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Combined Heat and Power (CHP) Market Size, By Fuel (Natural Gas, Coal, Biomass), By End-use (Residential [Space Heating/Cooling, Water Heating, Cooking, Lighting & Others], Commercial [Educational Institution, District Energy, Office Building, Government/Military], Industrial [Chemical, Petroleum Refining, Food, Paper, Primary Metals]), By Capacity (1 kW – 0.5 MW, 0.5 MW – 5 MW, Above 5 MW), By Technology (Combined Cycle, Steam Turbine, Gas Turbine, Reciprocating Engine), COVID-19 Impact Analysis, Regional Outlook, Competitive Market Share & Forecast, 2022 – 2028

  • Report ID: GMI1537
  • Published Date: Mar 2022
  • Report Format: PDF

Industry Trends

Combined Heat and Power Market size valued at USD 18.6 billion in 2021 and is projected to expand at a CAGR of over 8.1% from 2022 to 2028. The technology witnessed a substantial penetration across the globe owing to ongoing efforts to reduce the reliance on coal power plants and the introduction of cleaner generation technologies to curb soaring emissions.
 

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However, the CHP market has observed a setback in the last two years due to the ongoing coronavirus outspread, which has compelled policymakers to impose strict lockdown protocols. These protocols have hindered the operations of manufacturing industries and various commercial offices, which in turn, have affected the demand for CHP technology across the globe.
 

Moreover, the industry is set to bounce back in 2022 as countries across regions are easing the lockdown protocols and allowing offices & industries to resume their operations. Furthermore, ongoing vaccination drives to slow the virus spread will further complement the market growth in the coming years.
 

Lower prices and emissions will foster the demand for natural gas as a fuel for CHP technology

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Natural gas fuel segment in the combined heat and power market is anticipated to reach USD 11.5 billion by 2028. Natural gas is the most preferred fuel in the CHP technology. Its price is expected to gain competence compared to other alternatives on account of its high efficiency, increased production across the globe, and significantly low carbon emissions. Governments across the globe are trying to increase the share of cleaner fuels in their energy mix, which in turn, will impel the demand for natural gas over the coming years. In addition, stringent governmental regulations and targets for carbon emission will oblige policymakers to introduce cleaner fuels including natural gas, which in turn, will propel the share of natural gas as a fuel in the market.
 

Lower emission rates along with cost competitiveness compared to its counterparts will stimulate the acceptance of this technology. The soaring adoption of gas technologies across developed economies impelled by the rising concerns pertaining to the rapid depletion of conventional resources will drive the industry landscape. Additionally, the rising global energy demand will force regulators to enhance the production of natural gas, which in turn, will proliferate the market expansion.
 

Ongoing investments in the commercial sector development

The combined heat and power market share from commercial sector is poised to showcase a substantial gains during the forecast period. This growth is attributed to the ongoing fund inflows by respective governments for the development of various commercial establishments including offices, educational institutes, hospitals, and others. District heating or cooling is also gaining wide recognition across developed countries due to increasing space heating/cooling demand together with the technology’s high energy efficiency, reliability & lower overall costs, in turn, complementing CHP technology penetration. Moreover, ongoing investments in green buildings owing to strict building emission norms will further impel commercial segment growth in the coming years.
 

Ongoing expansion of the residential and commercial sectors

The CHP market for 1 kW – 0.5 MW capacity segment is estimated to attain a 9.7% growth rate till 2028. Low-capacity systems are primarily deployed coupled with biomass fuel across small residential and commercial establishments including restaurants, small-scale industries, and office buildings, amongst others. High energy efficiency and low operating costs are a few factors that complement the adoption of low-capacity CHP systems across different establishments.
 

Furthermore, the expanding residential and commercial sectors coupled with an increasing demand for reliable & uninterrupted electricity supply have eventually influenced the industry growth. Ongoing technological advancements including co-generation and tri-generation technologies further provide ample support to cater to heating & cooling demands in the industry landscape.
 

Long working life and high reliability to proliferate the industry outlook of steam turbines

The steam turbines technology in the combined heat and power market is slated to witness considerable growth during the forecast timeframe, attributed to its high reliability, smooth operations, and a very long operational life compared to other alternatives. These units are usually available in the range of 0.5 MW to several hundred MW and thus can be used for applications ranging from small industries to utilities. Additionally, the requirement of low mass flow rates, lower vibrations, high power-to-weight ratio, and high thermal efficiency compared to other alternatives are a few key advantages offered by steam turbines, making them suitable for use in combined heat & power systems.
 

Declining reliance on coal power plants will positively sway the growth for North America region

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The North America combined heat and power market is expected to register USD 2.4 billion revenue through 2028. Governments across the region have set strict carbon emission targets owing to which these countries are reducing their reliance on coal-powered power plants and introducing cleaner fuels to their energy mix.
 

A burgeoning energy demand along with the deployment of gas-based technology across these countries will accelerate the business landscape. In addition, extreme climatic conditions across Canada and a few U.S. states including Alaska will fuel the demand for energy-efficient & reliable space heating technologies, which in turn, will spur the CHP market progression in the region.
 

Steady strategic implications including partnerships, mergers, collaborations, and acquisitions will enhance the market share of major players

Eminent participants operating across the combined heat and power market include ABB, Siemens, General Electric, Kawasaki Heavy Industries, Caterpillar Inc., Yanmar Holdings Co., Ltd., Wartwsila, MAN Energy Solutions SE, Bosch Industriekessel GmbH, Cummins, Inc., and MWM, amongst others. These leaders are implementing various strategies including acquisitions, contracts, agreements, and collaborations with component manufacturers and suppliers to gain a competitive edge in the industry.
 

The combined heat and power market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘MW’ & ‘USD” from 2017 to 2028 for the following segments:

Market, By Fuel

  • Natural Gas
  • Coal
  • Biomass
  • Others

Market, By End-use

  • Residential
    • Space Heating/Cooling
    • Water Heating
    • Cooking
    • Lighting & Others
  • Commercial
    • Educational Institution
    • District Energy
    • Office Buildings
    • Government/Military
    • Others
  • Industrial
    • Chemicals
    • Petroleum Refining
    • Food
    • Paper
    • Primary Metals
    • Others

Market, By Capacity

  • 1kW - 0.5MW
  • 0.5 MW – 5 MW
  • Above 5MW

Market, By Technology

  • Combined Cycle
  • Steam Turbine
  • Gas Turbine
  • Reciprocating Engine
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Finland
    • Russia
    • Germany
    • Denmark
    • Sweden
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
  • Rest of the world
    • Saudi Arabia
    • South Africa
    • Brazil
       
Authors: Ankit Gupta, Riya Gupta

Frequently Asked Questions (FAQ) :

The market size of combined heat and power (CHP) surpassed $18.6 billion in 2021 and is expected to observe more than 8.1% CAGR between 2022 and 2028.
The natural gas segment is predicted to reach $11.5 billion by 2028 as the fuel is an eco-friendly alternative to fossil fuels and provides many advantages to end-users.
1 kW-0.5 MW CHP systems are anticipated to record 9.7% CAGR through 2028 as these systems are installed across several residential and commercial establishments, such as small-scale industries, restaurants, and office buildings.
North America CHP market share is estimated to surpass $2.4 billion by 2028 as the regional governments have set stringent carbon emission targets, prompting countries to increase the adoption of clean fuels.
Reputed companies, such as Siemens, ABB, Kawasaki Heavy Industries, General Electric, Caterpillar Inc., Wartsila, Yanmar Holdings Co., Ltd., and Cummins, Inc., among others, are powering the global industry potential.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 21
  • Tables & Figures: 838
  • Countries covered: 16
  • Pages: 528
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