MCHP Market Trends

Key Emerging Trends in the MCHP Market

The increasing emphasis on cost-efficient and competitive energy systems has led to a growing focus on energy efficiency, aiming to minimize energy consumption while optimizing performance at the lowest possible cost. This approach not only reduces energy waste but also contributes to economic growth and mitigates greenhouse gas emissions. In the global market, consumers are actively seeking efficient energy generation sources to lower costs and minimize environmental impact.

The surge in energy demand, particularly in residential and commercial sectors, has led to a rise in electricity generation from conventional sources such as coal, natural gas, and oil. For instance, according to the BP Statistical Review of World Energy Report 2020, global electricity generated from natural gas increased to 27,004.7 Terawatt-hours (TWh) in 2019 compared to 26,652.7 TWh in 2018. In the U.S., as reported by the Energy Information Administration (EIA) in 2018, energy consumption in end-use sectors like residential and commercial accounted for approximately 15.68% and 12.38%, respectively.

Despite the dominance of traditional energy sources, alternative systems like Micro Combined Heat and Power (MCHP) are gaining attention due to their superior efficiency. For example, the efficiency of thermal power plants is around 35%, while solar and wind energy systems exhibit efficiencies of approximately 20% and 40%, respectively. In contrast, reciprocating engines, a component of MCHP systems, boast an impressive overall energy efficiency of nearly 80%, and fuel cell MCHP systems achieve over 50% efficiency, as per data from the U.S. Department of Energy (DOE).

As the efficiency of energy systems increases, the thermal energy required to generate useful heat decreases per unit of power output. This trend is prompting consumers to adopt MCHP systems globally to enhance overall energy efficiency. The demand for Micro Combined Heat and Power (MCHP) products is expected to rise in response to the growing imperative for energy efficiency in the global market. Consequently, there is an increasing need to establish MCHP plants, driven by the pursuit of enhanced energy efficiency, contributing to the anticipated growth of the global MCHP market in the forecast period.