ID: MRFR/E&P/0603-CR | April 2022 | Region: Global | 132 pages
Impact of COVID-19 on the Global Micro Combined Heat and Power (MCHP) Market
The COVID-19 pandemic has caused a severe decline in the demand for energy from the residential, commercial, and industrial sectors. The energy industry has been affected adversely, as the majority of the countries worldwide such as the US, the UK, China, and India, have imposed lockdown restrictions, shutting down industrial operations, and halting various industrial projects which have resulted in the disruption of supply chains and business operations, leading to a decline in the global demand for energy. According to the International Energy Agency (IEA), the global demand has decreased by 6% in 2020, which is nearly seven times the decline during the 2008 global recession. Additionally, it is also estimated that there has been a decline in the demand for energy in the United States and the European Union by 9% and 11%, respectively. Moreover, it is also estimated that the demand for electricity in several countries reduced by 20% or more during the lockdown period. Therefore, the global market for micro combined heat and power (CHP) has been negatively impacted by the COVID-19 pandemic.
Additionally, many micro CHP manufacturers and suppliers, along with the overall energy industry are anticipated to face several challenges as several projects are at a standstill owing to the supply chain disruptions, unavailability of workers, production shutdown, and cash flow constraints. Moreover, the COVID-19 pandemic has also resulted in huge financial losses to the micro CHP manufacturers and operators due to the decrease in the global demand for energy. All these factors are likely to affect the micro CHP market in the coming months. Thus, the COVID-19 pandemic has considerably disrupted the momentum of the global energy industry. However, the global demand for micro CHP is anticipated to grow significantly in the coming months.
Global Investment in Energy, 2017-2020 (USD Billion)
Government authorities in many countries across the world have continued to focus on the development and installation of micro CHP owing to its high energy efficiency and rising awareness regarding carbon emissions. Micro CHP has an overall efficiency of more than 90% and is used to meet the demand for energy from both residential and non-residential sectors. Additionally, the global players in the market are focused on developing preventive measures and new business models to address the situation in the global market.
Source: Primary Experts, Secondary Sources, and MRFR Analysis