Jul 28, 2020
Combined Heat and Power (CHP) Systems Market to Surpass US$ 26 Bn by 2030, Near-term Decline in Sales Due to COVID-19 Pandemic, Projects Fact.MR
by Team Fact.MR
Presently, the global combined heat and power (CHP) systems market is witnessing a downturn, as the demand for this equipment is directly linked to the growth of the industrial, commercial, and residential sectors. Growing concerns regarding the COVID-19 pandemic have affecting ongoing projects that have been stalled, which is impacting the delivery of CHP systems. However, continuous development of a comprehensive range of cogeneration prime mowers such as gas turbines, gas engines, and steam turbine systems for several industries is anticipated to aid market growth. Further, the combined heat and power systems market in developing Asian countries is expected to gain significant traction due to the development of new technologies and products that reduce environmental burden. This, in turn, is anticipated to create significant opportunities for the CHP systems market by the end of 2030.
As per Fact.MR analysis, the global combined heat and power systems market is estimated to be valued at US$ 26 Bn by the end of the forecast period (2020-2030).
Key Takeaways from CHP Systems Market Study
- Under the impact of COVID-19, the global combined heat and power systems market is expected to create an absolute $ opportunity of more than US$ 8 Bn, and is expected to expand at a value CAGR of around 4% during the forecast period.
- By product, 30 MW to 60 MW CHP systems will account for 59% of the overall demand pie in 2020, and are foreseen to surpass a market valuation of US$ 14 Bn by the end of 2030.
- By prime mower, gas turbines are projected to progress at a value CAGR of around 4%, and are expected to be valued 1.8X more than steam turbines by the end of 2030.
- By fuel type, natural gas is projected to account for 62% of the total sales in 2020, and is anticipated to create an absolute $ opportunity of more than US$ 5 Bn during the forecast period.
- The CHP systems market in Europe is projected to be valued 1.5X more than North America. However, East Asia is estimated to account for a major chunk of demand by the end of the forecast period.
- By application, the industrial segment is projected to surpass a market valuation of US$ 13 Bn by the end of 2030, and is anticipated to expand at a value CAGR of around 3% over the forecast period.
“The downtrend witnessed in end-use industries amid the COVID-19 pandemic is anticipated to decelerate the demand for CHP systems in the near future. However, the long-term outlook for the CHP systems market remains positive across the world, owing to the need for reduction in carbon emissions and improved power generation in industries,” says a Fact.MR analyst.
Industry Players Focusing on Strategic Agreements to Stimulate Growth
Key players in the combined heat and power systems market are Siemens AG, Kawasaki Heavy Industries, Mitsubishi Heavy Industries, Marubeni Corporation, Caterpillar Inc., General Electric, Veolia Group, and Fluor Corporation, among others. These prominent players are continuously focusing on entering into agreements with several clients to expand their global footprints. With such agreements, companies are focusing on broadening their customer base and gaining a competitive edge over other players. For instance,
- In 2019, Mitsubishi signed an agreement with China-based paper manufacturing company Lee & Man Paper Manufacturing Ltd. for the supply of H-25 gas turbines. These units will be utilized as the core equipment of natural gas-fired cogeneration systems.
- In 2019, Siemens signed a cooperation agreement in Sweden to test renewable fuel at the Rya CHP plant located in the energy port of Gothenburg Energi. With this agreement, the company will verify the viability of several different renewable fuels, such as hydrogen, on a larger scale, first in Sweden, and then in other parts of the world.
Find More Valuable Insights on Combined Heat and Power Systems Market
Fact.MR, in its new offering, brings to fore an unbiased analysis of the global combined heat and power systems market, presenting historical demand data (2015-2019) and forecast statistics for the period of 2020-2030. The study divulges compelling insights on the CHP systems market based on product (up to 30 MW, 30 MW – 60 MW, and above 60 MW), fuel (natural gas, coal, biomass, and other renewable resources), prime mower (gas turbines, steam turbines, gas engines, and fuel cells), and application (industrial, residential, and commercial), across six regions.
>>> To Get more insights on CHP systems market, visit- https://www.factmr.com/report/4971/combined-heat-and-power-chp-systems-market
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