CHP Market size worth over $32 Bn by 2028

Combined Heat and Power Market size is set to surpass USD 32 billion by 2028, as reported in the latest study by Global Market Insights Inc.
 

The market growth is owing to the ongoing efforts of the governments to reduce the reliance on conventional power plants including coal power plants. Moreover, the implementation of strict emission norms by the regulators will further fuel the need for cleaner technologies, proliferating the market progression during the forecast period.
 

However, the ongoing COVID pandemic has adversely impacted the industry growth over the last two years. The closure of industrial activities and commercial establishments has subdued the deployment of CHP units across these buildings. Furthermore, the industry is expected to bounce back in the coming years on account of the ongoing vaccination drives across the world along with governmental efforts to lift the lockdown protocols to boost the economy growth in the coming years.
 

Stringent emission norms will subdue the deployment of coal-based CHP power plants

Low generation cost, high efficiency, and easy availability are a few of the key factors that complement the penetration of coal-fueled CHP power plants in developing nations across Asia Pacific. However, the demand for high emission fuel is facing a significant downturn, primarily due to the stringent carbon emission regulations, leading to an increase in the demand for renewable energy technology. In addition, governments of various countries are shifting to cleaner fuels because of strict emission targets, which will further hamper the demand growth of coal during the forecast timeframe.
 

Soaring space heating demand to stimulate the technology demand across the residential sector

The residential CHP market is anticipated to witness a noteworthy growth during 2022 to 2028 led by the growing space heating demand across cold countries including Russia, Canada, and Denmark. These units are utilized to provide various functions including water heating, lighting, space heating/cooling, and cooking amongst others across the residential sector. Rising concerns toward the GHG emissions from residential HVAC systems along with governmental efforts to deploy sustainable and energy-efficient technologies across small and multi house establishments will further spur the technology acceptance during the forecast timeline.
 

Browse key industry insights spread across 528 pages with 803 market data tables & 35 figures & charts from the report, “Combined Heat and Power 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” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/combined-heat-and-power-CHP-market
 

Rising electricity demand across commercial establishment will propel the adoption of 0.5 MW- 5 MW capacity CHP systems

CHP systems with medium capacity are gaining a wide recognition across applications including medium scale industrial and commercial establishments. Ongoing industrialization across developing nations credited to the favorable governmental schemes to promote industrial activities has risen the electricity consumption across these establishments substantially. This rise in energy demand will fuel the requirement for efficient power generation systems, thereby fostering the market expansion.
 

Furthermore, the growing demand for reliable power to effectively run manufacturing operations will further lead to the acceptance of cogeneration technology for captive usage, proliferating the industry progression during the forecast timeline. In addition, several nations across the globe have also implemented various norms to encourage captive CHP generators to sell the surplus power in the spot market, thereby augmenting the market value.
 

Increasing demand for gas-fired technology to accelerate the gas turbine adoption for CHP systems

Gas turbines segment is projected to register 7.1% growth rate till 2028. These units are extensively utilized across cogeneration owing to their wide range of capacities and configurations. The gas turbines are available in capacities ranging from 0.5 MW to 300 MW, making them highly deployable for applications across residential, commercial, and industrial sectors.
 

The gas turbine technology is further estimated to observe a high demand growth in the upcoming years on account of its numerous features including high reliability, low emissions, and high-grade heat availability, making it a favorable technology for CHP systems. Additionally, many nations across the globe are shifting toward a gas-based economy and thus are curbing the use of coal for power generation in order to meet their emission targets, complementing the deployment of gas turbines along with CHP technology during the forecast timeframe.
 

Growing investments in the deployment of cleaner technologies will sway the demand for the technology across European region

Europe CHP market is poised to expand more than 8.7% CAGR till 2028 driven by the ongoing efforts to replace conventional power generation and HVAC systems with cleaner & sustainable technologies. The region is witnessing a steady rise in the demand for an efficient space heating/cooling technology from the residential sector, which will favor the deployment of CHP systems across these establishments. The governments across the region are readily investing in more energy-efficient and economical technologies including district heating & cooling and others.
 

Acquisitions and backward integration are amongst the key strategies adopted by market players to gain a bigger industry share

Key companies operating in the combined heat and power (CHP) market include Kawasaki Heavy Industries, Wartsila, MAN Energy Solutions, Caterpillar, Veolia, Siemens, General Electric, Bosch, Cummins, Inc., MWM, Edina, and ABB. These leaders are investing in strategic implications including collaborations, acquisitions, and joint ventures to gain a bigger market share in the industry. Moreover, participants are further expending in R&D activities to develop innovative technologies and gain a competitive edge in the market.