The global cogeneration equipment market is set to reach $33.5bn by 2025, according to new analysis.
In a report released this week, market intelligence firm Transparency Market Research (TMR) said the market was valued at $22.2bn in 2016 and, with a projected CAGR of 4.8 per cent, is predicted to grow to $33.5bn by 2025.
Identifying sector trends, TMR said that because the global cogeneration equipment market is largely consolidated, key players such as BDR Thermea, Siemens AG, Mitsubishi Heavy Industries, Clarke Energy, Foster Wheeler, ABB and Rolls Royce (pictured, gas-fired genset) are beginning to forge relationships with OEMs in end-use industries.
These firms are also investing in R&D and competing to tap growth opportunities in emerging economies such as the Asia Pacific region, the report said.
Gas turbines held down over 22.5 per cent of the technology market share in 2016, with equipment for industrial cogeneration generating over 58 per cent of revenue. Asia Pacific emerged as the most lucrative market, with a 42 per cent share.
But the report cautioned that high initial investment along with sophisticated technological requirements has hampered the adoption of cogeneration by small and medium-sized businesses.
And lack of adequate infrastructure leading to inconsistent orders is making it difficult for product manufacturers to deal with plant management, cost depreciation and inventory costs, TRM noted.