[December 05, 2016]

Global Fuel Cell Market for CHP Applications to Grow at an Impressive CAGR of Approximately 25% Through 2020, Reports Technavio

Technavio analysts forecast the global fuel cell market for combined heat and power (CHP) applications to grow at a CAGR of close to 25% during the forecast period, according to their latest report.

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Technavio publishes a new market research report on the global fuel cell market for combined heat and power applications from 2016-2020. (Photo: Business Wire)

The research study covers the present scenario and growth prospects of the global fuel cell market for CHP applications for 2016-2020. The report segments the market into residential and non-residential based on application, with the non-residential segment accounting for over 53% of the market in 2015.

Request a sample report: http://www.technavio.com/request-a-sample?report=54784

Technavio's sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

Technavio energy analysts highlight the following three factors that are contributing to the growth of the global fuel cell market for CHP applications:

• Increasing demand for efficient and cleaner technologies
• Rising adoption of fuel cell products
• Growing government incentives for FC-CHPs

Increasing demand for efficient and cleaner technologies

Thermal power plants produce excess heat, and this waste heat is usually released into the atmosphere through cooling towers and other means, which results in lower powr generation efficiency. The growing demand for electricity and the consciousness toward using cleaner energy sources are driving the need for CHP, where the waste heat is captured to either produce heat for industries and businesses or to power turbines to generate more electricity.

The rise in GHG emission levels and the need to diversify the energy mix have driven the demand for efficient and clean fuels. Fuel cells are regarded as an emerging power source that offers the potential to produce clean, efficient, and quiet power and heat. Fuel cells are scalable in nature, allowing them to be used in diverse facilities in residential, commercial, and industrial sectors.

"Apart from the economic and environmental benefits provided by using fuel cells as CHP over a larger grid, their adoption also helps in reducing CO2 emissions. These benefits have resulted in the adoption of fuel cell technologies in applications ranging from small mobile devices to large facilities such as hospitals and residential complexes," says Thanikachalam Chandrasekaran, a lead analyst at Technavio for energy storage research.

Rising adoption of fuel cell products

Fuel cells are a great way to generate grid-independent power, as they are cleaner, operate silently, and offer higher efficiency than other related technologies. These factors have resulted in their greater application in stationary uses. Some of the different areas where fuel cells are used in stationary applications include prime power, CHP, telecom towers, and in remote monitoring.

The production of electricity in fuel cells is through an electrochemical reaction and does not involve a combustion process to convert fuel into electricity because of which the emissions are not harmful. Thus, fuel cells are being adopted in residential, commercial, and industrial buildings.

"Further, by installing fuel cells for CHP at the site, power and heat are generated onsite, therefore, eliminating the T&D losses that occur in a centralized power system. These are also the primary reasons for governments in several countries providing incentives for the adoption of CHP systems," says Thanikachalam.

Growing government incentives for FC-CHPs

Various governments worldwide have released targets for fuel cell-CHP (FC-CHP) such as Japan's ENE-FARM program, which aims to achieve 1.4 million residential units by 2020. These objectives, even if not met 100%, would still be resilient enough to provide a boost to the global fuel cell market for CHP applications during the forecast period.

Purchase incentives are amongst the most relevant and effective instruments for promoting fuel cell sales. For instance, in Germany FC-CHP installations receive incentives from the government as the government aims to achieve 25% of electricity generation from CHP by 2020, up from the current level of 15%. South Korea includes an electricity feed-in tariff for CHP users who sell their excess electricity.

Browse Related Reports:

• Global Fuel Cell Market 2016-2020
• Global Fuel Cell Market in the Automotive Industry 2015-2019
• Global SOFC Market 2015-2019

Do you need a report on a market in a specific geographical cluster or country but can't find what you're looking for? Don't worry, Technavio also takes client requests. Please contact [email protected] with your requirements and our analysts will be happy to create a customized report just for you.

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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