Global On-Grid Combined Heat and Power Market - Analysis of Growth, Trends and Forecasts (2018 - 2023)
On-grid combined heat and power systems are witnessing robust growth across the globe, because of increasing demand for energy, growing focus on implementing energy efficiency measures, and rising environmental concerns. The worldwide industrial growth has triggered increased the demand for energy, which must be met in the most efficient and economical way. The combined heat and power generation technology requires less fuel to produce a given energy output, and in order to cater to growing energy needs, the development of such efficient energy infrastructure is very suitable. The on-grid combined heat and power system market is now witnessing the highest growth in the industrial sector across the globe. North America dominated the global market for on-grid combined heat and power system market, with almost 37% of the market share in 2017, and is expected to lose its dominating position during the forecast period, 2018-2023.
Focus on Energy Economics - On-grid Combined Heat and Power Market
Globally, improving the energy economics is gaining importance, and has led to exploring the sources of energy which have remained underutilized. The major driver for combined heat and power (CHP) generation is the cost efficiency associated with the same. The CHP plant generates electrical and thermal energy from a given amount of fuel, and the total energy output is high, which leads to reduced energy bills. The industrial sector is the largest consumer of electricity in the world, and most of the industries are dependent upon grid power, to meet their requirements of electricity. The CHP plants are a valuable option for consumers of electricity and heat, because it can be developed at the consumption centers and integrated with the grid. The extra electricity generated from the plant can be fed to the grid, which is a big boost for providing resiliency to the grid. The owners of the CHP plants are incentivized for feeding electricity into the grid, thus leading to widespread benefits from ownership of CHP asset. Therefore, focus on energy economics is a big boost for the development of the on-grid combined heat and power system market.
Industrial Sector - Major Market
The industrial sector is the major end-user sector of energy, because of widespread energy requirements during operations. The demand for energy in the form of electrical and thermal energy is growing, due to the development of industrial infrastructure. Apart from that, the businesses have become more competitive, and the focus has increased on reducing the operating costs, including energy bill. Moreover, the industries can reduce the green-house gases emissions from energy use, thereby leading to adherence to environmental norms in an efficient way.
Asia-Pacific to Dominate the Market’s Growth
Owing to increasing industrialization and surging demand for energy, the Asia-Pacific region is expected to dominate the market. The CHP technologies are also helpful in reducing green-house gases emissions from heat and power generation. As the Asia-Pacific countries account for 48.2% share in global carbon dioxide emissions, the development of CHP infrastructure is likely to record the highest CAGR during the forecast period.
Key Developments in the market
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