Combined Heat and Power (CHP) Systems Market Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2020 to 2030

Combined Heat and Power Systems Market Insights

The combined heat and power (CHP) systems market is expected to witness a growth rate of around 4% during the forecast period (2020 to 2030). The spread of COVID-19 has become a global crisis, which has caused serious hindrances to the combined heat and power systems market. Declining investments in infrastructure development coupled with volatile growth of manufacturing industries across the globe due to the pandemic are expected to have a negative impact on the CHP systems market.

However, manufacturers are focusing on maintaining strong relationships with dealers and suppliers in order to ensure uninterrupted access to the products and services that their customers rely upon. Thus, in the long run, the global CHP systems market is foreseen to surpass a market valuation of US$ 26 Bn by 2030.

Combined Heat and Power Systems Market Trends

The CHP systems market is gaining momentum owing to the increasing need for energy-efficient equipment from multiple end-use industries, as they ensure efficiency of 60-80%, which translates to lower operating costs. In addition, several countries are adopting clean energy standards and renewable energy generation technologies, which is supporting the transition toward combined heat and power systems. Furthermore, manufacturers such as Robert Bosch, Sumitomo, Marubeni, and others are integrating IoT and AI technologies to optimize, stimulate, and control combined heat and power systems in real time. With the deployment of these solutions, it will allow operators to monitor their equipment in real time and will enable them to distribute the generated heat. This, in turn, is expected to fuel the expansion of the combined heat and power systems market size during the forecast period.

CHP Systems Market Analysis by Application

Combined heat and power systems, also known as cogeneration, are primarily used in the industrial, commercial, and residential sectors. Among these, the industrial segment is expected to capture more than 51% of the market share in 2020. With the deployment of cogeneration equipment, end users have witnessed improved economic value in their operation activities, which has enabled them in reducing energy cost per unit of product. This, in turn, is encouraging the demand for CHP systems, which is foreseen to bolster market growth.

Commercial buildings such as hospitals, data centers, hotels, and institutions can be served using CHP systems. This, in turn, will provide significant financial savings on energy costs for providing heat and electricity. On account of these factors, the commercial segment will account for 1/3 share of the CHP systems market.

For better understanding of revenue contribution of each application to the combined heat and power (CHP) systems market, ask an exert analyst

Regional Outlook of Combined Heat and Power Systems Market

East Asia is projected to dominate the combined heat and power systems market share, holding 34% of the total share. This is fueled by government regulations for improved efficiency in power generation and reduction of carbon emissions. Further, increasing awareness about clean energy technologies coupled with the shift towards cost-effective operations is expected to supplement the demand for combined heat and power systems. In addition, countries such China, Japan, and South Korea are offering incentives in various forms to support the transition towards the use of CHP systems, which is anticipated to propel the growth of the market. However, the COVID-19 pandemic is expected to drastically impact end-use industries, and will put a hold on investments in new CHP systems in the near future. In Fact.MR’s report, East Asia is anticipated to create an absolute $ opportunity of US$ 3 Bn during the forecast period of 2020-2030.

For more valuable information on regional market dynamics for combined heat and power (CHP) systems, request a report sample

CHP Systems Market - Manufacturer Insights

The combined heat and power systems market is competitive in nature. Prominent players are focusing on entering into strategic agreement with their clients in order to maintain their market position and better serve the needs of customers. For instance, in 2020, Veolia signed an agreement with Total Fitness for the installation of CHP systems. The company will install CHP systems across 17 health and fitness facilities in the north of England and Wales. In 2019, GE signed an agreement with Thailand-based Global Chemical Public Company Limited (GC). Through this agreement, GE will modernize nine gas turbines and improve reliability at GC’s power plant in Thailand.

COVID-19 Impact Analysis on CHP Systems Market

The outbreak of COVID-19 has presented multiple challenges for manufacturers in the combined heat and power systems market. The effects of this will be profound, and will significant implications on various sectors. Further, the demand for CHP systems is contingent on growth in end-use industries such as the industrial, commercial, and residential sectors. Thus, the market is expected to witness a decline in the sales of new CHP systems in the near term. In the current scenario, the market is likely to face a lean period, as investment activity is subdued, and ongoing projects have been brought to a standstill due to personnel shortages and shortfalls in financing. This, in turn, is having an exponential effect on the demand and supply side.

Post COVID-19 crisis, manufacturers will focus on increasing their presence in developing countries, and will ramp up production to meet industry demand. Further, strong government support for deploying CHP systems to private players in terms of various incentives such as grants, loans, and tax incentives will play a crucial role in the development of the market.

The Analyst’s Viewpoint

The combined heat and power systems market is exposed to financial risks originating from the crisis caused by the COVID-19 pandemic. As a result, the market is poised to witness slow growth until the end of 2020. With no near-term resolution to the COVID-19-related slowdown in sight, demand for CHP systems will remain stagnant until the end of 2020.

Global Combined Heat and Power Systems Market: Scope of the Report

The recent global combined heat and power systems market report by Fact.MR offers a 10-year forecast for 2020 to 2030. The report elaborates on the key drivers, restraints, opportunities, and threats to the expansion of the global combined heat and power systems market. A detailed segmental analysis, based on product, fuel, prime mower, and application, has been provided in the report.

Regional analysis in terms of supply chain analysis, business execution, and market value analysis provides an in-depth perspective about the future scope of the global CHP systems market. In addition, a separate section on the market structure has also been provided. The section provides detailed analysis of key market players and the strategies for expansion in the combined heat and power systems market space.