According to analysts at Vantage Market Research, the Cogeneration Plants Market is expected to reach USD 8.56 Billion by 2028, growing at a CAGR of 5.1% between 2021 and 2028. Cogeneration is a process that used a higher efficiency level, an eco-friendly method for optimization of fuel, and is very cost-effective on increasing energy bills are factors fuelling the Cogeneration Plants Market growth.
- Micro CHP is projected to grow at a CAGR of over 4.56% in the estimated time frame and the segment is holding its dominance. Micro CHP is a safe, easy, and effective method; these features are fueling its market segmental growth.
- The non-renewable energy segment held a market share of around 39% in 2020. Non-renewable is available abundantly, it is affordable, easier to produce, are some factors that can be considered for higher segmental share. The application is categorized into Non-renewable energy and Renewable energy.
- North America is anticipated to have a CAGR of around 4.3% from 2021 to 2028 in the cogeneration plants market. In North America, the usage of Non-renewable energy sources such as oil, natural gas, and coal is higher in countries like the U.S. which is driving the demand for cogeneration plants in the region.
Some of the key players in the Cogeneration Plants Market are Hangzhou Jinjiang Group, Magnabosco, CAPSTONE TURBINE, Austen, MWM, Hyosung Power & Industrial Systems PG – Industrial, Daihatsu Diesel, Dresser-Rand, Bosch Industriekessel GmbH, FUJIAN YANAN POWER GROUP, ATCO Power, Pro2, and Viessmann Werke GmbH & Co KG, among other. The market has a high degree of competence, driven by the presence of key players adopting different strategies for higher market share.
Cogeneration is a method in which the requirement for fuel is less for electricity and heat in comparison to the other systems. It reduces the energy waste and enhances energy efficiency, this solution is allowing companies to replace the infrastructure aging and these are some of the major factors boosting the cogeneration plants market growth.
On the contrary, the capital which is required in cogeneration is high and it became hard to manage for businesses, looking at smaller installations scale for handling. Also, it require space for its energy center, which are factors pulling the market growth down.
The Asia Pacific is expected to have a share of over 28.4% in 2020. The growth in the region is subjected to a rise in cogeneration Plants in China as the country has higher CHP capacity. With this, Industrialization in India, China, and other countries is producing demand for energy; various initiatives by the government are some factors driving regional growth.