Global Combined Heat And Power market growth 2024, Forecast To 2033

1 Mar, 2024

The combined heat and power market has experienced strong growth in recent years, ascending from $27.44 billion in 2023 to$29.23 billion in 2024 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period is attributed to the pursuit of energy efficiency goals, the widespread adoption of industrial cogeneration practices, compliance with environmental regulations, increased applications of combined cooling, heating, and power (CCHP) systems, the implementation of district heating and cooling projects, efforts towards waste heat recovery, the decentralization of energy generation, and heightened awareness of the benefits associated with CHP systems. Looking ahead, the combined heat and power market is expected to see strong growth, projected to reach $38.07 billion in 2028 at a compound annual growth rate (CAGR) of 6.8%. The forecasted growth is driven by the transition towards low-carbon energy systems, the integration of smart grid technologies, resilience planning in critical infrastructure sectors, urbanization trends driving the expansion of district energy networks, the proliferation of biogas and biomass CHP projects, and increasing support for micro-CHP installations in residential settings. Major trends in the forecast period encompass the emergence of energy-as-a-service (EaaS) models, market consolidation and partnerships, advancements in remote monitoring and control technologies, technological innovations enhancing grid resilience and reliability, collaborative efforts between utilities and CHP providers, and the advancement of fuel cell-based CHP systems.

Global Combined Heat And Power Market Key Driver

The increasing adoption of biomass power is propelling the combined heat and power market's growth. Biomass power utilizes energy from living or once-living organisms such as plants, which can be converted into heat or electricity. Combined heat and power (CHP) systems leverage biomass through gasification processes, alongside the development of micro-CHPs and hydrogen energy systems. The US Energy Information Administration reported that nearly 5 quadrillion British thermal units (Btu) of energy in the United States in 2021 were provided by biomass, accounting for 5% of all primary energy. Moreover, the Ministry of New and Renewable Energy highlighted that over 70% of India's population relies on biomass, constituting about 32% of the nation's primary energy use. Therefore, the increasing adoption of biomass power is expected to drive the combined heat and power market.

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Global Combined Heat And Power Market Segments

The global combined heat and power market covered in this report is segmented –
1) By Fuel: Natural Gas, Coal, Biomass, Other Fuel
2) By Technology: Combined Cycle, Steam Turbine, Gas Turbine, Reciprocating Engine, Other Technologies
3) By Capacity: Up To 10 MW, 10-150 MW, 151-300 MW, Above 300 MW
4) By End-Use: Commercial, Industrial, Residential, Utilities, Other End-Uses
By Geography: The regions covered in the combined heat and power market report are Asia-Pacific, Western Europe, Eastern Europe,North America, South America, Middle East, and Africa. Asia-Pacific was the largest region in the combined heat and power market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global combined heat and power (CHP) market share during the forecast period. The regions covered in the combined heat and power market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Major Combined Heat And Power Industry Players

General Electric Company, Siemens AG, Veolia Environnement S.A., Wärtsilä Oyj Abp, 2G Energy AG, Capstone Green Energy Corporation, Caterpillar Inc., Dalkia Aegis EDF Group LLC, Bosch Industriekessel GmbH, Centrica PLC, Cummins Inc., Kawasaki Heavy Industries Ltd., The Viessmann Group, Kohler Co., Elite Energy Systems LLC, MAN Energy Solutions SE, Centrax Gas Turbines, ABB Limited, Tecogen Inc., Aegis Energy Services Inc., Curtis Engine & Equipment Co. Inc., Rolls-Royce Power Systems AG, Mitsubishi Heavy Industries Ltd., Doosan Fuel Cell America Inc., FuelCell Energy Inc., Bloom Energy Corporation, ClearEdge Power Inc., Ceres Power Holdings PLC, Ceramic Fuel Cells Limited, Ballard Power Systems Inc., Plug Power Inc., Hydrogenics Corporation, ITM Power PLC, AFC Energy plc

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Combined Heat And Power Market Overview

Combined heat and power (CHP) refer to the power generation method that uses the cogeneration technique for the simultaneous production of useful thermal energy (heating and/or cooling) and mechanical power or electricity from a single source of energy.

Combined Heat And Power Global Market Report 2023 provides data on the global combined heat and power market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The combined heat and power market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.