COGENERATION EQUIPMENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

One of the major factors holding back the growth of cogeneration equipment market is the high initial capital cost involved in setting up a cogeneration system. Cogeneration plants require significant upfront investment for purchasing equipment such as prime movers, generators, heat recovery systems, etc. Additionally, costs associated with installation, commissioning, and grid connection further contribute to overall capital expenditure.

Market Opportunities: Technological advancements in cogeneration systems

Technological advancements are emerging as a great opportunity in the cogeneration equipment market. Cogeneration or combined heat and power (CHP) is an efficient system for the simultaneous production of electrical and thermal energy from a single fuel source. Traditionally, separate systems were used to produce electricity and heat which led to waste of unused thermal energy during power generation. However, new cogeneration systems are being designed to maximize fuel efficiency and reduce carbon footprint.  Advanced technologies like combined cycle turbines are allowing higher fuel efficiency. These turbines use natural gas or biomass to power a gas turbine for electricity production. The exhaust heat is then recovered to raise steam in a boiler which powers a steam turbine. This doubles the total efficiency compared to separate systems. Fuel cells are another promising technology that can be used for on-site cogeneration. Fuel cell CHP systems use an electrochemical process rather than combustion to generate power and produce very low emissions. Improved material science is helping develop more durable and compact fuel cell stacks.