Frost & Sullivan Research Service   Published: 22 May 2009
North American Cogeneration Market
   Research Overview

This Frost & Sullivan research service titled North American Cogeneration Market identifies drivers, restraints, and main industry challenges for the cogeneration market along with the price, unit and installed capacity forecasts. In this research, Frost & Sullivan's expert analysts thoroughly examine the following technologies: gas turbines, steam turbines, reciprocating engines, microturbines, and fuel cells.

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Market Overview

Stricter Environmental Standards Promote the Use of Cogeneration

The North American power industry is all set for a change in power generation methods to combat its current challenges of increased electricity demand, aging equipment, and more stringent environmental standards. Increased use of cogeneration or combined heat and power production (CHP) will go a long way in alleviating most of these issues, as its environment-friendly profile and higher efficiencies make it attractive to industry stakeholders. Governments are rolling out numerous incentives, subsidies, favorable emissions legislation, and loan programs to promote CHP system installation. The market has also received a boost from the increasing prices of most fuels used in generating electricity, which, in turn, is inflating the costs of production and electricity. This situation has spawned a need for a technology that offers greater efficiency of fuel conversion. "The higher efficiencies and potential cost savings linked to cogeneration equipment encourage greater long-term investment in the market," says the analyst of this research.

However, the volatility in the price of natural gas and the resulting poor spark spread has caused several end users to withhold investments in cogeneration equipment such as gas turbines until a more favorable politico-economic climate is achieved. To offset this influence of price fluctuations, vendors can invest in R&D to develop cogeneration systems that can use biomass as the fuel without compromising efficiency levels. "In doing so, the vendors can enter the markets where there are plenty of biogas supply, high power demand, and government incentives," notes the analyst.

Technological advances in this market has allowed CHP equipment – depending on its size and design – to provide greater flexibility to a facility by switching fuels, shifting loads, and shaving peaks. If the facility has access to a reliable renewable or waste energy source, the system can further shield it from the fallout of price uncertainty. "Owing to these significant benefits, the North American cogeneration market is expected to grow at a compound annual growth rate (CAGR) of 0.7 percent from 2008 to 2015, reaching 134,022 MW in 2015, in terms of installed capacity," observes the analyst. "The gas turbine segment is expected to present higher growth compared to the steam turbine segment, as restrictions are likely to be imposed by federal global warming legislation."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

  • Industrial
  • Commercial/Institutional
  • Utility
  • Residential


The following technologies are covered in this research:

  • Gas turbine
  • Steam turbine
  • Reciprocating engine
  • Microturbine
  • Fuel cell

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  Table Of Contents

1. Executive Summary

1.1 Market Overview

1.1 a. Introduction

1.1 b. Market Segmentation

1.2 Major Research Findings

1.2 a. Market Analysis

1.2 b. Top Industry Challenges

1.3 Major Conclusion and Recommendations

1.3 a. Conclusion and Recommendations

2. Market Overview

2.1 Introduction

2.1 a. Introduction

2.1 b. Definition and Scope

2.2 Major Industry Challenges

2.2 a. Cogeneration Market: Impact of Top Four Industry Challenges (North America), 2009-2015

2.2 b. Major Challenges Analysis

3. Market Forecasts

3.1 Market Drivers and Restraints

3.1 a. Cogeneration Market: Market Drivers Ranked in Order of Impact (North America), 2009-2015

3.1 b. Major Drivers Analysis

3.1 c. Cogeneration Market: Market Restraints Ranked in Order of Impact (North America), 2009-2015

3.1 d. Major Restraints Analysis

3.2 Installed Capacity Forecasts

3.2 a. Total Installed Capacity Forecasts

3.2 b. Gas Turbine Installed Capacity Forecast

3.2 c. Steam Turbine Installed Capacity Forecast

3.2 d. Combined Cycle Installed Capacity Forecast

3.2 e. Reciprocating Engine Installed Capacity Forecast

3.2 f. Microturbine Installed Capacity Forecast

3.2 g. Fuel Cell Installed Capacity Forecast

4. Market Trends

4.1 Main Federal and State Incentives and Legislations

4.1 a. State Legislation on CHP

4.1 b. Federal Incentives

4.1 c. Emission Legislation

4.1 d. American Recovery and Reinvestment Act of 2009

4.1 e. Other Initiatives on the Energy Agenda

4.2 Technology Analysis

4.2 a. Technology Analysis

4.2 b. Gas Turbines

4.2 c. Steam Turbines

4.2 d. Reciprocating Engines

4.2 e. Microturbines

4.2 f. Fuel Cells

4.3 Application Trends

4.3 a. Applications

4.3 b. Installed Capacity by Application

4.4 Price Analysis

4.4 a. Price Analysis

5. Market Competitive Environment Analysis

5.1 Competitive Structure

5.1 a. Analysis of Major Participants

5.1 b. Market Share Analysis

5.2 Major Research Findings

5.2 a. Strategic Recommendations

5.2 b. Conclusion

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