The micro CHP market is projected to experience significant growth in the coming years. The market size is anticipated to reach USD 1,306.5 million in 2023 and is estimated to rise to USD 2,522.5 million by 2033, with a compound annual growth rate (CAGR) of 6.8% during the forecast period.
The need for efficient and environment-friendly heat and power generation has led to the adoption of micro CHP units, which simultaneously generate heat and power and reduce primary energy consumption.
The government’s focus on reducing carbon emissions and improving energy efficiency, along with investments in smart city infrastructure, are also contributing to market growth. Moreover, increasing focus on reducing carbon footprints and generating hot water in residential premises further drives the growth of the residential segment.
Micro CHP systems have gained momentum across various industries due to their high efficiency, low operating costs, and the ability to produce both heat and electricity. They offer superior thermal energy generation efficiency compared to conventional systems. However, the high cost of equipment and installation can pose a restraint to market growth.
Key Takeaways:
- Micro CHP systems with a capacity of less than 2 kW have captured a significant value share of 45.0% in the market. These systems offer improved energy efficiency, reduced consumption, and lower utility bills.
- Oil-fueled micro-CHP is projected to expand at a CAGR of 6.7% due to urbanization, industrial growth, and technological advancements.
- Stirling engine-based micro-CHP is estimated to register a CAGR of 8% by 2033, driven by low maintenance, reduced noise levels, and minimal carbon emissions.
- Residential applications of micro-CHP systems hold a remarkable value share of 60.4%, driven by the demand for energy efficiency and cost savings.
- North America held 41% of the total micro-CHP revenue share in 2022, driven by investments from public and private entities.
- Asia Pacific region is projected to experience a CAGR of 7% in the micro-CHP market, supported by technological advancements, government funding, and smart city initiatives.
- Japan’s market is predicted to expand at a rate of 6.4% due to government policies promoting sustainability and renewable energy utilization.
Key Developments:
In March 2019, Total Energy Systems, a provider of critical power solutions in the upper Midwest, has been designated as an authorized distributor for Gridiron onsite power production systems. Gridiron’s products include the Power Plant H24 tiny combined heat and power unit, which works on renewable natural gas, natural gas, or propane.
- Viessmann, the United Kingdom-based firm, debuted the Vitovalor CHP mini-CHP series in 2014. Vitovalor has sold over 10,000 units combined with Vitovalor fuel cell technology globally as of today.
- Yanmar Energy Systems, an energy solution supplier in Japan with European headquarters in the Netherlands, launched the premium Yanmar CP25EU CHP system in March 2019. This innovative high-performance micro-cogeneration unit was created in close collaboration with RMB/Energie, a German producer of high-performance cogeneration systems. The new device might also be known as the neoTower M+ in the RMB/Energie family.
Key Players Operating in the Industry:
Axiom Energy Group LLC; EC Power A/S; Micro Turbine Technology B.V; 2G Energy AG; TEDOM A/S; Yanmar Holdings Co.; Viessmann; AISIN Corporation; Veolia; Vaillant Group; Siemens; BDR Thermea Group.
Micro CHP Market Segmentation Analysis:
Micro CHP Market by Capacity:
- Micro CHP less than 2kW
- Micro CHP from 2 kW to 10 kW
- Micro CHP from 10 kW to 50 kW
Micro CHP Market by Fuel:
- Natural Gas & LPG-powered Micro CHP
- Coal-powered Micro CHP
- Renewable Resources-powered Micro CHP
- Oil-powered Micro CHP
- Other Fuel-powered Micro CHP
Micro CHP Market by Prime Mover:
- Stirling Engine-based Micro CHP
- Internal Combustion Engine-based Micro CHP
- Fuel Cell-based Micro CHP
- Other Prime Mover-based Micro CHP
Micro CHP Market by Application:
- Micro CHP for Residential Applications
- Space Heating/Cooling
- Water Heating
- Cooking
- Lighting
- Others
Micro CHP for Commercial Applications:
- Educational Institutes
- Office Buildings
- Healthcare Buildings
- Others
By Region:
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific Excluding Japan (APEJ)
- Japan
- The Middle East & Africa (MEA)
Access Report Details for More In-Depth Information:
Author:
Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
Join us as we commemorate 10 years of delivering trusted market insights. Reflecting on a decade of achievements, we continue to lead with integrity, innovation, and expertise.
Contact Us:
Future Market Insights Inc.
Christiana Corporate, 200 Continental Drive,
Suite 401, Newark, Delaware – 19713, USA
T: +1-347-918-3531
For Sales Enquiries: sales@futuremarketinsights.com
Website: https://www.futuremarketinsights.com
LinkedIn| Twitter| Blogs | YouTube
