MRO Magazine

Growing Demand for Distributed Generation Will Foster the Global Cogeneration Equipment Market Until 2020, Says Technavio

May 25, 2016
By Business Wire News


According to the latest research study released by Technavio, the global cogeneration equipment market is expected to attain a CAGR of 4.57% until 2020.

This research report titled ‘Global Cogeneration Equipment Market 2016-2020’, provides an in-depth analysis of market growth in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments, including steam turbines, gas turbines, CCGT, engines, and others.

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“With the ever-growing global demand for power, providing electricity with the help of technologies such as coal and natural gas-based power plants will cease to remain feasible due to rising environmental concerns and stringent energy efficiency standards. Therefore, CHP proves to be an effective solution to meet the growing energy demand,” said Anju Ajaykumar, one of Technavio’s lead analysts for engineering tools.

“Cogeneration is one of the most efficient ways of energy conversion. Implementation of this technology has a positive impact on the economy, environment, resources, and energy outlook of a country,” added Anju.

Segmentation of global cogeneration equipment market by technology 2015

  • Steam turbines 48.50%
  • Gas turbines 21%
  • CCGT 21%
  • Engines 12%
  • Others 6%

Source: Technavio research

Global cogeneration equipment market by steam turbines: largest segment

Steam turbines are a conventional way of cogeneration that range in capacities from 500 kWe to 80 MWe. It is one of the most commonly used cogeneration technologies in industries such as pulp and paper, wherein coal is used as the primary fuel. The robust design of steam turbines has few moving parts that make it easy to operate and maintain. These turbines produce more heat than electricity per unit of fuel consumed, and thus exhibit a high heat-to-power ratio. There are two types of steam turbines—back pressure steam turbines and condensing steam turbines. Back pressure steam turbine are used in applications wherein the demand for heat is high. These type of turbines are used for drying papers or heating water. Condensing steam turbines are used in energy-intensive industries and utilities wherein electricity is the major output.

APAC accounts for the highest share in the steam turbine segment, with the major demand emanating from China. China’s growth in the paper and pulp industry has influenced the growth of cogeneration equipment in the region.

Global cogeneration equipment market by gas turbines: second-largest segment

Gas turbine systems are commonly used in large cogeneration power plants. The electrical capacity ranges from 250 KW to 200 MW. This technology is used in industries such as oil and gas, chemical, and district heating utilities, wherein the demand for electricity is higher. Most of the turbine output during cogeneration is used for generating electricity and exhaust gas is used for applications such as space heating, steam generation, or heating water. Gas turbine-based cogeneration systems offer higher exhaust output temperature, and have the ability to start and stop the plant within a day.

Though gas turbine-based cogeneration incurs high operating costs, the cheap availability of gas makes it a preferred option in natural gas abundant regions such as Europe, North America, and Japan. EMEA accounts for more than 50% of the market share. Large-scale use of district heating coupled with cheap availability of gas drives the market in this region. Low CO₂emission is an added advantages of gas turbine-based cogenerations.

Global cogeneration equipment market by CCGTs: third-largest segment

CCGT-based cogeneration systems consist of a gas turbine and a steam turbine. High-temperature exhaust gases are passed through heat recovery steam generators (HRSGs), which generate steam for industrial applications or for space heating. A high electrical energy-efficient CCGT cycle gives additional advantage over other technologies.

This technology is widely used in regions where demand for space heating is high. Europe and North America are the two regions where CCGT-based cogeneration is extensively used. In 2015, EMEA accounted for 68% of the global CCGT-based cogeneration equipment market, followed by the Americas with 25%. Availability of gas will remain a key driving factor for the use of CCGT in respective regions.

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About Technavio

Technaviois a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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