Year | Value |
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2023 | USD 23.53 Billion |
2032 | USD 35.9 Billion |
CAGR (2024-2032) | 4.81 % |
Note – Market size depicts the revenue generated over the financial year
Combined heat and power is a system for supplying heat and power in the same machine. The system is being developed rapidly as a result of the growing need for sustainable energy and the rising cost of energy from conventional sources. In order to reduce the energy consumption of companies and local governments, the system has become a good option, because it produces electricity and usable heat from the same energy source, thereby improving energy efficiency. The development of technology, the incentives of the government for the use of renewable energy and the increasing demand for energy security are driving the development of the combined heat and power market. The integration of renewable energy and the improvement of the efficiency of the system make combined heat and power more attractive for a wider range of applications. The major players in the market, such as GE, Siemens and Mitsubishi Heavy Industries, are investing heavily in R & D, entering into strategic alliances and launching new products to expand their market share. In recent years, there have been many joint efforts to develop hybrid CHP systems that use solar and wind energy.
Regional Market Size
The Combined Heat and Power (CHP) market is experiencing significant growth across various regions, driven by the growing need for energy efficiency and a need for sustainable development. In North America, Europe, Asia-Pacific, the Middle East and Africa (MEA), and Latin America, the market is largely influenced by the regulatory framework, technological developments, and the growing demand for clean and renewable energy. Each region has its own characteristics, such as the degree of government support, industrial applications, and cultural attitudes towards energy consumption, which together determine the market potential.
“Did you know that CHP systems can achieve overall energy efficiencies of up to 80% or more, compared to traditional systems that typically operate at around 50% efficiency?” — U.S. Department of Energy
The CHP sector plays a key role in enhancing energy efficiency and reducing the emissions of greenhouse gases in various industries. This sector is currently experiencing stable growth, mainly due to rising energy prices and the global drive for sustainability. Demand is also being driven by the need for reliable energy supplies in view of the fluctuations in energy prices. In terms of the CHP systems that are currently being adopted, the United Kingdom and Germany are presently leading the way. The leading companies in this field are the likes of Siemens and General Electric. CHP systems are currently used mainly in the district heating sector, in industrial processes and in large commercial buildings. In the future, CHP systems will be used in the likes of hospitals, schools, and in the transport sector, for example, in combination with microgrids.
The combined heat and power (CHP) market is expected to grow substantially from 2023 to 2032, with a CAGR of 4.81%. The world's energy efficiency and environmental awareness are increasing, and the industry and the government are seeking to reduce carbon emissions and optimize energy use. CHP will become an increasingly important energy source by 2032, with a penetration rate of up to 15% in the industrial field and a penetration rate of up to 10% in the commercial field, driven by the improvement of the policy environment and the development of technology. The smart grid is also an important driver for the development of the market. The government is also implementing policies to incentivize the use of CHP systems, such as tax deductions and subsidies, which will also drive market growth. CHP technology is also expected to be developed further, such as the improvement of efficiency and the integration of heat recovery systems, which will further increase the appeal of CHP solutions. The development of decentralized energy and the rise of micro-grids will also play an important role in the future development of the CHP market.
Covered Aspects:Report Attribute/Metric | Details |
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Market Size Value In 2023 | USD 30.40 Billion |
Growth Rate | (2022-2030 |
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