Micro CHP Market Trends

Growth Drivers

Rising Demand for Space Heating– As reported by the World Green Building Council, 28 percent of buildings worldwide use heating, cooling, and lighting systems that contribute to energy-related greenhouse gas emissions. Micro CHP systems provide a reliable and continuous heat supply for space heating. Unlike conventional heating systems that rely on intermittent fuel combustion, micro CHP systems operate continuously, ensuring a steady heat output. This is particularly beneficial in colder climates or in buildings with high head demands.
Increasing Development of Infrastructures– Cities throughout the world will add about two trillion square feet of infrastructure by 2060, equivalent to building a city the size of New York every month for the next 40 years. As infrastructure such as residential buildings, commercial complexes, and industrial facilities are being developed, the energy demand in these sectors also rises. Micro CHP systems can cater to the growing energy requirements by simultaneously providing electricity and heat. This makes it an attractive option for meeting the increasing energy needs of new infrastructure.
Need for Lowering the Electricity Prices– In the first months of 2022, global energy costs rose by more than 26%. Micro CHP systems support on-site power generation, reducing the need to rely solely on the electricity grid. By producing a portion of the electricity consumed directly at the point of use, micro CHP systems can offset the amount of electricity purchased from the grid. This self-generation of electricity can lead to reduced consumption from the grid and subsequently lower electricity bills. Moreover, it also reduces the energy loss during transmission.

Challenges

The Installation Expenditures are High- The initial cost of micro CHP installation is higher compared to conventional heating systems or standalone electricity generation technologies. This cost can be a barrier for potential customers.
Low awareness about its benefits and capabilities
Fragmented market and lack of standardization

Micro CHP Market: Key Insights

Base Year	2022
Forecast Year	2023-2035
CAGR	~7%
Base Year Market Size (2022)	~ USD 1 Billion
Forecast Year Market Size (2035)	~ USD 2 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Frequently Asked Questions (FAQ)

Rising demand for clean sources of power, rising construction, and growing need for heating systems for the spaces are the major factors driving the market growth.

The market size of micro CHP is anticipated to attain a CAGR of approximately 7% over the forecast period, i.e., 2023 â€“ 2035.

The major players in the market are YANMAR HOLDINGS Co., Ltd., General Electric, 2G Energy AG, SAMAD POWER LTD., Vaillant Group, Viessmann Manufacturing Company Inc., Axiom Energy Group, LLC., Micro Turbine Technology B.V., Alkaline Fuel Cell Power Corp., and BDR Thermea Group

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by application, fuel, capacity prime mover, and by region.

The fuel cell segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Unawareness about the benefits of the micro CHP, and its more expensive than other systems are estimated to be the growth hindering factors for the market expansion.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

Micro CHP Market Trends