Biomolecular Screening Will Drive Combined heat and power (CHP) Market

 Combined heat and power (CHP) Market 

Combined heat and power (CHP) will grow at highest pace owing to advances in biomolecular screening. CHP systems facilitate the simultaneous generation of electricity and usable heat from a single fuel source. They boast higher efficiency than separate systems for producing heat and power, reducing energy costs and carbon emissions for commercial buildings and industrial facilities. CHP is advantageous for large energy users and helps increase energy security by utilizing multiple fuel options.

The global CHP market is estimated to be valued at US$ 31.09 billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2024 to 2031.

Key players operating in the CHP market are Lonza Group Ltd., Thermo Fisher Scientific Inc., Merck KGaA, and STEMCELL Technologies Inc. These companies provide innovative CHP technologies and components that allow for biomolecular screening applications.

The global Combined Heat and Power (CHP) Market Demand is driven by growing demand for reliable and affordable power sources from various end-use verticals such as commercial, residential, and industrial sectors. CHP systems address this demand by harnessing waste heat from electricity generation and distributing it for local heating, hot water, and industrial processes.

Key Takeaways

Key players: Lonza Group Ltd., Thermo Fisher Scientific Inc., Merck KGaA, and STEMCELL Technologies Inc. are leading players in the CHP market. Lonza Group Ltd. offers CHP systems optimized for biomolecular screening and industrial processes. Thermo Fisher Scientific Inc. provides generators, boilers, and turbines to power biomanufacturing facilities. Merck KGaA develops fuel cells and modular CHP units for the pharmaceutical and healthcare industries. STEMCELL Technologies Inc. utilizes CHP to meet the energy demands of cell and gene therapy manufacturing.

Growing demand: The global CHP market is driven by growing demand for reliable and affordable power sources from various end-use verticals such as commercial, residential, and industrial sectors. CHP systems help reduce energy costs for large energy users like data centers, hospitals, and factories.

Technological advancement: Leading CHP suppliers are developing more efficient systems powered by renewable fuels. Modular technology allows individual units to be combined to meet larger energy loads. Advanced controls ensure seamless integration of CHP with smart grids and distributed energy resources. Fuel cells and microturbines improve the feasibility of on-site CHP for smaller commercial buildings.

Market Trends

Decarbonization efforts are a major market trend boosting the adoption of CHP. Government mandates and incentives in various countries encourage the use of low-carbon and renewable energy sources. CHP systems based on biomass, biogas and hydrogen fuel cells help reduce carbon emissions from heating and power applications.

Distributed energy is another key trend, as CHP deployed at the customer location provides reliable, cost-effective and resilient power. This is well-suited for critical load applications like data centers, wastewater treatment plants and hospitals. Microgrids powered by modular CHP advance energy independence.

Market Opportunities

Growing data center market offers strong opportunities for CHP suppliers. Data centers require huge amounts of power and cooling, and CHP meets these needs efficiently while lowering energy costs. Combined cooling, heating and power systems optimized for the storage and processing of big data are gaining traction.

Expanding healthcare sector is another major CHP market opportunity. Hospitals have continuous heating and power loads and can benefit greatly from the higher efficiencies of CHP. Systems powered by renewable and waste fuels further lower the carbon footprint of healthcare facilities.

Impact of COVID-19 on Combined Heat and Power (CHP) Market Growth:

The COVID-19 pandemic significantly impacted the growth of the combined heat and power (CHP) market in the initial months. Nationwide lockdowns led to the shutdown of various commercial and industrial facilities, thereby reducing the demand for on-site power generation through CHP systems. Project timelines were also delayed as lockdowns disrupted supply chains and postponed installations. Additionally, budgets were reallocated towards healthcare efforts, affecting new CHP projects.

However, as economies are recovering, the market is expected to regain momentum. There is an increased focus on resilient and distributed energy infrastructure to minimize disruptions during future crises. CHP systems play a vital role in ensuring a continuous supply of heat and power on-site. Investments are being made to deploy modular and containerized CHP systems at temporary medical facilities and quarantine centers. Governments in various countries have also announced incentives and rebates to encourage the adoption of clean and efficient technologies like CHP. This will boost deployments across sectors like healthcare, data centers and manufacturing over the coming years.

CHP market growth is concentrated in regions with stringent emission norms and high energy costs such as North America and Europe. Whereas the Asia Pacific region excluding Japan is witnessing the fastest growth rate, supported by rapid industrialization and infrastructure development. Countries like China and India are providing financial incentives for improving energy efficiency through CHP. Meanwhile, Japan has had CHP systems installed for many years already and is focusing on upgrading existing facilities with advanced technologies.

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