Report Details:
15 Companies Covered
188 Pages
Market Research Future (MRFR) has published a cooked research report on the “Combined Heat and Power (CHP) Market” that contains information from 2019 to 2035.
The Combined Heat and Power (CHP) Market is estimated to register a CAGR of 4.50% during the forecast period of 2025 to 2035.
MRFR recognizes the following companies as the key players in the Global Combined Heat and Power (CHP) Market: General Electric, Enertime, Siemens, Cummins, Mitsubishi Heavy Industries, Ricardo, Bosch, E.ON, Engie, ABB, Veolia, United Technologies Corporation, Caterpillar, MAN Energy Solutions, and Schneider Electric.
Combined Heat and Power Market Highlights
The Combined Heat and Power (CHP) Market is expected to register a CAGR of 4.50% during the forecast period and is estimated to reach USD 52.24 Billion by 2035, from USD 32.19 Billion in 2024.
The need for energy efficiency, government support, and rapidly changing technologies continues to spur market growth. CHP systems achieve over 80% efficiency, which is a notable differential compared to traditional power generation systems, because they generate electricity and useful thermal energy simultaneously. The market is further enhanced by the growing appreciation of the need to sustain the environment and the reduction of carbon footprints as municipalities and industries strive to optimize energy use and cut energy-related emissions.
Decentralized energy generation, coupled with the growing integration of renewables, has enhanced the scope of CHP systems within a broader range of industrial and commercial uses. In addition, engine design improvements and the introduction of more methodical fuel management and remote digital control systems have increased system dependability and reduced operational costs, thus improving the attractiveness of CHP systems for energy sustainability. The increased use of government-sponsored initiatives, particularly in developing economies, is propelling further market adoption.
Segment Analysis
The Combined Heat and Power (CHP) Market has been segmented based on Technology, Fuel Type, End Use, Capacity, and Region.
By Technology: Internal Combustion Engine (ICE), Gas Turbine, Steam Turbine, Microturbine, and Fuel Cell.
The Internal Combustion Engine (ICE) segment dominates the market, valued at USD 8.23 Billion in 2023 and projected to reach USD 12.58 Billion by 2032, owing to its versatility and widespread industrial adoption. Gas Turbines and Fuel Cells are witnessing increased demand due to their adaptability to large-scale and clean energy generation.
By Fuel Type: Natural Gas, Biomass, Coal, Waste Heat, and Oil.
Natural Gas remains the leading fuel source due to its high efficiency and lower emissions profile. The Biomass segment is gaining traction as a renewable option, aligning with sustainability initiatives worldwide.
By End Use: Industrial, Residential, Commercial, and Institutional.
The Industrial sector dominates the market, driven by continuous power needs and operational efficiency demands. The Commercial and Institutional sectors are expanding due to energy reliability and cost-saving benefits.
By Capacity: Below 100 kW, 100 kW–1 MW, 1 MW–10 MW, and Above 10 MW.
Systems in the 1 MW–10 MW range are anticipated to hold the largest share, ideal for industrial and utility-scale operations seeking high energy output and efficiency.
Regional Analysis
By Region, the Combined Heat and Power (CHP) Market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.
North America holds a significant market share, valued at USD 8.12 Billion in 2023, and is expected to reach USD 12.55 Billion by 2032, driven by the presence of advanced technologies and supportive government policies.
Europe follows with USD 6.3 Billion in 2023, projected to reach USD 9.62 Billion, underpinned by stringent carbon reduction mandates and increasing cogeneration adoption.
Asia-Pacific is the fastest-growing region, with a market value of USD 5.0 Billion in 2023, expected to reach USD 7.52 Billion by 2032, fueled by industrial expansion and urbanization in countries like China, India, and Japan.
South America and the Middle East & Africa are emerging markets, showing rising interest in energy-efficient technologies supported by infrastructure development and sustainability initiatives.
Key Findings of the Study
The Global Combined Heat and Power (CHP) Market is expected to reach USD 52.24 Billion by 2035, at a CAGR of 4.50% during the forecast period.
North America accounted for the largest market share in 2024, followed by Europe.
Based on Technology, the Internal Combustion Engine (ICE) segment held the largest share in 2024.
Based on Fuel Type, the Natural Gas segment dominated the market in 2024.
Based on End Use, the Industrial sector was attributed to holding the largest market share in 2024.
General Electric, Siemens, Cummins, Mitsubishi Heavy Industries, Bosch, and Caterpillar are identified as the key market players driving innovation and market expansion.
Industry Developments
- April 2024: General Electric announced advancements in its gas turbine portfolio to enhance CHP system efficiency and reduce emissions.
- February 2024: Siemens Energy introduced next-generation CHP systems integrated with renewable energy platforms to support carbon-neutral power generation.
- March 2024: Mitsubishi Heavy Industries partnered with Engie to deploy decentralized CHP plants in Europe aimed at reducing industrial carbon footprints.
- May 2024: Cummins Inc. launched a new range of low-emission CHP engines designed for commercial and industrial facilities.
- June 2024: Bosch and ABB collaborated to enhance digitalization and remote monitoring of CHP systems to improve operational efficiency.
Future Outlook
From technological advancements to newly introduced decarbonization targets and increasing energy efficiency mandates worldwide, the Global Combined Heat and Power (CHP) Market is anticipated to experience continuous growth until 2035.
Key opportunities include:
- Investing in innovative Combined Heat and Power Systems for high-efficiency energy generation.
- Achieving greater synergy with renewables and smart integrated grid technologies.
- Growth within the industrial and commercial sectors is in search of affordable and sustainable energy alternatives.
- The market building for Combined Heat and Power Systems, in addition to efforts directed to global sustainability and energy transition, will be impressive in the Build Out 2035 timeframe.
Report Link- https://www.marketresearchfuture.com/reports/combined-heat-power-market-4361