The micro CHP market size is projected to be valued at USD 1,306.5 million in 2023 and is expected to rise to USD 2,522.5 million by 2033. The sales of micro CHP are predicted to expand at a significant CAGR of 6.8% during the forecast period.
Micro CHP (micro combined heat and power) market is growing, on the back of increasing infrastructure activity in emerging economies. The micro CHP market is slated for rising demand across various segments in residential and commercial facilities with a growing focus on sustainable heat generation and curtailing carbon emissions which is the dire need of the day. Further, micro CHP technology is the sustained evolution of heat and electricity by a single source, albeit electricity in lower volumes in the ratio of 6:1 for domestic appliances.
Heat generation across residential and commercial sectors to power up energy-efficient systems with waste heat generation is the paramount driving force of the micro-CHP system. An additional driving quotient of the micro-CHP market is the reduced maintenance and operations undertaken.
Between 10- and 50-kW capacities micro CHP is considered the rising technological boy wonder, which combines both, heat generation and sustenance with energy efficiency that aids the streamlined market estimates. Furthermore, the sustained generation of heat in schools, military units, and hospitals is expected to provide a fillip by technology aids the ongoing industry growth.
| Attribute | Details |
|---|---|
| Micro CHP Market Estimated Size (2023) | USD 1,306.5 million |
| Micro CHP Market CAGR (2023 to 2033) | 6.8% |
| Micro CHP Market Forecasted Size (2033) | USD 2,522.5 million |
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A recent spurt in demand for energy-efficient products and great utilization of domestically generated energy resources is on the anvil.
Micro CHP systems offer high efficiency compared to conventional electrical power generation, making them big contributors to reducing environmental leverages, saving energy, and drastically cutting overall heating and electrical costs. From 2018 to 2022, the market for micro CHP systems inclined at a CAGR of 4.5%.
Armed with natural gas and LPG as the primary heat source, the Micro CHP industry is looking forward to a sustainable ecosystem. Features such as environmental eco-friendliness and cost efficiency and anti-corrosive output might prove to fuel growth in the industry.
Furthermore, spiraling development along industrial corridors allayed by fears of rising cost overruns, coupled with increasing deployment of CHP units across residential and commercial segments is also estimated to bolster the market strength.
Energy is the crux of development that generates employment and growth with heat and power increasing at a furious pace with industrialization and modernization targeting the markets. The markets are going to observe energy runs over 50% with maximum energy coming from the residential and commercial sectors. Additionally, energy savings can be had with Micro CHP systems as well as a supplementary power backup in case of energy failures.
Investments in Clean Energy Initiatives Coupled with Rising Government Initiatives to Increase Market Size
The deteriorating quality of air has ushered in negative impacts on the ecosystem, rendering current heat and power generation technology inefficient and obsolete. Micro CHP units simultaneously generate heat and power which lessen the load on primary energy consumption and foster grid integration for various operations adding to the growth of the micro CHP market.
To decouple carbon and greenhouse gas emissions, micro CHP is in the slot for use as an environment-friendly ally in residences. Thus, the deployment of micro-CHP systems in a decentralized hybrid energy cycle is the solution.
Increasing government funds toward the development of smart city infrastructure in tandem with the continuous refurbishment of existing systems might stimulate industry potential. Moreover, stringent government norms and policies to reduce extreme climatic conditions come to market aid.
The Office of Fossil Energy, under the US Department of Energy, has announced nearly USD 30 million in federal funding for cost-shared research and development projects for small-scale solid oxide fuel cell (SOFC) systems and hybrid energy systems. This might accelerate the fuel cell technology and increase the market size.
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Integrated micro-CHP system solutions represent an outlet to seek the entire picture at once: conservation of scarce energy resources, moderation of pollutant release into our environment, and assured relief for homeowners. Successful implementation of Micro CHP systems for residential premises has benefits to the user, manufacturer, supplier, and country as a whole. The homeowner is benefitted from a reliable home environment at an affordable cost and a dependable source of energy.
This also considers the truncated fossil fuels and pollutant and CO2 emissions in power generation with some flutter in economic workings and job openings on the anvil. This kind of system is favorable compared to traditional home energy systems with optimal energy use with the help of heat recovery.
Increasing focus on reducing carbon footprints is driving the market segment growth. Rising acknowledgment of micro-CHP systems for generating hot water in residential premises is yet another factor that leverages the residential segment growth. Thus, the micro CHP system can be evaluated as another appliance in households that controls all the energy needs of the house optimally.
Micro CHP has gained momentum from multiple applications as it ensures high efficiency with low operating costs across a wide industry spectrum in producing both heat and electricity that support the growth of the market. Furthermore, micro CHPs can generate 60-80 % of the heat produced in contrast to conventional systems which offer only 35% efficiency in thermal energy generation.
The cost of micro CHP units varies considerably among different technologies and also on a different set of prime movers and operating fuel that may hamper the micro-CHP industry size. Therefore, the restraints to the market include the high cost of the equipment in the adoption of the microchip systems and its installation that defer its use and hence are a restraint to the market.
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These small-scale micro CHP systems generate both heat and electricity simultaneously and have gained traction due to their numerous advantages. Additionally, they offer improved energy efficiency compared to the separate generation of heat and electricity, resulting in reduced energy consumption and lower utility bills. Further, micro CHP systems contribute to environmental sustainability by minimizing greenhouse gas emissions.
Oil-fueled micro-CHP is anticipated to tip the growth curve on account of steadfast urbanization and rapid industrial growth along with ongoing technological advancements to reduce operational and maintenance costs.
Increasing hindsight toward waste management in line with the rising applicability of efficient fuel sources to decrease inflated electricity bills will further accelerate the business potential. Moreover, rising applications of sustainable fuel sources in line with the benefit to provide enhanced power grid stability using these units address the market traction. At the same time, natural gas & LPG fueled micro-CHP are likely to incline significantly, registering a CAGR of 6.5%.
Stirling engine-based micro-CHP is projected to register a CAGR of 8% by 2033. Low maintenance, reduced vibrations & noise, increased flexibility, low operational costs, fewer noise levels & minimal carbon emissions are some of the key features which will foster product adoption.
Increasing deployment of highly efficient power generation units across the residential & commercial sectors with a robust application of advanced technologies across the commercial establishments will thrust the industry outlook.
The significant value share of residential applications in the micro-CHP market highlights the wide acceptance and adoption of these systems within the residential sector. Homeowners are recognizing the advantages of having a reliable source of heat and electricity that not only meets their daily energy needs but also provides cost savings in the long run.
The growth in this sector underlines the strong demand for micro-CHP systems in residential settings, driven by the desire for energy efficiency, cost savings, and environmental consciousness.
North America’s micro-CHP market is slated to essay enormous growth with public and private entities investing surplus funds to deliver increased power to industrial units with the help of sustained power-generating sub-units.
As per Future Market Insights, the region held 41% of the total micro CHP revenue share in 2022. Furthermore, constant government prodding and incessant funding for greenhouse development coupled with low power runs and high interoperability might help the market to abundant growth.
As per FMI’s forecast, the market for micro-CHP in Asia Pacific is expected to flourish at a CAGR of 7% from 2023 to 2033. Spearheading technological inputs in the industry for generating on-site energy might go a long way in accelerating the growth of the market. For instance,
Enhanced government funding to replenish existing systems with an integrated drive to further smart city initiatives are likely to push the growth of the micro-CHP market.
Japan’s market is eyeing substantial gains of 6.4% during the forecast timeframe. This growth is credited to the government’s strictures and policies toward the development of a sustainable environment along with continuous formation in the renewable energy sector. Further, a positive scenario in waste management along with increasing utilization of solar & wind energy to reduce the carbon footprints might increase the business outlook.
The competitive landscape in the micro CHP (Combined Heat and Power) market is characterized by a diverse range of players, each striving to establish a strong position and capture a significant market share. Further, the market is highly competitive, driven by technological advancements, regulatory frameworks, and the increasing demand for energy-efficient solutions.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 6.8% from 2023 to 2033 |
| Base Year of Estimation | 2023 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and Volume in Units and F-CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis |
| Key Segments Covered | Capacity, Fuel, Prime Mover, Application, Region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; Asia Pacific Excluding Japan (APEJ); Japan; The Middle East & Africa (MEA) |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, Italy, France, The United Kingdom, Spain, Russia, China, Japan, India, GCC Countries, Australia |
| Key Companies Profiled | Axiom Energy Group LLC; EC Power A/S; Micro Turbine Technology B.V; 2G Energy AG; TEDOM A/S; Yanmar Holdings Co.; Viessmann; AISIN Corporation; Veolia; Vaillant Group; Siemens; BDR Thermea Group |
| Customization & Pricing | Available upon Request |
The United States, Japan, and China dominate the global micro CHP market.
The market is forecast to register a CAGR of 6.8% through 2033.
During 2018 to 2022, the market grew at a CAGR of 4.5%.
Technological advancement disrupts the current market trends.
The global market size to reach USD 2.52 billion by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Capacity 5.1. Less than 2kW 5.2. 2 kW to 10 kW 5.3. 10 kW to 50 kW 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Fuel 6.1. Natural Gas & LPG-powered 6.2. Coal-powered 6.3. Renewable Resources-powered 6.4. Oil-powered 6.5. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Prime Mover 7.1. Stirling Engine-based 7.2. Internal Combustion Engine-based 7.3. Fuel Cell-based 7.4. Other 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. Residential Applications 8.1.1. Space Heating/Cooling 8.1.2. Water Heating 8.1.3. Cooking 8.1.4. Lighting 8.1.5. Others 8.2. Commercial Applications 8.2.1. Educational Institutes 8.2.2. Office Buildings 8.2.3. Healthcare Buildings 8.2.4. Others 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Axiom Energy Group LLC 19.2. EC Power A/S 19.3. Micro Turbine Technology B.V 19.4. 2G Energy AG 19.5. TEDOM A/S 19.6. Yanmar Holdings Co. 19.7. Veissmann 19.8. AISIN Corporation 19.9. Veolia 19.10. Vaillant Group 19.11. Siemens 19.12. BDR Thermea Group 20. Assumptions & Acronyms Used 21. Research Methodology
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Micro CHP Market
