In Combined Heat and Power for Commercial Buildings, the analysts estimate that 2012 annual revenue will reach $2.2 billion, with installed commercial CHP production capacity of more than 38 GWe this year.
But Pike says the commercial CHP market, which includes hospitals, schools, high-rises, prisons and other buildings, represents a smaller portion of installed CHP globally than industrial applications.
Commercial installations are primarily located in developed nations — Northern Europe, South Korea, Japan and the US — and in 2011, about 37 GWe was installed with an average capacity of about 4 MWe per installation, worldwide. Europe currently leads the commercial CHP market, followed closely by North America.
While Pike Research puts commercial CHP potential at 386 billion square feet globally, the firm says high upfront costs prevent this total from being realized.
However, energy-saving potential and guaranteed power supply — a critical factor for hospitals, data centers, universities and the like — are driving companies to install CHP. While hospitals and institutional buildings represent the greatest number of CHP installers, small and large commercial buildings will increase their market share over the next decade, the report forecasts.
Additionally, Pike Research says more buildings in Asia Pacific, especially in counties like China with increasing urban populations, will lead the growth of commercial CHP in new markets. The Asia Pacific market will grow the fastest during the forecast period, and along with Europe and North America will represent 92 percent of installed capacity in 2022, according to the report.
Earlier this month, the DoubleTree Hotel in Tarrytown, NY, installed a CHP system that is expected to reduce its carbon emissions by about 403 tons per year, and in April, the Hilton New York installed a 1.75 MW CHP system.
Also this spring, DataGryd opened an energy-efficient data center with a CHP system in New York City’s old Western Union Building.