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Rising Carbon Emission To Propel Combined Heat And Power Installation Market
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The global CHP installation market registered an estimated value of US$806.2 bn in 2017 and is projected to reach estimated value of US$1131.4 bn by the end of 2026. The increasing carbon foot print in the environment is paving the way for growth of the global CHP installation market in the upcoming years.
The global CHP installation market is segmented into biomass, coal, and natural gas, in terms of fuel. Of all these, natural gas segment is expected to record a higher growth as CHP uses natural gas in abundance.
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Rising Need for Renewable Source of Energy to Boost CHP Installation
As the population across the globe is rising, so is industrialisation and urbanization which is causing high demand for alternate source of energy that are sustainable. Here comes the role of combined heat and power which can cater to the growing demand, thus, may aid in the growth of the global CHP installation market.
Combined heat and power helps in electricity generation that could further generate wind power, generate solar electricity and small scale hydro power. These results in maximum output at a less cost and may aid in the growth of the global CHP installation market during the forecast period. Also, coastal regions are keen on generating tidal energy, thus, may aid in the expansion of the CHP installation.
Further, it also helps in heat generation and caters to various applications such as solar water heating; biomass generation, etc can lead to further expansion of the global CHP installation market in the future.
Additionally, government’s support and subsidies for installing CHP in institutions, commercial buildings, and residences are expected to aid in the growth of the global CHP installation market over the forecast period. The Svartsengi Plant by Sudurnes Regional Heating Corporation in Iceland that distributes hot water to 20, 000 people in Reykjanes Peninsula is one of the example of government supported CHP plant.
Moreover, CHP is can be customized according to the customer specification, that is it can meet the large scale and small scale requirements. This might prove to be beneficial in providing growth opportunities to the global CHP installation market.
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Asia Pacific to Surge CHP Installation Market
Asia Pacific is expected to rule the global CHP installation market during the forecast period. The growth can be primarily due to increasing urbanization and rapid industrialisation across the region. Additionally, government is considering CHP as an ideal option for to produce power and heat in a sustainable way. Along with Asia Pacific, Europe is also expected to emerge as an impressive market for CHP installation to save energy and reduce the cost of electricity.
Some of the key players that spread across the global CHP installation market are Siemens AG, General Electric Company, , 2G Energy Services, Cummins Inc., and Wartsila. These companies are cashing in on strategic collaborations. One of the latest collaboration in this area is COGEN, European based company of combined heat and power services provider with 2G, a German based company. Both these companies will share their individual expertise and technology to promote the benefits of CHP in EU policymakers and stakeholders. Therefore, TMR foresees a steady market for the global CHP installation market in the upcoming years.
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Transparency Market Research is a global market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. Our experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.
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