August 20, 2012
Current installations of combined heat and power (CHP) systems in commercial buildings are mostly confined to developed markets in Europe, South Korea, Japan, and the United States. The market has been limited, until recently, by high upfront capital costs associated with CHP systems. Today, though, a growing number of commercial users – from hospitals to schools to business parks – are installing CHP systems as a means of reducing operating expenses, improving power reliability, and reducing carbon emissions. According to a new report from Pike Research, a part of Navigant’s Energy Practice, the market for CHP in commercial buildings will grow from $2.2 billion in 2012 to $11.2 billion in 2022.
“Falling natural gas prices in the United States and expanding policy incentives across Asia Pacific and Europe are driving an increase in commercial CHP installations,” says senior research analyst Mackinnon Lawrence. “While applications to date have been limited to large facilities, such as hospitals and universities, with near 24/7 thermal and electrical loads, improved economics around smaller installations and advances in prime mover technologies are opening up opportunities across previously untapped segments, including smaller retail, sports clubs, and airports.”
Europe is currently the leading market for commercial CHP installations, with North America a close second. Over the next decade, though, according to the report, Asia Pacific will be the hottest market for CHP in commercial buildings, with a compound annual growth rate of nearly 20 percent. Growth rates in Africa and the Middle East will also be high, but these markets will be dwarfed by those in Europe, North America, and Asia Pacific.
The report, “Combined Heat and Power for Commercial Buildings”, analyzes the global market potential for commercial CHP systems for a range of building applications – such as hospitals, universities, hotels, casinos, airports, and others – using technologies including internal combustion engines, fuel cells, Stirling engines, and Organic Rankine Cycle. The study includes in-depth assessments of leading countries for the manufacture and adoption of commercial CHP systems, the technologies utilized in such systems, and the key industry players engaged in this market. Worldwide market forecasts, segmented by region, are provided through 2022 for system shipments, installed capacity, average installation capacity size, and revenue. An Executive Summary of the report is available for free download on the Pike Research website.
Contact: Richard Martin
* The information contained in this press release concerning the report, “Combined Heat and Power for Commercial Buildings,” is a summary and reflects Pike Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.