Cogeneration equipment: Key market research findings
- Government policies and initiatives are driving the market
- Steam turbines are the most widely used cogeneration equipment
- Key vendors—ABB, Aegis, BDR Thermea, 2G Energy, GE, and Siemens
The market research analysts at Technavio estimate the global cogeneration equipment market to grow at a CAGR of almost 5% between 2016 and 2020. The market is primarily driven by the policies and initiatives taken by governments. Various programs are being implemented worldwide to drive the cogeneration market due to its huge benefit of creating a positive impact on the economy, environment, resources, and energy outlook of a country. At present, EMEA dominates the global cogeneration equipment market by accounting for around 46% of the total market share. The growth of the market in this region can be attributed to the high demand from industrial heat applications and space heating. Factors such as stringent energy efficiency regulations, GHG emission reduction strategies, and the CHP targets are likely to fuel the growth for cogeneration equipment in the EMEA region by 2020.
The new market research report from Technavio presents a breakdown and analysis of the cogeneration equipment market by technology.
“The penetration of micro- combined heat and power(CHP) is an ongoing trend in the market. Micro-CHP is a small-scale cogeneration technology that is ideal for use across commercial and residential sectors. This cost-effective commercial technology is a natural replace for boiler technology. Currently, Japan accounts for 85% of the micro-CHP market with around 23,000 units,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research.
At present, the steam turbine segment occupies around 39% of the market share to dominate the global cogeneration equipment market. Steam turbines are commonly used cogeneration technologies in industries such as pulp and paper, wherein coal is used as the primary fuel. Its high heat-to-power ration and easy to maintain nature is prompting an increase in the adoption of steam turbines across the globe. APAC accounts for the highest share in the steam turbine segment, with major demand coming from China.
The key vendors in the global cogeneration equipment market include ABB, Aegis, BDR Thermea, 2G Energy, GE, and Siemens. The market is characterized by the presence of international and regional providers. The established providers in the market are entering into M&A and sales and distribution tie-ups in the emerging markets such as Australia and Southeast Asian countries to expand their market presence. Competition in the market is expected to intensify with an increase in product extensions, technological innovations, and strategic M&A. The emission and equipment standards of Germany are attracting several investments in the region which will boost the growth prospects of this market during the forecast period.
A more detailed analysis is available in the Technavio report, Global Cogeneration Equipment Market 2016-2020.
