Combined Heat and Power (CHP) Market - Forecasts from 2025 to 2030

The combined heat and power (CHP) market is evaluated at US$22.590 billion in 2025, growing at a CAGR of 11.21% and reaching a market size of US$38.433 billion by 2030.

Combined heat and power (CHP) refers to an energy-efficient system that generates electricity from several types of fuels and can capture the heat generated and be reused for space heating, domestic hot water, and industrial processes, among others. These systems can be installed in several places, such as buildings, utilities, individual facilities, and others. Combined heat and power systems are often considered useful, especially for facilities with both electricity and heat requirements.

This market is primarily driven by the constantly growing end-user requirements for replacing conventional energy systems due to considerably high operational and maintenance costs and uninterrupted utility supply. Furthermore, the constantly growing usage of natural gas also catalyzes the combined heat and power systems market growth during the forecast period. Additionally, the growing demand for energy efficiency, especially across the industrial sector, has further propelled the adoption of these systems in the coming years, which, in turn, is significantly shaping the market growth during the coming years.

The beneficial features offered by these cogeneration systems, such as enhanced reliability, efficiency, and safety, have also led to an upsurge in their adoption across several countries. Many countries, both developed and developing, are now focusing on reducing greenhouse gas emissions. This shift in priority has resulted in increased investment in renewable energy projects. As a result, manufacturers are expected to see significant business growth opportunities over the next five years.

According to the United States Environmental Protection Agency, approximately two-thirds of the energy that is primarily used by conventional energy systems is often wasted as discharged heat into the atmosphere. During the electricity distribution process, a significant amount of energy is also wasted in the form of heat. Thus, these systems are considered highly beneficial as they can capture the heat and help with distribution losses. These systems can improve efficiency by almost 80%, which is around 30% higher than the conventional technologies used.

Combined Heat and Power (CHP) Market Drivers

• Government regulations to boost the market expansion

The combined heat and power market is primarily being driven by the growing focus of governments worldwide on reducing carbon footprints with the aim of protecting the environment, as heavy dependence on fossil fuels has led to a degradation of the overall environment. As a result, governments and corporations worldwide are investing in exploiting the potential offered by renewable energy sources, i.e., wind, solar, and hydroelectric energy. Growing investment in the setting up of clean energy power plants coupled with favorable government policies is poised to create significant business opportunities for combined heat and power systems manufacturers over the coming years.

Combined Heat and Power (CHP) Market Geographical Outlook:

• Europe and North America to show significant growth in the projected period

Geographically, the European region is anticipated to hold a considerable market share because it boasts of being one of the most prominent regions inclined towards reducing carbon emissions. Several countries in the region are taking all the necessary steps to curb carbon emissions. Increased investments in clean energy projects are also a key factor supplementing the market growth in the European region during the next five years. Stringent regulations regarding the promotion of CHP projects in the form of funding and subsidy schemes are also one of the major factors supporting the regional market expansion.

North America is also expected to hold a significant market share since it is one of the most prominent regions in the early adoption of technology. This, along with the presence of cutting-edge infrastructure across the power sector and a growing emphasis on increasing the installation capacity of CHP plants in many parts of the region, will be key factors bolstering the market in the North American region over the next five years. Additionally, the Asia Pacific region is projected to show promising growth during the next five years, primarily due to the growing focus of the governments of many countries to increase the share of clean energy in the energy mix.

Reasons for buying this report:-

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, other sub- segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape up future market developments.
• Actionable Recommendations: Utilize the insights to exercise strategic decision to uncover new business streams and revenues in a dynamic environment.
• Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

What do businesses use our reports for?

Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence

Report Coverage:

• Historical data & forecasts from 2022 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The Combined Heat and Power (CHP) market is segmented and analyzed as given below:

By Fuel Type

• Coal
• Natural Gas
• Biomass
• Others

By Application

• Commercial
• Residential
• Industrial

By Configuration

• Combustion Turbine
• Steam Boiler

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• UK
• Italy
• Others
• Middle East and Africa
• UAE
• Saudi Arabia
• Others
• Asia Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others