by The cogeneration equipment market has emerged as a reliable and cost-effective alternative to conventional means of power generation. Cogeneration, also known as combined heat and power (CHP), involves the sequential or simultaneous generation of thermal energy and electrical or mechanical energy from a single fuel source. Cogeneration systems provide both electricity and useful heat in a single integrated system which helps improve energy efficiency compared to separate systems for producing heat and power.
The equipment used for cogeneration comprises prime movers such as gas and steam turbines, generators and heat recovery systems which help in capturing exhaust heat and reuse it for various heating applications. Cogeneration helps industrial, commercial and institutional facilities reduce energy costs by capturing and utilizing heat that would otherwise be wasted in conventional power generation. The demand for cogeneration equipment is expected to rise notably given the increasing focus on improving energy efficiency and reducing carbon footprint on a global level.
The global cogeneration equipment market is estimated to be valued at US$ 30.48 billion in 2024 and is expected to exhibit a CAGR of 9.5% over the forecast period between 2024 to 2031.
Key Takeaways
Key players operating in the cogeneration equipment market are Rolls-Royce plc, Siemens, ABB, Baxi Group, Andritz Energy and Environment, BDR Thermea Group, Mitsubishi Heavy Industries, Ltd., 2G Energy Inc., Clarke Energy Ltd., Capstone Turbine Corporation, Innovative Steam Technology, Inc., Aegis Energy Services Inc., Kawasaki Heavy Industries, Ltd, Enercon Industries, Yanmar, Naigai Industries, Inc., Yokogawa Electric, Mitsubishi Power India Private Limited, and Raj Process Equipments and Systems Pvt. Ltd.
The Cogeneration Equipment Market Demand is expected to witness key opportunities arising from increasing installation of cogeneration systems in the industrial sector. Industrial applications such as oil and gas, petrochemicals and chemicals among others offer significant opportunities for cogeneration system providers globally. Rising demand for clean and reliable energy coupled with need to reduce carbon footprint will continue to drive adoption of cogeneration worldwide especially in emerging economies in Asia Pacific and Middle East and Africa regions over the forecast period.
Market Drivers
The key drivers supporting growth of cogeneration equipment market are rising demand for cost-effective energy solutions, stringent norms limiting carbon emissions from conventional power plants and need to improve overall energy efficiency globally. Cogeneration helps achieve about 30% higher fuel efficiency compared to conventional power generation and delivers cost savings for operators. Federal level policies and incentives promoting adoption of cogeneration in many countries is encouraging greater installations which in turn is fueling demand for cogeneration equipment. Integration of renewable energy with cogeneration systems and growing focus on development of micro-cogeneration systems will further aid market expansion over the coming years.
PEST Analysis
Political: The Cogeneration Equipment Market Size And Trends is driven by government regulations and policies that promote the use of renewable and efficient power generation technologies. Many countries offer tax incentives for industries adopting cogeneration systems.
Economic: Cogeneration systems help industries reduce their power costs and improve economic productivity by capturing waste heat for cooling and heating applications. This drives greater return on investment.
Social: Growing environmental consciousness among public and industries is increasing demand for greener technologies that optimize resource usage like cogeneration. Deploying cogeneration helps industries gain green credentials and marketing advantages.
Technological: Advancements in gas turbine and engine technologies are improving the efficiency and reliability of cogeneration systems. New digitalization solutions allow remote monitoring and automation of cogeneration plants for optimized performance.
Geographical regions with high market concentration
The cogeneration equipment market in terms of value is highly concentrated in North America and Europe. Stringent environmental regulations and the availability of natural gas have driven widespread adoption of cogeneration in industrial and commercial facilities across countries like the US, Canada, Germany, UK, Italy and France.
Fastest growing region
Asia Pacific region is poised to grow the fastest in the cogeneration equipment market during the forecast period. This is owing to ongoing industrialization, rising energy demands, supportive government policies and expanding district heating infrastructure in densely populated countries like China and India. The focus on green energy solutions to address power deficit issues will accelerate cogeneration installations across the region.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
