Global Micro-CHP market forecast to treble

The value of the global micro-CHP market will reach €3.2 billion in 2019, up from €0.9 billion in 2014, with new fuel cell technologies disrupting the market.

According to the latest forecast to emerge from Delta-ee, fuel cells are driving the growth of the global market, having increased from 0% of global sales in 2008 to over 70% of global sales in 2014. Meanwhile, the global share of engine-based micro-CHP products has fallen from 100% in 2008 to under 30% in 2013.

Japan accounted for the vast majority of global fuel cell micro-CHP installations in 2013 and the same is expected for 2014.  In September 2014 the total number of fuel cell accumulative installations surpassed 100,000 in Japan – marking a major milestone for the industry.  Significant subsidies will continue to drive the market in Japan and the number of installations will rise rapidly, Delta’s research reveals. 

In contrast, engine-based products continue to dominate the European market and this looks set to continue. Even in 2019, engine micro-CHP will still have over three quarters of the European market, with fuel cells having less than one quarter of sales, their forecast finds. 

According to Delta-ee, the costs of fuel cell products are expected to remain too high for most European customers and subsidies similar to those seen in Japan are unlikely. However, there promises to be strong competition between Asian and European companies to grab the growing fuel cell market in Europe. 

Commenting, Scott Dwyer, Principal Analyst at Delta-ee said: ‘The global micro-CHP market is primed for growth.  We expect the Japanese market to remain strong in the near term and growing sales will enable product costs to fall.  At the same time we see new and innovative business models emerging. These can remove the up-front cost barrier that exists for many potential customers. These factors will enable the installed base of global micro-CHP products to reach one million in the next five years.’

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