Combined Heat and Power Market Size

Combined Heat and Power Market Size

Combined Heat and Power Market size was accessed at USD 22.9 billion in 2023 and is anticipated to grow at a CAGR of 7.6% between 2024 and 2032. Chief drivers for the significant growth include the rising demand for energy efficiency, especially in industries, where CHP systems play a pivotal role in curbing energy wastage by simultaneously producing electricity and thermal energy.

According to the U.S. Department of Energy, CHP systems can attain efficiency levels of up to 80%, when compared to the 50% efficiency of conventional systems. Furthermore, the market is bolstered by a global push to cut down on greenhouse gas emissions, with many countries enforcing stricter environmental regulations.

CHP systems, being a sustainable energy solution, are well-positioned to capitalize on this trend. Technological advancements, a shift towards integrating renewable energy sources, and supportive government incentives are all contributing to the market's momentum. Lastly, the economic advantages, such as lower energy costs and heightened energy security, are making CHP systems an attractive choice for many.