Global micro CHP systems market analysis and insights

The global Micro CHP (Combined Heat and Power) Systems market estimated at US$1.6 billion in the year 2024 is now projected to grow at a CAGR of 9.93% and reach US$2.8 billion by 2030.

Micro CHP systems have emerged as a promising solution in the energy landscape, driven by their ability to efficiently generate both electricity and heat. These systems offer a compelling alternative to traditional energy generation methods by simultaneously producing two valuable forms of energy, thereby enhancing energy efficiency and cost savings. This approach not only reduces overall energy consumption but also contributes to lower greenhouse gas emissions, aligning well with the global drive towards sustainability.

Furthermore, the increasing concern for environmental preservation and the reduction of carbon footprints has positioned micro CHP systems as a key player in the transition towards cleaner energy technologies. By producing fewer emissions and pollutants compared to conventional energy generation, these systems contribute to mitigating environmental impacts and addressing climate change.

Government incentives and policies aimed at promoting energy efficiency and sustainability have further accelerated the adoption of micro CHP systems. Subsidies, tax breaks, and regulatory support in various regions have created a favorable environment for consumers and businesses to invest in these innovative technologies.

The integration of micro CHP systems with renewable fuels and smart grids presents exciting possibilities for future growth. As renewable energy sources gain traction, micro CHP systems can serve as a bridge to facilitate their seamless integration into the energy landscape. Moreover, the compatibility of these systems with smart grid technologies enhances energy distribution efficiency and enables demand response capabilities.

Continued technological advancements are also propelling the growth of micro CHP systems. Ongoing research and development efforts are focused on improving system efficiency, enhancing control mechanisms, and reducing maintenance requirements. These innovations contribute to the overall performance and reliability of micro CHP systems, further bolstering their appeal in the market.

Micro CHP systems market regional insights

North American micro CHP systems market is expected to grow significantly over the forecast period 2024-2030. This growth can be attributed to the owing to the increasing energy costs, environmental concerns, and government incentives promoting energy efficiency. United States contributed around 78% of the total North American micro CHP systems market. It is estimated to have a market value of US$512.2 million in the year 2024. Among the other noteworthy geographic markets are Canada and Mexico, each forecast to grow at 8.96% and 6.72% respectively over the 2024-2030 period.

Asia Pacific micro CHP systems market is anticipated to witness an upsurge owing to the rapid industrialization and urbanization in developing countries like China and India. Moreover, the market is being driven by high R&D expenditure by major players, combined with efforts to commercialize these systems at affordable prices. China is expected to dominate the Asia-Pacific market and reach a market size of US$580.9 million by 2030.

Within Europe, Germany, France, Italy and the U.K. are the key countries responsible for the significant growth of the regional market. Germany is expected to grow at a fastest CAGR of 8.23% over the forecast period.

Meanwhile, the Middle East & Africa is expected to show limited growth due to the strong presence of under-developed countries in Africa who are still struggling to meet technology standards. However, any growth that the region experiences is expected to come from developing Middle Eastern nations such as Qatar, U.A.E, and Oman due to a similar growth pattern as the Asia Pacific.

Key players

Key players profiled in the report include 2G Energy AG; Alkaline Fuel Cell Power Corp.; Axiom Energy Group, LLC.; BDR Thermea Group B.V.; Bosch; Ceres Power Holdings PLC; General Electric; Micro Turbine Technology B.V.; Qnergy; Samad Power; SolydEra SpA; Sunfire; Vaillant Group; Viessmann Manufacturing Company Inc. and Yanmar Co., Ltd., among others.

Competitive landscape

April 19, 2023 – With continued efforts in research and development, 2G Energy AG significantly increased the electrical efficiency of its biogas portfolio. Since May 2023, the standard electrical output of most biogas-fueled CHP in the output range up to 600 kW was increased by 10% on average.

Through the increased system output, operators of biogas-fueled CHP have more options in terms of flexibility and revenue. Another advantage for operators is increasing the electrical output of systems simultaneously lowers the specific investment costs per kW installed.

Nov. 18, 2022 – German utility EnBW is planning to switch one of its combined heat and power (CHP) plants in Stuttgart from coal to green hydrogen, but says it will burn fossil gas until sufficient quantities of H2 become available at affordable prices, project partner Siemens Energy said. Two 62MW Siemens SGT-800 turbines capable of burning 75% hydrogen will be installed at the Stuttgart-Münster CHP plant by 2025, replacing three coal boilers and paving the way for the region to go coal-free by 2026.

Global Micro CHP systems market scope

• By technology
  • Engine-based
    • Internal Combustion Engines (ICE)
    • Stirling engine
    • Organic Rankine Cycle (ORC) Engines
  • Fuel cells-based
    • Solid Oxide Fuel Cell (SOFC)
    • Proton Exchange Membrane Fuel Cells (PEMFC)
  • Hybrid fuel cell systems
  • Others

• By fuel type
  • Non-renewable
    • Natural gas
    • Propane or LPG
    • Hydrogen
  • Renewable
    • Biomass
    • Biogas
    • Biodiesel

• By capacity
  • Up to 2 kW
  • 2 kW to 10 kW
  • 10 kW to 50 kW

• By application
  • Residential buildings
  • Commercial buildings
  • Institutional buildings
  • Others

• By region
  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East and Africa

The research report  provides a comprehensive review of market trends, market growth drivers, PEST Analysis, Market growth inhibitors, and strategic industry activities and SWOT Analysis of key players in the market.

The report provides market estimates and forecast for geographic markets such as the North America (US, Canada, Mexico and Rest of North America), South America (Brazil, Argentina and Rest of South America), Europe (Germany, France, U.K., Russia, Italy, Spain, Sweden, Netherlands, Poland, Austria, Norway, Switzerland, Denmark and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Taiwan, India, Australia and Rest of Asia-Pacific), Middle East (Iran, Turkey, Kuwait, UAE, Israel and Rest of Middle East) & Africa.