Micro Combined Heat And Power Market Size, Share & Trends Analysis Report By Product Type (Engine-based, Fuel Cell-based), By Application (Commercial, Residential), By Region (Europe, APAC, MEA), And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global micro combined heat and power market size was estimated at USD 4.19 billion in 2023 and is projected to grow at a CAGR of 9.1% from 2024 to 2030. This growth is attributed to the growing awareness and concerns about climate change and carbon emissions which are increasing consumers and governments inclination towards cleaner energy solutions. micro combined heat and power (MCHP) systems, particularly those running on natural gas or biofuels, offer lower carbon emissions compared to grid electricity and traditional heating systems, thereby, aligning with government strategies.

These systems are highly efficient compared to traditional separate heat and power generation methods. Therefore, increasing stringent energy efficiency regulations and targets across globe are driving the adoption of MCHP systems over years. Furthermore, MCHP systems can significantly reduce energy costs for consumers by utilizing waste heat from power generation for heating purposes. This economic advantage is a major driver for residential and small business sector for product. Moreover, this product provides a decentralized energy solution, reducing dependency on centralized power grids and enhancing energy security, particularly in remote or rural areas.

Advances in micro turbine, Sterling engine, and fuel cell technologies are making micro combined heat and power systems more reliable, efficient, and affordable. These technological improvements are expanding the feasibility and attractiveness of MCHP solutions, thereby fueling the product adoption in regions.

However, presence of few factors is expected to restraint market growth. Such as, local building codes, zoning regulations, and environmental permits may complicate and delay the installation of MCHP systems, adding to its costs and timelines. Furthermore, installation of these systems requires expertise and careful integration with existing heating and electrical systems, which can pose a barrier for adoption among consumers and businesses with less knowledge and expertise.

Rapid urbanization, especially in developing regions, presents opportunities for micro combined heat and power system manufacturers and service providers to cater to new residential and commercial developments seeking sustainable energy solutions. Furthermore, subsidies, tax credits, and grants offered by governments to promote energy efficiency and renewable energy adoption can significantly reduce the financial barriers associated with MCHP system installation.

Product Type Insights

The market is segmented into engine-based and fuel cell-based MCHP systems. The engine-based segment led the market with the largest revenue share of 62.54% in 2023. They are generally more cost-effective to install and maintain compared to fuel cell systems. Furthermore, these engine-based systems can utilize a range of fuels including natural gas, propane, and even biofuels, in some cases, they offer flexibility depending on local fuel availability and cost. In addition, ongoing improvements in engine technology continues to enhance efficiency of product and reduce emissions, which makes them more competitive with other MCHP technologies.

Fuel cells offer higher electrical efficiency compared to traditional combustion engines, with negligible emissions of pollutants. They operate silently, making them suitable for residential and urban environments without noise concerns. Furthermore, fuel cells generally have longer maintenance intervals and lower maintenance requirements compared to engines, reducing operational downtime and costs.

Application Insights

Based on application, the market is segmented into commercial and residential. The residential segment led the market with the largest revenue share of 72.32% in 2023. Many residential units are adopting MCHP systems in order to save cost. By generating electricity on-site and utilizing waste heat for space heating and hot water, homeowners can significantly reduce energy bills. Furthermore, these systems offer homeowners a degree of energy independence by reducing reliance on the grid.

Commercial MCHP systems are larger and more powerful compared to residential systems, designed to meet the energy needs of small to medium-sized commercial buildings, hotels, hospitals, and other facilities. Commercial facilities have high energy demands, making MCHP systems an attractive option for reducing electricity and heating costs, especially in buildings with constant heating and cooling needs. Furthermore, to fulfill corporate sustainability goals and regulatory pressures related to use of cleaner energy technologies like MCHP systems, which can reduce carbon footprints compared to conventional energy sources is further expected to fuel its demand.

Regional Insights

The micro combined heat and power (MCHP) market in North America is expected to grow at a significant CAGR over the forecast period, on account of fluctuating energy costs and the desire for energy cost stability which is driving interest in MCHP systems for residential and commercial applications. In addition, policies promoting renewable energy integration and carbon reduction initiatives support the deployment of these systems which can utilize renewable fuels or hydrogen.

U.S. Micro Combined Heat And Power Market Trends

The micro combined heat and power (MCHP) market in the U.S. is anticipated to grow at the fastest CAGR of 9.0% over the forecast period. Stringent emissions regulations and sustainability goals at federal, state, and local levels propel the adoption of cleaner energy technologies such as MHCP systems in country.

Asia Pacific Micro Combined Heat And Power Market Trends

Asia Pacific dominated the micro combined heat and power (MCHP) market with revenue share of 42.13% in 2023. Rapid urbanization and industrialization in countries like China, India, and Southeast Asian nations have led to increased demand for electricity and heating. Furthermore, many countries in Asia Pacific face severe air pollution issues, driving policies supporting use of cleaner energy technologies such as MCHP systems, which can use cleaner fuels or operate more efficiently than conventional power plants.

Europe Micro Combined Heat And Power Market Trends

The micro combined heat and power (MCHP) market in the Europe is anticipated to grow at the fastest CAGR over the forecast period. Stringent energy efficiency mandates and carbon reduction targets set by the European Union drive demand for efficient technologies like MCHP systems. Furthermore, presence of favorable policy frameworks and financial incentives, such as feed-in tariffs and subsidies, encourage the deployment of combined heat and power technologies, thereby, fueling product adoption in region.

Key Micro Combined Heat And Power Company Insights

Some of the key players operating in the market Axiom Energy Group, LLC., EC Power A/S, and Yanmar Holdings Co. Ltd.

• Axiom Energy Group, LLC is involved in manufacturing of microCHP, marathon engine, custom remote power, and vapor recovery systems. It operates 70,000 sq. ft. of manufacturing facility, Its microCHP offers various features and benefits such as affordability, reduces carbon emissions, and comes with long lasting engine

• Yanmar Holdings Co. Ltd was established in 1912 and its business areas include agriculture business, marine business, energy system business, compact equipment business, industrial engine business, commercial engine business, and component business. Company offers various products and services under above mentioned business categories

Enginuity Power Systemsand Rameha are some of the emerging participants in the market.

• Remeha is involved in manufacturing and supplying of hot water and heating solutions which are sustainable, efficient, and effective. Its product category includes wall hung boilers, floor standing boilers, heat pumps, hot water cylinders, pressure jets, combined heat and power, and accessories. This company also provides various services such as repairs, servicing, commissioning, and technical support to customers

• Enginuity Power Systems was established in 2015 and is involved in manufacturing of private home generation appliance, independent commercial generation system, ruggedized integrated hybrid generator sets, and personal power station. Its product portfolio includes 8kw combined heat and power system, 20kw combined heat and power system, 100kw & 200kw combined heat and power systems, and flexible power solutions

Recent Developments

• In July 2020, Enginuity Power Systems announced the acquisition of Katech Inc. in order to speed up the process of commercializing its E/ONE product. Furthermore, Katech Inc. will continues its business operations in motorsports, vehicle aftermarket, and corporate accounts and will further allow Enginuity Power Systems to expand its market in transportation industry

Micro Combined Heat and Power (MCHP) Market Report Scope

Global Micro Combined Heat And Power Market Report Segmentation

This report forecasts revenue growth at regional & country levels and provides an analysis of the industry trends in each of the segments from 2018 to 2030. For this study, Grand View Research has segmented the global micro combined heat and power market report based on product type, application, and region:

• Product Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Engine-based

  • Fuel Cell-based

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Commercial

  • Residential

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa