Green Projects Fuel Demand for Cogeneration Equipment Market: Study

The global cogeneration equipment market, which was valued at US$ 20.25 Bn in 2018, would expand at a CAGR of 9.84% during the forecast period of 2019–2027, according to analysts at market intelligence company Transparency Market Research (TMR).

The concept of cogeneration includes simultaneous heat and electricity generation from a single fuel source, including biomass and natural gas. Gas turbine, steam turbine, reciprocating engine, and combined cycle gas turbine are some of the important technologies used in cogeneration equipment.

Key Findings of the Cogeneration Equipment Market report:

• Depleting Sources of Fossil Fuels Highlight Need for Sustainable Alternatives for Energy Generation: While the global demand for energy is increasing consistently, the sources of fossil fuels are depleting. This factor is driving the need for alternate energy generation techniques such as cogeneration, thereby creating demand in the market.
• Increased Need to Reduce Carbon Emission Drives Demand for Cogeneration Systems: While traditional systems offer 46% efficiency in power generation, the cogeneration systems deliver 77–81% efficiency. Moreover, cogeneration systems help in carbon emission reduction by up to 29% in comparison to traditional systems. As a result, there is significant growth in the adoption of these systems, which, in turn, is fuelling market growth.

Growth Boosters:

• Availability of natural gas in abundant amount and growing number of projects related to renewable energy across several parts of the globe are creating demand opportunities in the cogeneration equipment market.
• Government bodies of many countries across the globe are increasing efforts for energy conservation. In addition, the increased need to deal with climatic changes has resulted into high adoption of cogeneration, thereby creating growth avenues in the cogeneration equipment market.
• Product adoption in medium- and small-sized companies is less due to complex technological requisites and need for high initial investments. However, these investments can open opportunities for long-term revenue generation in comparison with traditional systems utilized for electricity generation.This factor may lead to market growth.
• Cogeneration equipment are used in commercial, industrial, and residential applications. Of these, the market witnessed high demand for use in industrial application in 2018.
• In terms of region, Asia Pacific is estimated to maintain its leading market position during forecast period. Besides, North America is one of the key regions in the market. Increased requirement for clean and cost-effective operations and strict regulations on energy security are projected to fuel the adoption of cogeneration equipment in Canada and the U.S.

Competition Landscape:

Players in the global cogeneration market are entering into agreements with OEMs of different end-use industries. In addition, many companies are investing in research and product development activities.Several enterprises are focused on expanding their regional presence in different emerging economies, particularly in Asia Pacific. These efforts are expected to result into prodigious market expansion.

Key Players:

The report profiles key players working in the cogeneration equipment market. The list includes the following: Siemens AG, BDR Thermea, Clarke Energy, Mitsubishi Heavy Industries Ltd., Foster Wheeler AG, Innovate Steam Technologies, 2G Energy, ANDRITZ Energy & Environment GmbH, Aegis Energy Services Inc., Rolls Royce Plc., ABB, Innovate Steam Technologies, and Kawasaki Heavy Industries.