Combined Heat and Power Market Size - Global Industry Share, Analysis, Trends and Forecast 2022 - 2030
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The Global Combined Heat and Power (CHP) Market Size Accounted for USD 19,756 Million in 2021 and is predicted to be worth USD 33,801 Million by 2030, with a CAGR of 6.3% during the Forthcoming Period from 2022 to 2030.
Rapid industrialization in developed and developing countries, increasing manufacturing process and production units in order to cater the ongoing demand for products, high government spending on development of present infrastructure related to electricity generation are some major factors expected to drive the growth of the global combined heat and power market. There is high cost associated to electricity generation and the government is focused on development alternate source of electricity generation. The combined heat and power (CHP) tend to be a better solution for electricity generation due to energy efficiency.
Global Combined Heat and Power Market DRO’s
Market Drivers
- Increasing government incentives and programs to promote CHP
- Significant advantages of CHP systems in wastewater treatment centers
- the increase in natural gas use for power production
- Reducing reliance on traditional coal-fired power plants
Market Restraints
- Higher costs for CHP system installation and upkeep
- Growing concerns over stable liquefied natural gas for CHP systems
Market Opportunities
- The continue rising in the deployment of micro-CHP mechanisms
- Growing trend of distributed power generation is opening up enormous opportunities for the gas turbine-based CHP market
Combined Heat and Power Market Report Coverage:
| Market | Combined Heat and Power Market |
| Combined Heat and Power Market Size 2021 | USD 19,756 Million |
| Combined Heat and Power Market Forecast 2030 | USD 33,801 Million |
| Combined Heat and Power Market CAGR During 2022 - 2030 | 6.3% |
| Combined Heat and Power Market Analysis Period | 2018 - 2030 |
| Combined Heat and Power Market Base Year | 2021 |
| Combined Heat and Power Market Forecast Data | 2022 - 2030 |
| Segments Covered | By Capacity, By Fuel, By Technology, By End Use, And By Region |
| Combined Heat and Power Market Regional Scope | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Companies Profiled | Mitsubishi Hitachi Power Systems, GE Power, Siemens, Veolia, Wartsila, 2G Energy, Man Diesel & Turbo, Clarke Energy, Caterpillar Energy Solutions (MWM), AB Holding, FuelCell Energy, and Capstone. |
| Report Coverage |
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis |
Combined Heat and Power Market Dynamics
Various advantages associated to combined heat and power such as high reliability, economical and environment friendly this is another factor resulting in inclination toward adoption of combined heat and power further supporting the growth of target market. CHP reduces emission of greenhouse gases and other pollution. Natural Gas, Biogas/Biomass, etc. are some major fuel used for energy generation as during the process less fuel is burned and distribution losses are avoided.
In addition, collaborative work between public and private players is another factor expected to impact the growth of target market positively.
- In 2018, Hong Kong & China Gas Company jointly with the hospital initiated a project for development of CHP electricity generation. The project was focused on using landfill gas from the North East New Territories (NENT) landfill as fuel in order to generate electricity as well as steam and hot water for various hospital systems and facilities. The Hong Kong & China Gas Company constructed a 19 km, 400mm diameter pipeline from NENT landfill site with a 600-metre branch pipeline to supply methane the CHP plant.
However, factors such as high initial investment and cost associated to products related to electricity generation are expected to hamper the growth of target market. In addition, inclination towards renewable power generation is expected to challenge the growth of target market.
Technological advancements by the major players, high investment for product development and introduction of cost effective products are factors responsible to create new opportunities for players over the forecast period. In addition, business development activities through strategic merger and acquisitions are expected to further support the revenue traction of target market.
- In 2019, Clarke Energy acquired Co-Energy America a Boston-based combined heat and power (CHP) solutions provider specializing in the design, manufacture, installation and maintenance of gas engine CHP systems. This acquisition is expected to help the company in packaging and assembly capability for the US market.
Combined Heat and Power Market Segmentation
The global combined heat and power market segmentation is based on the capacity, fuel, technology, end use, and geographical region.
Market by Capacity
- Up to 10 MW
- 10 MW to 150 MW
- 150 MW to 300 MW
- Above 300 MW
Based on capacity, the Up to 10 MW segment is anticipated to witness the fastest-growing section of the CHP market throughout the projected period. The popularity of CHPs in this capacity fragment comes primarily from industrial, residential, as well as commercial end users.
Market by Fuel
- Natural Gas
- Coal
- Biomass
- Others
In terms of fuel, the natural gas-based CHP segment held a sizable market share in 2021. Natural gas properties such as ease of transportation and configuration, as well as a lower environmental impact, have increased sales demand for natural gas-based combined heat and power system applications.
Market by Technology
- Gas Turbine
- Steam Turbine
- Reciprocating Engine
- Fuel Cell
- Microturbine
According to the combined heat and power market forecast, the fuel cell segment is expected to have a significant share of the market over the forthcoming period. The fuel cell is a revolutionary power generation innovation that utilizes the chemical-based energy in a fuel that is effectively transformed into electricity without the need for a combustion reaction. The fuel cell tends to generate electricity, water, and heat as byproducts, making it a relatively clean technique than some other main forces for electrical generation.
Market by End Use
- Residential
- Commercial
- Industrial
Combined Heat and Power Market Regional Outlook
North America
- U.S.
- Canada
Europe
- U.K.
- Germany
- France
- Spain
- Rest of Europe
Latin America
- Mexico
- Brazil
- Rest of Latin America
Asia-Pacific
- India
- Japan
- China
- Australia
- South Korea
- Rest of Asia-Pacific
The Middle East & Africa (MEA)
- Gulf Cooperation Council (GCC)
- South Africa
- Rest of the Middle East & Africa
The market in North America is expected to account for major revenue share owing to high government spending on development of CHP infrastructure. In addition, presence of players operating in country, coupled with innovative product offerings is expected to further support the growth of target market in this region.
Asia Pacific is expected to witness faster growth in the near future owing to rapid industrialization in developing countries. In addition, inclination towards untapped market in the emerging economies is expected to impact the target market growth positively.
Combined Heat and Power Market Players
Presence of large number of players operating on regional and international level is increasing the competition. In addition, business development activities and new product offerings are factors further augmenting the market competition.
Some of the prominent global combined heat and power market companies are Mitsubishi Hitachi Power Systems, GE Power, Siemens, Veolia, Wartsila, 2G Energy, Man Diesel & Turbo, Clarke Energy, Caterpillar Energy Solutions (MWM), AB Holding, FuelCell Energy, and Capstone.