Globally increasing electricity demand coupled with rising application in renewable energy is anticipated to drive cogeneration equipment market over the next seven years.

 The market is expected to grow at an estimated CAGR of 9% over that time scale. Rising energy prices is expected to remain a key driving factor for market growth, according to Grand View Research. 
Grand View Research
CHP systems can operate at levels as high as 77% – 81% as compared to around 46% efficiency of conventional systems and they can reduce carbon emissions by up to 29% as compared to conventional systems. 

Increasing renewable energy projects in developing regions of Asia Pacific and Latin America is expected to fuel demand over the forecast period. Meanwhile decreasing price and abundant availability of natural gas, supportive government policies along with aging infrastructure are also expected to drive CHP equipment demand in the near future.

Europe is expected to exhibit highest growth rate over the forecast period owing to wide natural gas availability in countries such as Germany and Russia. Cost and space restraints in major cities along with stringent environmental regulations are anticipated to drive demand in the region over the time frame. 

Asia Pacific is expected to witness significant growth owing to increasing CHP systems demand from industrial sector in countries such as China, India and South Korea. Growing power sector in India to meet rapidly rising energy demand is expected to drive demand in the Asia Pacific region.

North America, according to Grand View analysis, will witness surge in demand owing to factors such as strict environment norms regarding electricity consumption coupled with shift towards renewable energy. Middle East and Africa are expected to grow at a moderate growth rate over the forecast period.