Report expects $76.1bn installation market by 2018

A new market report forecasts that the installation market for combined heat and power (CHP) will reach $77.1bn by 2018. The same intelligence has however also warned that barriers to growth remain.

Transparency Market Research’s report found demand was 452.9 GW in 2011 and predicts that the figure will reach 1,219.1 GW by 2018.

In terms of revenue, the CHP installation market is expected to grow at a CAGR of 11.7% from 2012 to 2018.
CHP installation
Abundant supply of natural gas at competitive prices, a favorable regulatory scenario and increasing application scope are expected to drive CHP systems demand over the next five years.

However, CHP installation is a highly capital intensive process carrying significant risk value, which is expected to act as a barrier to market growth in the near future. The interconnection standards between utilities and cogeneration systems vary regionally. This makes it difficult for CHP technology companies to manufacture components and makes cogeneration system installation more complex and costly.

Industrial applications dominated the CHP systems market and accounted for 67.8% of the overall demand in 2011. Commercial applications followed industrial in terms of volume and are expected to grow at a CAGR of 15.9% from 2012 to 2018.

Key products analyzed and estimated in this study include large and micro & small scale CHPs. Large scale CHP dominated the product market, accounting for 82.5% of the overall installed capacity in 2011.

In terms of volume,à‚ Europeà‚ dominated the global market, accounting for over 50% of the overall installed capacity in 2011, followed byà‚ Asia Pacificà‚ in terms of CHP installations owing to high demand in emerging economies, especiallyà‚ Chinaà‚ andà‚ Indiaà‚ and also in developed economies such asà‚ Japan.

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