hospitals, and shopping mall that requires power, heat or cooling that drives the global cogeneration equipment market.

The technologies used to recover exhaust heat for enhancing production capacity is quite expensive that increase the installation cost of the system which restrains the growth of the cogeneration equipment. CHP system is suitable only where there is a consistent requirement of heating or hot water and the system is not sustainable unless used with renewable fuel which is obstructing the growth of the cogeneration equipment.

Key Players Covered

The leading cogeneration equipment manufacturers are Rolls Royce Plc., Kawasaki Heavy Industries Ltd., Mitsubishi Heavy Industries Ltd., Andritz, Siemens, Mitsubishi Hitachi Power Systems, Clarke Energy, Aegis Energy, EDF Group, 2G-Energy, BDR Thermea Group, Capstone Turbine Corporation, and ABB Ltd.

SEGMENTATION

Regional Analysis

The global cogeneration equipment market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The extreme weather condition increased the demand for space heating and the development of micro CHP that leverage the demand for cogeneration equipment. Massive demand for power and electricity owing technological growth and expansion of commercial spaces boost the demand for HVAC that augment the growth of the cogeneration equipment market in North America. Europe is strictly implementing environment protection policies and adopting energy-saving techniques to increase the efficiency of the power plant that drives the cogeneration equipment market growth. The Asia Pacific possesses the massive potential growth owing to extensive population growth and high consumption of energy. Rapid urbanization and industrial growth not only sharpened the demand for electricity but also generating a negative impact on the environment. To mitigate the rising environmental degradation, government and private entities are investing in green energy that uplifts the growth of cogeneration equipment market.

Key Industry Developments

• In May 2019, The Chinese paper manufacturing firm Lee and Man Manufacturing Ltd. awarded a contract to Mitsubishi Hitachi Power Systems, Ltd. for two H-25 gas turbines. It will be able to produce an output of 62MW of electric power with 150 tons per hour (t/h) steam. The system offers large capacity power generation along with energy-saving.
• In April 2019, Braskem, the largest Brazilian petroleum company has entered into a pact with Siemens to modernize a cogeneration and steam plant. Siemens will provide two SGT-600 turbines that will feature dry low emission technology and run on residue gas with a high concentration of hydrogen and the company will be responsible for implementation and 15-year operation of an electric and steam cogeneration plant. 
• In April 2019, METKA SA secured a contract from Javno Podjetje Energetika Ljubljana, d.o.o for the EPC of a new CHP plant in Ljubljana, Slovenia by substituting coal with natural gas.