U.S. Combined Heat and Power Systems Market by Product Type, Application, and End-Use: Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2024-2033

Persistence Market Research has recently released a comprehensive report on the U.S. Combined Heat and Power (CHP) System for Data Center Market, providing an in-depth analysis of key market dynamics, including drivers, trends, opportunities, and challenges. This report offers valuable insights into the current market structure and future growth prospects, aiding stakeholders in making informed decisions.

Key Insights:

• U.S. Combined Heat and Power Systems Market Size (2024E): US$173.5 Mn
• Projected Market Value (2033F): US$261.3 Mn
• Global Market Growth Rate (CAGR 2024 to 2033): 4.70%

U.S. Combined Heat and Power System Market - Report Scope:

The U.S. combined heat and power (CHP) system market for data centers includes various end-user segments such as institutional, healthcare, and commercial sectors. CHP systems enable efficient energy usage by combining electricity generation and waste heat recovery, reducing greenhouse gas emissions and energy costs. The institutional segment includes entities such as colleges/universities, general government offices, military/national security, miscellaneous education, schools, and space research and technology centers, and is expected to show strong growth in the coming years.

Market Drivers:

The U.S. CHP (Combined Heat and Power) system market for data centers is experiencing notable growth due to several driving factors. Policy support, stemming from initiatives like the Public Utility Regulatory Policies Act (PURPA) of 1978, along with updates in the Energy Policy Act of 1992 and the Clean Air Act, has facilitated the sale of non-utility-generated electricity, encouraging the use of CHP systems across various sectors. Additionally, CHP systems provide a cost-effective solution for reducing greenhouse gas emissions, making them an attractive option for institutions focused on sustainability goals. The continuous decline in natural gas prices has further bolstered demand for CHP systems, particularly in sectors such as colleges and universities. Expanded tax incentives for CHP systems with up to 50 MW capacity and energy efficiency over 60% have also played a key role in increasing adoption among institutional organizations..

Market Restraints:

Despite the positive growth outlook for the U.S. CHP system market for data centers, certain factors are restraining its expansion. One notable challenge is the decline in the healthcare end-user segment. This sector is expected to lose market value share during the forecast period, largely due to limited expansion opportunities and already saturated investments. Furthermore, the healthcare segment is projected to grow at a slower CAGR of 3.3%, with minimal additional investment expected from state governments, making it a less attractive option for CHP system adoption. These factors could temper overall market growth in this area..

Market Opportunities:

The U.S. CHP (Combined Heat and Power) system market for data centers presents several promising opportunities for growth. One of the most attractive segments is the institutional sector, particularly colleges and universities, which is projected to hold a significant market share and exhibit a strong CAGR index, rated close to 5.0 in terms of attractiveness. Additionally, the high energy efficiency of CHP systems, coupled with government incentives and the increasing demand for sustainable solutions, creates significant opportunities for market expansion. Moreover, the growing adoption of CHP systems by government offices, military installations, and educational institutions across the U.S. is expected to further drive market growth, positioning CHP systems as a viable solution for energy needs in these sectors.

Key Questions Answered in the Report:

• What are the primary drivers behind the growth of the U.S. CHP system for data center market?
• Which end-user segments, such as institutional or healthcare, are expected to perform better during the forecast period?
• How are government policies and tax incentives influencing the adoption of CHP systems?
• What challenges are likely to impact the growth of the healthcare segment in the market?
• What are the emerging trends and future outlooks for the U.S. CHP system market?

Competitive Intelligence and Business Strategy:

Leading players in the U.S. CHP system for data centers market are focusing on technological innovations, expanding their product offerings, and leveraging tax incentives to strengthen their market positions. These companies are investing in energy-efficient systems and sustainability-focused solutions to meet the growing demand from institutional users. Key partnerships with governmental and educational organizations are also playing a critical role in driving market expansion.

Key Companies Profiled:

• General Electric Company
• Caterpillar Inc.
• Clarke Energy Ltd.
• YANMAR America Corporation
• Kinsley Group
• Dresser-Rand Group, Inc.
• Burns & McDonnell Inc.
• Veolia Energy North America, LLC
• Unison Energy, LLC.
• IEM Power Systems, Inc.
• Dynamic Energy Solutions LLC
• Others

U.S. Combined Heat and Power Systems Market Segmentation

By Facility Size:

• Less Than 100 sq. ft.
• 100-999 sq. ft.
• 1,000-1,999 sq. ft.
• 2,000-20,000 sq. ft.
• 20,000 sq. ft.

By End Use:

• Institutional
• Commercial
• Healthcare

By Application:

• Telecoms
• ISP (Internet Service Providers)
• Colos (Colocation Data Centers)
• Server Farms
• Corporate Data Center
• University/Laboratories
• Others

By Installation Type:

• Retrofit Systems
• Newly Installed Systems

By Region

• China
• India
• Japan
• ASEAN Countries
• Australia & New Zealand
• Rest of Asia Pacific