MarketAccording to Vantage Market Research, the global cogeneration plants market was valued at USD 5.89 Billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.1% between 2021 to 2028. Cogeneration is the process of producing electricity and useable heat (typically in the form of steam and hot water) in the same plant, mainly by capturing heat that would otherwise be wasted in older facilities. It's one of the most important strategies for governments of various countries to cut greenhouse-gas emissions and prevent climate change.
Increased Adoption OfCogeneration Plants MarketIs Boosting The Market Growth.
Cogeneration plants are becoming more popular because of their high efficiency, which means they use less fuel to create the same amount of power and heat as other systems. As a result, it's an excellent environmentally friendly fuel efficiency option. Moreover, fewer greenhouse gas emissions are also a crucial factor driving market expansion. Cogeneration or combined heat and power (CHP) systems use a single fuel source, such as natural gas, biomass, wood, coal, waste heat, or oil, to generate both electricity and heat. CHP systems can achieve efficiency of up to 77 percent to 81 percent, compared to roughly 46 percent for traditional systems, and can cut carbon emissions by up to 29 percent when compared to conventional systems.
Even though cogeneration can save you money on your energy bills, the installation fees for some systems can be more expensive. This is the key issue that is impeding the growth of the cogeneration plants market. The cash required may be difficult for enterprises considering smaller-scale installations to manage, and it can be off-putting if not looking at the big picture in the long run, which can limit market expansion.
The globalcogeneration plants market is segmented on the basis of type includingmicro-CHP, combined heat and power district heating, industrial CHP, and trigeneration. On the basis of applications, the market is divided intonon-renewable energy and renewable energy.
Over the projection period, demand is likely to be fuelled 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 expected to rise in the near future due to falling natural gas prices and abundant supply, as well as supportive government policies and aging infrastructure.