Combined Heat and Power Market Size - Global Industry Share, Analysis, Trends and Forecast 2022 - 2030

The Global Combined Heat and Power (CHP) Market Size Accounted for USD 19,756 Million in 2021 and is predicted to be worth USD 33,801 Million by 2030, with a CAGR of 6.3% during the Forthcoming Period from 2022 to 2030.

Rapid industrialization in developed and developing countries, increasing manufacturing process and production units in order to cater the ongoing demand for products, high government spending on development of present infrastructure related to electricity generation are some major factors expected to drive the growth of the global combined heat and power market. There is high cost associated to electricity generation and the government is focused on development alternate source of electricity generation. The combined heat and power (CHP) tend to be a better solution for electricity generation due to energy efficiency.

Global Combined Heat and Power Market DRO’s

Market Drivers

• Increasing government incentives and programs to promote CHP
• Significant advantages of CHP systems in wastewater treatment centers
• the increase in natural gas use for power production
• Reducing reliance on traditional coal-fired power plants

Market Restraints

• Higher costs for CHP system installation and upkeep
• Growing concerns over stable liquefied natural gas for CHP systems

Market Opportunities

• The continue rising in the deployment of micro-CHP mechanisms
• Growing trend of distributed power generation is opening up enormous opportunities for the gas turbine-based CHP market

Combined Heat and Power Market Report Coverage:

Combined Heat and Power Market Dynamics

Various advantages associated to combined heat and power such as high reliability, economical and environment friendly this is another factor resulting in inclination toward adoption of combined heat and power further supporting the growth of target market. CHP reduces emission of greenhouse gases and other pollution. Natural Gas, Biogas/Biomass, etc. are some major fuel used for energy generation as during the process less fuel is burned and distribution losses are avoided.

In addition, collaborative work between public and private players is another factor expected to impact the growth of target market positively.

• In 2018, Hong Kong & China Gas Company jointly with the hospital initiated a project for development of CHP electricity generation. The project was focused on using landfill gas from the North East New Territories (NENT) landfill as fuel in order to generate electricity as well as steam and hot water for various hospital systems and facilities. The Hong Kong & China Gas Company constructed a 19 km, 400mm diameter pipeline from NENT landfill site with a 600-metre branch pipeline to supply methane the CHP plant.

However, factors such as high initial investment and cost associated to products related to electricity generation are expected to hamper the growth of target market. In addition, inclination towards renewable power generation is expected to challenge the growth of target market.

Technological advancements by the major players, high investment for product development and introduction of cost effective products are factors responsible to create new opportunities for players over the forecast period. In addition, business development activities through strategic merger and acquisitions are expected to further support the revenue traction of target market.

• In 2019, Clarke Energy acquired Co-Energy America a Boston-based combined heat and power (CHP) solutions provider specializing in the design, manufacture, installation and maintenance of gas engine CHP systems. This acquisition is expected to help the company in packaging and assembly capability for the US market.

Combined Heat and Power Market Segmentation

The global combined heat and power market segmentation is based on the capacity, fuel, technology, end use, and geographical region.

Market by Capacity

• Up to 10 MW
• 10 MW to 150 MW
• 150 MW to 300 MW
• Above 300 MW

Based on capacity, the Up to 10 MW segment is anticipated to witness the fastest-growing section of the CHP market throughout the projected period. The popularity of CHPs in this capacity fragment comes primarily from industrial, residential, as well as commercial end users.

Market by Fuel

• Natural Gas
• Coal
• Biomass
• Others

In terms of fuel, the natural gas-based CHP segment held a sizable market share in 2021. Natural gas properties such as ease of transportation and configuration, as well as a lower environmental impact, have increased sales demand for natural gas-based combined heat and power system applications.

Market by Technology

• Gas Turbine
• Steam Turbine
• Reciprocating Engine
• Fuel Cell
• Microturbine

According to the combined heat and power market forecast, the fuel cell segment is expected to have a significant share of the market over the forthcoming period. The fuel cell is a revolutionary power generation innovation that utilizes the chemical-based energy in a fuel that is effectively transformed into electricity without the need for a combustion reaction. The fuel cell tends to generate electricity, water, and heat as byproducts, making it a relatively clean technique than some other main forces for electrical generation.

Market by End Use

• Residential
• Commercial
• Industrial

Combined Heat and Power Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Mexico
• Brazil
• Rest of Latin America

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

The Middle East & Africa (MEA)

• Gulf Cooperation Council (GCC)
• South Africa
• Rest of the Middle East & Africa