On Grid Combined Heat And Power Market Report 2026

On Grid Combined Heat And Power Market Overview

• On Grid Combined Heat And Power market size has reached to $24.56 billion in 2025 • Expected to grow to $33.28 billion in 2030 at a compound annual growth rate (CAGR) of 6.3% • Growth Driver: Increasing Demand For Energy Efficiency Is Fueling The Growth Of The Market Due To Simultaneous Generation Of Electricity And Useful Heat, Reducing Energy Consumption And Operational Costs • Market Trend: Advancements In Hydrogen-ready On-grid Combined Heat And Power Systems • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under On Grid Combined Heat And Power Market?

On grid combined heat and power refers to an energy generation system that simultaneously produces electricity and useful thermal energy while being connected to the main utility grid. It improves overall energy efficiency by capturing and reusing heat that would otherwise be wasted during electricity generation. The system allows surplus electricity to be supplied to the grid and ensures reliable power availability when on-site generation is insufficient. The main products of on-grid combined heat and power are gas turbine, steam turbine, reciprocating engine, and other products. Gas turbine refers to a turbine-based system that generates electricity and captures waste heat for thermal applications in an integrated manner. These systems are based on various technology types, including microturbines, gas engines, steam turbines, fuel cells, and reciprocating engines, and are available in different system sizes, such as small scale, medium scale, large scale, and commercial scale. They are used across multiple applications, including cogeneration for industrial process heat, residential heating and power supply, District Heating systems, and backup power systems, and serve diverse end-users, such as manufacturing, healthcare, hospitality, and other end-users.

What Is The On Grid Combined Heat And Power Market Growth Forecast?

The on grid combined heat and power market size is expected to see strong growth in the next few years. It will grow to $33.28 billion in 2030 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to decarbonization targets adoption, growth in distributed energy systems, rising industrial power demand, expansion of smart grids, incentives for efficient generation. Major trends in the forecast period include high efficiency cogeneration systems, grid synchronized chp installations, industrial waste heat recovery projects, modular chp plant designs, gas based distributed chp units.

Global On Grid Combined Heat And Power Market Segmentation

1) By Product: Gas Turbine; Steam Turbine; Reciprocating Engine; Other Products 2) By Technology Type: Microturbines; Gas Engines; Steam Turbines; Fuel Cells; Reciprocating Engines 3) By System Size: Small Scale; Medium Scale; Large Scale; Commercial Scale 4) By Application: Cogeneration for Industrial Process Heat; Residential Heating And Power Supply; District Heating Systems; Backup Power Systems 5) By End-User: Manufacturing; Healthcare; Hospitality; Other End-Users Subsegments: 1) By Gas Turbine: Heavy Duty Gas Turbine; Industrial Gas Turbine; Aero Derivative Gas Turbine 2) By Steam Turbine: Condensing Steam Turbine; Back Pressure Steam Turbine; Extraction Steam Turbine 3) By Reciprocating Engine: Diesel Engine; Gas Engine; Dual Fuel Engine 4) By Other Products: Microturbine; Fuel Cell; Stirling Engine

What Is The Driver Of The On Grid Combined Heat And Power Market?

The increasing demand for energy efficiency is expected to propel the growth of the on grid combined heat and power market going forward. Energy efficiency refers to reducing the amount of energy required to perform the same function while minimizing waste and lowering operational costs. The rise in demand for energy efficiency is due to strengthened global policies and initiatives that aim to improve energy performance and reduce carbon emissions. The on grid combined heat and power supports energy efficiency demand by producing electricity and useful thermal energy simultaneously, lowering overall energy consumption and improving cost efficiency for industrial and commercial users. For instance, in November 2025, according to the International Energy Agency (IEA), a France-based intergovernmental body, global primary energy intensity is expected to improve by 1.8% in 2025, up from 1% in 2024, showing a clear acceleration in energy efficiency progress. Therefore, the increasing demand for energy efficiency is driving the growth of the on grid combined heat and power industry.

Key Players In The Global On Grid Combined Heat And Power Market

Major companies operating in the on grid combined heat and power market are Caterpillar Inc., Siemens Energy AG, Cummins Inc., GE Vernova Inc., Mitsubishi Heavy Industries Ltd., Rolls‑Royce Holdings Plc, Kawasaki Heavy Industries Ltd., Wärtsilä Oyj Abp, Ameresco Inc., Vaillant Group, 2G Energy AG, Capstone Turbine Corporation, Viessmann Werke GmbH, Bosch Thermotechnology, Aegis Energy Services Inc., Primary Energy Recycling Corporation, Clarke Energy Ltd., Samad Power Ltd., MAN Energy Solutions SE, and EC POWER A/S.

Global On Grid Combined Heat And Power Market Trends and Insights

Major companies operating in the on grid combined heat and power market are focusing on deploying advanced cogeneration systems, such as hydrogen-ready combined-cycle turbines, to improve fuel efficiency, reduce emissions, and enhance the reliability of grid-connected electricity and thermal energy production. Hydrogen-ready combined-cycle cogeneration refers to power systems that simultaneously generate electricity for the grid and useful thermal energy for industrial processes while being capable of operating with increasing hydrogen fuel blends, thereby improving overall system efficiency and supporting long-term decarbonization goals. For instance, in July 2024, Guangdong Energy Group Co., a China-based power company, launched its Huizhou combined heat and power facility, its hydrogen-ready H-class gas turbine system, which is now fully operational supplying up to 1.34 GW of electricity to the grid and providing continuous steam to a nearby industrial complex. Designed to support high-efficiency, low-emission energy generation, the facility integrates waste heat recovery for continuous steam production and hydrogen-ready operation, enabling higher total energy output, reduced fuel consumption per unit of energy, and stable performance for on-grid cogeneration applications.

What Are Latest Mergers And Acquisitions In The On Grid Combined Heat And Power Market?

In November 2025, Energy Developments Pty Limited, an Australia-based low-emission energy producer, acquired GWE Biogas Ltd. for an undisclosed amount. Through this acquisition, EDL Energy aims to expand its on-grid combined heat and power (CHP) capabilities by integrating the Sandhill facility’s 4.5 MW CHP system and renewable biomethane production, supplying electricity to the national grid and providing heat to local industry. GWE Biogas is a UK-based renewable energy company that operates grid-connected biogas-based combined heat and power facilities, producing electricity for the grid and useful thermal energy onsite.

Regional Insights

North America was the largest region in the on grid combined heat and power market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the On Grid Combined Heat And Power Market?

The on grid combined heat and power consists of heat recovery steam generators, electrical generators, power control panels, grid synchronization equipment, heat exchangers, boilers, and exhaust heat recovery units. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the On Grid Combined Heat And Power Market Report 2026?

The on grid combined heat and power market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the on grid combined heat and power industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.