Europe Micro CHP market value will witness growth on account of favourable regulatory policies coupled with growing investment toward renewable energy generation sources. Ongoing technological enhancements to improve the energy efficiency along with rising peak load demand across the power grid will drive the business scenario. Moreover, stringent efficiency norms followed by reducing dependency on coal fired cogeneration systems will boost the industry landscape.
Ongoing R&D investments by leading manufacturers to introduce reliable, efficient and cost-effective power generation units will positively influence the product portfolio. Favourable cogeneration inclined flagship programs, state incentives and resiliency initiatives are primary measures influencing the business landscape. Furthermore, increasing adoption of compact CHP units across commercial establishments including healthcare buildings, educational institutes and large complexes is set to boost the industry outlook.
Growing demand for decentralized power and heat generation followed by rising installation of technological advanced energy supply networks will complement the product demand. Increasing applicability of low GHG emission cogeneration units across residential and commercial infrastructure will accelerate the 2 kW - 10 kW capacity Europe micro CHP market growth. Furthermore, high compatibility of the units with liquid and gas fuels for steady power generation will strengthen the product portfolio.
Increasing unit installation by regional government associations to overcome the rising energy demand in the Nordic countries will drive the business scenario. For instance, in 2018, the European countries introduced the PACE program under horizon 2020 to deploy micro fuel cell cogeneration units across the region. Moreover, introduction of favourable CHP policies including tax reduction, rebates, incentives and subsidies will positively influence the industry landscape.
Germany Micro CHP market demand is estimated to surge owing to rising cogeneration inclined programs along with increasing investment by major regional players toward integration of residential fuel cell units. For instance, the government of Germany introduced the ‘KFW 433 flagship program’ in 2016 to increase the deployment of fuel cell (FC) cogeneration systems with an aim to install over 6,000 units by 2021. Favourable policies & regulations to deploy advanced and low carbon emission units across the country will further drive the business scenario.
COVID-19 impact on the industry may affect the ongoing installation of these units owing to reduction in the manufacturing operations and delay in project commissioning programs. However, measures undertaken in the European region toward compensating the impact of pandemic with enhanced operations, will result in increased market growth by last quarter of 2020.
Increasing strategic collaborations including joint ventures and mergers & acquisitions by the major industry players to reinforce their market presence will accelerate the industry outlook. For instance, GE Power acquired the vertical energy segment ‘Heat Recovery Steam Generator’ from Doosan Engineering and Construction, in 2018, for over USD 250 million. Leading players operating across the market includes Yanmar, General Electric, Marathon Engine Systems, Micro Turbine Technology, Vaillant, Viessmann, BDR Thermea, 2G Energy AG, Siemens, AISIN SEIKI, TEDOM, Veolia, Samad Power and Ballard Power System.