Cogeneration Equipment Market

Global Cogeneration Equipment Market Size (2024 to 2029):

The Global Cogeneration Equipment Market was valued at US$ 27.87 billion in 2023 and is anticipated to reach US$ 50.73 billion by 2029 from US$ 30.79 billion in 2024, increasing at a CAGR of 10.50% from 2024 to 2029.

Current Scenario of the Global Cogeneration Equipment Market

Cogeneration, also termed combined heat and power (CHP), is the use of energy in two forms at the same time, often mechanical and thermal energy, by maximizing the efficiency of fuel energy in a cost-effective and ecologically acceptable manner. Cogeneration equipment includes motors, pumps, compressors, steam turbines, air compressors, combustion chambers, gas turbines, and many more items utilized in cogeneration systems. With the use of a steam turbine and a gas turbine, cogeneration produces energy and usable heat in the same plant. Furthermore, the efficiency of a cogeneration system is around 90% since 40% of the energy can be transformed into electrical energy, 50% of the energy can be converted into heat, and only 10% of the energy is lost using this system. Steam turbines and engines, gas turbines and engines, blades, air compressors, combustion chambers, rotors, stationary nozzles, rotating and rigged pallets, boilers, generators, condensers, pumps, and many more items are used in cogeneration.

MARKET DRIVERS

Cogeneration systems help mitigate climate change, and the growth in environmental concerns has resulted in an increase in demand for them.

Furthermore, cogeneration reduces energy consumption and is a cost-effective method that increases energy supply security, resulting in an increase in demand for cogeneration systems, which might be a major development factor for the worldwide cogeneration equipment market throughout the forecast period. Furthermore, the growing gas infrastructure around the world has increased the demand for cogeneration systems, which might be a major development factor for the market. Over the projection period, demand is likely to be fueled by an increase in renewable energy projects in the Asia Pacific and Latin America.

In combined heat and power (CHP) systems, natural gas is the most commonly used fuel. It is widely available, particularly in Russia, the United States, Canada, Iran, and Qatar. CHP equipment demand is predicted to rise in the near future due to falling natural gas prices and sufficient supply, as well as supporting government policies and ageing infrastructure. Residential buildings, oil and gas production facilities, small and large-scale enterprises, and commercial uses such as hospitals, universities, and retail malls are all examples of where CHP is used. Cogeneration systems can be used in both industrial and commercial settings, as well as in smaller home settings. Cogeneration plants create heat that is used for a variety of purposes, including industrial operations, space, and water heating. Due to rising power consumption, the application scope of CHP systems in end-use sectors such as paper, food, chemical, oil, and refining is expected to expand throughout the projection period, complementing equipment demand. It is gaining popularity because of advantages such as lower operating costs, which are achieved by substituting low-cost power and heat energy for higher-cost electricity and boiler fuels.

MARKET RESTRAINTS

One of the primary barriers to the cogeneration equipment market is the high initial investment requirement, as well as the difficulty in obtaining suitable utility connections. These systems are useful in the long run, but because of their complicated technological needs, their initial cost is relatively high when compared to traditional systems, making them impossible to purchase for many small and medium-sized enterprises and institutions.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Cogeneration Equipment Market Analysis By Fuel Type

Based on fuel type, in 2023, natural gas dominated the global cogeneration equipment market, and it is expected to continue to be the fastest-growing sector during the forecast period. This can be ascribed to its eco-friendly nature and high mileage.

Global Cogeneration Equipment Market Analysis By Capacity

By capacity type, the high-capacity segment held the largest market share in 2023, at roughly 43.6 percent, and is expected to hold this position throughout the forecast period. This is due to its widespread use in pulp and paper mills, the cement industry, and other sectors.

Global Cogeneration Equipment Market Analysis By Application

According to the application, the industrial category accounted for roughly 30.56 percent of the worldwide market share in 2023. This is due to an increase in power generation demand in various businesses around the world, including power plants, pulp and paper, cement, and many others.

REGIONAL ANALYSIS

Because of the abundance of natural gas in nations like Germany and Russia, Europe is predicted to develop at the fastest rate over the forecast period. Over the next seven years, demand in the region is expected to be driven by cost and space constraints in big cities, as well as strict environmental restrictions.

Due to the rising demand for CHP systems from the industrial sector in countries like China, India, and South Korea, Asia Pacific is likely to rise significantly over the forecast period. Demand in the Asia Pacific region is likely to be driven by India's growing power sector, which is expected to fulfill fast-rising energy demand.

Due to reasons such as severe environmental regulations governing electricity use and a shift toward renewable energy, North America is likely to see a boom in demand. Over the projected period, the Middle East and Africa are expected to increase at a moderate rate.

KEY PLAYERS IN THE GLOBAL COGENERATION EQUIPMENT MARKET

Companies playing a prominent role in the global cogeneration equipment market include American DG Energy Inc., Turner Crane, Allied Equipments Inc., Caterpillar Inc., GE Energy, Mitsubishi Heavy Industries Ltd., Baxi Group, Siemens AG, Rolls Royce PLC., Alstorm Power, Cidea Uno Inc, and Others.

RECENT HAPPENINGS IN THE GLOBAL COGENERATION EQUIPMENT MARKET

• American DG Energy Inc. has purchased 13 Tecogen combined heat and power (CHP) units for use in a number of new energy production projects announced by ADGE earlier this month. Tecogen Systems announced that it has 75 KW of eight CM and 100 KW units of five In Verde.
• On August 26^th, 2021, Mitsubishi Heavy Industries Ltd. And Toho Gas together declared that they had successfully conducted a test operation of hydrogen (H2) mixed fuel combustion and city gas in a commercial gas engine for a cogeneration system.

DETAILED SEGMENTATION OF THE GLOBAL COGENERATION EQUIPMENT MARKET INCLUDED IN THIS REPORT

This research report on the global cogeneration equipment market has been segmented and sub-segmented based on fuel type, capacity, technology, application, and region.

By Fuel Type

• Biogas
• Natural gas/ LPG
• Coal
• Diesel
• Others

By Capacity

• High Capacity
• Medium capacity

By Technology

• Gas turbine
• Steam turbine
• Combined steam
• Reciprocating engine

By Application

• Industrial
• Commercial
• Residential

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa