The combined heat and power systems market is set to surpass $26billion by 2030, despite a near-term decline in sales due to Covid-19.
Presently, the global combined heat and power (CHP) systems market is witnessing a downturn, as the demand for equipment is directly linked to the growth of the industrial, commercial, and residential sectors.
Growing concerns regarding the Covid-19 pandemic have affected ongoing projects that have been stalled, which is impacting the delivery of CHP systems.
However, continuous development of a comprehensive range of cogeneration prime mowers such as gas turbines, gas engines, and steam turbine systems for several industries is anticipated to aid market growth.
Further, the combined heat and power systems market in developing Asian countries is expected to gain significant traction due to the development of new technologies and products that reduce environmental burden. This, in turn, is anticipated to create significant opportunities for the CHP systems market by the end of 2030.
A CHP Systems market study by Fact.MR expected to the market to expand at a value CAGR of around 4% over the next 10 years.
• By product, 30 MW to 60 MW CHP systems will account for 59% of the overall demand pie in 2020, and are foreseen to surpass a market valuation of $14bn by the end of 2030.
• By prime mower, gas turbines are projected to progress at a value CAGR of around 4%, and are expected to be valued 1.8X more than steam turbines by the end of 2030.
• By fuel type, natural gas is projected to account for 62% of the total sales in 2020, and is anticipated to create an absolute dollar opportunity of more than $5bn during the forecast period.
• The CHP systems market in Europe is projected to be valued 1.5X more than North America. However, East Asia is estimated to account for a major chunk of demand by the end of the forecast period.
• By application, the industrial segment is projected to surpass a market valuation of $13bn by the end of 2030, and is anticipated to expand at a value CAGR of around 3% over the forecast period.
“The downtrend witnessed in end-use industries amid the Covid-19 pandemic is anticipated to decelerate the demand for CHP systems in the near future. However, the long-term outlook for the CHP systems market remains positive across the world, owing to the need for reduction in carbon emissions and improved power generation in industries,” said analysts.