The cogeneration equipment market comprises products such as prime movers, generators, heat recovery steam generators, and electric switch gear which are used in cogeneration or combined heat and power system. Cogeneration systems capture waste heat from power generation processes and utilizes it for heating or cooling applications. This significantly improves systems efficiency over separate heat and power generation methods.
The global cogeneration equipment market is estimated to be valued at US$ 30.48 Bn in 2024 and is expected to exhibit a CAGR of 9.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players: Key players operating in the cogeneration equipment market are Rolls-Royce plc, Siemens, ABB, Baxi Group, Andritz Energy and Environment, BDR Thermea Group, Mitsubishi Heavy Industries, Ltd., 2G Energy Inc., Clarke Energy Ltd., Capstone Turbine Corporation, Innovative Steam Technology, Inc., Aegis Energy Services Inc., Kawasaki Heavy Industries, Ltd, Enercon Industries, Yanmar, Naigai Industries, Inc., Yokogawa Electric, Mitsubishi Power India Private Limited, and Raj Process Equipments and Systems Pvt. Ltd.
Growing demand: Rising need for energy efficiency and reduction of energy costs across various end-use Cogeneration Equipment Market Demand industries such as commercial buildings, hospitals, and factories is expected to drive the demand for cogeneration equipment globally.
Global expansion: Major players in the market are focusing on expanding their sales and distribution networks across emerging economies to tap the increasing adoption of cogeneration systems in Asia Pacific and Latin America. The supportive regulatory environment regarding deployment of cogeneration solutions will further aid the global expansion of cogeneration equipment market.
Market key trends
Increasing investments in renewable energy-based cogeneration: With the goal of reducing dependence on fossil fuels and curbing greenhouse gas emissions, investments in renewable energy integrated cogeneration systems that utilize biomass, solar, and wind energy are on the rise. This trend is expected to continue and drive the demand for associated cogeneration equipment over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established buyers allow new companies to enter the market and take market share.
Bargaining power of buyers: Large industrial and commercial buyers can negotiate lower prices and demand better quality and service.
Bargaining power of suppliers: A few large equipment manufacturers dominate the supply market giving them strong bargaining power over components and services.
Threat of new substitutes: Advances in renewable energy and energy storage may replace cogeneration for some applications in the long run.
Competitive rivalry: Major players compete on technology, reliability and pricing putting pressure on profits.
Geographical Regions
North America accounts for the largest share of the Cogeneration Equipment Market Size And Trends valued at over US$ 8 billion in 2024 due to stringent emission norms and high energy costs encouraging investments in clean energy. Europe is the second largest region driven by policy support for distributed generation in countries like Germany, UK, France and Italy. Asia Pacific region is witnessing the fastest growth on account of rapid industrialization and urbanization in India and China along with emission reduction targets set by governments.
In terms of growth, the Asia Pacific cogeneration equipment market is projected to expand at a CAGR of 12% during 2024-2031. This is led by the ongoing industrial development and implementation of energy efficiency standards in the two largest economies- China and India. Government programs for substituting polluting diesel gensets with cogeneration systems are also boosting adoption. Countries like Indonesia, Thailand, Philippines and Vietnam will significantly contribute to the growing demand in the region.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
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