The use of combined heat and power systems for data centers is set to continue in an upward direction over the next seven years.
Research conducted by the Persistence Market Research agency projects that the sector will reach $277.3m in value by 2024.
The report - "U.S. Market Study on Combined Heat and Power (CHP) System for Data Center: Commercial End Use Segment Expected to Witness Steady Growth from 2017 to 2024," forecasts the market will grow at 3.4% CAGR through 2024.
The market in the US although estimated to witness moderate growth throughout the assessment period, will continue to hold the highest value share in the global market. Revenue sales of CHP systems for data centers will be predominantly high in California, New York, Washington, Texas, and Massachusetts.
"Rising adoption of colocation facilities and growing demand for green data centers are expected to bring in new growth opportunities in the U.S. market for combined heat and power system for data center," the report states.
A consumer shift to CHP systems from conventional power generation systems, and favourable government initiatives are driving the trend. The falling price of natural gas and expanded CHP tax incentives are favouring market growth.
Furthermore, recovering economy and curtailed natural gas prices will escalate the demand for CHP system for data center in the U.S. market. The government's provision for high tax incentives over CHP systems, which marks a positive sign associated with the market growth.
Among all facility sizes, >20,000 sq. ft. size segment is foreseen to maintain the strongest foothold in the U.S. market with over 53% share in terms of value as well as capacity, in 2026. Over the forecast period, this segment is likely to gain around 30 BPS, reaching a value of around US$ 150m by 2024 end. The 100-999 sq. ft. size segment will surpass US$ 45m in 2024.
With a collective value share of nearly 90%, institutional and commercial data centers will continue to be the two leading end-use segments. The individual share of institutional data centers segment will surpass 53% by 2024 end, reaching a value of US$ 149.2m. With over 35% revenue share in 2024, commercial data centers segment is projected to remain the second largest segment in terms of end-use.
A sample of the report is available upon request at this link
By application, over one-third share of the total market revenues will be occupied by university laboratories, i.e. over 36% by 2024-end. Internet service providers will also represent a remarkable revenue share of over 25% by the end of forecast period. Whereas, colos and server farms are expected to maintain steady growth throughout the assessment period.
Among the key market players, General Electric Company and Caterpillar Inc. will remain the topmost revenue generators. Other leading companies include Veolia Energy North America, LLC, and Dresser-Rand Group.