Micro CHP Market Size By Capacity (< 2 kW, 2 kW to &#8804; 10 kW, > 10 kW to &#8804; 50 kW), By Fuel (Natural Gas & LPG, Coal, Renewable Resources, Oil), By Prime Mover (Stirling Engine, Internal Combustion Engine, Fuel Cell), By Application (Residential

Micro CHP Market Size By Capacity (< 2 kW, 2 kW to ≤ 10 kW, > 10 kW to ≤ 50 kW), By Fuel (Natural Gas & LPG, Coal, Renewable Resources, Oil), By Prime Mover (Stirling Engine, Internal Combustion Engine, Fuel Cell), By Application (Residential {Space Heating/Cooling, Water Heating, Cooking, Lighting}, Commercial {Educational Institute, Office Building, Healthcare Building}), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2022 - 2030

The micro CHP market is estimated to exhibit sturdy growth by 2030 owing to increasing demand for space heating. Additionally, stringent emission norms, along with, prevalent industrialization and urbanization in various countries, are expected to foster market growth over the forecast period.

The combined heat and power or cogeneration technology provides high-efficiency electricity and thermal energy by using oil, coal, or other technologies or fuels. During the COVID-19 pandemic, the market was negatively influenced by the staggering delay in project commissioning plans and halts in manufacturing operations caused by strict lockdowns and social-distancing norms.

However, prominent advancements in micro-CHP R&D operations in developed nations have created notable growth opportunities for the industry. In addition, favorable government mandates to limit the use of high GHG emission technologies have also contributed to market expansion.

Moreover, major players in the micro CHP market have adopted growth strategies like mergers & acquisitions to strengthen their presence in the sector. In January 2022, for instance, TEDOM, a Czech engineering company, received a construction project for a 12.9 MW cogeneration plant in Poland for the construction of a CHP gas plant at Zaklady Gorniczo-Hutnicze Boleslaw S.A. that had a planned production capacity of 5.89 MW of heat in the form of hot water.

In another instance, in April 2022, Yanmar, a Japan-based heavy machinery manufacturer, acquired a majority share of Eleo Technologies B.V., a Helmond-based emerging battery technology firm. With the integration of Eleo’s advanced battery technology, Yanmar aimed to expand its electrified powertrain capabilities for off-road applications.

Furthermore, in May 2022, Caterpillar Inc., a construction and equipment company, launched a three-year project with District Energy St. Paul, Minnesota’s non-profit energy utility. The project, which was purposed to demonstrate a hydrogen-fueled CHP (combined heat and power) system, is backed up by the U.S. Department of Energy and the National Renewable Energy Laboratory. Since the CHP systems by Caterpillar provide both electricity and heat, they increase efficiency and reduce GHG emissions.

The micro CHP market has been bifurcated based on prime mover, capacity, fuel, application, and region. With respect to fuel, the industry has been divided into oil, natural gas & LPG, coal, and renewable resources. The coal segment is slated to expand at a CAGR of over 7% by the end of 2030.

In terms of prime mover, the micro CHP industry has been split into fuel cell, internal combustion engine, and Stirling engine. The internal combustion engine segment is likely to showcase steady growth through the review period due to the ongoing grid modernization, coupled with rapid urbanization across developing nations.

In the regional landscape, apart from Europe, North America, and APAC, the RoW micro CHP market is projected to grow at approximately 12% CAGR over the forecast timeline.