MCHP Market to Hit USD 9,718.9 Million by 2027 at 12.20 CAGR - Report by Market Research Future (MRFR)

Increasing Uptake of MCHP Chips in Electronics Offers Ample Opportunities

New York, New York, UNITED STATES

New York, US, June 14, 2022 (GLOBE NEWSWIRE) -- According to a comprehensive research report by Market Research Future (MRFR), “MCHP Market Analysis by Capacity, by Fuel (Natural Gas & LPG, Coal, Renewable Resources, And Oil), by Prime Mover (Stirling Engine, Internal Combustion Engine and Fuel Cell), by Application (Residential and Commercial), Region - Forecast till 2027” valuation is poised to reach USD 9,718.9 Million by 2027, registering an 12.20% CAGR throughout the forecast period (2021–2027). 

MCHP Market Overview

The global micro combined heat and power (MCHP) market is expected to garner significant traction. The rising demand for greater power-efficient solutions substantiates the market growth.

MCHP Market Report Scope:

Report Metric Details
  Market Size USD 9,718.9 Million
  CAGR 12.20%
  Base Year 2020
  Forecast Period 2021-2027
  Historical Data 2019
  Forecast Units Value (USD Million)
  Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered Capacity, Fuel, Prime Mover and Region
  Geographies Covered North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors Vaillant Group (Germany), Yanmar Holdings Co. Ltd. (Japan), Qnergy (US), Ceres Power Holdings PLC (UK), Mondragon Corporation (Spain), Dantherm Power (Denmark), Viessmann Group (Germany), Solid Power (US), BDR Thermea Group (UK), Aisin Group (Japan), Nucusa Energy (US), Centrica plc (UK), and Honda India Power Products Ltd. (Japan)
  Key Market Opportunities Support from governments through incentives and subsidies
  Key Market Drivers High focus on carbon reduction from power generating systems

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Diverse applications of MCHP technology as a temporary power solution for devices used in data centers & enterprise networking, IT & telecom, industrial automation, consumer electronics, and automotive boost the market size. Governments of countries worldwide also support decentralizing of energy systems as the process keeps the market competition up and meets the energy demand.

The rising demand from electric vehicle charging stations drives the MCHP market. Due to the augmenting power demand and pressure to reduce carbon footprints, governments across the countries worldwide promote the MCHP installations, which further enhance the market's growth.

Besides, the shift towards energy systems with advanced methods of power generation escalates market revenues. Growing demand for MCHP units from burgeoning industries such as medical devices, automotive, and IT & telecom impacts the market growth positively. Additionally, rapidly growing consumer electronics sectors worldwide support the market rise. 

Micro CHP Market Segments

The market is segmented into capacity, fuel, prime mover, applications, and regions. The capacity segment is sub-segmented into UP to 2 KW, 2 KW to 10 KW, and 10 to 50 KW. The fuel segment is sub-segmented into natural gas & LPG, coal, oil, and renewable resources. The prime mover segment is sub-segmented into Stirling engines, internal combustion engines, fuel cells, and others.

The application segment is sub-segmented into residential (space heating/cooling, water heating, cooking, lighting, EV charging, others) and commercial (educational institute, office buildings, health care, buildings, others). The region segment is sub-segmented into the Americas, Europe, Asia Pacific, and rest-of-the-world.

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MCHP Market Regional Analysis 

The Asia Pacific region dominates the micro combined heat and power market. Rapid growth in the manufacturing output & services and, the growing demand for reduced carbon emissions & the increasing need for energy efficiency drive the market growth. Besides, government initiatives to control rising concerns about clean and efficient energy systems create substantial market demand.

North America is another lucrative market for combined heat and power solutions. Factors such as the increasing development of renewable energy sources and government initiatives to promote generating electricity via cogeneration or CHP boost the region's market shares. Also, the growing MCHP adoption in commercial end-users substantiates the market size. With substantial installations of MCHP, the US dominates the micro combined heat and power market in the region.

Europe is emerging as a promising market for combined heat and power technologies. The rising demand for heat and power, primarily due to cold weather conditions in the region requiring heating solutions from residential and commercial buildings, escalates the market value. Besides, the growing healthcare industry and huge spending in the defense industry to get long-term solutions for high-end, demanding devices increase the MCHP market size.

Recently, the European Union implemented a country-level Energy Efficiency Directive, which promoted the MCHP market further by increasing CHP projects, facilitating demand response, and simplifying grid connection procedures for MCHP installations. The UK, Germany, France, and Italy are major markets for micro combined heat and power solutions. Additionally, the vast productions and widening adoption of MCHP technology in electronic products substantiate the regional market growth.

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Industry Trends

The growing uptake of energy systems in terms of generation source by having decentralized systems from a singular generation source contributes to the market growth, demonstrating the largest adoption of MCHP units. Rising investments for establishing micro combined heat and power production plants in many regions push the market growth. 

Lack of technical expertise and constant innovations in manufacturing processes are significant headwinds key MCHP enablers face. Also, volatility in price and the demand-supply gap in raw materials and components required for MCHP production are key factors projected to impede the growth of the market. High R&D investments required for product development pose major challenges to industry players. Additionally, maintenance costs associated with MCHP units and the lack of standard tests obstruct the market growth.

Micro CHP Market Competitive Analysis

Dominant Key Players on MCHP Market Covered are:

  •  Vaillant Group (Germany)
  •  Yanmar Holdings Co. Ltd. (Japan)
  •  Qnergy (US)
  •  Ceres Power Holdings PLC (UK)
  •  Mondragon Corporation (Spain)
  •  Dantherm Power (Denmark)
  •  Viessmann Group (Germany)
  •  Solid Power (US)
  •  BDR Thermea Group (UK)
  •  Aisin Group (Japan)
  •  Nucusa Energy (US)
  •  Centrica plc (UK)
  •  Honda India Power Products Ltd. (Japan)

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The MCHP market witnesses several strategic partnerships, alongside other strategies such as expansion, mergers & acquisitions, collaboration, and service & technology launches. Major industry players make vast investments in research and development activities and foster their expansion plans.

For instance, on March 04, 2022, Alkaline Fuel Cell Power (AFCP) Corp., an MCHP developer, announced the acquisition of the CHP generation business of AI Renewable. The acquisition will enable AFCP to set the stage for growth worldwide, accelerating its transition of existing CHP to a clean, zero-emission hydrogen-powered energy solution with immediate revenue and a very large project pipeline.

AFCP is involved in the development, production, and commercialization of micro-combined heat and power (micro-CHP) systems based on alkaline fuel cell technology. Its solution generates equivalent amounts of electricity and heat with zero CO2 emissions. The company plans to continue to progress towards the commercialization of its micro-combined heat and power system.

In August 2021, AFCP disclosed the milestones and objectives for commercialization of its MCHP system built within a 4kW system prototype and features a lower cost with higher energy density and is adaptable for deployment across new applications.

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