Combined Heat And Power Market Size By Fuel (Natural Gas, Coal, Biomass), By End User (Residential [Space Heating/Cooling, Water Heating, Cooking, Lighting], Commercial [Educational Institution, District Energy, Office Building, Government/Military], Industrial [Chemical, Petroleum Refining, Food, Paper, Primary Metals]), By Capacity (1 kW – 0.5 MW, 0.5MW - 5MW, Above 5 MW), By Technology (Combined Cycle, Steam Turbine, Gas Turbine , Reciprocating Engine), Industry Analysis Report, Regional Outlook, Price Trends, Competitive Market Share & Forecast, 2017 – 2024

Published Date: Apr 2017  |  Report ID: GMI1537  |  Authors: Ankit Gupta, Aditya Singh Bais

Report Format: PDF   |   Pages: 300   |   Base Year: 2016

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Combined Heat and Power Market size in 2016 was worth over USD 24 billion and the annual capacity will exceed 27 GW by 2024.

Russia CHP Market Size, By End user, 2016 & 2024 (USD Million)

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Rising demand for captive power generation along with shifting focus toward sustainable energy is set to strengthen the CHP market share. Increasing carbon footprint, enhanced security and rising penetration of clean energy will augment the product adoption. Increasing investments toward sustainable energy technologies to reduce emissions will complement the industry outlook. The government of China In 2017, cancelled around 100 impending coal fired plants with a projected capacity of 120 GW.

Growing demand for decentralized power generation coupled with the widespread availability of these systems in extensive range of capacities and configurations will positively influence the industry scenario. Growing demand for high efficiency systems, low operating costs and competitive gas prices will influence the technology adoption across the emerging economies. In addition, favourable government initiatives including feed in tariff, tax rebates and financial assistance will encourage the product penetration.

Combined Heat And Power Market Report Coverage
Report Coverage Details
Base Year: 2016 Market Size in 2016: 24 Billion (USD)
Historical Data for: 2013 to 2016 Forecast Period: 2017 to 2024
Forecast Period 2017 to 2024 CAGR: 7.3% 2024 Value Projection: 40 Billion (USD)
Pages: 300 Tables, Charts & Figures: 429
Geographies covered (16): U.S., Canada, Mexico, UK, Finland, Russia, Germany, Denmark, Sweden, China, Japan, South Korea, India, Saudi Arabia, South Africa, Brazil
Segments covered: Fuel, End User, Technology and Region
Companies covered (21): MAN Diesel & Turbo SE, ENER-G Rudox, Caterpillar Inc., Mitsubishi heavy Industries ltd., General Electric, Kawasaki Heavy Industries Ltd, Bosch Thermotechnology Ltd., Viessmann Werke GmbH Co., Fuelcell Energy Inc., Cummins, Veolia, BDR Thermea Group B.V., CENTRAX, Wartsila, ABB Limited, G Energy AG, Siemens Ltd., Yanmar., MWM, Aegis Energy Services, Inc., Edina
Growth Drivers:
  • North America
  • Reducing dependency on conventional coal fired plant
  • Stringent emission norms
  • Europe
  • Growing adoption of biomass power plants
  • Increase demand for district heating
  • Asia Pacific
  • Increasing industrialization and urbanization
  • Increasing clean energy demand
Pitfalls & Challenges:
  • Lack of grid infrastructure

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Combined Heat And Power Market, By Fuel

Introduction of various schemes including non-domestic renewable heat incentives and road transport fuel certificates is set to enhance the demand for CHP systems running on biomass.  Favourable government mandates toward sustainable energy coupled with growing consumer awareness toward proper waste management will stimulate the market.

Natural gas was worth over USD 6 billion in 2016. Declining prices on account of increasing hydrocarbon production and retrofitting of the conventional power generation plants with gas fired plants will complement the industry outlook. In addition, low operating costs, lesser fuel consumption and increased efficiency are some of the underline parameters augmenting the product deployment.

Combined Heat And Power Market, By Technology

Ongoing adoption of gas fired systems owing to reduced carbon footprint combined with the ability to meet diverse power needs will enhance the product penetration. Replacement of conventional power generation stations with cogeneration plants will to propel the industry growth. In 2015, the Government of UK announced its ambitious targets toward emission reduction and to close traditional power plants by 2025.

Reducing losses, effective design and easy configuration are some of the key factors driving combined cycle power plants. The process enables electrical and heat energy generation in one cycle which is set to augment the product penetration when compared with other alternatives. The government of the U.S., through various R&D programs including the Climate Change Technology program and FutureGen 2.0 project promotes the Integrated Gasification Combined Cycle (IGCC) technology.

Combined Heat And Power Market, By End User

Commercial applications will witness growth owing to increasing demand for electricity along with extensive adoption of district energy across the European region. Accelerating investments in the green building structure deployment coupled with introduction of stringent building emission norms will foster the industry outlook. The Government of UK, in 2017 introduced the sixth nondomestic Renewable Heat Incentive (RHI) program to provide financial incentives for renewable heat generation across the nation.

Accelerating investments toward construction activities coupled with increasing utilization across space heating, lighting and cooking among others will positively impact the residential CHP industry growth. Increasing penetration of small heating systems in economies owing to growing use of biomass as a fuel will foster the product penetration. In addition, rapid urbanization owing to increasing per capita income and improved standards of living is set to complement the business scenario.

Combined Heat And Power Market, By Capacity

Brazil CHP Market Size, By Capacity, 2016 (USD Million)
Brazil CHP Market Size, By Capacity, 2016 (USD Million)

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0.5 MW – 5 MW capacity is projected to exceed USD 13 billion by 2024. Enhanced energy consumption by industrial consumers owing to favourable government policies and rapid industrialization will augment the product installation. Growing demand for reliable and uninterrupted power supply for effective running of manufacturing operations will strengthen the adoption of cogeneration technology for captive use. In addition, increasing R&D activities across sustainable energy sector coupled with favourable regulations pertaining to emission reductions will influence the industry scenario.

1 kW – 0.5 MW capacity will grow owing to higher usage across various commercial and residential applications including planned communities, districts and cities. Growing adoption of biomass fuelled systems along with increasing application in cold regions will stimulate the product penetration. In 2018, the Department of Energy (DOE) announced installation of 81.3 GW of CHP systems at over 4,000 sites across the U.S.

Combined Heat And Power Market, By Region

North America region is projected to grow owing to favourable state incentives, policies, resiliency initiatives, CHP-friendly environmental regulations and utility support. Rising focus toward sustainable energy along with several government incentives for clean energy will boost the industry growth. The U.S. department of energy introduced the Better Building initiative in 2017 to keep a track of the CHP installations across the region.

Growing demand for district heating systems owing to changing climatic conditions coupled with continuous technological innovations leading to optimization of fuel flexibility will stimulate the Russia CHP industry.  Increasing adoption of cogeneration plants to achieve economically low carbon footprint in line with the national emission reduction targets will further encourage the product adoption.

Competitive Market Share

Major players operating across the CHP market includes Wartsila, Mitsubishi, MAN Diesel & Turbo, General Electric, ENER-G Rudox, Caterpillar, Bosch Thermotechnology, Kawasaki, FuelCell Energy, Cummins, Viessmann Werke, CENTRAX Gas Turbines, MWM, Veolia, BDR Thermea, ABB, Yanmar, Aegis Energy, 2G Energy and Siemens.

Combined Heat And Power Industry Background

Combined heat and power systems or cogeneration plants generate electricity and useful thermal energy in a single, integrated system. The energy generated can be used for space heating, cooling and domestic hot water among other industrial processes. The systems are located at an individual facility or a building where there is combined need for electricity and thermal energy. In addition, the systems by avoiding distribution losses can achieve efficiencies over 80%.

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