Combined Heat And Power (CHP) Market Research Report-Forecast to 2030

Combined Heat and Power Market/ CHP Market Information Report By Fuel (Natural Gas, Coal, Biomass and Others), By Technology, (Combined Cycle, Steam Turbine, Gas Turbine and Others), By Type (Large Scale and Small Scale), By Application (Residential, Commercial and Industrial) and By Regions - Global Forecast to 2030

ID: MRFR/E&P/2970-HCR | February 2021 | Region: Global | 188 pages

Combined Heat and Power Market Overview


Combined Heat and Power Market is projected to be worth USD 51.26 billion by 2030, registering a CAGR of 6.83% during the forecast period (2022 to 2030), the market was valued at USD 27.74 billion in 2021.


Combined Heat and Power (CHP) generates heat and electricity in a single process. It is referred to as cogeneration. By burning various fuels like oil, natural gases, and biofuels, this method is processed. This method represents a series of reliable and cost-effective technologies to meet the global heat and electricity demand.


Combined Heat and Power (CHP) plants are adopted by various end-users for their benefits like reducing transportation and distribution losses, improving the performance of electricity transmission and distribution networks. This plant also acts as an energy multiplier, helps to cut reduce carbon emissions, rise power reliability and save money. For further development and enhancement of the power plants, this technology is used.


COVID-19 Analysis:


The COVID-19 pandemic is drastically impacted the demand for energy from the residential, commercial, and industrial sectors. Worldwide, the majority of the countries like the US, UK, China, and India have imposed lockdown restrictions, halting various industrial projects, and shutting down manufacturing operations, results in disruptions of supply chains and business operations lead to a decline in the energy demand. According to the report of the International Energy Agency (IEA), globally, the energy demand is decreased by 6% in 2020, which is approximately seven times the decline during the global recession of 2008. Moreover, there has been a decline in energy in the US by 9% and European region by 11%.


The combined heat and power (CHP) market is severely impacted. Moreover, most of the CHP manufacturers and suppliers are facing challenges due to supply chain disruptions, lack of workers, production halts, and cash flow constraints. Hence the COVID-19 pandemic results in a large number of financial losses for the market. However, the demand for CHP is rapidly increased by the lifting of lockdowns by the governments. It is expected to grow at a significant rate in the coming years.


Competitive Landscape


The prominent key players in the combined heat and power (CHP) market outlook are the following:                                                                                                                                                                                



  • MAN Diesel & Turbo SE (Germany)

  • Caterpillar Inc (U.S)

  • Mitsubishi Heavy Industries Limited (Japan)

  • General Electric (U.S)

  • Cummins (U.S)

  • Bosch Thermotechnology Limited (U.K)

  • ABB Limited (Switzerland)

  • ENER-G Rudox (U.S)

  • Veolia (France)

  • others.


Recent Developments



  • In April 2018, the top key player, GE took an agreement with Green Tech for supplying 21 Jenbacher gas engines for CHP generation in various industries like Russian food & beverages, agriculture, glass, and chemical processes industries. These engines deliver with a capacity of 26MW.

  • In February 2018, in Indiana US, the top brand 2G-Energy installed a new 600kW CHP plant at the KB Speciality Foods facility. This plant can help the environment by utilizing the biogas produced from waste food in the plant and convert it into electrical and thermal power.

  • In January 2018, in Scotland, UK, the great vendor, Veolia installed an innovative CHP plant for Seafield WWTP. In 2017, it is expected that this plant is going to generate its energy from 55% to about 85% by spurring the renewable energy produced from the combination anaerobic digestion of sludge and biogas-fired CHP plants.


Market Dynamics:


Drivers:


The combined heat and power (CHP) has various advantages like reducing the manufacturing process costs by reducing redundant energy consumption. By utilizing the waste resources, energy can be resourced. The deployment of combined heat and power (CHP) technologies, growing the use of government incentives for promoting cogeneration, and the need for energy efficiency are the factors driving the growth of the global combined heat and power market. Governments related to different regions are promoting combined heat and power (CHP) technology through various favorable long-term policies and financial incentives which boost the combined heat and power (CHP) market growth during the assessment period. Moreover, the presence of a large number of companies that provide CHP installation services is accelerating the growth of the market.


Restraint:


High initial capital costs are required for the installation of combined heat and power (CHP) plant. This CHP plant requires additional equipment like absorption chillers, heat exchangers, boilers, and other equipment. The price of the CHP plant is equal to 240% of the cost of a power generation plant with the same capacity and prime mover which is hindering the market growth. Due to the complex assembly of the system that includes different components. The maintenance of these components required high efficiency which increases the overall cost of the system. The Combined Heat and Power (CHP) is used in only a need of both electricity and hot water on site is restricting the growth of the market.


Opportunities:


Growing power reliability and saving money are boosting market growth.


Challenges:


Growing demand for renewable power generation like solar and wind energy acts as the challenge of the market growth. Stringent rules for emission in North America and Europe have spurred the installation of CHP systems for gaining energy efficiency and lower emissions leads to the rapid growth of renewable energy.


Study Objectives -




  • To provide detailed information about the CHP market structure along with various forecast segments and sub-segments for the next 10 years.




  • To provide the factors that are affecting the growth of the CHP market value.




  • To analyze the CHP market industry analysis based on porter’s five force analysis, factors-price analysis, supply chain analysis, etc.




  • To provide history and forecast revenue segments and sub-segments of the combined heat and power market revenue for the main geographies.




  • To provide the country-level analysis of the current CHP market size and future prospective. 




  • To provide country-level analysis of the CHP market industry growth by region, form, and application.




  • To provide a strategic profile of the prominent key players in the market, analyze their core competencies, and draw a global CHP market growth landscape.




  • To track and analyze new product developments, strategic alliances, and global CHP market research.




Segment Overview:


The global market has been divided into segments based on the type, fuel, technology, application, and region.


Based on Type


The global market based on type is bifurcated into large scale and small scale. Among them, large-scale CHPs are adopted by industries and small-scale CHPs in both residential and commercial areas.


Based on Fuel


The global market based on fuel is classified into a few types such as natural gas, coal, biomass, and others. Out of these segments, the natural gas segment is the fastest-growing segment due to the increasing share of natural gas in the energy mix in the Asia-Pacific region, majorly in China. The shale gas boom In the US contributed to the rise in the natural gas-fired power generation in North America which propels the market growth in this region. When compared to other fuels natural gas is cheaper.


Based on Technology


By technology, the global market is categorized into few types as a combined cycle, steam turbine, gas turbine, and others.


Based on Application


The global market by application is trifurcated into residential, commercial, and industrial. Out of these segments, the industrial segment is dominating the largest market share due to the rising need for power.


Based on Region


Region-wise, the global combined heat, and power (CHP) market are divided into four main geographies such as Europe, North America, Asia-Pacific, and the Rest of the World. Among them, Europe is holding the largest market share due to the presence of the largest cogeneration power plants in the world and is expected to continue its dominance in the review period.


Regional Analysis -


Geographically, the combined heat and power market based on regions is classified into four major regions like Europe, Asia-Pacific, North America, and the Rest of the World. Due to the presence of the largest cogeneration power plants in the world, Europe is dominating the largest combined heat and power (CHP) market share. Availability of natural gas in Europe is very easy which makes installation easier and cost-effective. Due to the innovations and manufacturing centers in Germany, the Netherlands, and the U.K, Europe is considered to be a global leader in the micro-CHP engine which is boosting the demand for CHP installations in emerging countries like Belgium, Germany, Italy, and the Netherlands.


Apart from this, increasing demand for small-scale CHPs in Japan along with their growing installation across diverse industries is spurring the demand for the combined heat and power (CHP) in this region.  For the development of green technology, the Japanese government provides subsidies. The demand for small-scale CHPs for both residential and commercial purposes leads to an increase in the market’s growth in this region. The growing installation of CHP systems in developing nations like India, South Korea, and China will raise the demand for large-scale CHP systems during the review period.


Report Overview:


This global combined heat and power (CHP) market research includes the Market Overview, COVID-19 analysis, Market Dynamics, Study Objectives, Segment Overview, Regional Analysis, Competitive Landscape, Recent developments, Segmentation Table, and FAQs. The market scenario includes the combined heat and power (CHP) market drivers, restraints, challenges, and opportunities. The CHP market forecast segments are the type, fuel, technology, application, and region.


Segmentation Table


The combined heat and power market trends have been segmented globally based on the type, fuel, technology, application,  and region.


By Type


Large scale and small scale.


By Fuel


Natural gas, coal, biomass, and others.


By Technology


Steam turbine, combined cycle, gas turbine, and others.


By Application


Residential, commercial, and industrial.


By Region


Asia-Pacific, Europe, North America, and the rest of the world are the four main geographies included in the combined heat and power market.



Report Scope:
Report Attribute/Metric Details
  Market Size   2030: USD 51.26 billion
  CAGR   6.83% CAGR (2022-2030)
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Fuel, Technology, Type and Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   MAN Diesel & Turbo SE (Germany), Caterpillar Inc.(U.S.), Mitsubishi heavy Industries ltd.(Japan), General Electric (U.S.), Cummins(U.S.), Bosch Thermotechnology Ltd.( U.K),ABB Limited(Switzerland ), ENER-G Rudox (U.S.), Veolia (France )
  Key Market Opportunities   Increased power reliability and save money
  Key Market Drivers

  • Need for energy efficiency
  • Increasing use of government incentives to promote cogeneration


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    Frequently Asked Questions (FAQ) :


    The technology is effective in industries that require both electricity and hot water on site. It is supposed to influence the growth of the market greatly.

    6.83% CAGR is expected for the market between 2017 and 2023

    The technology-based segments of the market are - combined cycle, gas turbine, steam turbine, and others.

    The easy availability of natural gas makes the installation of CHP cost-effective. This, in turn, is expected to lead the expansion of the market in Europe.

    Mitsubishi Heavy Industries Ltd.(Japan), Bosch Thermotechnology Ltd. (U.K), and ABB Limited(Switzerland) are few of the key players from Europe and Asia Pacific.