According to the Graphical Research new growth forecast report titled “Europe Combined Heat And Power (CHP) Market Size By Fuel (Natural Gas, Coal, Biomass), By End Use (Residential [Space Heating/Cooling, Water Heating, Cooking, Lighting], Commercial [Educational Institution, District Energy, Office Building, Government/Military], Industrial [Chemical, Petroleum Refining, Food, Paper, Primary Metals]), By Capacity (1 kW – 0.5 MW, 0.5MW – 5MW, Above 5 MW), By Technology (Combined Cycle, Steam Turbine, Gas Turbine , Reciprocating Engine), Industry Analysis Report, Regional Outlook (UK, Finland, Russia, Germany, Denmark, Sweden), Price Trends, Competitive Market Share & Forecast, 2020 – 2026” to Rise during 2020-2026.
The market size is anticipated to grow on account of rising demand for embedded power generation along with growing customer inclination toward renewable powered systems. Ongoing technological advancements to enhance the reliability and efficiency of cogeneration systems will further propel the industry scenario. In addition, rising concerns for carbon emission reduction coupled with favorable government policies toward adoption of micro CHP plants will drive the business scenario.
Retrofitting and replacement of conventional power generation plants coupled with declining natural gas prices will augment the industry outlook. In addition, ease in operation, low fuel consumption and increased efficiency are some major features complementing the product deployment. Ongoing installation of smart heating networks along with integration of heat & electrical power generation systems across the commercial sector will positively influence the product demand.
0.5 MW – 5 MW capacity systems are projected to grow on account of increasing deployment of CHP across industrial applications. In addition, rising adoption of biomass and natural gas fuelled plants along with rising applicability of micro cogeneration systems across the European region will boost the product penetration. Moreover, stringent government norms to curb the usage of conventional fuels will drive the business scenario. For instance, in 2018 the UK government announced its plan to abandon all the existing conventional power plants by 2025.
Internal combustion engine across Europe combined heat and power market is estimated to witness an upsurge on account of its compatibility with gas & liquid fuels for stationary power generation system. Improved product lifecycle, low fuel consumption and easy operations under extreme environmental conditions are the prominent features which will complement the product adoption. In addition, ongoing technological enhancement toward cogeneration engines to minimize product cost as well as to enhance its efficiency will strengthen the industry potential.
UK combined heat and power market will witness growth on account of increasing demand for decentralized power generation coupled with wide range of product capacities, design and application. Favorable resiliency initiatives and CHP-inclined regulations are some dominant measures which will stimulate the product deployment. Moreover, ongoing industrial inclination toward installation of natural gas fired systems in line with deployment of effective combined cycle turbine technologies will drive the product adoption. However, the impact of COVID-19 on Europe CHP market has restricted the industrial growth as well as delay in product deployment. Furthermore, as the situation worsens the manufacturers might decline the production by second quarter of 2020.
Ongoing mergers and acquisition coupled with favorable government policies toward the technology adoption will drive the business outlook. Eminent players operational across the industry includes Wartsila, ABB, MAN Diesel & Turbo, Mitsubishi, General Electric, Yanmar, 2G Energy, ENER-G Rudox, Caterpillar, Bosch Thermotechnology, Cummins, Fuel Cell Energy, CENTRAX Gas Turbines, MWM, Viessmann Werke, Veolia, BDR Thermea, and Siemens.