[196 Pages Report] The Combined Heat & Power Market size was estimated at USD 27.65 billion in 2023 and expected to reach USD 29.28 billion in 2024, at a CAGR 5.96% to reach USD 41.50 billion by 2030.
The combined heat & power (CHP) systems produce electricity and useful thermal energy in an integrated process. CHP installations provide more efficient fuel by capturing and utilizing heat typically wasted during electricity generation, turning it into thermal energy for heating or cooling applications. These systems substantially improve overall efficiency and reduce greenhouse gas emissions by capturing excess heat generated during power production and utilizing it for heating. Micro CHP boilers create heat for spaces and hot water and produce electricity for residential use. Modern CHP systems can utilize a variety of fuels, including natural gas, biomass, biogas, coal, oil, and even solar or geothermal energy. Moreover, there is an increasing demand for energy efficiency, a rising emphasis on reducing greenhouse gas emissions, and supportive government policies that enhance the adoption of CHP systems. However, high initial capital investment costs and lengthy payback periods due to fluctuating fuel prices significantly impede the adoption of combined heat & power systems. In addition, the growing trend toward distributed energy generation has opened up opportunities for smaller-scale CHP installations in commercial buildings, hospitals, universities, and residential complexes across the United States. Technological advancements in CHP system components have improved performance and reduced installation costs, making them more attractive to potential end-users.
Product: Increasing use of large-scale systems due to their higher capacity and efficiency levels
Large Scale CHP systems are designed to meet the needs of larger facilities such as industrial plants, large hospitals, and campuses, and are able to generate electricity and thermal energy in a single, integrated system, significantly improving energy efficiency and reducing greenhouse gas emissions compared to separate heat and power generation. Large Scale CHP systems typically have capacities above 5 MW. Small & micro scale CHP systems are suited for smaller applications such as residential buildings, small businesses, and community housing projects. These systems often have capacities below 5 MW, with micro-scale installations falling below 50 kW.
Application: Widening applications in the industrial sector due to high energy demands
Commercial establishments such as hotels, hospitals, data centers, and large office buildings are increasingly integrating CHP systems due to a keen interest in sustainable energy practices and a commitment to minimizing carbon footprints. CHP systems deliver critical heating, cooling, and reliable electricity. The industrial sector, characterized by its substantial energy requirements, is adopting CHP solutions across manufacturing facilities’ chemical and food processing plants. In the industrial sector, the systems accentuate energy efficiency, support machinery operation, and trim down environmental impact, echoing the industrial focus on sustainability and waste reduction. Smaller-scale CHP systems are becoming preferable for homes and residential complexes, offering a dual benefit of heat and power from a single fuel source, lowering utility expenses and reducing emissions compared to traditional systems due to advancements in CHP technology, making it an attractive option for homeowners and developers alike.
Regional Insights
In the Americas region, the combined heat and power (CHP) market has grown steadily over the past few decades owing to the increasing demand for energy-efficiency power system production and growing American policymakers, which enhance the adoption of CHP systems. The United States Department of Energy (DOE) actively supports CHP deployment through various policies, incentives, and research programs to improve system efficiency and reduce emissions in multiple states, including California, Texas, Florida, and Ohio. In January 2023, the Canada Renewable Energy Association announced that Canada has an installed capacity of more than 19 gigawatts (GW) of utility-scale wind and solar power, adding more than 1.8 GW of new generation capacity in 2022. Moreover, the Environmental Protection Agency (EPA) promotes using combined heat and power systems more effectively to achieve cost-effective emissions reductions by increasing the region’s energy supply efficiency. Distributed generation systems, primarily combined heat and power generators to provide electricity during power outages, quickly gained acceptance in the South American market. Several countries, including Argentina, Chile, and Brazil, are adopting new regulations to allow small generators to attach directly to the distribution grid and sell their surplus power back into the grid. In Argentina, federal law 27424 established a national framework for promoting distributed renewable energy generation connected to the grid. This law aims to set the policies and establish the legal and contractual conditions for generating electric power from renewable sources. In Brazil, the installed capacity of distributed systems has surged to 1.2 GW through 101,761 projects in 2019 and is expected to reach 12 GW by 2027. The regional market players, including General Electric Company, Caterpillar Inc., Cummins Inc., and FuelCell Energy, Inc., focus on acquisition and collaboration activities to provide customers with low greenhouse gas emissions products and technology. The emergence of novel combined heat and power technologies to produce thermal and electric energies to meet the growing energy demand is anticipated to foster the combined heat and power market in the Americas region.
FPNV Positioning Matrix
The FPNV Positioning Matrix is pivotal in evaluating the Combined Heat & Power Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Combined Heat & Power Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Key Company Profiles
The report delves into recent significant developments in the Combined Heat & Power Market, highlighting leading vendors and their innovative profiles. These include 2G Energy AG, ABB Ltd., Alfa Laval AB, ATCO Ltd., Axiom Energy Group, LLC, BDR Thermea Group B.V., Cain Industries, Capstone Green Energy Corporation, Caterpillar Inc., Centrica PLC, Clarke Energy Limited by Kohler Co., Cummins Inc., Curtis Power Solutions, LLC by Indel Power Group Company, Enexor Energy LLC, FuelCell Energy, Inc., General Electric Company, MAN Energy Solutions SE, Mitsubishi Heavy Industries, Ltd., Ricardo PLC, Robert Bosch GmbH, Rolls-Royce PLC, Schneider Electric SE, Siemens AG, Tecogen, Inc., Veolia Environnement SA, Viessmann Werke GmbH & Co. KG, W?rtsil? Corporation, and Yanmar Holdings Co., Ltd..
Market Segmentation & Coverage
This research report categorizes the Combined Heat & Power Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Product
- Large Scale
- Small & Micro Scale
- Technology
- Fuel Cells
- Gas Turbine
- Micro CHP
- Spark Ignition Reciprocating Engine
- Steam Turbine
- Fuel
- Biomass
- Coal
- Gasoline
- Natural Gas
- Range
- 100-200kw
- 20-100kW
- 200-500kw
- <20kW
- >500kw
- Utility
- On-demand
- Permanent
- Application
- Commercial
- Industries
- Residential
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
The report offers valuable insights on the following aspects:
- Market Penetration: It presents comprehensive information on the market provided by key players.
- Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
- Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
- Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
- Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.
The report addresses key questions such as:
- What is the market size and forecast of the Combined Heat & Power Market?
- Which products, segments, applications, and areas should one consider investing in over the forecast period in the Combined Heat & Power Market?
- What are the technology trends and regulatory frameworks in the Combined Heat & Power Market?
- What is the market share of the leading vendors in the Combined Heat & Power Market?
- Which modes and strategic moves are suitable for entering the Combined Heat & Power Market?
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