What Has Been The Evolution of the Combined Heat And Power Market in Recent Years?
The combined heat and power market has seen considerable growth due to a variety of factors.
• In recent times, the market size for combined heat and power has seen substantial growth, escalating from $29.17 billion in 2024 to an expected $31.01 billion in 2025, a 6.3% increase in terms of compound annual growth rate. This expansion during the historical period is primarily due to factors such as the setting of energy efficiency targets, industrial cogeneration, emerging environmental mandates, increased usage of combined cooling, heating and power (CCHP) systems, projects of district heating and cooling, waste heat recovery, energy generation decentralization, and heightened knowledge about the advantages related to CHP.
What Are the Future Growth Projections for the Combined Heat And Power Market Size?
The Combined Heat And Power market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for combined heat and power is anticipated to undergo substantial growth in the upcoming years, potentially reaching $41.61 billion by 2029, with a compound annual growth rate (CAGR) of 7.6%.
The predicted growth within this period can be associated with several factors such as the shift towards low-carbon energy systems, the integration of smart grids, resilience planning within critical infrastructures, urban and district energy networks development, the initiation of biogas and biomass CHP projects, and the support of micro-CHP in residential areas. The future trends during this period are likely to be energy-as-a-service (EaaS) models, market consolidation and partnerships, remote monitoring and control, technological progress, grid resilience and reliability, collaboration among utilities and CHP providers, and advancements in fuel cell CHP systems.
What Are The Core Factors Supporting Growth In The Combined Heat And Power Market?
The combined heat and power market is experiencing a surge, fueled by the increasing usage of biomass power. This power, derived from organisms that are either currently living or were once alive, such as plants, can be harnessed and transformed into heat or electricity. Biomass is incorporated into combined heat and power (CHP) systems to generate energy through the process of biomass gasification. It is also used for the advancement of micro-CHPs and hydrogen energy systems, in which biomass gasification is utilised alongside biomass feedstock to create fuel cells. For example, data from the U.S. Energy Information Administration (EIA) suggests that by April 2024, renewables will be responsible for 24% of U.S. electricity generation, which is expected to increase to 25% in 2025. Out of this, biomass is presumed to contribute around 2.27% to renewable electricity generation in 2024. The rising popularity of biomass power is thus predicted to catalyze the expansion of the combined heat and power market in the subsequent years.
What Are The Major Segments Within The Global Combined Heat And Power Market?
The 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
Subsegments:
1) By Natural Gas: Gas Turbines, Reciprocating Engines
2) By Coal: Coal-Fired Boilers, Integrated Gasification Combined Cycle (IGCC)
3) By Biomass: Wood Chips, Agricultural Residues
4) By Other Fuel: Oil, Waste Heat Recovery
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Which Trends Are Expected To Transform The Combined Heat And Power Market?
Leading firms in the combined heat and power market, such as Bloom Energy, are introducing innovative technological solutions like the Bloom Energy Server to enhance their market profitability. Introduced in February 2023 by the American green energy company, Bloom Energy, the Bloom Energy Server is a fuel cell power generator that effectively generates electricity suitable for a range of energy needs whilst maintaining a small modular footprint. This advanced technology provides an affordable, robust, and reliable onsite power which can be used across various sectors due to its adaptability and growth potential. The technique is flexible in terms of fuel usage and is able to generate power from sources such as natural gas, mixed hydrogen, biogas, and hydrogen, all thanks to its Solid Oxide technology that operates at high temperatures.
Who Are the Key Players In The Combined Heat And Power Market?
Major companies operating in the combined heat and power market include:
• 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
What Is The Most Dominant Region In The Combined Heat And Power Market?
Asia-Pacific was the largest region in the combined heat and power market in 2024. 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.
